Culture, Management Styles and Business

SystemsINTERNATIONAL MARKETING

“They are just like us”

Knowledge of management styles

Be flexible by accepting differences in basic patterns of thinking, religion, politic and economic structures

Recognize the differences of the counterpart

• Lack of empathy • Frustration • Miscommunication• Failed business opportunities

Required adaptationAdaptation or accommodation Tolerance

Affirmative acceptance/ Open tolerance

Empathy

Basic criteria for adaptation1. Open tolerance

2. Flexibility

3. Humility

4. Justice

5. Adjust to tempo

6. Curiosity

7. Knowledge of the country

8. Liking for others

9. Ability to command respect

10. Ability to integrate oneself

Degree of adaptationIt’s not about changing executives’

ways to local customs

Being aware of local customs and accommodate them.

SRC

Not to evaluate counterparts’ behavior but to understand it

Business customs

• Imperatives• Electives• Exclusives

Cultural imperatives

Business customs and expectations that must be met and conformed to or avoided if relationships are to be successful.

GuanxiCompadre!

Level of trust

Cultural electives

Customs that cultural aliens may wish to conform to or

participate in but that are not required.

Not important but permissible

Cultural exclusives

They are those customs or behavior patterns reserved

exclusively for the locals and from which the foreigner is

barred.

Business is conducted in different ways due to diverse structure,

management values, and behaviors that vary among countries.

Management styles around the world

http://www.kwintessential.co.uk/intercultural/management/guide.html

Authority and decision making

Top level management decisions

• Close ownership• Absolute control • Centralized and small

Decentralized decisions

• Authority at different levels

Committee decisions

• By group or consensus.

• Centralized/Decentralized

High PDI

Low PDI

Management objectives and aspirations

Human motivation

Security & Mobility

Priorities

Personal life Work for (firm)

Work as (Position)

Social acceptance Money or

power?Political leaders

Power & Achievement

Communication stylesFace to face communication

Not about translate.

Internet communicationCan be read everywhere at

any time

Silent languageMuch more than words

Symbolic meanings of time, space, things, friendships.

Formality and tempo

Multiple meetings before an agreement

Call people by

their first

names

M-Time versus P-TimeMonochronic Time

• One thing at a time.• Almost tangible.• Time is money.

Polychronic Time

• Many things at the same time.

• Great involvement with people.

• Time is not to be spent.

Gender bias in international business

Against female managers in some countries.

Inability for women to succeed abroad.

Be careful with male-dominated societies where women are not in managerial positions.

Women need a title that give them credibility.

Business ethics

Complex process even within a country

What’s appropriate?What’s

right? What is corruption?

Definition that varies around the world

BriberyBribery

Voluntary payment for seeking unlawful advantage.

ExtortionPayment demanded by an authority.

LubricationSmall sum of cash, gift or service given to a low ranking official to speed up the process.

SubornationLarge sums of money designed to entice an official to commit an illegal act.

Agent’s feesPayment to a person hired for representing the company.

Ethical and socially responsible decision

Law

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Ethical principles

Utilitarian Ethics• Does the action optimize the

“common good” or benefits of all constituencies?

Rights of the Parties• Does the action respect the

rights of the individuals involved?

Justice or Fairness• Does the action respect the

canons of justice or fairness to all parties involved?

Sources: http://www.cpj.ca/content/promoting-common-good, http://www.feasta.org/wp-content/uploads/2014/01/, https://www.humanitarian.com/site-human-rights.html

Relationship – Oriented vs. Information – Oriented

Cultures

Cateora, P., & Gilly, M. (2011). International marketing (15th ed.).New York, NY: McGraw-Hill/Irwin.