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The Cultural Environment Facing Business

This document discusses cultural factors that influence business practices internationally. It covers how cultures form and change over time due to choice or imposition. Language and religion are identified as cultural stabilizers. Key cultural factors that impact business include social stratification, work motivation, relationship preferences, information processing, risk-taking behavior, and communication. The document concludes with strategies for understanding cultural differences and instituting cultural change.

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895 views16 pages

The Cultural Environment Facing Business

This document discusses cultural factors that influence business practices internationally. It covers how cultures form and change over time due to choice or imposition. Language and religion are identified as cultural stabilizers. Key cultural factors that impact business include social stratification, work motivation, relationship preferences, information processing, risk-taking behavior, and communication. The document concludes with strategies for understanding cultural differences and instituting cultural change.

Uploaded by

abhijit055
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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The Cultural Environment Facing Business

Chapter Objectives
To understand methods for learning about cultural environments To analyze the major causes of cultural difference and change To discuss behavioral factors influencing countries business practices To understand cultural guidelines for companies that operate internationally
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The People Factor


Culture refers to learned norms based on the values, attitudes, and beliefs of a group of people Cultural diversity

How Cultures Form and Change


Cultural values set early in life Changes occur from:
Choice Imposition

Language as a Cultural Stabilizer


When people from different areas speak the same language, culture spreads more easily Among nations that share a same language, commerce is easier

Isolation from other groups, especially because of language, tends to stabilize cultures.
Some countries see language as being so important that they regulate the inclusion of foreign words and/or mandate the use of the countrys official language for business purposes.
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2-6

Religion as a Cultural Stabilizer


Centuries of profound religious influence continue to play a major role in shaping cultural values
Many religions influence specific beliefs that may affect business

Issues in Social Stratification


Performance orientation of the society Open vs. Closed society Attitude towards gender Attitude towards age Importance of family group Prestige of occupation
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Issues in Work Motivation


Materialism and Motivation Expectation of Success and Reward Assertiveness: The MasculinityFemininity Index Hierarchies of Needs

Factors Affecting Relationship Preferences


Power distance: general relationship between superiors and subordinates. Individualism vs. collectivism: degree of dependence on organization

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Factors Affecting Information and Task Processing


Perception of cues Obtaining Information: Low-Context versus High-Context Cultures Information Processing

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Factors Affecting Risk-taking Behavior


Uncertainty avoidance Trust Future orientation Fatalism

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Factors Affecting the Communication Process


Spoken and Written language Silent language:
color associations conversational distance perception of time and punctuality body language and gestures prestige

13

Dealing with Cultural Differences


Accommodation Cultural distance Culture shock

14

Factors Affecting Strategies for Instituting Cultural Change


Value systems Cost/benefits of change Resistance to too much change Participation Reward sharing Opinion leadership Timing Learning abroad
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