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Theculturalenvironmentandthebusinessculture FEB690 2 WhatisCulture Asystemofvaluesandnormssharedamongagroupofpeopleand whentakentogether constituteadesignforliving FEB690 3 Whatisculture Cultureiseverythingthatpeoplehave thinkordoasmembersoftheirsocietysharedbytwoormorepeopletransmittedbyalearningprocess CULTURECONSISTSOF MaterialobjectsIdeas valuesandattitudesNormativeorexpectedpatternsofbehaviour FEB690 4 Culturaluniversals EconomicsystemMarriageandfamilysystemEducationalsystemSocialcontrolsystemSupernaturalbeliefsystem FEB690 5 CultureisDynamic CulturalChange FEB690 6 NormsandValues Norms Socialrulesandguidelinesthatprescribeappropriatebehaviourinparticularsituations Folkways Routineconventionsofeverydaylife Mores Centraltofunctioningofsocietyanditssociallife Values Abstractideasaboutwhatagroupbelievestobegood right anddesirable Thebedrockofculture Haveemotionalsignificance Freedom FEB690 7 Culture SocietyandtheNation State FEB690 8 DeterminantsofCulture FEB690 9 SocialStructure FEB690 10 SocialStratification Typicallydefinedbyfamilybackground occupation andincome Class somesocialmobility Caste Virtuallynomobility FEB690 11 Religion Sharedbeliefsandritualsconcernedwiththerealmofthesacred EthicalSystems Moralprinciplesorvaluesusedtoguideandshapebehavior Shapesattitudestowardworkandentrepreneurshipandcanaffectthecostofdoingbusiness FEB690 12 World sReligions FEB690 13 World sreligions FEB690 14 ReligionandEconomicImplications Christianity ProtestantWorkEthic and TheSpiritofCapitalism IslamFavorsmarket basedsystems Nopaymentorreceiptofinterest HinduismAsceticismmayhaveanimpact Castesystemplaysarole BuddhismLittleemphasisonentrepreneurialbehavior ConfucianismLoyalty reciprocalobligations andhonestyindealings FEB690 15 Language Allowspeopletocommunicate Structuresthewaytheworldisperceived Directsattentiontocertainfeaturesoftheworldratherthanothers Helpsdefineculture Createsseparatisttendencies FEB690 16 SpokenLanguage FEB690 17 Languagedimensions ThespokenlanguageThewrittenlanguageTheofficiallanguageLinguisticpluralismLanguagehierarchyInternationallanguageMassmedialanguageThenon spokenlanguage body language FEB690 18 NonspokenLanguage Nonverbalcues eyebrowsfingers thumbshandgesturesfeetpersonalspacebodygestures FEB690 19 Education FEB690 20 Legalsystems Civil CodelawContinentalEurope CodificationCommonlawAnglo Saxon Courtdecisions precedents prejudikat Islamiclaw Shari a MiddleEast SouthAsia 13thcenturyfrozenIslamicmoralPoliticallawCommunistcountries Politicalcourts Theculturalenvironmentandthebusinessculture FEB690 22 WhatisCulture Asystemofvaluesandnormssharedamongagroupofpeopleand whentakentogether constituteadesignforliving FEB690 23 Whatisculture Cultureiseverythingthatpeoplehave thinkordoasmembersoftheirsocietysharedbytwoormorepeopletransmittedbyalearningprocess CULTURECONSISTSOF MaterialobjectsIdeas valuesandattitudesNormativeorexpectedpatternsofbehaviour FEB690 24 Culturaluniversals EconomicsystemMarriageandfamilysystemEducationalsystemSocialcontrolsystemSupernaturalbeliefsystem FEB690 25 CultureisDynamic CulturalChange FEB690 26 NormsandValues Norms Socialrulesandguidelinesthatprescribeappropriatebehaviourinparticularsituations Folkways Routineconventionsofeverydaylife Mores Centraltofunctioningofsocietyanditssociallife Values Abstractideasaboutwhatagroupbelievestobegood right anddesirable Thebedrockofculture Haveemotionalsignificance Freedom FEB690 27 Culture SocietyandtheNation State FEB690 28 DeterminantsofCulture FEB690 29 SocialStructure FEB690 30 SocialStratification Typicallydefinedbyfamilybackground occupation andincome Class somesocialmobility Caste Virtuallynomobility FEB690 31 Religion Sharedbeliefsandritualsconcernedwiththerealmofthesacred EthicalSystems Moralprinciplesorvaluesusedtoguideandshapebehavior Shapesattitudestowardworkandentrepreneurshipandcanaffectthecostofdoingbusiness FEB690 32 World sreligions FEB690 33 World sReligions FEB690 34 Worldreligions Map3 1 FEB690 35 ReligionandEconomicImplications Christianity ProtestantWorkEthic and TheSpiritofCapitalism IslamFavorsmarket basedsystems Nopaymentorreceiptofinterest HinduismAsceticismmayhaveanimpact Castesystemplaysarole BuddhismLittleemphasisonentrepreneurialbehavior ConfucianismLoyalty reciprocalobligations andhonestyindealings FEB690 36 Language Allowspeopletocommunicate Structuresthewaytheworldisperceived Directsattentiontocertainfeaturesoftheworldratherthanothers Helpsdefineculture Createsseparatisttendencies FEB690 37 SpokenLanguage FEB690 38 Languagedimensions ThespokenlanguageThewrittenlanguageTheofficiallanguageLinguisticpluralismLanguagehierarchyInternationallanguageMassmedialanguageThenon spokenlanguage body language FEB690 39 NonspokenLanguage Nonverbalcues eyebrowsfingers thumbshandgesturesfeetpersonalspacebodygestures FEB690 40 Education FEB690 41 Education EducationcanbeasourceofcompetitiveadvantageExampleIndiaMalaysiaSingapore FEB690 42 PercentageofGNPspentoneducation Map3 2 FEB690 43 Adultliteracyrates Map3 3 FEB690 44 Legalsystems Civil CodelawContinentalEurope CodificationCommonlawAnglo Saxon Courtdecisions precedents prejudikat Islamiclaw Shari a MiddleEast SouthAsia 13thcenturyfrozenIslamicmoralPoliticallawInfluencedbypoliticalideologies FEB690 45 Legalsystems FourissuesimportanttointernationalbusinessContractlawPropertyrightsProtectionofintellectualpropertyProductsafetyandliability FEB690 46 A Contractlaw Disputeresolutionisoftencomplexwheretoarbitrateandwhoselawsapply hostcountryorhomecountryvalidityofcontractsanddecisionsRoleofUnitedNationsConventiononContractsfortheInternationalSaleofGoods CIGS FEB690 47 B Propertyrights AbundleoflegalrightsovertheusetowhicharesourceisputandovertheusemadeofanyincomefromthatresourcePropertyrightscanbeviolatedthroughprivateactionpublicactionandcorruption FEB690 48 C Protectionofintellectualproperty IntellectualpropertyreferstopropertythatistheproductofintellectualactivityPatent inventors exclusiverightstomanufacture use saleofaninventionCopyright sameforauthors composers artists publishersTrademarks uniquedesignsandnames oftenofficiallyregistered FEB690 49 D Productsafetyandliability ProductsafetylawssetsafetystandardsforproductsandmanufacturingprocessesProductliabilitylawsholdthefirmanditsofficersresponsibleforproductsafetystandardsCriminallaws civilliabilitylawsLeastextensiveinlesserdevelopedcountriesRaiseimportantethicalissuesforfirmsdoingbusinessabroad FEB690 50 Legalsystems Rules laws thatregulatebehaviorprocessesthroughwhichlawsareenforced grievancesareredressedBusinessesmustobservehomecountrylawshostcountrylawsinternationalLawsandTreaties FEB690 51 Businessculture FEB690 52 GertHofstede NL Study IBM isageneralwaytolookatdifferencesbetweencultures4dimensions Powerdistance Individualismversuscollectivism UncertaintyavoidanceMasculinityversusfemininityBut Assumptionofone to onerelationshipbetweencultureandnationstateResearchmaybeculturallyboundRespondentsworkedwithinasinglecompanyWorkisbeginningtolookdated 1967 1973 FEB690 53 Hofstede WorkRelatedValuesforSelectedCountries Table3 1 FEB690 54 RichardGestland DK DealfocusedculturesRelationfocusedculturesInformalculturesFormalculturesRigid timeculturesFluid timeculturesExpressiveculturesReservedculturesBasedonownexperiences FEB690 55 Trompenaar NL LargerbasefornationalcomparisonsNotlimitedtoonecompanyOtherfindingsRelationtotimeToneofvoiceSilenceHigh lowcontext Swedishbusinessculture Whatistypical FEB690 57 Psychicdistance Howclosearetwocountriesinbusinessculture SwedishresearchinUppsala AEuropeanstructureofbusinessculture Basedonastudybytop managers Differentmanagementsystems UnitedstatesJapanEurope FEB690 60 GlobalBusinessEtiquette DresscodePunctualityNon verbalgreetingsFormsofaddressVerbalgreeti

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