Daniels Ib13 02

International Business
Environments and Operations,

13/e
Global Edition
Part Two
Comparative Environmental
Frameworks
2-1
Copyright 2011 Pearson Education
Chapter Two
The Cultural
Environments
Facing Business
2-2
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
2-3
Culture
Learned norms based on values,
attitudes, and beliefs of a group of
people
2-4
Cultural Diversity
A means of gaining global

competitive advantage by bringing
together people of diverse
backgrounds and experience
2-5
Cultural Collision
Occurs in international business when:
A company implements practices that are less
effective
Employees encounter distress because of
difficulty in accepting or adjusting to foreign
behaviors
2-6
Cultural Factors Affecting International

Business Operations
2-7
Cultural Awareness
Problem areas that can hinder managers
cultural awareness
Subconscious reactions to circumstances
The assumption that all societal subgroups
are similar
2-8
The Idea of a Nation Delineating

Cultures
The nation is a useful definition of society
because:
Similarity among people is a cause and an effect
of national boundaries
Laws apply primarily along national lines
2-9
The Nation as a Cultural Mediator

A national culture must be flexible enough to
accommodate the diversity of various
subcultures, ethnic groups, races, and classes
Yet every nation boasts certain human,
demographic, and behavioral characteristics that
constitute its national identity
2-10
Country-By-Country Analysis
Managers find this difficult to implement
because:
Subcultures exist within nations
Similarities link groups from different countries
2-11
How Cultures Form and Change

Change by Choice
Reaction to social and economic situations
Change by Imposition
Imposed introduction into a culture of certain
elements from an alien culture
2-12
Language as Both a Diffuser and

Stabilizer of Culture
A common language within a
country is a unifying force
2-13
Major Language Groups: Population and

Output
2-14
Religion As A Cultural Stabilizer

Centuries of profound religious
influence continue to play a major
role in shaping cultural values
and behavior
2-15
Behavioral Practices Affecting Business

Issues in Social Stratification
Social ranking is determined by:
Factors pertaining to you as an individual
Factors pertaining to your affiliation with
certain groups
2-16
Group Affiliations Can Be:

Ascribed or Acquired
Include those based on gender, family, age,
caste, ethnic, racial, or national origin
A reflection of class and status
Include those based on religion, political
affiliation, and professional and other
associations
2-17
Social Stratification and Employment

Practices
Performance Orientation
Open and Closed Societies
Gender-Based Groups
Age-Based Groups
Family-Based Groups
2-18
Work Motivation
Materialism and Motivation
Expectation of Success and Reward
Performance and Achievement: The MasculinityFemininity Index
Hierarchies of Needs
2-19
Hierarchy of Needs
2-20
Relationship Preferences
Power Distance
Individualism Versus Collectivism
2-21
Risk-Taking Behavior
Uncertainty Avoidance
Trust
Future Orientation
Fatalism
2-22
Information and Task Processing

Perception of Cues
Obtaining Information: Low Context versus High
Context Cultures
Information Processing
Monochronic Versus Polychronic Cultures
Idealism Versus Pragmatism
2-23
Communication
Spoken and Written Language

Silent Language
Distance
Time and Punctuality
Body Language
Prestige
2-24
Body Language Is Not A Universal

Language
2-25
Degree of Cultural Differences

Cultural Distance
When a company moves within a cluster of
culturally similar countries, it should
expect to encounter fewer cultural
differences and to face fewer cultural
adjustments.
Cultural Friction
A business interaction may be viewed
negatively because of possible changes in
power relationships and the sovereignty
that sets countries apart.
2-26
Company and Management Orientations

Polycentrism
belief that business units in different countries should
act like local companies
Ethnocentrism
conviction that ones own culture is superior to that of
other countries
Geocentrism
requires companies to balance knowledge of their
own organizational cultures with both home and host
country needs, capabilities, and constraints
2-27
Strategies for Instituting Change
Value Systems
Cost-Benefit Analysis of change
Resistance to too much change
Participation
Reward Sharing
Opinion Leadership
Timing
Learning Abroad
2-28
Future: What will happen to national

cultures?
Scenario 1.
New hybrid cultures will develop and personal
horizons will broaden
Scenario 2.
Outward expressions of national culture will continue
to become homogeneous while distinct values will
remain stable
Scenario 3.
Nationalism will continue to reinforce cultural identity
Scenario 4.
Existing national borders will shift to accommodate
ethnic differences
2-29
All rights reserved. No part of this publication may be

reproduced, stored in a retrieval system, or transmitted, in
any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without the prior
written permission of the publisher. Printed in the United
States of America.
2-30

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Daniels Ib13 02

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International Business

Environments and Operations,

A means of gaining global

Cultural Factors Affecting International

The Idea of a Nation Delineating

The Nation as a Cultural Mediator

How Cultures Form and Change

Language as Both a Diffuser and

Major Language Groups: Population and

Religion As A Cultural Stabilizer

Behavioral Practices Affecting Business

Group Affiliations Can Be:

Social Stratification and Employment

Information and Task Processing

Spoken and Written Language

Body Language Is Not A Universal

Degree of Cultural Differences

Company and Management Orientations

Strategies for Instituting Change

Future: What will happen to national

All rights reserved. No part of this publication may be

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