...Culture 1. Introduction to Culture 2. How culture affects managerial approaches 3. Trompenaar’s Cultural Dimensions 4. Geert Hofstede’s Cultural Dimensions 5. Cultural challenges when entering a new market 6. Pros and Cons of entering a new market with an adapted/standardized product 7. Characteristics of culture 8. Conclusion 9. Values in Culture 10. Value Similarities and Differences across cultures Introduction to Culture There is no doubt that the international marketing process do face a large set of variables as it take place over different countries and it does act in different environments. One of the most determinant environments to the success of the international marketing process is Culture, which hold the reason for many human acts and behavior. Reaching to that point international marketer should study deeply culture treaties of a country the company is planning to act in. so that special amendments in the organization overall plans and actions is made to act in accordance with the new market variables The role of culture in international business and marketing Culture is a distinctive element of international marketing. While factors besides culture are present, culture could be a key determinant of most overseas relationships. Researchers agree that exchange processes within business networks can only be understood by conducting studies in different countries and cultures. For example, studies...
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...Business opportunities in Chinese cosmetics industry. Discussing business opportunities in cosmetics industry in China, we should first review macroeconomical factors influensing Chinese economy most. Chinese economy quite so associated with some “sweeping statements” like “China will be next economic superpower; its economy is still government run; foreigners don’t make money there; relationships count, so a partner is needed. But they are hyperbolic, misleading, out-of-date, or just not true”(Woetzel J.R. (July 2004) A guide to doing business in China. P.) So, what the situation is really about in China and what cultural and economical differences has Chinese business environment in comparison with French? At first, I French and Chinese societies have totally different basis. If we look back to sociology, we remember, that all societies can be divided on two main categories: High-context(China) and Low-context(France). In high-context society words may not mean what they really mean. For example “yes” may not be “yes” at all, opposite to low-context society where “yes” always means “yes” and “no” always means “no”. It results in a need for deeper understanding the position of the people you’ll have to work with and sphere you’ll have to work in, because in high-context society it is easy to miss the cue, if you haven’t obtained enough information about the problem. Secondly, one of key chinese cultural concepts is “Guanxi”, which literally translates to relationship....
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...Class-1 Ten Principles of Economics Economy. . . . . . The word economy comes from a Greek word-Oekonomous- for “one who manages a household.” Any similarity between household and economics? Copyright © 2004 South-Western/Thomson Learning TEN PRINCIPLES OF ECONOMICS • A household and an economy face many decisions: • Who will work? • What goods and how many of them should be produced? • What resources should be used in production? • At what price should the goods be sold? Copyright © 2004 South-Western/Thomson Learning TEN PRINCIPLES OF ECONOMICS Society and Scarce Resources: • The management of society’s resources is important because resources are scarce. • Scarcity. . . means that society has limited resources and therefore cannot produce all the goods and services people wish to have. Copyright © 2004 South-Western/Thomson Learning TEN PRINCIPLES OF ECONOMICS Economics is the study of how society manages its scarce resources. Copyright © 2004 South-Western/Thomson Learning TEN PRINCIPLES OF ECONOMICS • How people make decisions. • • • • People face tradeoffs. The cost of something is what you give up to get it. Rational people think at the margin. People respond to incentives. Copyright © 2004 South-Western/Thomson Learning TEN PRINCIPLES OF ECONOMICS • How people interact with each other. • Trade can make everyone better off. • Markets are usually a good way to organize economic activity. • Governments can sometimes improve...
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... 2016 Bernie vs Trump: A Contrast and Comparison of Capitalism and Socialism Getting the right ideas of how an economy should be run is a significant challenge. However, two systems can be used: socialism or capitalism. The United States continues to face this challenge. The current presidential campaign illustrates this important issue. Two candidates exemplify the two economic ideologies. Bernie Sanders adheres to the idea of democratic socialism, while Donald Trump follows capitalism. Capitalism is seen as a system that is mostly based on entrepreneurship, market allocation, and private ownership (Friedman 15). Socialism, on the other hand, is a structure where the control of factors of production is moved from individuals to the state. In light of these issues, below is a comparison and contrast between capitalism and socialism. While socialism helps to even out and equally distribute wealth in the society so that no particular person has control over production except the government, Capitalism does not allow for an evening out, and equal distribution of resources in the society. Also, the government has no control over production. According to Walter (7), Capitalism is “the economic system under which the ownership of goods and services are privately owned, and decisions concerning pricing, investments, and distribution are determined in a free-market system, primarily on the basis of competition among businesses”. Here there is a free market, and property is...
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...governments • Laws, regulations, rules • Normative Pillar (informal) • The values, beliefs and actions of a group (emotions) • Cognitive Pillar (informal) • Internalized values and beliefs that guide behavior • Culture & Ethics (logic) • How do these pillars shape behavior? Understanding Institutions… • What is the KEY ROLE of an institution? • Reduce Uncertainty! • Institutions constrain the range of acceptable actions. • Uncertainty surrounding economic transactions can lead to transaction costs. • Misunderstandings and conflicts. Understanding Institutions… • Institutions are not static • Some countries are in transition from centrally planned economies to market competition (China, Poland, Russia, Vietnam) • The “rules of the game” are constantly in flux in all societies. Institution-Based View of Global Business… • Two Core...
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...Contents Introduction 2 About IKEA 2 1.0 Analysis of Indian Market 3 1.1 Micro Analysis 3 1.1.1 PESTEL Analysis 3 1.2 Micro Analysis 4 1.2.1 SWOT Analysis 4 1.3 Impact on Hofstede Culture Dimension 5 a) Collectivism vs Individualism 6 b) Femininity vs Masculinity 6 c) Avoidance of Uncertainties 6 d) Power Distance 6 1.4 Porter’s Diamond Model 7 2.0 Global Marketing Objective 7 2.1 Porter’s Generic Strategy Mix 8 2.2 Ansoff’s Marketing Strategies 8 3.0 Mode of entry 9 4.0 7 P’s of Marketing 10 a)Product 10 b) Process 10 c) Price 10 d) Physical evidence 11 e) Place 11 f) People 11 g) Promotion 11 References 0 List of Figure Figure 1: SWOT Analysis 5 Figure 2: Hofstede Dimensions 7 Figure 3: Comparison of Entry Mode 9 Introduction India is developing country, populated with 1.2 billion people. India’s economy is of very worthwhile. The current analysis shows India is expected to be considering in Top 5 economies in the world. Due to powerful economic development in past few decades, the living standards of Indian nation are improved and improving day by day. The people of India are establishing themselves in the field of information technology and in other industries. They also step up in urbanization and trend of using foreign band has increased much. The retailing industry in India is working very well and playing very important role in Indian economy. Also it is responsible for 10% (approximately) of gross domestic...
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...within markets to get what they want or accomplish certain goals. There are mainly two key ideas in economics; that goods are scares and society must use its resources efficiently. Managerial economics is the study of how to direct scares resources in the way that most efficiently achieves a managerial goal. Managerial economics is the application of microeconomic theory and methodology to decisionmaking problems faced by private, public and non-profit institutions. It assists decision-makers i.e. managers in efficiently allocating scarce resources, planning corporate strategy, and executing effective tactics. Managerial economics to a certain degree is prescriptive in nature as it suggests course of action to a managerial problem. Problems can be related to various departments in a firm like production, accounts, sales, etc. Managerial economics or economics is categorized in two types; microeconomics and macroeconomics. Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources. Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole rather than individual markets. B. The Three Issues of Economic / Business Organization 1. What commodities are produced? What to produce and in what quantities? This is one of the three major issues of economic / business organization. A society must determine...
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...Capitalism. · Capitalism vs Socialism. · Capitalism vs Communism. · Types Of Capitalism. · Advantages Of Capitalism. · Disadvantages Of Capitalism. · Criticism On Capitalism. CAPITALISM An economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, especially as contrasted to cooperatively or state-owned means of wealth. It is easy to forget that capitalism was coined not so long ago, in the mid-19th century, when the Industrial Revolution was in full swing, and individual entrepreneurs were creating new industries and amassing wealth. Terms for the other two major competing economic systems of the past two centuries— socialism and communism—were also coined around the same time. Also, about the same time it became common to designate all such coinages as “isms”: terms formed by adding the suffix -ism to a root word in order to expand its meaning to encompass a related system, theory, or practice. Thus from a fairly old word, capital, the relatively newer word, capitalism, was formed to describe the then emerging economies of the West. On the surface, the meaning of capitalism seems straightforward, referring to an economic system in which private individuals, rather than governments, own property and businesses. But beneath the surface, strong currents of opinion and theory swirl about the term. Capitalism vs Socialism Capitalism...
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...Intro to Economic Concepts Definition of Scarcity A situation in which human wants are greater than the capacity of available resources to provide those wants. 3 Parts: 1. People want it 2. There is a limited amount of it 3. It has more than one productive use Scarcity Scarcity vs. Abundance – people see many signs of abundance (e.g. cell phones, iPods) and also see resources wasted daily (e.g. water and food). However, as long as resources are limited and people’s wants are unlimited, scarcity (in the economic sense) will exist. Scarcity In economic reasoning, scarcity is a relative concept, not an absolute one. Scarcity does not mean “not plentiful.” In economics, something is scarce when it has more than one valuable use. = & Opportunity Cost Opportunity cost is what you give up to obtain something else, the second-best alternative. However, what you must give up is not money – it is whatever good or service you would have spent the money on as your next favorite choice. Goods v. Services Good – something that is tangible; it can be seen and felt. It requires scarce resources to produce and it satisfies human wants Goods v. Services Service – something that is intangible; yet it too requires scarce resources to produce and satisfies human wants Is it a good or service? Productive Resources L – land (and stuff from land) L – labor (physical and mental) C – capital (human-made...
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...Anti-monopoly Analysis of Tencent QQ vs. 360 Dispute Weiwei Hu and Yimeei Guo School of Law., Xiamen University; 361005, China helusi420hw@163.com, ymguo@xmu.edu.cn Abstract. Anti-monopoly concerns are becoming more and more frequent for Internet industries competiting all over the world. This paper makes a case analysis of Tencent QQ vs. 360 dispute, then has some further thought from such dispute.Finally, it is hoped by this paper that China’s Anti-monopoly Law be healthily and perfectly enforced in the future. Keywords: Anti-monopoly, Internet industries, Case analysis. 1 Introduction Anti-monopoly concerns are becoming more and more frequent for Internet industries competiting all over the world.For example, in February 2011,Apple launched a new service that allows for magazine and newspaper subscriptions for its popular devices, might draw claim from publishers that Apple dominates the market for consumer tablet computers and that it has allegedly used that commanding position to restrict competition.[1] Also in February 2011,Hudong.com, an online encyclopedia, is alleging that Baidu unfairly blocks its Web pages from search results in favor of its own encyclopedia service, Baidu Baike.[2] On April 1,2011, Microsoft plans to file a complaint with the European Commission demanding action against competitor Google on competition law grounds. Microsoft claims that Google stops other companies from accessing the information needed to run effective search operations.[3]...
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...Systems. Socialism Socialist economic systems (all of which feature common ownership of the means of production) can be subdivided by their coordinating mechanism (planning and markets) into planned socialist and market socialist systems. Additionally, socialism can be divided based on the ownership of the means of production into those that are based on public ownership, worker or consumer cooperatives and common ownership (i.e., non-ownership). Communism is a hypothetical stage of Socialist development articulated by Marx as "second stage Socialism" in Critique of the Gotha Program, whereby economic output is distributed based on need and not simply on the basis of labor contribution. The primary concern for socialist planned economies is to coordinate production to directly perceived satisfy human needs/economic demand (as opposed to generate profit and satisfy needs as a byproduct of pursuing profit), to advance the productive forces of the economy while being immune to the perceived systemic inefficiencies (cyclical processes) and crisis of overproduction so that production would be subject to the needs of society as opposed to being ordered around "capital accumulation".[7][8] Capitalism Capitalism generally features the private ownership of the means of production (capital), and a market economy for coordination. Corporate capitalism refers to a capitalist marketplace characterized by the dominance of hierarchical, bureaucratic corporations. Mercantilism was the dominant...
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...“Increasingly free flow of ideas, people, goods, services and capital leads to the integration of economies and societies” Globalisation as a process results in changes for markets and businesses --- expansion of trade in goods and services between countries; transfers of financial capital across national; FDI; multi-national companies; the investments by sovereign wealth funds; internationalisation of products and services; global brands; Shifts in production and consumption; increased labour migration --- The increasing inter-dependence of economies --- for macroeconomic health --- newly industrialising countries: growing share of world trade, growing faster than developed nations Global consistency --- assumes the home country’s personnel and ways of doing things are best Local adaptation --- assumes local managers in host countries know best how to run their own operations Geocentric Attitude A world-oriented view that draws upon the best talent from around the world Cultural Intelligence --- capability to function and manage effectively in culturally diverse settings Managing across cultures --- Each country has its own: laws, business customs, work ethics, workforce characteristics and political climate… effect of globalization --- Create economic of scale; Produce cheap and flexible to meet demands --- weaken of national identity (not much weaken) --- Different society place different value (Intrinsic factors, education, moral standard)...
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...wants Economics study of choices people make Economic models – graphs 3 key economic ideas 1) People are “rational” ( weigh benefits vs cost 2) People respond to econimic incentives --- money, cars ect... 3) Decisions are made at the “margin” not “all or nothing” (optional) Margin : means next or additional Widgets Subjective (Your point of view. Scarciy ( 3 Questions 1) What to produce? “Individules” Producers, Consumers, Gov 2) How much to produce? Man vs machine 3) Who gets it? Income Distrubution Should the gov intervie??? (tax code) Trade offs Opportunity Cost 1. Job 2. Education Micoeconimics VS Macroeconimics Micro • Small • People/firms make decisions? • How do they interact in markets? • Gov try to interfere??? Macro • Large • Econimy as a whole • World/International (orginations, trade • Inflation • Grouth • Unemployment Economic Systems (Gov) Centrally planned Gov decides how resources will be allocated. Exmp: Soviet Union : Communism/Socialism • Tough to produce @ lowest cost (bueracry) • Low standard of living • Political dictatorship • Exmp Cuba & N. Korea Market economies • Interactions between buyers and sellers determine allocation • “trend” towards high-income democracies • Privatlly owned...
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...Capitalism vs. Socialism. “The US is a capitalist there corporations can sue and be sued. They can buy and sell property. They can perform many of the same actions as individuals. A capitalist system is a free market economy or free enterprise.” Belgium is socialism everyone works for wealth that is, in turn, circulated to everyone. Capitalism you work for your own wealth. A socialist economic system operates on the foundation that what is good for one is good for all. Everyone works for their own good and the good of everyone else. The government decides how wealth is spread among the people.” “In a socialist economy, there is no market as such. The government provides for the people. The taxes are usually higher than in a capitalist system. There may be government-run health care and a complete system of government-operated education.” “Capitalism increases the opportunities in the marketplace for personal economic growth. It increases opportunities for entrepreneurs to increase their personal wealth and for societies to grow as well. Hard work is rewarded under a capitalist economy “Socialism seeks to promote equality among people by providing them with many of the same social benefits. Examples of benefits that individuals in a socialist society are provided are educational, health care, and care for the elderly. Socialism means paying for things without necessarily expecting a financial return.” “Consumers and companies control the free market in the US.“ I would rather...
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...Cosmopolitanism, Neo-liberalism, and Global Corporate Social Responsibility Introduction With the rise of globalization come several opportunities as well as threats. On one hand there is the opportunity to overcome problems such as world hunger, poverty, and abuse of human rights. However, on the other hand, globalization could pose as a threat against cultural diversity, as well as allow large corporations and rich governments to exploit human and natural resources in less developed countries. There has been much discussion and debate over how to approach globalization in a way that maximizes opportunities and minimizes threats, but of course it is not always clear which approach will do this. Two approaches in particular, which have been come to known as cosmopolitanism and neoliberalism, have developed and made lasting impacts on ideologies as well as policies. There are avid supporters as well as opponents of both, but in this paper, rather than compare the pros and cons of the two and argue for which one is superior, I would like to discuss if these approaches oppose each other or if in fact they compliment each other as an approach to globalization. As well, I will discuss the issue of social responsibility of multinational corporations in a globalized environment. Cosmopolitanism In order to evaluate the relationship of cosmopolitanism and neoliberalism as approaches to globalization, it is important to first have a clear understanding of the basic tenants and...
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