The Cultural Environment: Culture - Learned Behavior A Way of Life For One Group

THE CULTURAL ENVIRONMENT
Culture – learned behavior; a way of life for one group

of people living in a single, related and independent
community.
Acculturation – the ability of a firm to adjust to a

culture different from its own.
Elements of Culture
1. Language
• Verbal communication
• Non-verbal communication
2. Religion
3. Values and attitudes
Values – basic beliefs or philosophies that are
pervasive in a society
Attitudes – feelings or opinions

4. Manners and customs – the way a society
does things
5. Material elements
• Material culture – a direct result of technology; best
demonstrated by economic, social, financial, and
marketing infrastructures.
6. Aesthetics
Components: color, form and music
7. Education
8. Social institutions
• The way people in a society relate to one another within group
settings
• Social stratification – the extent to which groups at the top of the

social pyramid exert control over others at the lower levels of the
pyramid.
CULTURAL DIMENSIONS OF CONDUCTING
BUSINESS IN INDIVIDUAL COUNTRIES
JAPAN:
• Upon meeting a business executive, a slight bow and handshake are
appropriate.
• Business card etiquette is important. On one side of the card, the

information should be in English; the other side should have the same
information in Japanese
• It is not appropriate to look directly into the eyes of your Japanese hosts,
• It is important for your Japanese hosts to know your title and
rank. They prefer to do business with high-ranking officials.
• Japanese business has a group orientation rather than an

individualistic one.
Old Japanese saying – “The peg that stands
gets hammered down”
• They expect foreign business representatives to arrive prepared

and to have decision making authority.
• New potential business partners must have been referred to

Japanese business representatives thru a third party.
KOREA:
• Older generations are respected for their knowledge and
wisdom. Gray hair is viewed positively.
• Number 1 is good, number 4 signifies death or failure

• Children are not supposed to say their parents’ names, even
when used with a title.
• Younger brother and sisters are not allowed to use the names of
their older siblings
• “Yangban” – noble class.
Culture: Honor, reputation, and dignity
Never begging even when one is hungry, never
running when it rains.
• “We” is more important than “I”

• At the dinner table, older generations, superiors, or
parents will start to eat earlier than subordinates, younger
generations, or children.
• Rocks, trees, clouds, and skies are important elements of

Korean culture.
• “Inhwa” involves harmony among unequals;
Loyalty is owed to parents and authority figures;
Superiors are responsible for the well being of
their subordinates.
CHINA:
• Guanxi (“gwanshe”) – Chinese philosophy denoting
friendships among unequals and unlimited exchanges of
favors
Not based on sentiments, emotions, or group
orientation.
ARAB COUNTRIES
“Don’ts” that business representatives must observe:
• Avoid sitting so that the sole of one’s shoe is shown.

• The left hand is viewed as “unclean”
• Good posture is imperative
• Foreign business representatives should not inquire
about the wives of Arab business representatives.
• Do not be overly effusive when praising the possession of
Arab hosts as this could create a perception that you
expect they give the possessions to you.
• Arab business representatives are reluctant to do

business with women. If a woman is accepted, modest
dress is appropriate.
• Arab business representatives may frequently divert from

the topic initially discussed, then return to it.
LATIN AMERICA
• It is important to understand that potential customers want to
develop a personal relationship before doing business with
foreign executives.
• Dinner and lunch meetings provide a good time for executives

to get to know one another better.
• Dinners often occur late in the evening, at 9:00 p.m or 10:00

p.m.
Formal manners and appropriate business attire are
appreciated.
• Latin Americans are not as conscious about time as North
Americans.
They are not as rushed as workers from the US. If

something does not get done, there is always the
next day – or the day after that.
• Companies that want to do business in Latin America will need to

be flexible about meetings, times, dates, and deadlines.
• Latin Americans are not as immersed in their work as the

businesspeople in US. Their motto is: “We work to live,” not “We
live to work.”
Importance of Culture for Managing and Marketing in Overseas Markets
Management:
Attitudes and beliefs
1.“Master of destiny:” philosophy
• Workers and companies can influence the future
• Hardwork, commitment to company goals, effective time management are
important aspects of managerial orientation.
2. A company is an independent enterprise

• A vital social institution
• Workers will do what is best for the company instead of what is best for their
gov’t or families
3. Rewards are based on merit
• This style maybe problematic in other cultures, where
friendship and family ties is more important
4. Decisions are based upon objective analysis

• Accurate information and timeliness is important in decision
making
5. Wide sharing in decision making

• Decentralized and delegated to lower levels of management
• In Middle East, only executives will make the most
important decisions.
6. Competition is necessary
• Competition among workers and companies
• In China and Japan, cooperation is emphasized over competition.
Product Development and Management
Ex:
• Barbie Doll (Mattel Inc.)
- a smash hit in US
- did not achieve much popularity in Japan until the doll’s legs were
shortened and its chest made smaller
• US automobiles – not accepted in Japan until the steering wheels
were placed on the right side.
• Oil of Olay
- Marketed in Shanghai, China because women here are
cosmopolitan and sophisticated.
• Mc Donalds
-overseas sales and growth rates exceed that in US
-tailored its product with local tastes
Advertising
Advertising campaigns must be tailored to local cultures.
Ex:
• Nike’s “Just Do It” campaign
- Did not work in China because it emphasized individual,
youthful irreverence.
• Taco Bell
- Did not use gidget in its ads in Singapore because Muslims
view dogs as unclean
Communication
• Is a key function in business
• Culture has an impact on communication
• Use of jargon is inappropriate – it increases the risk of
misunderstanding
Jargons:
• Flying by the seat of my pants
• On the same wavelength
• Shotgun approach
• 100k
• Belly up
• Overview
• If ain’t broken, don’t fix it
• Let’s throw it on the wall and see if it sticks
• Let’s see how it plays out
• It ain’t over until the fat lady sings
• Reinvent the wheel
• Let’s run it up the flagpole

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THE CULTURAL ENVIRONMENT

Culture – learned behavior; a way of life for one group

Acculturation – the ability of a firm to adjust to a

Attitudes – feelings or opinions

• Social stratification – the extent to which groups at the top of the

• Business card etiquette is important. On one side of the card, the

• Japanese business has a group orientation rather than an

• They expect foreign business representatives to arrive prepared

• New potential business partners must have been referred to

• Number 1 is good, number 4 signifies death or failure

• “We” is more important than “I”

• Rocks, trees, clouds, and skies are important elements of

• Avoid sitting so that the sole of one’s shoe is shown.

• Arab business representatives are reluctant to do

• Arab business representatives may frequently divert from

• Dinner and lunch meetings provide a good time for executives

• Dinners often occur late in the evening, at 9:00 p.m or 10:00

They are not as rushed as workers from the US. If

• Companies that want to do business in Latin America will need to

• Latin Americans are not as immersed in their work as the

2. A company is an independent enterprise

4. Decisions are based upon objective analysis

5. Wide sharing in decision making

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