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.
  1. 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
  1. International Communication
  • Adjusting verbal and non-verbal communication
  1. International Negotiation
  • Adapting to cultural styles of negotiation
  • Importance of establishing relationships in some cultures
  1. International Management
  • Cultural sensitivity in leadership
  • Training for nuanced business practices
  1. 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