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Determinants of culture - Coggle Diagram
Determinants of culture
Social Structure
Individuals and groups
The individual
The emphasis on individualism may also make it difficult to build teams within an organization to perform collective tasks. If individuals are always competing with each other on the basis of individual performance, it may be difficult for them to cooperate.
In many Western societies, the individual is the basic building block of social organization. This viewpoint is reflected not just in the political and economic organization of society but also in the way people perceive themselves and relate to each other in social and business settings.
ndividualism also finds expression in a high degree of managerial mobility between companies, which is not always a good thing. Although moving from company to company may be good for individual managers who are trying to build impressive résumés, it is not necessarily good for companies.
The group
In contrast to the Western emphasis on the individual, the group is the primary unit of social
organization in many other societies.
Social stratification
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Significance
From a business perspective, the stratification of a society is significant if it affects the operation of business organizations.
An antagonistic relationship between management and labor classes, and the resulting lack ofcooperation and high level of industrial disruption, tend to raise the costs of production in countries characterized by significant class divisions. In turn, higher costs can make it more difficult for companies based in such countries to establish a competitive advantage in the global economy.
Political philosophy
Politics will determine the laws, policies, regulations, etc. This also affects the culture of the country and of course also affects the business. Need to monitor national politics to avoid risks, avoid violations
Economic philosophy
The economy also has an impact on the culture as well as the business practices of the business. Specifically, when the economy is assessed as developing, the culture also develops. Because when the economy develops, the country will have money to invest in education, language,... Culture will develop accordingly.
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Education
From an international business perspective, one important aspect of education is its role as a determinant of national competitive advantage.The availability of a pool of skilled and educated workers seems to be a major determinant of the likely economic success of a country.
Not only is a good education system a determinant of national competitive advantage, but it is also an important factor guiding the location choices of international businesses. it would make little sense to base production facilities that require highly skilled labor in a country where the education system was so poor that a skilled labor pool wasn’t available, no matter how attractive the country might seem on other dimensions. It might make sense to base production operations that require only unskilled labor in such a country.
The general education level of a country is also a good index of the kind of products that might sell in a country and of the type of promotional material that should be used. For example, a country where more than 70 percent of the population is illiterate is unlikely to be a good market for popular books. Promotional material containing written descriptions of mass-marketed products is unlikely to have an effect in a country where almost three-quarters of the population cannot read. It is far better to use pictorial promotions in such circumstances.
Language
SPOKEN LANGUAGE
- Language is primary to establishing quality business relationships.
- The most widely spoken language in the world is English, however, learning the local language yields considerable advantages. Most people prefer to converse in their own language, and being able to speak the local language can build rapport, which may be very important for a business deal.
International businesses that do not understand the local language can make major blunders through improper translation. This will lead to some risks for the business
UNSPOKEN LANGUAGE
A failure to understand the nonverbal cues of another culture can lead to a communication failure. And if we can't communicate, how can we cooperate in business, production,...
Another aspect of nonverbal communication is personal space, which is the comfortable amount of distance between you and someone you are talking with. Lack of understanding of personal space may lead to the regrettable lack of rapport between two businesspeople from different cultures.