...Culture and its implication on the international business management. Introduction Today, problems associated with global business management have been identified as factors that negatively impact the performance and productivity of multinational corporations and in turn, adversely affect regional and national economic growth The goal of this paper is to analyze the influence of culture in international business. The globalization of the world economy has intensified international relationships, increasing the importance of cultural dimension. The world is being affected by the globalization of the economy. This phenomenon is bringing movement of companies, assets, services, capital and people. Analyzing globalization this process is taking the world to major changes in the economic, technologic and social areas, which are having consequences in all organizations and societies that participate in this globalized market. It is a process that does not bring equal benefits to all participants. The globalization concentrates more of its actions in some sectors of economic activity and some regions and countries, rather than acting everywhere. With the world getting flatter doing business anywhere in the world is easier today, because of major changes in technology, global politics and expanded educational opportunities. But it is not only businesses that are affected. Governments, NGOs and society itself is changing at a fast pace. Nevertheless going forward can only happen...
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...IV. Corporate Culture What is this powerful force called “organizational culture” that can determine success or failure in an acquisition and merger. It has been defined in various ways that to work with the culture of an organization is to work with all aspects of a company. “It is the traditions, shared beliefs, and expectations about how individuals behave and accomplish tasks in organizations (Cartwright & Cooper, 1993).” All organizations have a culture, and consistent set of beliefs, shared by most of the members of the organization about how people should behave at work and what tasks and goals are important. The culture also includes and is shaped by the pattern of successful internal responses to adapt to external threats and issues. Since, the culture is results of past successes it will resist change even though a change in the environment, specifically a merger or acquisition, might impose a change in the culture. Economic globalization is viewed by some as the best hope for world stability, by others as the greatest threat. But almost everyone accepts that businesses of all types must embrace it. Organizational culture is a big aspect to globalizations. For recent years more and more international companies has merged. There are very successful acquisitions and mergers, but on the other hand, there are also unsuccessful mergers due to the differences of corporate culture. Some factors of the difference of corporate culture that firms need...
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...Introduction to Business 110/1 Student number: 140009376 Module Tutor: Glen Chapman Submission Date: 14/03/2014 TITLE: Compare and Contrast the four types of Business Culture illustrated by Charles Handy. Discuss which culture is appropriate for an innovative business Word count: 1327 words Despite not always being an intentional creation, every company has a culture, which evolves from the core values belonging to the business. Culture can be loosely defined as shared beliefs and values of a group: the beliefs, customs, practices, and social behaviour of a particular nation or people. In the world of business this definition of culture can be used to differentiate one business from another. Different businesses have different values, customs and practices in the way they run their organisations and thus it is important to be able to identify the culture a business implements because this can be said to be the core foundation of a business. Innovation might be defined as the act or process of inventing or introducing something new, a new invention or way of doing something, innovation is the core of many businesses in the 21st century, due to the rapid advancement in technology. This essay aims to narrow down and compare and contrast the four type’s business culture presented by Charles Handy. This essay will also discuss which culture might be most suited to an innovative business. Handy (1993). Handy (1993) illustrates the power culture as a ‘web’. He suggests...
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...I. Introduction When conducting business in a country with a culture that is unknown to you, it is best to prepare and understand that country's traditions and culture as best as possible. In order to be successful in business in Japan, one must understand the dynamics of an intercultural relationship on a business level as well as a personal level to ensure that no offense is created . This report will focus on Japan; what differences we see between Japan and Canada culturally while studying abroad, and what helps create a strong successful business relationship. II. Determinants of Culture Culture is a system of values and normalities that are considered a way of life in society. Culture influences how we think, talk, pray, eat, dress, interact and, communicate. Our behaviour, attitude, personality and beliefs have been shaped by the culture we were raised in. “Culture is transmitted through language, material objects, ritual, institutions and art, from one generation to the next.” (n.d., Dictionary) Even with the effects of globalization, countries around the world are still distinct from one another. So how do we really set apart one culture from another? Here are the determinants of culture: * Social Structure - Consists of institutions, rules, and practices. Social structure assigns roles and powers to individuals in a society. It is the social relation of one person to another person where a stable arrangement of institutions by which the people in...
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...number of cultural frameworks exist that characterize and describe cultures along different value dimensions. The most widely used framework for categorizing national cultures is the one developed by Geert Hofstede. I am limiting myself to this framework as far as this assignment is concerned. According to Hofstede, everyone, from wherever in the world, has his or her unique personality, history, and interest. Yet all people share a common human nature. Our shared human nature is intensely social: we are group animals. We use language and empathy, and practice collaboration and intergroup competition. But the unwritten rules of how we do these things differ from one human group to another. "'Culture" is how we call these unwritten rules about how to be a good member of the group. Culture provides: • moral standards about how to be an upstanding group member; and • defines the group as a 'moral circle". It inspires symbols, heroes, rituals, laws, religions, taboos, and all kinds of practices - but its core is hidden in unconscious values. We tend to classify groups other than our own as inferior or (rarely) superior. In our globalized world most of us can belong to many groups at the same time. But to get things done, we still need to cooperate with members of other groups carrying other cultures. Skills in cooperation across cultures are vital for our common survival. Hofstede’s Five Dimensions of Culture Cultural Dimension #1: Individualism (IDV) This refers to the...
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...that much more important. Along with Language comes culture, you might know the language but it does not mean you can really fit in to that culture. Within the same language there is different dialects, accents, and traditions. I believe you can learn a lot about a culture through its language. The example that I have experienced has been with the Spanish language. The Spanish that I speak is not the same Spanish as all other Spanish speaking societies. The biggest difference within the language has to do with the variety of cultures. I am from Guatemala, Central America, not the same Spanish as South America (many different Spanish’s there), the Spanish speaking Caribbean Islands and Spain. About a year ago I took a Spanish course in Spain, and that is where I noticed how much the language can vary. There is no “perfect” Spanish, because of the variety of different cultures, Spanish has evolved and has caused this interesting diversity. Because of its vast diversity we can learn about the different cultures. In Spain I learned, just from listening to people conversing, some of the culture there. The culture in Spain is very different than the one I am from; one of the many differences I noticed is how open their culture and traditions are (the region of the country also has to do a lot with this), but listening to their kind of Spanish I noticed that the way they speak to each other would be eccentric back in my culture. At first this was a shock to me (the vocabulary they...
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...German business culture tips Keep in mind most of this is copy and pasted and has not been reworded and extracted yet. Background of German business culture In Germany, much greater attention has been paid to academic, technical education and its value to business in general. Therefore, companies tend to be run by technical experts rather than lawyers and accountants and this is reflected in the high regard in which engineers are held by other Germans. Diligence and competence are characteristics which are held in high esteem by colleagues and are seen as the key indicators of performance. Appraisal systems based on the softer competencies as favoured by many U.K. and U.S. firms are still not common in traditional German companies. German business structures Most of the power in German companies is vested in the hands of a few senior managers. Larger companies (AG & GmbH) have a Supervisory Board (Aufsichtsrat) which appoints the Management Board (Vorstand). The management board is the final decision-maker on policy matters which affect management. However below Vorstand level, companies tend to have a strictly hierarchical approach within which individual's specific roles and responsibilities are tightly defined and compartmentalised. This results in a methodical approach to most business issues where procedures and adherence to well-defined rules are respected. This methodical approach has both good and bad points. On the plus side, everybody knows what is expected...
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...Business Cultural and strategy Section 4 Change [Year] Colin Simpson [Type the company name] [Pick the date] Business Cultural and strategy Section 4 Change [Year] Colin Simpson [Type the company name] [Pick the date] Bussiness Cultural and stratergy Section 4 Change Question1 Change is a integral part of any organisations development, change allows an organisation to become more competitive, efficient and productive. The position of alphabet games management will depend on the change strategy they choose. Lewins Freeze phase is a appropriated model to choose. The theory is based on the existences of a equilibrium in a organisation which is the result of opposing forces, driving forces(forces for change) and restraining forces(forces against change). Lewin states that change should be concerned with the individual.(SQA students notes) To put Lewins theory into action it should follow three stages: Unfreezing; This is the shakeup phase, where reducing the forces maintaining the organisation in its present situation will occur. The result is an acceptance that the existing structures and ways are not working. To get people ready for change it is necessary to develop an awareness of the necessity for change. Change; this is the process of devising and implementing the change. In this stage the problems will be identified, staff will be encouraged to adopted new behaviour and attitudes, hopefully leaving behind old ones. Refreezing;...
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...Johnson and myself as Mrs. Fowler. I will not attempt to introduce myself as it would be considered rude. We will wait for him to initiate a handshake at which time my boss will first shake his hand gently and then myself. How do you exchange business cards? Following the introduction it is expected exchange of business cards. It is important to have business cards that are printed on sides; one in English, the other in Chinese. These should include: Company Name, Personal name, title, fax and email. They should be clean, neat and printed in gold lettering. The exchange will occur one at a time standing up and holding the card on the corners with both hands with the Chinese side up. You will hand your card carefully showing him respect, you will show the same respect when accepting his card. Once I receive the card I will need to study it prior putting it on the table, showing interest by reading the details; if I had collected more than one business card, I would line them up in vertically in order of seniority going down on the table (NBC Universal, Inc, 2008). The culture coach informs me that they should never go into a pocket, get written on and that showing up without business cards could possibly cause irreparable damage to the business relationship. How do you explain your position and your boss’s position? Provide job description information to explain the positions and how they fit into the organization. Provide information about our educational backgrounds and experience...
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...Unit 1 Discussion Board American business holds up certain ethical standards as good business. When doing business with a variety of cultures, it is important to understand their perceptions will be affected by their culture. So what is culture? "Culture has been defined in a number of ways, but most simply, as the learned and shared behavior of a community of interacting human beings" (Useem & Useem, p. 169). A person’s culture can include their education, religion, experiences, communication, and language. Each one of these factors can play an influential rule on a person’s conception of ethical practices. Bribery is a way of life in some countries and business would not be conducted without it. In America, bribery is not accepted as a normal business practice. So bribery is an example of an ethical standard that is acceptable in some cultures and not others. Culture can also affect rules of conduct, laws, commercial society, and one’s right to choice. (Armstrong & Sweeney, 1994) A person’s business behavior can definitely be swayed by ethical standards established by the culture. Businesses hours of operation would be an ethical standard shaped by culture. The business may only be able to operate during certain times or days of the week. Another example is positions that are stereotyped, in other words only a male or female may be able to hold a certain job title. (Armstrong & Sweeney, 1994) In today’s society the rules related to corruption are straightforward...
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...BUSINESS SOCIETY & CULTURE Businesses interact with wider society they are part of. Businesses are affected by society, for example in the kind of goods and services they expected to produce and businesses affect society by their activities. It is a two-way process. Some of the ways in which business affect societies are negative, and usually governments limit these activities by law. For example, some business activities damage the environment. In addition, there are ethical constraints set by the wider expectations of society. For example, it is legal to sack workers for some actions, but society may think the sacking is unreasonable, and the business may feel pressured to not do it. CULTURE is comprised of many different elements that have been passed down for generations, including knowledge, belief systems, experiences, values, attitudes, religion, art, ideas, law, morals, customs and way of perceiving the world. Some aspects of culture are visible, such as the way people dress or the food that they eat, while other elements of culture are invisible, such as the importance of religion, belief surrounding the role of family in a society, or the way people think and feel about certain issues. While the visible aspects of culture are often easy to spot, it usually takes much more time and efforts to understand and appreciate the importance of the invisible. However, it is usually the invisible elements of the culture that have the most impact on the way people view the...
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...What forces that shape modern Saudi culture? How similar to different police forces from those that shaped the culture of Western Nations? Because modern Saudi culture is rooted in the nomadic tribes that once roamed the Arabian Peninsula, some modern day Saudi Arabia culture can be traced to the Bedouins. Islam has also influenced modern Saudi culture. Stores and restaurants still do the daily prayer dictated by the Koran and the strict dress codes followed by women make it unlike any other Western culture because the values and the social norms are based on religious teachings that still continue. 2. What kind of misunderstanding or likely to arise between an American company and the Saudi enterprise, if neither of which has experience in dealing with the other? Different cultures have different ways of doing business. In Saudi Arabia, family and friendship plays a big role in career advancement whereas in the US individual success is more important. Woman make up a share of the workforce but in Saudi Arabia women have little freedom. It is important that both sides are sensitive to each other’s culture for effective business conduction. 3. If you were in a position to advise a Western company that was considering doing business in Saudi Arabia for the first time, what would your advice be? The most important piece of advice would be to take time and learn about the Saudi culture and the Saudi way of doing business In order to avoid any misunderstandings...
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...Difference Culture In International Business Report between Saudi Arabia & U.S.A Culture in International Business Culture Culture refers to the cumulative deposit of knowledge, experiences, beliefs, values, attitudes, meanings, hierarchies, religions, nation of time, roles, spatial relations, concepts of the universe, material objects and possessions acquired by a group of people in the course of generations through individual and group striving. Culture is a fuzzy set of basic assumption and value, orientations to life, beliefs, policies, procedures and behavior and his/her interpretations of the ‘meaning’ of other people’s behavior. (Spencer- Oatey 2008:3) ‘Culture consists of patterns, explicit and implicit, of and for behavior acquired and transmitted by symbols, constituting the distinctive achievements of human groups, including their embodiment in artifacts; the essential core of culture consists of traditional (i.e. historically derived and selected) ideas and especially their attached values; culture systems may. On the other hand, be considered as products of action, on the other. As conditional elements of future action.’ (Kroeber and Kluckhohn 1952: 181; cited by Adler 1997: 14) Culture differences in International Business Doing business with others countries, the difference culture is a point that a business man should aware of. A key to being successful in business internationally is to understand the role of culture in international...
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...The Effect of Culture on Business Relationships With the tremendous increase in global trade, learning more about doing international business has become especially significant. It is vital to learn about the different cultures around the world before doing business in other countries, in order to reduce the risk of failure. Becoming knowledgeable about different countries’ communication styles, body language, meeting and negotiation tactics, dress, greetings, and social events are all keys to having good business relationships with individuals in other countries. China and the United States are nations that do business with each other regularly. While they do share similarities, there are many differences between these cultures In these two countries, business culture in China is the most reserved, and is perhaps most unlike that of the United States. First and foremost, a contact should always be established before representatives of a business are sent to China. The business person should not touch people because touching makes the Chinese uncomfortable, especially if it is the first meeting. Inappropriate touching would include patting on the back or squeezing the arm (Morrison et al., 1994). In China a light handshake is accepted, but the Chinese business associate should initiate the action. Bowing is common and is done with the palms together while facing each other (Gesteland, 1999). Holding eye contact is a sign of disrespect and should be done cautiously, especially...
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...so important in this day and age? With the globalization of marketing, advancement in transportation and information, a company may have many employees in different cultures. The more tolerance, awareness and accommodation in workplace, the more effective the productivity is. b. Define the term culture. Culture is the complex system of value, traits, morals, and customs. Shared by a society. We try to understand the clothing, medical, religion, language and etc. Of the country. c. What is a low and high impact culture? Why should we know this? Low impact cultures tend to prefer initiative, self-assertion, and personal achievement. Desire a large degree of freedom in their personal lives. High impact cultures tend to prefer group values, duties, and decisions. Emphasize membership in organizations, groups, and teams. This will help us know the difference between two different culture direction, understand the different characteristics of both. d. What is ethnocentrism? Do we want to have it or avoid it?（民族优越感） Ethnocentrism is judging another culture solely by the values and standards of one's own culture. We can not take a rigid attitude based on preconceptions. Stereotype and prejudice should be change. We should judging different cultures as a open perspective. e. What happens to companies that fail to do cultural research before entering new markets? How can this be avoided? How can cultural research...
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