alexander consulting enterprise 9/3/2015 cultural environment of global markets

Alexander Consulting EnterpriseAlexander Consulting Enterprise 04/19/2304/19/23

Cultural Environmentof Global Markets


One's own culture provides the lens through which we view and bringinto focus our world; the logic (known as common sense) by which weorder it: the grammar by which it makes sense. Above all, our cultureprovides ways of seeing, thinking, and feeling about the world which inessence define normality for us - the ways things are and the way thingsought to be. (Avruch)

What is Culture?


Characteristics of Cultures

- Shared

- Learned

- Patterned

- Flexible


Elements of Culture

1. Cultural Paradigm- Beliefs- Religion- Superstition

2. Material Culture- Technology- Economy

3. Language

4. Social Institutions- Legal System- Political System- Educational System- Role of Family- Role of Sexes

5. Aesthetics- Graphic Arts- Musical Arts- Culinary Arts


Comparison of Learning Techniques in Germany and Brazil

Germanic Culture Latin Culture

Syllabic Method

Schild + krö + te = Schildkröte

Method based on relationship between meaning and object

Tortuga

Tortuga

Tortuga

Tortuga

Hans hat eine Schildkröte


Hofstede’s Dimensions to Compare Cultures

- Individualism versus Collectivism

- Power Distance

- Uncertainty Avoidance

-Long Term versus Short Term Thinking

- Masculine versus Feminine


AUL AustraliaAUT AustriaBEL BelgiumCAN CanadaDEN DenmarkFIN FinlandFRA FranceGER GermanyGBR Great BritainIRE IrelandISR IsraelITA ItalyNET NetherlandsNZL New ZealandNOR NorwaySAF South AfricaSPA SpainSWE SwedenSWI SwitzerlandUSA United States

Power DistanceH

igh

In

div

idu

alis

m

53

91

71

Small power distance Large power distance

•SPA

•SAF

•FRA

•BEL•ITA

•AUT•ISR

•FIN

•GER•NOR•SWI

•SWE•IRE

•DEN

•NZL •CAN•NET

•GBR

USA•

AUL•+11 +28 +44 +64 +77 +94

Low

In

div

idu

alis

m

Ind

ivid

uali

smIndividualism and Power Distance


Hofstede’s Classification of Triad Countries

Hofstede’s Classification of Triad Countries

Japan North America W. Europe(Canada, USA, Great Britain) Northern Continent

Individualism low high high low

Powerdistance

high low low high

Masculinity high high low high

Risktolerance

low high high low

Context high low high low

Japan North America W. Europe(Canada, USA, Great Britain) Northern Continent

Individualism low high high low

Powerdistance

high low low high

Masculinity high high low high

Risktolerance

low high high low

Context high low high low


Linguistic Distance

- Language and Culture are Interwoven

- Whorfian Hypothesis: Language Structures Cultural Reality

- Cultural Differences and Language Distance are Positively Correlated


High Context Implicit

Japanese

ArabianLatin American

Spanish

Italian

English (UK)French

North American

ScandinavianGerman

Swiss

Low Context Explicit

Austrian

High Context Versus Low Context Cultures


Non-verbal Communication

Language of Time

Language of Space

Language of Things

Language of Friendship

Language of Agreements


Implications for International Marketers

1. Determine Cultural Values Relevant for Demand - What are the Needs of the Market?

- How Does Product/Promotion agree with important Elements of Culture?- Who makes Buying Decisions?- What are Important Reference Groups?

2. Determine Cultural Values Relevant for the Way Business is Conducted

- Behavior at the Negotiation Table- Management of Local Employees


How Does Product/Promotion agree with important Elements of Culture?

New Product

Cultural IncongruenceCultural Congruence

Adaptation Do Nothing Planned Change


3. Avoid Cultural Blunders- Common Blunders:

Translation Mistakes Do not Use Multiple Meaning Words Do not Insist on Literal Translation but Conceptual Equivalents Use Independent Back Translation

Cultural Misunderstandings Subcultural Idiosyncrasies

- Reasons for Blunders: Ethnocentrism Carelessness Quick Decisions Lack of Research


English Translations made by Japanese firm added to labels

to increase prestige for their products being sold in China.

Product English Translation

Equivalent to Japanese Spam Liver Putty

Toilet Paper My Fanny Brand

Ready to Eat Pancakes Strawberry Crap

Dessert

Antifreeze Spray Hot Piss Brand

Pediatrician’s Slogan Specialist in Deceased Children

Translation Blunders


Old New

Prime Time Heures de grande ecoute

(hours of largest audience)

Air Bag Coussin gonflable de protection

(Inflatable cushion of protection)

Cookie Sable americain

American cookie

Cultural Imperialism?

The French Government is afraid of cultural pollution. There is and ongoing discussion about introducing a law that would prohibit the use of foreign words.


Clear expression of joy and sorrow

Unequivocal expression of “Yes/No”

Strong self-assertion

Strong personality

Excellent negotiating skills

Priority of self-interest

Ambiguous expression of Joy/Sorrow

Equivocal expression of “Yes/No”

Weak self-assertion

Weak personality

Poor negotiating skills

Priority of harmony with others

JapaneseA Culture of Self-

restraint

AmericansA Culture of Self-

expression

Cultural Comparison: U.S. versus Japan


Dignity of individuals

Individual work ethic

Great individual freedom

Respect for rules

An open and transparent society

Multi-cultural society

A society excelling in creativity and versatility

Individual decisions over consensus

A society which pursues the ideal

Human relations oriented

Dependence on the group

Lack of individual freedom

Low regard for rules

A closed society, lacking in transparency

Mono-cultural society

An orderly and uniform society

Dependence on consensus

A society which pursues harmony with reality

Japanese Society“In the Same Boat” Concept

American SocietyDignity of Individuals



Game concept: Business is a game in pursuit of profits under the rules of laws and contracts

Efficiency-oriented and approximate accuracy simplicity, clarity, and quickness

Quantity-oriented

Short-term performance evaluation

Easy layoffs, dismissals of employees, and selling of businesses

Japanese BusinessAmerican Business

Mutual trust-oriented business: business is based on trusting relationship among people rather than the rules of game

Highly precision-oriented and perfectionism-high dependency on human awareness

Quality-oriented

Mid-to-long term evaluations

Job security



Top down management

Heavy dependence on machinery and technology, vs. Light dependence on human resources

Limited loyalty and incentive-oriented work ethics

Team Oriented

Heavy dependence on human resources

Strong loyalty and fewer incentives

Japanese BusinessAmerican Business


alexander consulting enterprise 9/3/2015 cultural environment of global markets

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