Chap003 - Chapter 3 Chapter 3 Differences in Culture 3-2 In...

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Unformatted text preview: Chapter 3 Chapter 3 Differences in Culture 3-2 In an ideal world ... the policemen would be English the car mechanics would be German the cooks would be French the innkeepers would be Swiss, and the lovers would be Italian In a living hell ... the policemen would be German the car mechanics would be French the cooks would be English the innkeepers would be Italian and the lovers would be Swiss 3-3 Culture and International business 3-4 Cultural Orientations International businesses adopt an attitude towards foreign cultures Polycentrism: control is decentralized so regional managers can conduct business in a local manner Ethnocentrism: belief that ones own culture is superior and ignores important factors Geocentrism: a hybrid of polycentrism and ethnocentrism, the middle ground Companies MUST evaluate their practices to ensure they account for national cultural norms 2-18 2-18 3-5 Major Cultural Issues Problems arise in international business when: Employees have subconscious reactions Employees assume all societal groups are similar A company implements practices of work less well than intended Employees encounter distress because of an inability to accept or adjust to foreign cultural behaviors Companies/employees are insensitive to foreign consumer preferences 2-3 2-3 3-6 Some Cross Cultural Blunders American Motors tried to market its new car, the Matador, based on the image of courage and strength. However, in Puerto Rico the name means "killer" and was not popular on the hazardous roads in the country. A sales manager in Hong Kong tried to control employee's promptness at work. He insisted they come to work on time instead of 15 minutes late. They complied, but then left exactly on time instead of working into the evening as they previously had done. Much work was left unfinished until the manager relented and they returned to their usual time schedule. A US telephone company tried to market its products and services to Latinos by showing a commercial in which a Latino wife tells her husband to call a friend, telling her they would be late for dinner. The commercial bombed since Latino women do not order their husbands around and their use of time would not require a call about lateness. Proctor & Gamble used a television commercial in Japan that was popular in Europe. The ad showed a woman bathing, her husband entering the bathroom and touching her. The Japanese considered this ad an invasion of privacy, inappropriate behavior, and in very poor taste. 3-7 Cross-cultural literacy (an understanding of how cultural differences across and within nations can affect the way in which business is practiced) is important to success in international business There may be a relationship between culture and the costs of doing business in a country or region Culture is not static, and the actions of MNEs can contribute to cultural change 3-8 What is Culture?What is Culture?...
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Chap003 - Chapter 3 Chapter 3 Differences in Culture 3-2 In...

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