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Chapter Three
Cultural Foundations
MKT568
Global Marketing Management
Dr. Fred Miller
Understanding Culture
Academic approaches
How are cultures organized? What do they value?
History
Anthropology
Geography
Humanities
University Studies courses
Professional/pragmatic approaches
How should managers operate in multiple cultures?
Social and professional values
Social and professional behavior
Intercultural communication and negotiation
Multicultural interpersonal interaction
International business, management, marketing courses
Sample Essay Question
Schmidt’s has chosen to enter the Thai market and is preparing to
send a delegation to Bangkok to negotiate a sales contract with the
largest Thai mass merchandise retailer. You must prepare a
briefing on intercultural communication for this team.
Relative to Hofstede’s indexes, Thailand is classified as Feminine,
Collectivist, Large Power Distance and High Uncertainty
Avoidance. Select three topics from the Cultural Passport video
and explain the importance for conducting international business.
For each, describe the behavior patterns you would anticipate in
Thailand based on the country’s Hofstede values. Explain your
reasoning.
Culture Across Countries
High vs low context cultures
Silent languages
Hofstede’s cultural dimensions
Gannon’s metaphors
Rapaille’s Decoding Cultures
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High vs Low Context Cultures
High
Low
Verbal Behavior Words chosen have High reliance on
numerous possible
interpretations;
meaning is derived
from matching
words with nonverbal cues and the
specific situation
High reliance on
Nonverbal
nonverbal behavior
Behavior
to convey meaning
Societal Makeup Homogeneous
yes
Ability to
communicate
relies heavily on
similarity in
communicants'
backgrounds
verbal
communication to
convey meaning;
words are carefully
selected to convey
precise, specific
meanings.
Nonverbal aspects
play secondary or
confirming role
Diverse
no
Hall’s Silent Languages
Space
Possessions
Friendships
Agreements
Time
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Gannon’s Metaphors
1.
2.
3.
4.
5.
6.
7.
8.
9.
American football: Individualism and competitive speculation; huddling;
ceremonial celebration of perfection.
The British house: Laying the foundations; building the brick house; living
in the brick house.
The German Symphony: 0rchestra; conductors; performance society;
education, and politics.
The French wine: Purity; classification; composition; compatibility;
maturation.
The Italian family opera: Pageantry and spectacle; voice expression;
chorus and soloists.
The Swedish summer house: Love of nature; individualism through selfdevelopment; equality.
The Japanese garden: Wa and shitaki, harmony and form; seishin, spirit
of self-discipline; combining droplets.
The Chinese family altar: Confucianism and Taoism; roundness, harmony
and fluidity.
India: cyclical Hindu philosophy: The cycle of life; the family cycle; the
social cycle; the work cycle.
Source: Martin Gannon, “Cultural Metaphors,” Understanding Global Cultures, pp. v-vii,
©1994 by Martin Gannon. Reprinted by permission of Sage Publications.
44
11
Low
Power Distance
High
94
Hofstede Calculations and Matrix
8
56
Low
Uncertainty Avoidance
112
High
Hofstede Calculations
Question PDI UAI
1
5
5
2
2
2
3
4
2
4
4
5
5
1
1
Score 55 50
Member PDI UAI
1 55 50
2 58 67
3 68 78
4 42 70
Average 56 66
US 40 46
Midpoint 50 62
High =
Low =
Contrary =
-
Power Distance and Individualism Scales
Small
Power Distance
Large
12
•VEN
Collectivist
•PAK
•COL
•TAI •PER
•THA
•GRE
•HOK
•YUG
•MEX •PHI
•TUR
Individualism
50
•CHL
•POR
30
•SIN
•IRA
•ARG
•BRA
•JAP
•IND
+11
+28
+44
Small power distance
collectivist
ARG
BRA
CHL
COL
GRE
HOK
IND
IRA
JAP
MEX
PAK
PER
PHI
POR
SIN
TAI
THA
TUR
VEN
YUG
Argentina
Brazil
Chile
Columbia
Greece
Hong Kong
India
Iran
Japan
Mexico
Pakistan
Peru
Philippines
Portugal
Singapore
Taiwan
Thailand
Turkey
Venezuela
Yugoslavia
+64
+77
+94
Large power distance
Reprinted by permission of the author from Culture’s Consequences,
collectivist
published by Sage Publications. ©1990 by Gert Hofstede
Power Distance and Individualism Scales
Power Distance
Small
Individualist
53
Individualism
71
•AUT
•ISR
Large
•SPA
•FIN
•SAF
•NOR•GER
•SWI
•IRE •SWE
•DEN
•NZL
•CAN
•NET
•FRA
•ITA
•BEL
AUL
AUT
BEL
CAN
DEN
FIN
FRA
GER
GBR
IRE
ISR
ITA
NET
NZL
NOR
SAF
SPA
SWE
SWI
USA
Australia
Austria
Belgium
Canada
Denmark
Finland
France
Germany
Great Britain
Ireland
Israel
Italy
Netherlands
New Zealand
Norway
South Africa
Spain
Sweden
Switzerland
United States
•GBR
AUL USA
•+44
•
+28
+64
+77
+94
91 +11
Small power distance Large power distance
Reprinted by permission of the author from Culture’s Consequences,
individualist
individualist
published by Sage Publications. ©1990 by Gert Hofstede
Academic/Pragmatic Integration?
In the Hofstede matrix using the IDV and PDI
scales, how are each of the following groups of
countries concentrated? What historical/cultural
trends are consistent with these concentrations.
Former British Empire countries
Asian countries
Latin American countries
Northern European countries
Cross Cultural Management
Managing in a cross cultural environment
country cultural and business information
culture and managerial skills
managerial styles in the Triad
culture and negotiations
limits to adaptation
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Hofstede’s Classification of Triad Countries
Japan
North America
(Canada, USA,
Great Britain)
W. Europe
Northern Continent Greece
Individualism
low
high
high
high
low
Power distance
high
low
low
high
high
Masculinity
high
high
low
high
high
Uncertainty
avoidance
high
low
low
high
high
Context
high
low
high
low
Exhibit 3.4
Note: “Context” added.
Source: Adapted from Hofstede, 1980
Cross Cultural Issues in Business
Which of the following patterns of business behavior
would you expect in a Collectivist country with Large
Power Distance?
Decentralized organizations with autonomous units
Centralized, hierarchical organizations
Subordinates who expect exact instructions
Multiple people and groups involved in decision
making
Concentration of decision making in top management
Multi-track, manager to manager negotiating styles
Division managers willing to make their own decisions
Cross Cultural Issues in Business
Which of the following patterns of business behavior
would you expect in a Feminist country with Weak
Uncertainty Avoidance?
Willingness to undertake risky ventures
Emphasis on reaching quantitative performance goals
A zero sum approach to negotiations
Concern for interpersonal environment of the firm
Integration of professional and personal goals
Reluctance to try new approaches
A win-win approach to negotiations
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Four Stages of Business Negotiations
Stage
1. Nontask
sounding
Japanese
Considerable time and
expense devoted to such
efforts.
American
Relatively shorter periods
are typical.
2. Task-related
exchange of
information
This is the most
important step- high first
offers with long
explanations and indepth clarifications.
Persuasion is
accomplished primarily
behind the scenes.
Information is given
briefly and directly.
“Fair” first offers are
typical.
Concessions are made
only towards the end of
negotiations– a holistic
approach to decision
making.
Concessions and
commitments are made
throughout–a sequential
approach to decision
making.
3. Persuasion
4. Concessions
and
agreement
The most important step:
Minds are changed at the
negotiation table and
aggressive persuasive
tactics are used.
Source: Adapted from John L. Graham, “A Hidden Cause of America’s Trade Deficit with
Japan,” Columbia Journal of World Business, Fall 1981. p. 14.
Cultural Passport Video
Explain why each of the following components of the Cultural
Passport are important for success in international business.
Greeting and addressing people
Conversation
Body language
Sensitivity
Table Manners
Gender Awareness
Negotiating styles
Time
Contracts
Attitudes and Values
3-1
Chapter Three
Cultural Foundations
MKT568
Global Marketing Management
Dr. Fred Miller