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    Social & Cultural Environment- An Overview

    What is Culture Attitude Belief Values Religion

    Aesthetics Dietary Preferences Language &

    Communication Factors Affecting Cross-

    cultural Business

    Hofstedes CulturalTypology

    10/2/2013 Culture: Unit 4 1

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    Task of Global Marketers

    Study and understand the countrycultures in which they will be doing

    business Incorporate this understanding into the

    marketing planning process

    10/2/2013 Culture: Unit 4 2

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    What is Culture? Ways of living Built up by a group of

    human beings

    Transmitted from onegeneration to another Social Institutions Family Educational, Religious Governmental, business

    The collective programming of themind that distinguishesthe members of onecategory of people fromthose of another .

    --- Geert Hofstede

    10/2/2013 Culture: Unit 4 3

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    Material and Nonmaterial- Two Dimensions

    Physical components of culture

    Objects Artifacts

    Clothing Tools Pictures Homes

    Subjective or abstractculture

    Religion Perceptions Attitudes Beliefs

    Values

    10/2/2013 Culture: Unit 4 4

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    Attitudes, Beliefs & Values

    Attitude

    A learned tendency torespond in a consistentway to a givenobject/entity

    Belief: An Organized pattern of

    knowledge that anindividual holds to be

    true

    Values

    An enduring belief orfeeling that a specificmode of conduct ispersonally/sociallypreferable to anothermode of conduct

    Represent the deepestlevel of culture

    Present in a majority of members of a particularculture

    10/2/2013 Culture: Unit 4 6

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    ReligionReligion is one important

    source of societysbeliefs, attitudes, and values. The worlds

    major religions include:

    Buddhism, Hinduism,Islam, Judaism, and

    Christianity.

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    Language and Communication

    Linguistic Category Language Example

    Syntax English has relatively fixed word order;Russian has relatively free word order

    Semantics Japanese words convey nuances of feelingfor which other languages lack exact

    correlations; yes and no can beinterpreted differently than in otherlanguages.

    Phonology Japanese does not distinguish between thesounds l and r; English and Russian both

    have l and r sounds.

    Morphology Russian is a highly inflected language, withsix different case endings for nouns andadjectives; English has fewer inflections.

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    Factors Affecting Cross-CulturalBusiness

    Time Time equals money vs.

    relationships

    Time & Decision Making Thought Patterns

    Circular vs. LinearCultures

    Personal Space

    Material Possessions Family & Friendship Roles Competitiveness &

    Individuality Social Behavior

    Eating Foods Gift Giving Greetings

    High Vs. Low ContextCultures

    10/2/2013 Culture: Unit 4 10

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    High- and Low-Context Cultures High Context

    Information residesin context

    Emphasis onbackground, basicvalues

    Less emphasis onlegal paperwork

    Focus on personalreputation

    Low Context Messages are explicit and

    specific

    Words carry all information Reliance on legal

    paperwork Focus on non-personal

    documentation of credibility

    10/2/2013 Culture: Unit 4 11

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    High & Low Context Culture Countries: SomeExamples

    China Korea Japan Vietnam Arabia Greece India Hispanic

    Central & SouthAmerican countries

    Italy England USA Switzerland Germany Scandinavian Countries

    Denmark Norway Sweden

    10/2/2013 Culture: Unit 4 12

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    High- and Low-Context CulturesFactor/Dimension High Context Low Context

    Lawyers Less Important Very Important A persons word Is his/her bond Not reliable get it in

    writing

    Responsibility for

    Organizational error

    Taken by highestlevel

    Pushed to the lowest level

    Space People breathe oneach other

    Private space maintained

    Time Polychronic Monochronic

    CompetitiveBidding

    Infrequent Common

    10/2/2013 Culture: Unit 4 13

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    Business Practices- High & Low Context Cultures:Examples

    India Business conducted at leisurely pace

    When invited to dinner, one should accept and pass the food with the right hand onlyExpect to be asked many personal questions- which Indians see as a sign of politenessIndian avoid discussing political issues with business contacts

    USA Americans dislike the practice of developing personal relationships with business associatesas time is money for them.

    Business comes first and friendship or pleasure comes later, if at all

    Greece Greeks are famous for never discussing business without a cup of coffeeBuilding personal rapport is importantBuilding trust is the major factor in business for them

    UK The British are very civil and reservedDo not admire overt ambition or aggressiveness and are often offended by hard sell tacticsGood negotiators but do not have high regard for bargaining

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    Hofstedes Cultural Typology Study on cultures Comparison of cultures

    of different nations

    Five dimensions First three: expected

    social behavior Fourth: mans search for

    truth Fifth: reflects the

    importance of time

    1) Power distance2) Individualism

    3) Masculinity

    4) Uncertainty Avoidance

    5) Long Term Orientation

    10/2/2013 Culture: Unit 4 15

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    Power Distance Index (PDI)

    The extent to which the less powerful membersof organizations and institutions (like the family)accept and expect that power is distributedunequally.

    It suggests that a society's level of inequality isendorsed by the followers as much as by the

    leaders. all societies are unequal, but some are moreunequal than others'.

    10/2/2013 Culture: Unit 4 16

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    Individualism (IDV)

    on the one side versusits opposite,

    Individualist Cultures Each member of society

    is primarily concernedwith his/her owninterest and those of

    Immediate family3 United Sates & Europe

    Collectivist Cultures All of societys members

    integrated into cohesivein groups

    Japan & Other AsianCountries

    10/2/2013 Culture: Unit 4 17

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    Masculinity (MAS)

    Describes a societyin which men areexpected to be

    assertive.Competitive andconcerned withmaterial success

    Femininity Women fulfill the role of a

    nurturer, concerned with issuessuch as the welfare of children

    Japan Austria Describes a society in which

    social roles of men & womenoverlap with neither genderexhibiting overly ambitious orcompetitive behavior

    Spain Taiwan, Holland

    10/2/2013 Culture: Unit 4 18

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    Uncertainty Avoidance Index (UAI) deals with a society's tolerance for uncertainty and ambiguity; it

    ultimately refers to man's search for Truth . indicates to what extent a culture programs its members to feel

    either uncomfortable or comfortable in unstructured situations.

    Unstructured situations are novel, unknown, surprising,different from usual.

    Uncertainty avoiding cultures try to minimize the possibility of such situations by

    strict laws and rules, safety and security measures, and on the philosophical and religious level by a belief in absolute Truth;

    'there can only be one Truth and we have it'.

    10/2/2013 Culture: Unit 4 19

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    Long-Term Orientation (LTO) versus short-termorientation:

    Societys search for virtue Assesses sense of immediacy within a culture, where

    gratification should be immediate /deferred

    Include:1. Persistence (Perseverance )2. Ordering relationships- presence of societal

    hierarchies

    3. Thrift : High saving rates4. Sense of shame : leads to sensitivity in social contacts

    10/2/2013 Culture: Unit 4 20

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    Hofstede Dimensions- World Average

    10/2/2013 Culture: Unit 4 21

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    Hofstede Diemensions- India

    10/2/2013 Culture: Unit 4 22

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    Hofstede Diemensions-USA

    10/2/2013 Culture: Unit 4 23

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    Religion in India

    10/2/2013 Culture: Unit 4 24