How Culture Affects Your Business

Topics: Sociology, Culture, Cross-cultural communication Pages: 28 (1017 words) Published: December 30, 2014
How Culture Affects your Business
Ing. Mansoor Maitah Ph.D.

How Culure Affects your Business

The Reasons of Growing Interest in Culture Study

1) The globalization of business,
2) Quantum advances in telecommunications and data
processing,
3) The formation of global alliances,
4) The growing diversity in the domestic workforce,
5) The increasing mobility of workforce worldwide.

Culture Definition

• Culture is the collective programming of the mind which
• distinguishes the members of one human group from another • Culture is patterned ways of thinking, feeling and reacting, acquired and transmitted mainly by symbols
• Culture is the guider of selection of appropriate responses in social situations, social interactions, business interactions • Culture is a learned behavior. People learn do’s & don’t as they grow up

Culture Definition

• “A system of values and norms that are
shared among a group of people and that
when taken together constitute a design for
living.”
• Hofstede, Namenwirth and Weber

Values and norms

• Values: Abstract ideas/assumptions about what
a group believes to be good, right and desirable
• Norms: social rules and guidelines that prescribe
appropriate behavior in particular situations

Elements of culture








Social structure
Religion
Language
Education
Economic philosophy
Political philosophy

Social structure

• Two dimensions
– The extent to which society is group or
individually oriented
– Degree of stratification into castes or classes
• Social mobility
• Significance to business
• Other influences
– Political philosophy
– Economic philosophy

Language

• Spoken
– Verbal cues
– Language structures
perception of world
• Unspoken
– Body language
– Personal space

Hofstede’s cultural dimensions

• Four dimensions of culture





Power distance
Individualism versus collectivism
Uncertainty avoidance
Masculinity versus femininity

Concept of European culture

Common roots of national cultures
in Europe:
1.

Heritage of Greek Culture and Knowledge

2.

Roots in Roman Empire

3.

Christianity and its Religional Tradition

Does exist European culture???

Something similar is to find the answer on the
question, if there is a meaning of life or not,
and if yes, what???
It depends from individuals, what they think,
because each person has its own opinion.

Impact of Culture

• Culture affects





Consumer behavior
Local demand
Buying decisions
Brand Image

• Culture influences managerial styles and management
decisions
• Culture affects the nature of business negotiations

Importance of Culture

• Knowledge of Native culture is useful when dealing
with home markets but it has little value when dealing
in foreign markets
• Culture acts as a hidden entry barrier, but it can be
overcome with cultural sensitivity, hard work & quality
• Managerial behavior is driven by his/her cultural
knowledge

Culture Across Countries

• Some countries are multicultural:- India, China, US, Russia. These countries have several sub-cultures.....51 nations in
China!!!!
• While many are monocultural. UK, France, Germany, Columbia, Peru etc.
• Culture is the “Silent Language” in International business – Relationship with Time & Space
– High Context – Low context cultures and direct, indirect behaving
– Body language

Cultural Dilemmas

• Managers face cultural dilemmas due to differences in
cultures
– Modenization versus westernization
– Individualism Vs Collectivism in decision making
– Specific Vs General
– Attitudes towards Time
– Attitudes towards Environment

Culture & Symbols

Kiss, Bow, or Shake Hands!!!!
Women and religion in muslim world!!!
• The number 7 is considered bad luck in Kenya, good luck in Czech Republic • Number 8 in China—always and everywhere
• Avoid using triangular shapes in Hong Kong, Korea and
Taiwan. It...
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DTNO.I (27) | December 3, 2018 | Płytki Kraków