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International Business Culture袁克蕙Chapter 1 Introduction1. About this coursel It has become commonplace knowledge that globalization is one of the major forces shaping our world. If we look at the spread of information, ideas, capital, media, cultural artifacts or for that matter, people we can see the boundaries and borders that have historically separated one country or one group from another are becoming more and more permeable. For proof of this close to home, you need only to look at the transnational corporations in our country. Most students study hard in order to get a chance to work in the transnational corporations. Even if you have a company of your own, its still necessary for you to deal with business with people from different countries.Introductionl “International Business Culture” is designed to help you meet the challenges of living in a world in which, increasingly, you will be asked to interact with people who may not be like you in fundamental ways. Its overarching goals are to help you become sensitive to intercultural communication differences, and to provide you with the knowledge and skills that will help you interact successfully with people from cultures other than your own. We hope the course will accomplish those goals by exposing you to Charles Mitchells book on this subject, and by giving you a variety of opportunities to practice intercultural communication yourself.Introduction2. Course aim: to improve culture awareness mainly through reading activities, together with some presentation exercises.Course duration: 1st 16th week (2(3) periods weekly)Course requirements: 4PsPresence: to show up for classPunctuality: to attend on timePreparation: to preview the textPresentation: to be active in team workl What is culture?l What are the core elements of culture?l Why is learning culture important?l To what extent can culture have a significant impact on international business?l Can you give some examples of cultural difference or culture clash?Concepts of “culture”l 以文教化,人文教化。l 指运用文字的能力及具有的书本知识。 l 人类所创造的财富的总和,特指精神财富,如文学、艺术、教育、科学 .l 是一定社会的政治和经济的反映,又给予伟大影响和作用于一定社会的政治和经济。l 一种社会现象,是人们长期创造形成的产物。同时又是一种历史现象,是社会历史的积淀物。 l 指一个国家或民族的历史、地理、风土人情、传统习俗、生活方式、文学艺术、行为规范、思维方式、价值观念等。 l 人类创造出来的所有物质和精神财富的总和。其中既包括世界观、人生观、价值观等具有意识形态性质的部分,也包括自然科学和技术、语言和文字等非意识形态的部分。 What can you see in this picturel Old woman, lined face, grey hairl Young lady, long eyelash, smooth skinChapter 1 Understanding Cultural DifferencesGlobal Backgroundl Multicultural business environmentl Winning acceptance from foreign colleaguesl People from different cultures process information in different ways.l Culture affects the most basic forms of personal and business interaction.l National culture determines corporate culture.Case of DisneylandDiscussionl why the company of Disneyland whose headquarters is in U.S.A had successfully opened a Disney park in Japan but failed to copy the success in France?l What advice would you give to resolve the dispute over the sprinkle system?l What details should EuroDisney have noticed in its daily operation?l How do you understand the comment of the securities analyst “ the devil is often in the cultural details. They can make or break you.”?Detailed reasons:l Underestimation of French attachment to the land.l Lawyers, rather than executives, are employed to negotiate.l Defiance of French law.l Ignorance of French working norms of dress code.l Misunderstanding of European dining habits.l Ignorance of European consumer patternsDefinition of Culturel “it is everything” l “it is opera, art, and ballet” l sociologists, anthologists, psychologists, physiologists, linguists, etc.Dictionary definition:l the customs, beliefs, art, music, and all the other products of human thought made by a particular group of people at a particular time; artistic and other activity of the mind and the works produced by this. What is Culture?l Software of the mindl Culture is a set of learned core values, beliefs, standards, knowledge, morals, laws, and behaviors shared by individuals and societies that determines how an individual acts, feels, and views oneself and othersCharacteristics of Culture 1.Culture Is Learned (software of the mind) socialization (primary socialization) (=enculturation) (informal) Socialization education (secondary socialization) (formal)Interaction, observation, imitationInternalized, habitualA. We learn our culture through proverbs.l Strike while the iron is hot.l God helps those who help themselves.l A mans home is his castle.l One does not make the wind but is blown by it.l An iron pestle can ground down to a needle, perseverance will make success.B. We learn our culture from folk tales, legends, and myths.l Pinocchios nose growing largerl Cinderella (USA: attractive, weak and passive; Japan: intellectual, gentleness; )C. We learn our culture through art.l Art is a symbolic way of communicatingAsian countries, objects, animals, landscapeAmerican and European countries, people (Artists try to create a personal message ) innovate, inventD. We learn our culture through mass media.Innovation: is usually defined as the discovery of new practices, tools, or concepts that many members of the culture eventually accept and that may produce slight changes in social habits and behaviors. l Diffusion: is the borrowing by one culture from another. Historically, diffusion has been part of cultural contact for as long as cultures have existed. l Acculturation: as a type of cultural change, occurs when a society undergoes drastic culture change under the influence of a more dominant culture and society with which it has come in contact. Cultural Componentsl Language Verbal and non-verbal communicationCase of the American businesswoman making deal with British.l Religion Case of the German investment banker in Vietnam.l Conflicting attitudesIndividualism vs. CollectivismTask-driven vs. relationship-drivenCase of the Canadian representative in ChinaLanguage l mirror of culturel multidimensional Religion l 1). An obvious example of the effect on international business of religious beliefs is the prohibition of pork products and alcoholic beverages in the Middle East.l 2). Major holidays are often tied to religion. l 3). The role of women in business is tied to religion, especially in the Middle East, where they are not able to function as they would in the West. (implications?)Values and Attitudes l Values are shared beliefs or group norms that have been internalized by individuals. Attitudes are evaluations of alternatives based on these values. Cultural valuesprimary, secondary, tertiaryOther key Componentsl Manners and customsl The artsl Educationl Humorl Social organizationsManners and Customs l Understanding manners and customs is especially important in negotiations, because interpretations based on ones own frame of reference may lead to a totally incorrect conclusion. Aesthetics l Each culture makes a clear statement concerning good taste, as expressed in the arts and in the particular symbolism of color, form, and music. Education l Education, either formal or informal, plays a major role in the passing on and sharing of culture. l Educational levels will have an impact on various business functions. l If technology is marketed, the level of sophistication of the product will depend on the educational level of future users. Social Institutions l A.Social institutions affect the ways people relate to each other. l B.The concept of kinship, or blood relations between individuals. l C. Social organization also determines the roles of managers and subordinates and how they relate to one another. Do Cultures Evolve?l Forever evolving and reinventing itself.The case of Moscow morphThe case of Japanese business valuesCoping with Another Culturel Accept it and learn from the experienceView the differences as opportunities for creative solutions.Religion and Islamic Bankingl Islamic Economic Order based solely on the teachings of the Koran. It strives to build a society based on social justice, equity, and moderation.l Islamic legal code must conform to ShariahFour basic techniques of Islamic bankingl Murabahal Musharakal Ijaral MudarabaAssignmentl Find as many definitions of “culture” as possible and which is the most appropriate in your mind and state your reasons.l State the major changes taken place in Chinese culture (esp. busness-related)in recent decades and give specific examples.l Find some more material about Islamic banking system and some unique features of Islamic trading . Make a short report by using ppt.Introduction to Islamic BankingImportance of Trade in Islam Islam has given an immense importance to trade. The nobility of this profession is obvious from the fact that it was the chosen profession of prophet Muhammad(PBUH).Why Islamic Banking Before explaining the concept “what is Islamic Banking” the elaboration of concept “why Islamic Banking” is very important. Islam is a complete code of life that provides guidance regarding each aspect of life.Why Islamic BankingThe primary objectives of Islamic Economic System: Equal distribution of wealth Social justiceThese objectives can never be achieved in Interest/Riba economic systems.What Is Islamic Banking Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the conventional good governance and risk management rules, by the principles laid down by Islamic Shariah.Difference Between Islamic and Conventional BankingIslamic Banking1. Functions and operations are based on Shariah principles2. Promote risk-sharing between provider of capital(investor) and user of funds(entrepreneurs) 3. Aim at maximising profit but subject to Shariah restrictions 4. Partners, investor and traders, buyer or seller relationship5. Based on money trading. Money is a medium of exchange and not a commodity, its sale and purchase is prohibited in Islam.6. No right of profit is there is no risk involved. The profit and loss sharing depositor may lose money in case of loss.Chapter 2 Basic Cultural TypesIt refers to both the conditions that contribute to the way in which a people perceive and think about the world, and the manner in which they live in that world. Cautionary remarks for one to better use the cultural typesn The value of the culture may not be the value of all individuals within the culture.n It would be useful if you try to visualize each cultures response to a specific pattern as a point on a continuum rather than one of only two possible responses.n The pattern are interrelated with a host of other values and do not operate in isolation. Hofstedes DimensionsGeert H. Hofstede was born on October 2, 1928 in Haarlem, the Netherlands. Hofstede is most well known for his work on four dimensions of cultural variability: Uncertainty Avoidance, Power Distance, Masculinity-Femininity, Individualism-Collectivism Individualism vs Collectivism n On individualist cultures Hofstedes respondents said that individuals should look after their own interests and the interests of their immediate family (husband, wife, and children). Traits of Highly Individualist Cultures n Emphasis on individual initiative, decisions, and achievement. n The belief that in society, everyone is supposed to take care of himself or herself and his or her immediate family n Emotional independence of the individual from organizations or institutions n The idea that the same value standards should apply to all: universalism n 日本:突出来的钉子,将会被打下去In Japan, “the nail that sticks up is pounded down”n 前苏维埃:最早长出来的草,最先被砍去。In the former Soviet Union, “the highest blades of grass is always the first to be cut” that governed the attitude of the “have-nots” are valid reflection of collectivist societal attitudes.n 枪打出头鸟人怕出名猪怕壮表现了社会对个人超过集体的不能容忍Bothe express societys intolerance of the placement of personal success over that of the group.Some examplesn In the United States executive pay is 28 times that of the average manufacturing worker and in South Africa it is 24 times. In Japan, the top executive earns only about 10 times the average workers pay.n Business in Arab societies places far greater value on the loyalty of employees than they do on efficiency.Case Study: Praising Japanese in Public Workplaces 在工作场所当众表扬日本人n 美国人:苏奇木拓先生,我发现你工作干得很出色,希望其他员工能知道你是怎么做到的。n 日本人:(有些不安)表扬就不必了,我只是做了自己该做的而已。(他真希望其他同事没有听到他们的对话)n 美国人:你是我们公司所见到的最优秀、最杰出、最勤奋的员工。n 日本人:(他脸红了,不住地点头,仍然埋头工作。) n 美国人:苏奇木拓先生,你是该说“谢谢”呢,还是只是保持沉默?n 日本人:对不起,约翰先生,我可以离开五分钟么?n 美国人:当然可以。(他有点不悦地看着苏奇木拓走出去)真不明白有些日本人怎么这么没礼貌,你表扬他们,他们好像会很不安,也不回答你,只是静静地听着。n Questions for discussionn 为什么约翰先生与苏奇木拓的谈话会不愉快?n 如果你是约翰先生,你会当众表扬苏奇木拓么?n 如果你是苏奇木拓,你会如何处理这种情景?Power-Distancen According to Hofstede & Bond (1984), power distance is defined as the extent to which the less powerful members of institutions and organizations accept that power is distributed unequally. In other words people in high power distance cultures are much more comfortable with a larger status differential than low power distance cultures. Belief Patterns in High P-D Cultures n There is and should be an order of inequality in which everyone has his or her rightful place: high and low are of different kinds and are protected by this hierarchical order. n A few should be independent: most should be dependent. n The way to change a social system is by dethroning those in power. There will always be conflict between the powerful and the powerless. n Employees seek no decision-making role.n Less individualisticUncertainty Avoidance n This dimension refers to how comfortable people feel towards ambiguity and uncertainty. Cultures which ranked low (compared to other cultures), feel much more comfortable with the unknown. As a result, high uncertainty avoidance cultures prefer formal rules and any uncertainty can express itself in higher anxiety than those from low uncertainty avoidance cultures. n Belief Patterns in High U-A Cultures n High anxiety and stress: There is an inherent uncertainty in life that is a continuous threat. n Weaker superegos and less showing of emotions: Assertive behavior is frowned upon .n Strong need for consensus: Conflict and competition can unleash aggression and should therefore be avoided. n Intolerance: Deviant persons and ideas are dangerous. n Concerns with security in life: Conservatism, law, and order are essential. n Achievement is defined in terms of security. n Search for ultimate, absolute truths and values is ongoing. n Written rules and regulations are needed. n Belief in experts and their knowledge exists: Ordinary citizens are incompetent versus the authorities. Case study: The IKEA in Germany瑞典的宜家家具连锁遍布全球很多国家,德国占到了整个集团销售额的30%, 但德国的员工却对宜家的管理模式颇有微词,这是为什么呢? 在瑞典,宜家占有20%的市场份额,占据了家具销售的领先地位,而在过去的二十多年间宜家敢为天下先,成功地成长为一家跨国集团,在此之前,家具销售行业被普遍认为只能是一种“当地性”的产业。 德国是宜家最大的市场之一,拥有20多家店面,销售额占到整个集团总销售额的30%。自从1974年在慕尼黑开了第一家店面以来,宜家进入德国市场已经有十多年了,但德国的宜家员工仍然难以接受瑞典式的管理。托马斯拉尔森是科隆分店的经理,他说:“一些资格较老的员工都不会直呼我的名字,不用德语du(对“你”非正式称呼),因为他们认为du是对上司的不敬。” 当地的人事经理海克奥斯特埃希也说:“有两种对你的称呼,一种是宜家的“您”,另一种是用于朋友之间的你。” 德国人严格按照规章制度办事,他们服从上司的安排,只要是实现约定好的或者以书面形式规定的,他们都会认真去做,而宜家的企业文化核心却是“对自己负责”,模糊用语,目的是使员工在执行这些政策时可以有更多自由变通的余地,而为了适应德国人的工作习惯,在把宜家的文化翻译成德语时,大家认为有必要把瑞典语版本中的模糊用语变得更为清楚。有一次,宜家创始人坎普拉德的继任者安德斯莫伯格建议有些地方可以设立促销橱窗,而德国的宜家经理们把莫伯格的这个建议当成了一道命令,于是促销橱窗在德国的宜家商店随处可见。 总的来说,德国员工认为瑞典人更加看重结果,会认真处理每一个问题,但他们觉得瑞典人在行动之前不会对风险进行充分的评估。海克奥特斯埃希甚至说:“为了提高工作效率,瑞典人宁愿把我们的办公桌都扔到后院去。”瑞典的随便也让德国人看不惯,他们甚至“可以在香烟盒背面做笔记。”而德国人更喜欢正式的规章制度,“我们需要办事程序和形式,因为严格的管理模式使德国人感到安全。” n Questions for discussionn What kind of management style does IKEA have according to this case?n Does it fit well in Germany?n Do you think the IKEA way should adapt to the German conventions? If yes, what measures should be taken?n What training should the German employees take in order to accept the IKEA way?Masculinity vs Femininityn The words masculinity and femininity are not referred to men and women, but rather to the degree to which masculine or feminine traits prevail. Masculinity is the extent to which the dominant values in a society are male oriented and is associated with such behaviors as ambition, differentiated sex roles, achievement, and the acquisition of money, and signs of manliness. The more feminine cultures value interpersonal relationships, put quality of life before material acquisition and actively express concern for the less fortunate. Belief Patterns in Highly Masculine Cultures n Men should behave assertively and women should care. n Sex roles in society should be clearly differentiated: father used as a model by boys; mother by girls.n Men should dominate in all settings: there is a machismo (ostensive manliness) ideal; women can be kept ignorant. n Weaker position of the mother in the family: male-dominated fertility decisions. n Appreciate aggressiveness and assertiveness, respect the goal of material acquisitionn Success is the function of individual and society is made up of leaders and followersAssignmentn Group work: Analyze which cultural types Chinese business fits into and give some specific examples to support your arguments. Make a brief report by making ppt.Time: Polychronic vs Monochronicn Time is one of the fundamental bases
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