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Cultural Dynamics
Class 4
Some Cultural Facts
• An American
firm lost floor wax sales in Brazil because a change in
the formula made the product less effective as a lighter fluid to ignite
Sunday Barbecues.
• Germans prefer salad dressing in a tube.
• Kellogg’s Pop Tart failed in Europe, as many homes do not have
toasters.
•Mountain Dew soft drink in difficult to pronounce in Portuguese,
and sales have been slow in these markets.
• Two-liter pop bottle failed in Spain because of small refrigerators
• Although 89% of Americans agree that everyone should use
deodorant, only 53% of Australians agree with this statement
Take off the shoes to win
I was meeting with a group of Japanese businessmen in Tokyo, and our morning
discussions had not gone well. For lunch my hosts rented a private room in a
restaurant. As is the custom, they took off their shoes. I was wearing my dress
cowboy boots and removed them. No sooner had we sat cross-legged on the dining
mats than I began to receive the first smiles and laughter of the day. I was puzzled
until one man said, "Mickey Mouse," pointing to my socks. My children had
packed this footwear, which they had given me for my birthday. Not realizing I
would be taking off my boots, I wore the socks. That moment in the restaurant was
the turning point of the trip, and before I left Japan we had an agreement.
National Differences in Culture
 What
is CULTURE?
– shared system of values and norms that offer a
design for living
 Values:
abstract ideas about what is good, right and
desirable
 Norms: social rules and guidelines that prescribe
appropriate behavior in particular situations
Self-Reference Criterion
 An
unconscious reference to one’s own
cultural values, experiences and knowledge
as a basis for decisions.
Theoretical Frameworks to
Understand Culture
I. High and Low Context
Cultures
 High
Context Cultures (Japan, Saudi
Arabia)
– Meaning of individual behavior and speed
changes depending on the situation
– Nonverbal messages full of important and
intended meanings, subtle
– Important to “read between the lines”
I. High and Low Context
Cultures
 Low
Context Cultures (USA)
– Intentions are expressed verbally, directly
– Situation is not allowed to change the meaning
of words and behavior
– Straight talk
Factors/
Dimensions
Lawyers
Less Important
Very Important
A Person’s word
Is his or her bond
Responsibility for
organizational error
Space
Taken by highest level
Is not be relied upon,
“get it in writing”
Pushed to lowest level
Time
Negotiations
Country Examples
High Context
Low Context
People breathe on each People carry a bubble
other
of private space with
them
Polycronic – everything Monocronic – time is
in life must be dealt
money
with in term of its own
time
Are lengthy – know
Proceed quickly
each other first
Japan, Middle East
Canada, U.S., Northern
Europe
Silent Languages
 Five
different silent languages
– Time
– Space
– Material possessions
– Friendship patterns (reciprocity)
– Agreements (emphasis on legal contracts)
 All
have important economic implications
II. Hofstede’s Model
Power
Distance: tolerance of inequalities
of intellectual and physical capabilities
Individualism
versus collectivism:
relationship between individual and his or her
fellows
II. Hofstede’s Model
Uncertainty avoidance: acceptance of
ambiguous situations and tolerance of
uncertainty.
 Masculinity versus femininity: identification of
gender and work roles (Japan - HI; Sweden - LO)
 Confucian Dynamics: long term vs short term
orientation

Hofstede’s Classification of Triad Countries
Japan
North America
W. Europe
(Canada, USA, Great Britain) Northern Continent
Individualism
low
high
high
low
Power
distance
high
low
low
high
Masculinity
high
high
low
high
Risk tolerance
low
high
high
low
Context
high
low
high
low
Cultural Issues







Technological and Material Culture
Communication and Language
Aesthetics
Education
Religion
Attitudes and Values
Social Organization
Determinants of Culture
Social Structure
•Group and
individual
•Social classes and
mobility
Religion
Political
Philosophy
Norms/
Values
Economic
Philosophy
Language
•Spoken and silent
Education
Technological and Material
Culture

Material Culture - tools and artifacts (physical
things) in a society, excluding those physical
things found in nature unless they undergo some
technological change e.g. tree to Christmas tree
or orchard

Technology - Techniques to make and use those
things.
Communication and Language
Language as a Communication Tool
Verbal or Nonverbal Communication
 Nonverbal

Religion

Holidays

Taboos and Consumption Patterns

Economic Development and Materialism
Values and Attitudes
Marketing Activities
 Wealth, Material Gain, and Acquisition
 Work Ethic
 Change
 Risk Taking
 Competitiveness
 Status Symbols
 Nationalism

Aesthetics
 Design
 Color
 Music
 Choice
of brand names, packaging etc.
Education
 Levels
of Participation
 Literacy
Rates
 Emphasis
on Specific Subjects
Social Organization
 Family
Unit
 Peer
Groups
 Role
models
Implications for Business
 Need
to develop cross-cultural literacy:
– adaptation
– the dangers of ethnocentrism
 Culture
impacts cost of doing business &
competitiveness
– Class structure in UK leads to industrial disruption as
against Japan’s group identification
– Hinduism’s ascetic ethics vs Protestant work
orientation
– Islamic Banking laws
 Implications
for:
– understanding competition
– which market to locate production facilities
– which market to enter; developing marketing
programs
Comparisons & Contrasts
Japan  USA
Japan
USA
Group
Individual
Attitude
Self-Denial
Dependence
Self-Expression
Independence
Emphasis
Obligations
Rights
Style
Cooperation
Competition
Assumptions
Interdependence
Independence
View of Self
Organization
Man
Individual
With a Skill
Myth / Hero
Emphasis
Comparisons & Contrasts
Japan  USA
Japan
USA
Cultural Attitude 1
We Are Unique
Everyone Is
Just Like Us
Cultural Attitude 2
Willing To
Borrow/Adopt/Adapt
"Not Invented Here"
Syndrome
Organization Goal 1
(Jobs / Employment)
Share of Market
Profitability,
Financial Success
Organization Goal 2
World Markets
National Markets
Organization Goal 3
Quality /
Customer Value
Production /
Financial Return
Comparisons & Contrasts
Japan  USA
Japan
USA
Worker
Identification
Company
Craft / Function
Management
Generalist
Specialist
Feeling
Thinking
Governmental
Business Relations
Cooperation
Separation
Financial Structure
(Debt : Equity)
80 : 20
40 : 60
Key Stakeholder
Employees
Stockholders
Key Values & Goals
Perfection
Harmony
Consensus
Freedom
Success
Winning
Trust In