Unit 4 : Cultural Environment- Autocratic
What is Culture?
Hofstede Model:
- Power Distance: Acceptance of unequal power.
- High: Autocratic bosses, centralized structure.
- Low: Collaborative bosses and subordinates, decentralized structure.
- Individualism vs. Collectivism: Degree of societal interdependence.
- Example: USA, France, Germany vs. China.
- Uncertainty Avoidance: Tolerance for ambiguity.
- High vs. Low.
- Masculinity vs. Femininity: Role distribution between genders.
Culture and Consumer Behavior
- Domino's Pizza adaptations:
- Britain: No knocking.
- Japan: Non-sequential house numbers.
- Kuwait: Limousine delivery.
- Iceland: Drive-ins, no phones.
Effect on Business
- Cultural Imperatives: Must-follow customs for success.
- Example: Eye contact norms in Japan vs. Arab/Latin America.
- Cultural Electives: Optional customs beneficial for adaptation.
- Example: Appreciating Danish flag or language.
- Cultural Exclusives: Strictly local customs.
- Example: Danes reserve national day and constitution for themselves.
- Intercultural Communication Importance
- Misinterpretations in ads leading to unintended meanings.
- Example: General Motors and Pepsi Cola's campaigns.
Applications
Cross-Cultural Literacy
- Understanding cultural differences in business
- Links culture to business costs
- System of values and norms for a design for living
- Values: ideas of what is good and desirable
- Norms: appropriate behaviors in situations
- Society: people sharing values and norms
- International Communication
- Adjusting verbal and non-verbal communication
- International Negotiation
- Adapting to cultural styles of negotiation
- Importance of establishing relationships in some cultures
- International Management
- Cultural sensitivity in leadership
- Training for nuanced business practices
- International Marketing
- Adapting marketing strategies to cultural values
Limitation
- Questionable choice of national level: - Other factors and levels for assessing culture
Decision Making Across Cultures
- Autocratic vs. consensus cultures
- Examples:
- USA: flat management but top-down decisions
- Germany: formal hierarchy with inclusive decision-making
- Scandinavia: consensus-based, social factors
- Japan: harmony and group wellbeing, ringi-sho process
- China: slow, deliberate, hierarchy and collective good
- Arab: top-down, importance of honor and relationships
- Cultural insights for better communication