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 Gestures

 Italy – What exactly do you mean?

 Greece – That’s just perfect

 Egypt – Be patient

Salient features of Indian Society

 Rich culture

 Religiously diverse

 Social Hierarchy

 Joint Family – Nuclear family

 Neo urban culture

 Cricket 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

Society

 4 Varnas = Jati

 In 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 System

India 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 affairs

Support to cultural activities

Empowering artists and musicians

Organizing exhibitions of contemporary paintings

Sponsoring cultural programs through TV

Sangeet sammelan by ITC

Beauty in building design

 Earlier infrastructure was based on utilitarian concept

 Factories now constructed keeping in mind aesthetic values – industrial parks,gardens etc

This provides better quality of life to community

Better Place for their children

Encourages each employee’s own cultural growth

Improvement of entire social system

Size and growth rate of population

 High 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 Population

 7-25 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 growth

 Demography 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 wealth

Riba in Koran

Astrological dates , festive and marriage season raises demand

Automobile 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 : language

 Switzerland – 3 Languages – French , Italian , German

 India – 18 Recognized Languages

 Ford- 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 - OB

 Centralized vs Decentralized decision making

 Safety vs Risk

 Individual vs Group reward

 Informal vs Formal Procedure

 High vs low Orgaizational Loyalty

 Cooperation vs Competition

 Short term vs Long term Horizon

 Stability vs Innovation

OB Differences

Other Socio Cultural Factors

 Consumer 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 Chennai

 Bicycles – Developing countries – Basic means of transportation

Developed countries – Means to stay fit and healthy

 Food habits, Juices, Coca Cola

 Etiquettes

 Color – White

 Rise in % of women workforce – double income, single parent

Technological development and

Social Change

Development 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 possible

Films , TV Radio have become very helpful in transmission and diffusion of information, Reduction of social distance

More industrialized and materialistic society - severe blow to casteism

AC , dams – change in natural environment

Also have adverse effects like pollution ; global warming etc

The Indian Touch

Fordcars 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.