week 8 - culture change and international marketing mgmtsv [compatibility mode]

8/18/2019 Week 8 - Culture Change and International Marketing Mgmtsv [Compatibility Mode]

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Dr Shamika Almeida

CULTURAL CHANGE IN ORGANIZATIONS –

CHAPTER 1


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External Forces for Change

GlobalizationWorkforce

Diversity

Changing

TechnologyEthical

Behaviour

3Source: Waddell et al (2011)

Internal Forces for Change

Declining

Effectiveness

Changing

Employee

Expectations

Company

Crisis

Changing

Work Climate

Source: Waddell et al (2011) 4


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The process of change

Two differing concepts of change, shift versus

transformation

• In ‘doing’ cultures people and groups are mostly defined

in terms of what they do, what they achieve

– organisational change seen more in linear fashion,

putting the past state of affairs behind and pushing on

with the new

• In ‘being’ cultures people and groups are defined more interms of affiliation, relationships with others

– the past state of affairs gradually transforms to become

a new state of affairs.

The process of change (Continued)

• Managing change involves ensuring the continuing

running of the organisation, re-assigning tasks,

maintaining overall stability, but this is not enough.

• Inspirational guidance also needed: a leader who

engages people’s minds through vision.• Minds cannot be managed, but they can be

transformed through inspiring leaders who spread

new visions that advocate new meanings and lines

of thinking.


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The process of change (Continued)

According to Deal and Kennedy (2000), many company

managers may go about dealing with tangible factors

involved in change without paying attention to the cultural

issues involved:

• To become, for example, more marketing-oriented involves

subjecting the company to a fundamental cultural change which

involves everyone in the organisation.

• The change is not just changing routines but also identifying

with role-models who embody a new purpose or goal.• Such fundamental change is often a gradual and sometimes

painful transformation.

The mechanisms of change

according to Schein (2004)

Primary mechanisms for changing culture

• What a leader considers important and pays attention to,

what must be measured and controlled.

• The way a leader react to difficult situations and crises:shows others how to react in similar situations.

• The priorities set by a leader when allocating resources.

• The examples set by a leader: these deliberately teach and

reinforce the desired values and behaviours.

• The criteria which a leader uses to allocate rewards and

status as well as to reinforce desired behaviours.

• The criteria used for recruitment, promotion and dismissal.


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Secondary mechanisms for shaping the culture(only effective if consistent with primary mechanisms)

• The design and structure of the organisation

• The systems and procedures used

• The ‘rites and rituals’ used

• The design and layout of the organisation’s physical

space

• Stories of important events and people

• Formal statements of the organisation’s philosophy.


according to Schein (2004) (Continued)

Table 10.2 Mechanisms of cultural changeSource: Schein (1989) p. 66, Figure 4-3, adapted

Natural evolution A culture of what works best as organisation grows (without

too much stress)

Self-guided evolution (therapy)‘Unfreeze’ organisational culture allows changes whereneeded

Managed evolution (hybrids)Changes made by insiders in key positions, thus meeting

less resistance

Planned change and organisational

development

Reduce conflict between sub-cultures resulting from

expansion

Technological seduction

Technology changes force cultural changes (different

behaviour patterns)

Change through scandal, explosion of

myths

Discrepancies between values and actual practices, culture

must be revised

IncrementalismChange realised gradually (e.g. recruitment and selection

policies changed)

Coercive persuasionChange agents put forward new assumptions, rewardmanagers who take them on board

TurnaroundTurnaround individual or team knows where org. must go:

uses some or all of above mechanisms

Re-organisation and rebirth Group bearing the old culture is replaced



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Change strategies

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‘Weak’ cultures versus ‘Strong’ cul tures

Is cultural change easier to implement in an

organisation with a ‘weak’ culture rather than a ‘strong’

culture?

• Laurent (1989) considers that both are in a way

doomed to extinction: – The organisation with a weak culture may eventually

crash since it is poorly coordinated, lacks direction

and consistency

– The organisation with a strong culture may be throttled

by rigid norms and behaviour and the resulting lack of

innovation.


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Do organisational values push aside or dilute the

national culture of an organisation’s environment?

• Laurent’s conclusions drawn from his research:

– Cultural differences among managers working within

a multinational company were significantly greater than

those cultural differences among managers working for

companies in their own (native) country.

– ‘Nationally bounded’ collective perceptions oforganisations did not appear to be diminished in any

way through international business.

– On the contrary, these perceptions appear to be

reinforced through the international exposure.

Tension between organisational

and national cultures

Tension between organisational and

national cultures (Continued)

• The different national companies of multinationals

probably prefer different ways of bringing about

the changes which HQ wishes to implement.

• The transformation of an organisation from A to B

may involve following a different path in one partof the multinational than in another, even if the

end-result (B) is the same.

• The outset of the transformation to B will depend

on how the national organisation interprets its own

present situation ( A).


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Mapping corporate culture change

• Cameron and Quinn (1997) have devised what they call a

Competing Values (CV) framework.

• This is used to categorise organisational effectiveness

perspectives and associated types of organisation.

Figure 10.1 The competing

values framework

Source: Cameron and

Quinn, 1999: 32.

The CV framework

Table 10.3 The characteristics of the CV framework quadrants


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Chapter 11

Culture and international

marketing management

Modern concept of marketing

Market-driven management should:

• Focus on the consumer :

– Anticipate and respond to consumer needs

– Define and deliver customer value.

• Integrate marketing functions in all parts of a

company.

• Develop relationship marketing: link the company

to the market:

– Create networks

– Connect with customers.


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International marketing• Definition:

– Marketing activities – in line with the focus of a

company’s operations – that cross national borders

• Application:

– Companies have different orientations, such as:

– Sales orientation

– Social marketing orientation

• Change of orientation may be necessarybecause of:

– legal, cultural, economic reasons.

Intercultural marketing

Is about adapting products and marketing

strategies to consumer preferences.

• Cultural identification with a product

(Usunier and Lee, 2005):

– Notion of identity

– Notion of exoticism

• Consumers share cultural characteristics:

– Geographical cultural affinity zones

– Cultural affinity classes.


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Cross-cultural consumer behaviour

Increasing uniformity in consumer taste and behaviour:

• However :

– behavioural intentions of consumers need to be

established

– different weightings between attitudes and norms.

• Therefore: – Take into consideration:

• the characteristics of the consumers’ culture;

• their underlying models.• https://www.youtube.com/watch?v=OCG7ScRP1ws

Cross-border market research

Problems for marketers and market researchers:

• Language barriers

• Sensitivity of questioning

• Research techniques

• Cultural differences

• Suspicion

• Statistical comparisons

• Fragmentation.


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Marketing communication

across cultures

Marketing is also a process in which communication

plays an important role.

• Promoting brands internationally

• What is a brand?

– Identifies a range of products and services.

– Registered brand becomes a trademark

• Multinationals need to use a uniform brand

• Language may be a problem:

– Pronunciation

– Different alphabet.

Brand and national images

Important is:

• Relationship between the nationality of a product

and the image it evokes

• Elements that contribute to the consumer’s

perception of product nationality – Such elements can be related to one country, several

countries, or a geographical area.

• Role of stereotypes

• Country of origin

– Same product under the same brand worldwide

– Country-of-brand versus country of origin.


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Impact of culture on advertising

• Companies websites: online advertising and salespromotion worldwide

• Simplest definition: information intended to createa link between the producer and consumer

• Cultural approach in advertising:

– Language and behavioural differences

– Meanings of the consumers• Advertising adapted to the local market:

– Products/services presented in a symbolic way

– Image of product associated with product concept.

Effective communication

Figure 11.3 Effective communication


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Conclusion• One crucial factor in any change process is the

extent to which a company is aware of its culture

and of the operational environment.

• Any transformation carried out will need to reflect

the national culture and ensure that the

subsidiaries involved remain integral parts of the

whole multinational

• In international marketing management and

research focus is more on the consumer than on

marketing methods

• Communication: balance between product, messageand perception that people may have about a

product.

• Cultural diversity in organisations

• Chapter 12

• It was great to have you all here!

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Have a great break and see you in 2 weeks

week 8 - culture change and international marketing mgmtsv [compatibility mode]

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