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15,4 gE{ilii!' I Chinese for "good connections." Pafi,2 The Role of Culture want to know exactly how the machine works, what its...

The purpose of this assignment is to analyze all of the cultural factors while making a big decision as an international manager. An executive for your organization asked you to create a report describing the advantages and challenges associated with Doing Business in China, Russia, India, France, Brazil, or Arab countries. The executive needs your help to make a big decision—capitalizing on an opportunity in one of those countries. You know the executive very well and that he/she only wants your top recommendation. Create a two-page report that describes the advantages and challenges (the impact) of adding a culture to your multinational organization by using the following criteria:

Select an industry (i.e., Technology, Aerospace, Consumer Products, Energy, Communications, Banking, etc.)
Select your top cultural recommendation. (i.e., country)
Describe why the cultural recommendation is a good match for your organization.
Describe why the cultural recommendation is a good match for the industry.
Describe the challenges of the recommended culture.

Consider using the data available in Table 5-1 on page 143 of Luthans and Doh (2012). Also, refer to the information on pages 152-163 of Luthans and Doh (2012) to support your recommendation.

Make sure to use APA Style.

15,4 Pafi,2 The Role of Culture want to know exactly how the machine works, what its capabilities are, and maintenance must be handled. Sellers must be prepared to answel in precise detail. This is why successful multinationals send only seasonl technical people to the PRC. They know that the questions to be answ both knowledge and experience, and young, fresh-out-of-school engin able to answer them. A maior cultural difference between the PRC and many Western issue of time. The Chinese tend to be punctual, so it is important that thr ness with them arrive on time, as discussed in Chapter 4. During meetin held when negotiating a contract, the Chinese may ask many questiot assent at the answers. This nodding usually means that they understand or it seldom means that they like what they are hearing and want to entel For this reason, when dealing with the Chinese, one must keep in min< critically important. The Chinese will make a decision in their own go( common for outside businesspeople to make several trips to China befol concluded. Moreover, not only are there numerous meetings, but som unilaterally cancelled at the last minute and rescheduled. This often trie outsiders and is inconvenient in terms of rearranging travel plans and ol Another important dimension of Chinese culture is guanxi, whi connections."26 In turn, these connections can result in such things ar doing business.2' Yet guanxi goes beyond just lower costs. Yi and Elli Kong and PRC Chinese managers and found that both groups agreed working offered a number of potential benefits, including increased busir revenue, more sources of information, greater prospecting opportunities tion of future transactions.28 In practice, guanxi resembles nepotism, I in authority make decisions on the basis of family ties or social conne< obiective indices. Tung has reported: In a survey of 2,000 Chinese from Shanghai and its surrounding rural cor of the respondents confirmed that guartxi played a significant role in tht thermore, the younger generation tended to place greater emphasis on gar has become more widespread in the recent past. . . . Most business pra< experience in doing business with East Asians will readily agree that in these countries "who you know is more important than what you knor having connections with the appropriate individuals and authorities is than having the right product and/or price.2e Additionally, outsiders doing business in China must be aware thi will typically argue that they have the guanxi to get a job done, wht may or may not have the necessary connections. In China, it is important to be a good listener. This may mean h the same stories about the great progress that has been made by the P decade. The Chinese are very proud of their economic accomplishrn share these feelings with outsiders. When dealing with the Chinese, one must realize they are a col which people pride themselves on being members of a group. This is to the situation in the United States and other Western countries, when highly prized. For this reason, one must never single out a Chinese a her for a particular quality, such as intelligence or kindness, becaur embarrass the individual in the presence of his or her peers. It is equ avoid using self-centered conversation, such as excessive use of the wc appears that the speaker is trying to single him- or herself out for spec The Chinese also are much less animated than Westerners' The' plays of affection, do not slap each other on the back, and are more and reserved than North or South Americans. They do not appreciatt behavior, and when speaking to each other, they maintain a greater phyt is typical in the West. gE{ilii!d::'i'r:.' : r'r.' I Chinese for "good connections."
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values and i centric rtries where the I its own interes centric ,le 5-l provides tune, the By the same for a firm if it a firm with an ric strategy, rl MNCs use a ment described hess regional mperative, to both effici egies, effectire )tors are nt cultures, hose in y-by-country d products, as rstomers who he case of that want lesr ; and talents Lits that knos eturns on inr [stomers, nintaining u rre familiar the best rance, and produces ;h can focus c )ven more ner use. For but as a caritr heir product Moreover, the .ample: ey fear being )ot features 5 Managing Across Cultures o The French avoid reasoning or logic. Their advertising is predominantly emotional, dramatic, and symbolic. Spots are viewed as cultural events-art for the sake of money-and are reviewed as if they were literature or films. o The British value laughter above all else. The typical broad, self-deprecating British commercial amuses by mocking both the advertiser and consumer.a ln some cases, however, both the product and the marketing message are similar ide. This is particularly true for high-end products, where the lifestyles and ions of the market niche are similar regardless of the country. Heineken beer, brandy, Porsche cars, and the Financial rimes all appeal to consumer niches fairly homogeneous, regardless of geographic locale. The same is true at the 1ower &e market for goods that are impulse purchases, novel products, or fast foods, as Coca-Cola's soft drinks, Levi's jeans, pop music, and ice-cream bars. In most however, it is necessary to modify products as well as the market approach for or local market. one analysis noted that the more marketers understand about in which a particular culture tends to view emotion, enjoyment, friendship, rules, status, and other culturally based behaviors, the more control they have ing marketing messages that will be interpreted in the desired way. Figure 5-1 provides an example of the role that culture should play in advertis- recapping the five relationship orientations identified through rrompenaars's (see chapter 4). Figure 5-1 shows how value can be added to the marketing by carefully tailoring the advertising message to the particular culture. For Orientation of the Firm Ethnocentric Polycentric Regioce,ntric Geoceritfie Profitabillttz (viabiliW), Top-down '- , Global integrAtion Hierarchiical prodUct diviSidns ,t-, ' Massrpr:eductio,hir' . Product'development determined p,fimarily by. the needs of home counlry,cuqterners. .,. RepatriEtion of -'profits to-: home. ..qountrrrl .r. . People of ho,m.e'coun- tiy d"u"'op"n for key positiollg l eve riwhere, in the World Public acceptanCe ' (legitimacy) Bottorn-u,p'{each:,:,- subsidiary deqides ' oh 'locel ,objectives) National responsiveness Hierarchica'l erea div-i: I sions, with autonomoUs. .national. un.its ' Host country Bdtch' Production . r. l Local pr.oduct ' , development rbased .on. loCal ,needs', . Retention of profits i.n,host eounlryr ' . People of ,local nationali:l ity dewelqpedr for keV , l pal-itions in their own country . '.,. . Both profi!4bility and , publiciac,cqptaricer r r (viability and legitlmecy) Mutually' negotiated', between legion and, ',' its subsidiaries Regional integration and n,at_ional iesponsiveness Product and r€gional, 'l orgaiRizationr ti66l.r' ' ,: I through a matriX, , Regional,., r ' , Flexible ma,nu{acturing Standarrlize within regioR;,but not " , acrosg.,.fegions. r..r,. .,. Rediltri,bution withiin, l regioh.,.',.,. .'. '., ' . .1., ..,' Reg,iirnartr,people. , ' ,'" developred {qri:ke\r l positi on s,, 1a nyvtrheie in the,,reglon : ] rSame ag .regiocentric. . ,Mutually negotialed ' ' at.rall ldvels of the " corporation .',. ... -, . .. : , Global integration and natione-l r f esponsiven.ess A netwoik of organizal, fions.{lilneluding some i' com.,. petitoi: organi?alions) l Global -' ', , iiFlexible r m-anufactuf in g' Global produet, with .local,var:iations r. ., .l Bed ist r:i bqtrlo nr r g ! oba llrf : Best,people reverywhere in the wolld-developed, f-oq,,key positiofl$ every; wheie]in the i#oild ' - From Balaji S. Chakravarthy'andr HowardV Pertmutter,'{stratogic Planning for a Global Business,!'Cotumbia of. .Worl.dB.usiness;.Su,mmer198''pp. [email protected][sevier;.Reprintedwith.permission;'' rer.
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156 Panl 2 The Role of Culture 2. Use local consultants. Because the rules of business have changed in recent years, it pays to have a local Russian consultant *o.kirg company. Russian expatriates often are not up to date on what is and, quite often, are not trusted by local businesspeople who have the coantry. So the conssl(an( should be someone who has been in all the time and understands the local business climate. 3. Consider business ethics. Ethical behavior in the United States is not always the same as in Russia. For example, it is traditional in Russia fo g|e gifts to those with whom one wants to transact business, an approach that may be regarded as bribery in the United States. 4. Be patient' In order to get something done in Russia, it often takes months of waiting. Those who are in a hurry to make a quick deal are often sorely disappointed. 5. Stress exclusivity. Russians like exclusive arrangements and often negotiate with just one firm at a time. This is in contrast to Western businesspeople who often "shop" their deals and may negotiate with a half-dozen firms at the same time before settling on one. 6. Remember that personal relations are important. Russians like to do busi- ness face to face. So when they receive letters or faxes, they often put them on thefu desk but do not respond to them. They are waiting for the businessperson to contact them and set up a personal meeting. 7. Keep financial information personal. When Westerners enter into business dealings with partners, it is common for them to share financial informa- tion with these individuals and to expect the same from the latter. How- ever, Russians wait until they know their partner well enough to feel com- fortable before sharing financial data. Once trust is established, then this information is provided. 8. Research the company. In dealing effectively with Russian partners, it is helpful to get information about this company, its management hierarchy, and how it typically does business. This information helps ensure the chances for good relations because it gives the Western partner a basis for establishing a meaningful relationship. 9- Stress mutual gain. The western idea of "win-win', in negotiations also works well in Russia. Potential partners want to know what they stand to gain from entering into the venture. 10. clari$, terminology. For-profit business deals are new in Russia, so the lan- guage of business is just getting transplanted there. As a result, it is important to double-check and make sure that the other party clearly understands the proposal, knows what is expected and when, and is agreeable to the deal.v 11. Be careful about compromising or settling things too quickly, because this is often seen as a sign of weakness. During the Soviet union days, every- thing was complex, and so Russians are suspicious of anything that is con- ceded easily. If agreements are not reached after a while, a preferred tactic on their part is to display patience and then wait it out. However, they will abandon this approach if the other side shows great patience because they will realize that their negotiating tactic is useless. 12. Written contracts are not as binding to Russians as they are to Westerners. Like Asians, Russians view contracts as binding only if they continue to be mutually beneficial. One of the best ways of dealing with this is to be able to continually show them the benefits associated with sticking to the deal.35 These 12 steps can be critical to the success of a business venture in Russia. They require careful consideration of cultural factors, and it often takes a lot longer than ini- tially anticipated. However, the benefits may be worth the wait. And when everything is
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5 Managi6g l65sss Cuftures there is a final cultural tradition that should be observed: Fix and reinforce agreements with a nice dinner together and an invitation to the Russians to visit oumtry and see your facilities.36 Business in lndia years, India has begun to attract the attention of large MNCs. Unsaturated markets, coupled with cheap labor and production locations, have helped make te desirable market for global firms. The government continues to play an important h this process, although recently many of the bureaucratic restrictions have been as India works to attract foreign investment and raise its economic growth rate.37 fition, although most Indian businesspeople speak English, many oi their values teliefs are markedly different from those in the west. Thus, understanding Indian re is critical to successfully doing business in India. 15, changed so *'orking what is sd fio have s been in itates is nc al in Russh ESS, an ften takes rl are often nd often n rlf-dozen like to do hey often pr waiting fr :ting. nter into hrsi nancial i the latter. ough to feel ,lished, then n partners, i :ment hi s ensure the ,artner a basb sult, it is understands ile to the d€il' ckly, because nion days, ything that is a preferred {owever, thq' ,nce because are to hey continue r this is to be cking to the ure in Russia lot longer thr shaking hands with male business associates is almost always an acceptable prac- u-S. businesspeople in India are considered equals, however, and the universal method trrng an equal is to press one's palms together in front of the chest and say namaste, means "greetings to you." Therefore, if a handshake appea$ to be improper, it always gotiations ah north during the winter, a light sweater and jacket are a good choice. Indian busi_ [at they stenil ople, on the other hand, often will wear local dress. In many cases, this includes r, which is a single piece of white cloth (about five yards long and three feet wide) ussia, so the is passed around the waist up to half its length and then the other half is drawn western food typically is available in all good hotels. Most Indians do not drink ic beverages, or if they do, they tend to prefer liquor and avoid the popular west- ice ofbeer, and many are vegetarians or eat chicken but not ueef. Therefore, when futn businesspeople entertain in India, the menu often is quite different from that back n- Moreover, when a local businessperson invites an expatriate for dinner at home, not necessary to bring a gift, although it is acceptable to do so. The host,s wife and fren usually will provide help from the kitchen to ensure that the guest is well treated, they will not be at the table. If they are, it is common to wait until everyone has seated and the host begins to eat or asks everyone to begin. During the meal, the will ask the guest to have more food. This is done to "nr*" that the person does go away hungry; howeveq once one has eaten enough, it is acceptable to politely se more food. For western businesspeople in India, shirt, trousers, tie, and suit are proper attire. southern part of India, where the climate is very hot, a light suit is preferable. In een the legs and tucked at the waist. Long shirts are worn on the upper part of the . In some locales, such as punjab, sikhs wiil wear turbans, and well-to-do Hindus imes will wear long coats like the Rajahs. This coat, known as a sherwanL, is the recognized by the government for official and ceremonial wear. Foreign business- ) are not expected to dress like locals, and in fact, many Indian businesspeople will like Europeans. Therefore, it is unnecessary to adopt locar dress codes. to luse namaste. when doing business in India, one will find a number of other customs useful to such as: 1. It is important to be on time for meetings. 2. Personal questions should not be asked unless the other individual is a friend or close associate. 3. Titles are important, so people who are doctors or professors should be addressed accordingly. 4. Public displays of affection are considered to be inappropriate, so one should refrain from backslapping or touching others. 5. Beckoning is done with the palm turned down; pointing often is done with the chin. when eve
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r5A Pant 2 The Role of Culture 6. When eating or accepting things' use the right hand because the left is con- sidered to be unclean' 7. The namaste gesture can be used to greet people; it also is used to convey other messagJn-i*foait'g a signal that one has had enough food' 8. Bargaining lbr goods unJ '""i""' is common; this contrasts with Western traditions, where bargaining might be considered rude or abrasive'38 Finally,itisimportanttorememberthatlndiansareverytolerantofoutsidersand understandthatmany-",'r"-iri*withlocalcustomsandprocedures.Therefore,there is no need to make " Jn"^, "ii"-n' t".-t:ilg to Indian cultural traditions' Making an effort to be polite and coufleous is suthclent" Doing Business in France ManyintheUnitedStatesbelievethatitismoredifficulttogetalongwiththeFrench thanwithothereuropeans.ThisfeelingprobablyreflectstheFrenchculture,whichis markedly different fiom that in the united states. In France, one's social class is very important,andtheseclassesincludethearistocracy,theupperbourgeoisie,theupper- middle bourgeoisie, the middle, the lower middle, and the lower. Social interactions are affected by class stereotypes, and during their lifetime, most French people do not encounter much ctrange i, t""ia status. -Unlike an American, who through hard work and success "* ,,,or"?rom the lowest economic strata to the highest' a successful French personmight,atbest,climboneortworungsofthesocialladder.Additionally,the French are very status conscious, and they lG to provide signs of their status, such as knowledgeofliteratureandthearts;awell-designed,tastefullydecoratedhouse;anda high level of education. The French also tend to be friendly, humorous, and sardonic (sarcastic), in contrast to Americans, for example, who seldom are sardonic. The French may admire or be fascinated with peopte w'ho disagree with them; in contrast, Americans are more attracted tothosewhoagreewiththem.-Asaresult,theFrenchareaccustomedtoconflictand during negotiations u"-""pi,tu, some positions are irreconcilable and must be accepted as such. Americans, o, ihe other hand, believe that conflicts can be resolved and that if bothpartiesmakeanextraeffortandhaveaspiritofcompromise,therewillbeno irreconcilable dift-erences. Moreover, the French often determine a person's hustworlhi- ness based on his or her firsthand evaluation of the individual's character' This is in marked contrast to Americans, who tend to evaluate a person's trustworthiness based on past achievements and other people's evaluations of this person' Intheworkplace,manyFrenchpeoplearenotmotivatedbycompetitionorthe desire to emulate fellow workers. They oft"n *" accused of not having as intense a work ethicas,forexample,AmericansorAsians.ManyFrenchworkersfrownonovertime, andstatisticsshowthatonaverage,theyhavethelongestvacationsintheworld(four to five weeks urn ufi,J. On tt " oih", hurd, few would"" that they work extremely hard in their regulariy'."ft"OU"a time and have a reputation for high productivity' Part ofthisreputation,"*t,,fromtheFrenchtraditionofcraftsmanship.Partofitalsois accountedforbyalargepercentageoftheworkforcebeingemployedinsmall,indepen- dent businesses, wh"rJ thete is widespread respect for a job well.done' MostFrenchorgani,atio.,stendtobehighlycentralizedandhaveriSidstructures. As a result, it usually takes longer to carry out decisions' Because this arrangement rs quite different from .h" *o," decentratized, flattened organizations in the United States, bothmiddte-andlower-levelU.S.expatriatemanagerswhoworkinFrenchsubsidiaries often find bureaucratic red tape a source of considerable frustration' There also are marked differences ut ,t " opp"i levels of management. In French companies, top manag- ers have far more uutt-irj,rr* their u.s. co-unterparts, and they are less accountable for their actions. while top-level u.S. executives must continually defend their decisions to the CEO or board of directors, French executives are challenged only if the company
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the left is con- rsed to convey bod. with Westem asive.38 of outsiders and Therefore, there Lions. Making al with the Frenct culture, which is :ial class is velr oisie, the upper- I interactions are I people do nc rough hard wort ruccessful Frenct Additionally, tu ir status, such as ted house; and e astic), in contrilst ay admire or be re more attracted d to conflict and nust be accepted olved and that if there will be m ;on's trustworthi- racter. This is ir rthiness based a rmpetition or tbe as intense a wo* )wn on overtime r the world (fm l work extremd productivity. Pat Part of it also b n small, indeper : rigid structures. .s arrangement b he United States- ench subsidiaries . There also art rnies, top manag: less accountable rd their decisiom y if the compary t- , .l { 5. a. 1 L 5 Managing Across Cultures pert-ormance. As a result, those who have studied French management find that a more autocratic L qrntries such as the United States, a great deal of motivation is derived from accomplishment. Americans realize there is limited job and social security wtry. so it is up to them to work hard and ensure their future. The French do fre same view. While they admire Americans' industriousness and devotion to tc!- believe that quality of life is what really matters. As a result, they attach a of importance to leisure time, and many a-re unwilling to sacrifice the enjoy- life for dedication to work. E talues and beliefs discussed here help to explain why French culture is so from that in other countries. Some of the sharp contrasts with the United States, - provide insights regarding the difficulties of doing business in France. qrltural characteristics, such as the following, may act as guides in situations Ba)- encounter in France: \ften shaking hands with a French person, use a quick shake with some Iressure in the grip. A firm, pumping handshake, which is so common in 6e United States, is considered to be uncultured. h is extremely imporlant to be on time for meetings and social occasions. Being "fashionably late" is frowned on. Drring a meal, it is acceptable to engage in pleasant conversation, but per- sonal questions and the subject of money are never brought up. Great importance is placed on neatness and taste. Therefore, visiting busi- resspeople should try very hard to be cultured and The French tend to be suspicious of early friendliness in the discussion and dislike first names, taking off jackets, or disclosure of personal or family details. ln negotiations the French try to find out whal all of the other side's aims and demands are at the beginning, but they reveal their own hand only late in the negotiations. The French do not like being rushed into making a decision, and they rarely make important decisions inside the meeting. In fact, the person who is ulti- mately responsible for making the decision is often not present. The French tend to be very precise and logical in their approach to things, and will often not make concessions in negotiations unless their logic has heen defeated. If a deadlock results, unlike Americans, who will try to break 6e impasse by suggesting a series of compromises by both sides, the French tend to remain firm and simply restate their position.a2 Business in Brazil fo considered a Latin American country, but it is important to highlight this nation me characteristics make it markedly different to manage as compared to other Af,Erican countries.a3 Brazil was originally colonized by Portugal, and remained sith its parent country until 1865. Even though today Brazil is extremely mul- tre country still demonstrates many attributes derived from its Portuguese heritage, its offrcial language. For example, the Brazilian economy was once completely controlled like many other Latin American countries, yet was motivated by such hfluences as flexibility, tolerance, and commercialism.aa This may be a sig- rcason behind its successful economic emergence. Drazilians have a relaxed work ethic, often respecting those who inherit wealth and smg familial roots over those seeking entrepreneurial opportunities. They view a lery relaxed manner, so punctuality is not a strong suit in this country. Over- people are very good-natured and tend to avoid confrontation, yet they seek out deavors.
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t6(D Pan1t 2 The Role of Culture Here are some factors to consider when pursuing business in Brazil: 1. Physical contact is acceptable as a forn of communication. Brazilians tend to stand very close to others when having a conversation, and will touch the person's back, arm, or elbow as a greeting or sign of respect. 2. Face-to-face interaction is preferred as a way to communicate, so avoid sim- ply e-mailing or calling. Do not be surprised if meetings begin anywhere from 10 to 30 minutes after the scheduled time, since Brazilians are not governed by the clock. Greet with a pleasant demeanor, and accept any offering of cafezinho, or small cups of Brazilian coffee, as it is one indica- tion of a relaxed, social setting. 3. Brazilians tend not to trust others, so be sure to form a strong relationship before bringing up business issues. Be yourself, and be honest, since rigid exteriors or putting on a show is not revered. Close relationships are extremely important, since they will do anything for friends, hence the expression, "For friends, everything. For enemies, the law." Showing interest in their personal and professional life is greatly appreciated, especially if international representatives speak some Portuguese. 4. Appearance is very important, as it will reflect both you and your company. Be sure to have polished shoes. Men should wear conservative dark suits, shirts, and ties. Women should dress nicely, but avoid too conservative or formal attire. Think fashion. Brazlliar managers often wonder, for example, if Americans make so much money, why do they dress like they are poor? 5. Patience is key. Many processes are long and drawn out, including negotia- tions. Expressing frustration or impatience and attempting to speed up proce- dures may lose the deal. It is worth waiting out, as Brazilians will be very committed and loyal once an agreement is reached. 6. The slow processes and relaxed atmosphere do not imply that it is accept- able to be ill-prepared. Presentations should be informative and expressive, as Brazilians respond to such emotional cues. Consistency is important. Be prepared to state yotu case multiple times. It is common for Brazilians to bring a lot of people to attend negotiations, mostly to observe and learn. Subsequent meetings may include members of higher management, requiring a rehashing of Doing Business in Arab Countries The intense media attention given to the kaq War, terrorist actions, and continuing conflicts in the Middle East have perhaps revealed to everyone that Arab cultures are distinctly dif- ferent from Anglo cultures.a6 Americans often find it extremely hard to do business in Arab countries, and a number of Arab cultural characteristics can be cited for this difficulty. One is the Arab view of time. In the United States, it is common to use the clich6, "Time is money." In Arab countries, a favorite expression is Bukra insha Allah, which means "Tomorrow if God wills," an expression that explains the Arabs' fatalistic approach to time. Arabs believe that Allah controls time, in contrast to Westemers, who believe that they control their own time. As a result, if Arabs commit themselves to a date in the future and fail to show up, they feel no guilt or concern because they believe they have no control over time in the first place. (This is perhaps a good point in our discussion to provide a word of caution on overgeneralizing about cultures, which is needed here and in all the examples in this chapter's discussion of cultural characteristics. There are many Arabs who are very par- ticular about promises and appointments. There are also many Arabs who are very pro- active and not fatalistic. The point is that there are always exceptions, and stereotyping in cross-cultural dealings is unwarranted. In this chapter we reviewed general cultural characteristics, but from your own experience you know the importance of an understand- ing of the particular individuals or situations you are dealing with.) r (I / a I g t t I i I !
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llanaging Across Cultures cultural belief that generally holds is that destiny depends more on the being than on the behavior of individuals. A higher power dictates the iryortant events, so individual action is of little consequence. This thinking mly Arabs' aspirations but also their motivation. Also of importance is that Arabs largely is determined by family position and social contact and con- necessarily by their own accomplishments. This view helps to explain why Easterners take great satisfaction in appearing to be helpless. In fact, help- be used as a source of power, for in this area of the world, the strong are lhe weak compensated. Here is an example: Arab country, several public administrators of equal rank would take tums meeting other's offices for their weekly conferences, and the host would serve as chairman scral months, one of these men had a mild heart attack. Upon his recovery it was to hold the meetings only in his office, in order not to inconvenience him. From the man who had the heart attack became the permanent chairman of the confer- fhis individual appeared more helpless than the others, and his helplessness enabled focrease his power.aT qtgoach is quite different from that in the United States, where the strong mpensated and rewarded. If a person was ill, such as in this example, the mrld be relieved of his responsibility until he or she had regained full health. the rest of the group would go on without the sick person, and he or she lrryer. important cultural contrast between Arabs and Americans is that of emo- ic- Arabs often act based on emotion; in contrast, those in an Anglo culture act on logic. Many Arabs live in unstable environments where things change m rhey do not develop trusting relationships with others. Americans, on the live in a much more predictable environment and develop trusting relation- ders. also make wide use of elaborate and ritualized forms of greetings and leave- hsinessperson may wait past the assigned meeting time before being admitted office. Once there, the individual may flnd many others present; this situation typical one-on-one meetings that are so common in the United States. More- the meeting, there may be continuous intemrptions, visitors may arrive and to the host, and messengers may come in and go out on a regular basis. The is expected to take all this activity as perfectly normal and remain com- mady to continue discussions as soon as the host is prepared to do so. meetings typically conclude with an offer of coffee or tea. This is a sign that is over and that future meetings, if there are to be any, should now be arranged. the case in many other countries, titles are not in general use on the Arabian .rcept in the case of royal families, ministers, and high-level military officers. initial meetings typically are used to get to know the other party. Business- ions may not occur until the third or fourth meeting. Also, in contrast to perception among many Western businesspeople who have never been to , it is not necessary to bring the other party a gift. If this is done, how- be a modest gift. A good example is a novelty or souvenir item from the country. atlach a great deal of importance to status and rank. When meeting with rhould pay deference to the senior person first. It also is important never to berate anyone publicly. This causes the individual to lose face, and the for the person who makes these comments. Mutual respect is required at useful guidelines for doing business in Arab cultures include: fr is important never to display feelings of superiority, because this makes the other party feel inferior. No matter how well someone does something, 6e individual should let the action speak for itself and not brag or put on a frow of self-importance. t61 il: 'azilians will ns are ccept ant sonei :, slnce rps are Lence th rowmg r specially /our : dark servatirc , for ey are ding rpeed rp will be it is dex lraziliar and ment, r use tb w Allah alistic rs, who res to a ey dof xamples lo are lo ate Lnd general Ean
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re _i-! irfir E atrr 9 t-a 'lolEry tirrrr- n-ordr, l clrr effr tib Io6d ES ir r j(# d: Eil ofb . _{d firy ryn 1 i .,! l$ :h d rh r& d_ Es- d Ei- lib ED IL l!!- * id la h. E{ d t h d the hcreasing imporlance of developing and emerging regions and countries in the global economy, knowledge of these contexts is more and more important for global managers. h a study by the China Europe International Business School's Leadership Behavioral [-aboratory and the Center for Creative Leadership, executives identified critical charac- eristics in their ca.reers that contributed to their development as managers in emerging markets settings. These included setting an example for junior employees and learning b thdve in unstable environments.2a In addition, managers emphasized the importance of learning about their business and the emerging markets environment, through formal classes, mentoring, and direct experience. Doing Business in Ghina The People's Republic of China (PRC or china, for short) has had a long tradition of isolation. In 1979, Deng Xiaoping opened this country to the world. Although his bloody 1989 put-down of protesters in Tiananmen Square was a definite setback for progress, China is rapidly trying to close the gap between itself and economically advanced nations and to establish itself as a power in the world economy. As noted in Chapter 1, China is actively trading in world markets, is a member of the wro, and is a major trading part- ner of the United States. Despite this global presence, many U.S. and European multina- tionals still find that doing business in the PRC can be a long, grueling process.25 Very few outside firms have yet to make a profit in China. One primary reason is that Western- based MNCs do not appreciate the important role and impact of Chinese culture. Experienced executives report that the primary criterion for doing business in China is technical competence. For example, in the case of MNCs selling machinery the Chinese llanaging across cultures has long been recognized G a potential problem for multinationals. To help expa- Liates who are posted overseas deal with a new cul- tre, many MNCs offer special training and coaching. Often, however, little is done to change expatriates' bmic cultural values or specific managerial behaviors. Sinply put, this traditional approach could be called le practical school of management thaught, which lnlds that effective rnanagerial behavior is universal md a good manager in the United States also wi{l be e#ective in Hong Kong or any other location around tre world. ln recent years, it generally has been rec- ognized that euch an approach no longer is sufficient, and there is growing support for what is called the ctoss-cultural school of management thought, which holds that effective managerial behavior is a function d the specific culture. As Black and Porter pointed orlt, successful managerial action in Los Angeles may not be effective in Hong Kong. Black and Porter investigated the validity of these two schools of thought by surveying U.S. managers wcrking in Hong Kong, U.S. managers working in the United States, and Hong Kong managers working in Hong Kong. Their findings revealed some interesting differences. The U,S. managers in Hong Kong exhib- ited managerial behaviors similar to those of their counterparts back in the United States; however, Hong Kong managers had managerial behaviors different from either group of U.S. managers. Commenting on these results, the researchers notedl This study . . . points to some important practical implications. lt suggests that American firms and the practical school of thought may be mistaken in the assumption that a good manager in Los Angeles wilt necessarily do fine in Hong Kong or some other foreign country. lt may be that because firms do not include in their selection criteria individual characteristics such as cognitive flexibility, cultural flexibility, degree of ethno- centricity, etc., they end up sending a number of indi- viduals on international assignments who have a ten- denry to keep the same set of managerial behaviors they used in the U.S. and not adjust Lr adapt to the local norms and practices. lncluding the measurement of these characteristics in the selection process, as well as providing cross-cultural training before departure, may be a means of obtaining more effective adaptation of managerial behaviors and more effective perfor- mance in overseas assignments. Certainly the study shows that simplistic assump- tions aboui culture are erroneous and that what works in one country will not necessarily produce the desired results in another. lf MNCs are going to manage effec- tively throughout the world, they are going to have to give more attention to training their people about inter- cultural differences.
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The industry selected for the assignment is banking. I would recommend India as my
cultural recommendation for doing/expanding the technology business. India being an emerging
country offers a lot...

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