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Cooperative Strategy
Dr Robert Harris
Culture & Socio-Cultural
Issues in International Cooperation
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What is Culture?
Culture is learned, shared and transmitted
Can be passed on by family, social, state and
religious organisations
Two Types of Cultural Knowledge
Factual : facts that can be studied and understood
Interpretative : requires experience and degree of
empathy.
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What is Culture?
Success of an alliance often depends on
whether it is culturally accepted
Managers must avoid applying their
own cultural values or rules of
behaviour
Self reference criterion trap
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Culture Defined
The sum total of learned beliefs, values
and customs that serve to direct
managerial and employee behaviour in a
particular country market
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Components of Culture: 1
Beliefs:
A large number of mental and verbal
processes which reflect our knowledge
and assessment of products and services
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Cultural Values and their Relevance to
Manager/Employee Behaviour
Source: Schiffman, L.G. & Kanuk, L. L. (2000)
Value Features Relevance To BehaviourAchievement & success Success flows from hard work Justification for acquisition of
goods
Efficiency & practicality Admiration of things that solveproblems
Stimulates purchase of wellfunctioning products
Progress People can improve themselves Ready acceptance of new/improved products
Material comfort The good life Fosters acceptance of
convenience/luxury products
Individualism Being oneself Stimulates acceptance of customised or unique products
External conformity Uniformity of observablebehaviour
Stimulates interest in productsused by others
Youthfulness State of mind that stresses beingyoung at heart
Stimulates acceptance of productsthat promote youthfulness
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Components of Culture: 2
Values:
The indicators stakeholders use to serve asguides for what is appropriate behaviour,
they tend to be relatively enduring and
stable over time and widely accepted by
members of a particular market
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Components of Culture: 3
Customs:
Overt modes of behaviour that constitute culturallyapproved or acceptable ways of behaving in specific
situations. Customs are evident at major events in
ones life eg birth, marriage, death and at key events
in the year e.g. Christmas, Easter, Ramadan, etc.
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A Cultural Framework
Religion
Values &
AttitudesLanguage
EducationAesthetics
SocialOrganisations
Law & Politics
Technology &
Material Culture
Cultures
Adapted from Terpstra & Sarathy (2000)
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Elements of Culture
Aesthetics
Refers to designs, shapes, colours etc.
Need to consider local preferences even if
developing a global brand
Social Organisation
Defines the way people relate to each other:role of men and women, social class, family,
group behaviour etc.
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Elements of Culture
Family Unit:fundamental unit of social org.;Information on household units useful
Roles and status:gender roles
Social hierarchy: income, power, religion,wealth - need to understand social stratification
Attitudes to foreign products
Attitudes towards achievement
Attitudes towards change
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The Socio-cultural Environment
Understanding of socio-cultural differences is
of prime importance in ensuring success in
foreign alliances:
language religion
social organisations
aesthetics education
plus many more!!
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Culture & International Cooperation
Cultural segmentation important in order tooffer the right product and use appropriate
business communications.
Need to understand extent of culturaldifferences in relation to: Language
Needs and wants
Consumption patterns Market segments
Socio-economic factors
Marketing conditions
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The Socio-cultural Environment
Firms increasingly need to understand
partners requirements and how to
manage operations across countries
e.g. Honda: Different organisational
structures and synthesis of ResourceBased Management style.
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The Main Silent Languages in
Overseas Business: 1
Source: Hall & Hall (1987)
Silent Language Implications For Marketing & Business
- Appointment scheduling
- The importance of being on time
-The importance of deadlines
-Sizes of offices-Conversational differences betweenpeople
- The relevance of materialpossessions
- The interest in the latest
Time
Space
Things
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The Main Silent Languages in
Overseas Business: 2
Silent Language Implications For Marketing & Business
- The significance of trusted friends associal insurance in times of stress andemergency
- Rules of negotiations based on laws,moral practices or informal customs
Friendship
Agreements
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Cultural Influences on Business
Behaviour
Adapted from: Jeannet and Hennesey (2002)
Cultural Forces Cultural Message Consumer DecisionProcess
Religion
HistoryFamily
Language
Education
Arts
Symbols
MoralsKnowledge
Rules of Behaviour
Selecting
Prioritising WantsDecision Making
Behaviour
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Culture & International Cooperation
Discussion Point:
What are the key cultural issues that need to
be considered by managers? Consider how cultural differences may
impact on the business you have chosen for
your assignment:
Product, price, promotion, place,
People, processes and physical elements
Communications, customs, etc.
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7/31/2019 Social & Cultural Issues in International Cooperation
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Dr. Robert Harris
File source: masslearning.com