Unit 4 – Social and Cultural Environment of India

What is CULTURE? What impact does it have on business?“the collective programming of the mind

which distinguishes the members of one human group over another…

Culture, in this sense, includes systems of values; and values are among the building blocks of culture”

Know local culture to sell or market the product Build relationships while setting up business

(with employees as well as customers).Employ locals to gain cultural knowledge. Help employees understand you

Non-Verbal GesturesItaly – What exactly

do you mean?Greece – That’s just

perfectEgypt – Be patient

Salient features of Indian SocietyRich cultureReligiously diverseSocial HierarchyJoint Family – Nuclear familyNeo urban cultureCricket and bollywood

Dimensions of Cultural Diversity in India

•Language•Rural vs. Urban India•Rich vs. Poor•Geographical diversity•Liberal vs. Conservative

Class and Caste structure of Indian Society4 Varnas = JatiIn India, a caste system organizes division of

labour and money in human society. It is a system of social stratification and basis of affirmative action

Secularism in Indian Society No State Religion-Separation of State

and Religion, Peaceful co-existence of all religions, Treatment of all religions equally by

the State, Equality of opportunity in the public

field for all irrespective of caste or creed or race or religion ensuring equal citizenship,

Freedom of religion both individual and corporate

Rural and Urban Differences

Joint Family SystemIndia has had a prevailing tradition of the joint family

system. It is a system under which extended members of a family – parents, children, the children’s spouses and their offspring, etc. – live together. Usually, the oldest male member is the head in the joint Indian family system. He makes all important decisions and rules, and other family members abide by them.

Over the last 60 years, the cultural trend in most parts of India has been an accelerated change from joint family to nuclear families, much like population trends in other parts of the world.

Youth in lower socio-economic classes are more inclined to spend time with their families than their peers due to differing ideologies in rural and urban parenting.

Business Participation in Social and Cultural affairsSupport to cultural activities

Empowering artists and musiciansOrganizing exhibitions of contemporary paintingsSponsoring cultural programs through TVSangeet sammelan by ITC

Beauty in building designEarlier infrastructure was based on utilitarian conceptFactories now constructed keeping in mind aesthetic

values – industrial parks,gardens etcThis provides better quality of life to communityBetter Place for their childrenEncourages each employee’s own cultural growthImprovement of entire social system

Size and growth rate of populationHigh population growth rate implies increase in

labour supply. The falling birth rate and rising longevity will alter the age distribution in the population.

The changes in the age distribution have a lot of implications for the business. The pharmaceutical companies may pay attention to the requirements of the aged population. Increasing proportion of the aged would have implications for the government. It may increase the welfare burden of the governments.

Age structure of Population7-25 years - Study and focus on education (extreme

poverty can drive some to unfortunate child labor)

25-50 - Get married, raise a family and enjoy all that the world has to offer

50-75 - Retire and focus on spiritual pursuits and pilgrimages (People take pilgrimages to Varanasi, Mecca (Haj), Himalayas, Amritsar, focus on Meditation, Yoga)

75- end - Help take care of grandchildren and share your experiences with youngsters.

Demographic dividend and its impact on business and growthDemography studies how populations changes

overtime, in terms of size and structure.The demographic variables that affect business

are overall:- Size of the population- Age and sex of the population- Ethnicity and geographical distribution- Birth rate- Death rate- Net migration

Business and Culture : Religion, India is the birthplace of Hinduism, Buddhism, Jainism and Sikhism,

collectively known as Indian religions.[4] India is one of the most religiously diverse nations in the world, with some of the most deeply religious societies and cultures. Religion still plays a central and definitive role in the life of many of its people.

Religious beliefs , customs , sentiments etc have important implications for business

Religions play important role in deciding holiday and starting important work ventures

Influence attitude towards work and wealthRiba in KoranAstrological dates , festive and marriage season raises demandAutomobile spare part business dominated by Sikhs, money lending

by Chettiars in Tamil Nadu, Punjabi Restaurants – Punjabi By Nature, Spanish Restaurant – Imperfecto, Chinese Restaurant – Yo china ; Mainland China

Business and Culture : languageSwitzerland – 3 Languages – French , Italian ,

GermanIndia – 18 Recognized LanguagesFord- Truck Name – Fiera(Ugly old woman in

Spanish)Chevrolet Nova (Spanish Meaning – it doesn’t

go)Pat on shoulder offensive in Thailand

Business and Culture - OBCentralized vs Decentralized decision makingSafety vs RiskIndividual vs Group rewardInformal vs Formal ProcedureHigh vs low Orgaizational LoyaltyCooperation vs CompetitionShort term vs Long term HorizonStability vs Innovation

OB Differences

Other Socio Cultural FactorsConsumer Preferences Habits and Beliefs

Western: “The early bird gets the worm”Eastern:“The first bird in the flock gets shot”Nescafe – ¾ share in Mumbai Mkt , insignificant in ChennaiBicycles – Developing countries – Basic means of

transportationDeveloped countries – Means to stay fit and healthyFood habits, Juices, Coca ColaEtiquettesColor – WhiteRise in % of women workforce – double income, single

parent

Technological development and Social ChangeDevelopment of new techniques, new inventions reflect

changing knowledge , beliefs and norms and new standards of living

Women – Differentiated tasks, differentiated earnings, new home appliances

Transport, communication made suburbanization possibleFilms , TV Radio have become very helpful in transmission

and diffusion of information, Reduction of social distanceMore industrialized and materialistic society - severe

blow to casteismAC , dams – change in natural environmentAlso have adverse effects like pollution ; global warming

etc

The Indian TouchFordcars specially designed for Indian roads.•Electrolux'smade‐for‐India fridge–chill drinking

water, keeps food fresh & withstands long power cuts.

•Samsung–microwave oven with grill. •Nokialaunched a handset “Made for India”Nokia

1100.•McDonald’s McAlooTikkiBurger & Pizza McPuff. •Cartoon Networkintroduced South Indian folk

tale “TenaliRam”.•Walt Disneycartoon TV shows are in Hindi.