Nature Of Culture & Its Impact On Business.

Nature of Culture & its Impact on Business Presentation By, Puspanjali Sarangi Narrated By, Sagar Kumar

What is culture?

Culture is contextually based! The common grasshopper (Acrididae)

USA: Pest! CHINA: House pet! Thailand: A snack!

Culture is an important part of international business and marketing!!!

Culture is…  “ Collective programming of the mind which distinguishes the members of one human group from another... Includes system of values; and values are among the building blocks of culture...” (Hofstede, 1980)  Glue that binds groups together. Without cultural patterns, organized system of significant symbols, people would have difficulty living together (De Mooij, 2004)  Set of control mechanisms – plans, recipes, rules, instructions – for governing behavior (Geertz, 1973)  Includes shared believs, attitudes, norms, roles and values found among speakers of a particular language who live during the same period in a specific geographic region (Triandis, 1995).  And soo much more…

Characteristics of culture l l l l

Culture is learned Common to members of a certain group Determines the behavior of group members Culture (customs, values, habits) makes life more effective

AN INDIVIDUAL DOESN’T HAVE CULTURE! AN INDIVIDUAL HAS A PERSONALITY!

Layers of culture

“a man should have only 1 wife”

Core believes & expectations

“Slovene values: work, family, security”

implicit

“walking other ladders”

Values & norms Habits, routines & procedures Physical objects, heroes, symbols & artifacts

explicit

Culture ‘ingredients’ / elements  Norms  Values  Believes  Institutions  Religion  Language  Education system  Art and aesthetics  Material culture and life-style…

Levels of culture TRANSNATIONAL CULTURE NATIONAL CULTURE INDUSTRY CULTURE PROFESSIONAL CULTURE ORGANIZATIONAL CULTURE SUBCULTURES

INDIVIDUAL

Culture and its impact on business Competitive environment

Competitive environment

Culture is the context in which a company (people) operates!

STRATEGY

coordination

STRUCTURE & SYSTEMS

ORG. CULTURE

NATIONAL CULTURE

Impact of Culture on Business  Culture creates people Culture and Globalization  Culture determines Goods and Services  People’s attitude to Business  Attitude to work  Education  Ambitious or Complacent  Ethics in business  Cultural resources

Culture and Globalization  Business units go international  Work force diversity has important implication for management practices  Managed diversity can increase creativity, innovation & decision making from different perspective  Culture shock: any move from one country to another will create a certain amount of confusion, disorientation and emotional upheaval

Management concept How perceived in the How perceived in United States Japan Company Business Goal Employees Profit motivation Sense of identification Pay

Team in sport Players in a team Players in a team By all means Job pride service and result

Family in Business To survive Children in a Family Means to an end Group prestige award for patience

and sacrifice Promotion

according to abilities

length of service

Impact of culture on business Differences in consumer behavior:  Segmentation  Positioning  Marketing mix  Buying habits

Business customs and etiquette:  Negotiation styles  Communication  Business protocol  Level of formality of arrangements  Payment  etc

Minimum negotiation pre-requisites At least 2 sides Different goals / agendas Ready to talk / communicate Believe they can jointly make a decision that will benefit both

An experiment for the end…