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3 -1 Chapter Three Cultural Foundations MKT 568 Global Marketing Management Dr. Fred Miller 3 -1 Chapter Three Cultural Foundations MKT 568 Global Marketing Management Dr. Fred Miller

Understanding Culture Academic approaches How are cultures organized? What do they value? History Anthropology Understanding Culture Academic approaches How are cultures organized? What do they value? History Anthropology Geography Humanities University Studies courses Professional/pragmatic approaches How should managers operate in multiple cultures? Social and professional values Social and professional behavior Intercultural communication and negotiation Multicultural interpersonal interaction International business, management, marketing courses

Sample Essay Question Schmidt’s has chosen to enter the Thai market and is preparing Sample Essay Question Schmidt’s has chosen to enter the Thai market and is preparing to send a delegation to Bangkok to negotiate a sales contract with the largest Thai mass merchandise retailer. You must prepare a briefing on intercultural communication for this team. Relative to Hofstede’s indexes, Thailand is classified as Feminine, Collectivist, Large Power Distance and High Uncertainty Avoidance. Select three topics from the Cultural Passport video and explain the importance for conducting international business. For each, describe the behavior patterns you would anticipate in Thailand based on the country’s Hofstede values. Explain your reasoning.

Culture Across Countries High vs low context cultures Silent languages Hofstede’s cultural dimensions Gannon’s Culture Across Countries High vs low context cultures Silent languages Hofstede’s cultural dimensions Gannon’s metaphors Rapaille’s Decoding Cultures

3 -2 High vs Low Context Cultures 3 -2 High vs Low Context Cultures

Hall’s Silent Languages Space Possessions Friendships Agreements Time Hall’s Silent Languages Space Possessions Friendships Agreements Time

3 -7 Gannon’s Metaphors 1. 2. 3. 4. 5. 6. 7. 8. 9. American 3 -7 Gannon’s Metaphors 1. 2. 3. 4. 5. 6. 7. 8. 9. American football: Individualism and competitive speculation; huddling; ceremonial celebration of perfection. The British house: Laying the foundations; building the brick house; living in the brick house. The German Symphony: 0 rchestra; conductors; performance society; education, and politics. The French wine: Purity; classification; composition; compatibility; maturation. The Italian family opera: Pageantry and spectacle; voice expression; chorus and soloists. The Swedish summer house: Love of nature; individualism through selfdevelopment; equality. The Japanese garden: Wa and shitaki, harmony and form; seishin, spirit of self-discipline; combining droplets. The Chinese family altar: Confucianism and Taoism; roundness, harmony and fluidity. India: cyclical Hindu philosophy: The cycle of life; the family cycle; the social cycle; the work cycle. Source: Martin Gannon, “Cultural Metaphors, ” Understanding Global Cultures, pp. v-vii, © 1994 by Martin Gannon. Reprinted by permission of Sage Publications.

44 11 Low Power Distance High 94 Hofstede Calculations and Matrix 8 56 Low 44 11 Low Power Distance High 94 Hofstede Calculations and Matrix 8 56 Low Uncertainty Avoidance 112 High

Hofstede Calculations Hofstede Calculations

- Power Distance and Individualism Scales Small Power Distance Large 12 • VEN • - Power Distance and Individualism Scales Small Power Distance Large 12 • VEN • PAK Collectivist • COL • TAI • PER • THA • GRE • HOK • YUG • MEX • PHI • TUR Individualism 50 • CHL • POR 30 • SIN • IRA • ARG • BRA • JAP • IND +11 +28 +44 Small power distance collectivist ARG BRA CHL COL GRE HOK IND IRA JAP MEX PAK PER PHI POR SIN TAI THA TUR VEN YUG Argentina Brazil Chile Columbia Greece Hong Kong India Iran Japan Mexico Pakistan Peru Philippines Portugal Singapore Taiwan Thailand Turkey Venezuela Yugoslavia +64 +77 +94 Large power distance Reprinted by permission of the author from Culture’s Consequences, collectivist published by Sage Publications. © 1990 by Gert Hofstede

Power Distance and Individualism Scales Power Distance Small Individualist 53 Individualism 71 • AUT Power Distance and Individualism Scales Power Distance Small Individualist 53 Individualism 71 • AUT • ISR Large • SPA • FIN • SAF • NOR • GER • SWI • IRE • SWE • DEN • NZL • CAN • NET • FRA • ITA • BEL AUT BEL CAN DEN FIN FRA GER GBR IRE ISR ITA NET NZL NOR SAF SPA SWE SWI USA Australia Austria Belgium Canada Denmark Finland France Germany Great Britain Ireland Israel Italy Netherlands New Zealand Norway South Africa Spain Sweden Switzerland United States • GBR AUL USA • +44 • +28 +64 +77 +94 91 +11 Small power distance Large power distance Reprinted by permission of the author from Culture’s Consequences, individualist published by Sage Publications. © 1990 by Gert Hofstede

Academic/Pragmatic Integration? In the Hofstede matrix using the IDV and PDI scales, how are Academic/Pragmatic Integration? In the Hofstede matrix using the IDV and PDI scales, how are each of the following groups of countries concentrated? What historical/cultural trends are consistent with these concentrations. Former British Empire countries Asian countries Latin American countries Northern European countries

Cross Cultural Management Managing in a cross cultural environment country cultural and business information Cross Cultural Management Managing in a cross cultural environment country cultural and business information culture and managerial skills managerial styles in the Triad culture and negotiations limits to adaptation

3 -8 Hofstede’s Classification of Triad Countries Exhibit 3. 4 Note: “Context” added. Source: 3 -8 Hofstede’s Classification of Triad Countries Exhibit 3. 4 Note: “Context” added. Source: Adapted from Hofstede, 1980

Cross Cultural Issues in Business Which of the following patterns of business behavior would Cross Cultural Issues in Business Which of the following patterns of business behavior would you expect in a Collectivist country with Large Power Distance? Decentralized organizations with autonomous units Centralized, hierarchical organizations Subordinates who expect exact instructions Multiple people and groups involved in decision making Concentration of decision making in top management Multi-track, manager to manager negotiating styles Division managers willing to make their own decisions

Cross Cultural Issues in Business Which of the following patterns of business behavior would Cross Cultural Issues in Business Which of the following patterns of business behavior would you expect in a Feminist country with Weak Uncertainty Avoidance? Willingness to undertake risky ventures Emphasis on reaching quantitative performance goals A zero sum approach to negotiations Concern for interpersonal environment of the firm Integration of professional and personal goals Reluctance to try new approaches A win-win approach to negotiations

3 -9 Four Stages of Business Negotiations Source: Adapted from John L. Graham, “A 3 -9 Four Stages of Business Negotiations Source: Adapted from John L. Graham, “A Hidden Cause of America’s Trade Deficit with Japan, ” Columbia Journal of World Business, Fall 1981. p. 14.

Cultural Passport Video Explain why each of the following components of the Cultural Passport Cultural Passport Video Explain why each of the following components of the Cultural Passport are important for success in international business. Greeting and addressing people Conversation Body language Sensitivity Table Manners Gender Awareness Negotiating styles Time Contracts Attitudes and Values

3 -1 Chapter Three Cultural Foundations MKT 568 Global Marketing Management Dr. Fred Miller 3 -1 Chapter Three Cultural Foundations MKT 568 Global Marketing Management Dr. Fred Miller