culture - mba 635 - summer term 2011
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CultureMary Ellen DeBardeleben
Eric Liddy Bradley NewcomerShelley Scarbrough
Katey Watkins
Culture
• What is culture?
Culture: acquired knowledge that people use to interpret experience and
generate social behavior
• Characteristics
• Importance of understanding culture
Hofstede’s Cultural Dimensions
• Power Distance
• Uncertainty Avoidance
• Individualism
• Masculinity
• Long term orientation (newest)
BRIC
Closer look
• Chinese and Arab culture
China
Chinese: Cultural Dimensions
Hofstede Scores- Power Distance
China80
USA40
World Avg.55
Chinese: Cultural Dimensions
Hofstede Scores- Uncertainty Avoidance
USA46
China40
World Avg.64
Chinese: Cultural Dimensions
Hofstede Scores- Masculinity
China66
USA62
World Avg.50
Chinese: Cultural Dimensions
Hofstede Scores: Individualism
USA91
China20
World Avg.64
Coca Cola Ads in China
However, its not always this straight forward….
• In 2005, McDonalds had to withdraw a TV commercial in Shanghais following complaints that images attacked Chinese people’s dignity.
• The commercial showed a man kneeling before the clerk and begging for a discount at a local store. It then shifted its focus to McDonalds with the message that McDonalds offered cheap meals all year-round and there was no need to beg for coupons or discounts.
• In Chinese culture, begging is humiliating and many felt the commercial was offensive.
The Arab World
The Arab World: Cultural Dimensions
The Arab World: Cultural Dimensions
Hofstede Scores- Power Distance
Arab World
80
USA40
World Avg.55
The Arab World: Cultural Dimensions
Hofstede Scores- Uncertainty Avoidance
USA46
The Arab World: Cultural Dimensions
Hofstede Scores- Masculinity
The Arab World: Cultural Dimensions
Hofstede Scores: Individualism
Arabic McDonalds Commercial
• http://www.youtube.com/watch?v=fYsLDhDRUeI&playnext=1&list=PL767ED543728A29AD
Arabic Coke Commercial- 1940’s
• http://www.youtube.com/watch?v=5QhmpOt5re0
Arabic Coke Commercial- Modern
• http://www.youtube.com/watch?v=lAYX6qOgqFI&feature=related
Quiz Time
Arab World Quiz Question
Poll: When formalizing a deal in the Middle Ea...
Questions
Resources
1. International Management; Culture, Strategy, and Behavior (Luthans and Doh), 7th edition.
2. http://www.cyborlink.com/besite/china.htm
3. http://www.geert-hofstede.com/geert_hofstede_resources.shtml
4. http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/power-distance-index/
5. http://affiliate-marketing-forums.5staraffiliateprograms.com/marketing-jokes-cartoons-yuk-up/1401-advertising-bloopers-blunders.html
6. http://www.ad.nccu.edu.tw/ad_research_web/pdf/025-1.pdf
7. http://myasiancanadian.blogspot.com/2005/06/mcdonalds-ad-pulled-from-chinese-tv.html
8. http://www.youtube.com/watch?v=5Ith7KvAESI
9. http://www.fas.org/irp/agency/army/arabculture.pdf
10. http://www.geert-hofstede.com/hofstede_arab_world.shtml
11. http://en.wikipedia.org/wiki/McArabia
12. http://www.youtube.com/watch?v=TVoVZx0ded8
Arab World Quiz Question
When formalizing a deal in the Middle East, it is imperative to:
1. Determine that the contract is iron clad with strict attention to jurisdictional issues of international law to secure a just outcome should there be conflict
2. Solidify the interpersonal trust relationship as this rapport is critical both during the deal and if conflict develops
3. Retain legal counsel in the country in which the business undertakings will primarily take place and ensure that this attorney has a golfing relationship with most members of the judiciary.