...Difference Culture In International Business Report between Saudi Arabia & U.S.A Culture in International Business Culture Culture refers to the cumulative deposit of knowledge, experiences, beliefs, values, attitudes, meanings, hierarchies, religions, nation of time, roles, spatial relations, concepts of the universe, material objects and possessions acquired by a group of people in the course of generations through individual and group striving. Culture is a fuzzy set of basic assumption and value, orientations to life, beliefs, policies, procedures and behavior and his/her interpretations of the ‘meaning’ of other people’s behavior. (Spencer- Oatey 2008:3) ‘Culture consists of patterns, explicit and implicit, of and for behavior acquired and transmitted by symbols, constituting the distinctive achievements of human groups, including their embodiment in artifacts; the essential core of culture consists of traditional (i.e. historically derived and selected) ideas and especially their attached values; culture systems may. On the other hand, be considered as products of action, on the other. As conditional elements of future action.’ (Kroeber and Kluckhohn 1952: 181; cited by Adler 1997: 14) Culture differences in International Business Doing business with others countries, the difference culture is a point that a business man should aware of. A key to being successful in business internationally is to understand the role of culture in international business...
Words: 3529 - Pages: 15
...Culture and its Impact on International Business Introduction As businesses have grown and expanded to the international level; certain aspects of business have become abundantly clear. One thing that has become the norm when doing business on the international level is dealing with different cultures. Culture, as defined by Geert Hofstede is “the collective programming of the human mind that distinguishes the members of one human group from those of another. Culture in this sense is a system of collectively held values.” The concept of a culture has been around for a very long time; in-fact, when people exist in the same place together they end up following a set of rules. These rules can be called a “social norm” or culture and can be made up of simple things like how to act in certain situations all the way to a very devout set of beliefs or values. This paper will focus on the role that culture plays on multinational businesses around the globe and the differences that culture plays from one area of the globe to the next. An in-depth look will be taken on the obstacles that may arise due to culture, adjustments that need to be made, and any ethical conundrums that may arise due to different cultures. Literature Review D. Elenkov and d. Kirova, state that “MNCs should not underestimate the importance of the cultural specificity of the host countries because different staffing, selecting, training, motivating and compensating practices should be applied in accordance...
Words: 4997 - Pages: 20
...The Importance of Understanding Culture in International Business | Business Management in an International Context | | The increasing number of interactions between independent countries, companies and people has highlighted the importance of an understanding of global cultures, both national and organisational. Culture plays a large role in the way individuals behave and interact with one another and therefore plays an important role in business interactions across cultures. Many definitions of culture are offered, but one more relevant to culture in international business is : “Culture is the way in which a group of people solves problems and reconciles dilemmas.” (E.Schein 1985) The first way in which countries can be broadly categorized is into either a high context or a low context culture. High context cultures place more emphasis on the importance of group identity. They have a high sensory involvement and participate more readily in bodily contact. Low context cultures prioritise individualistic properties. They use body language less frequently and are monochronic thus placing a high importance on timing and scheduling. Most Northern European countries and other western societies are low context cultures. It has been suggested by the acclaimed social scientist, Norbert Elias (1978) that the development of society and the basis of its’ cultural contexts are closely associated with the prominent historical groups of the region leading to an establishment...
Words: 1912 - Pages: 8
...Yeo Kian Seng SCSJ-0012635 International Management (BA 317) Spring 2014 Individual Assignment (20%) Ms. Kristen Segi College Subang Jaya Case Questions 1. What specific errors did Warren and Carol Oats make during their first week in Japan? Before getting started, Oats should have done some research in Japanese ways of doing business. Particularly on their meeting etiquette and social interaction; they are well-known for their politeness and it is probably the defining factor whether Oats is able to secure the business. First off, Oats should have presented his name card upon the first meeting even before he started to present his proposal. To Japanese, name cards represent an individual, Oats should have a cardholder specially cater to that. Introduction of himself and the company is also important, possibly this should be the only of the objective of the first meeting instead on going straight to the point. Secondly, Oats should have brought an assistant or more peers along with him on the first meeting. Seeing the Japanese attend the meeting in group means they are prepared to ask specific question per their expertise. Silence did occur during the meeting, it simply means that reflection is taking place; Oats should not have break the silence. As for Carol Oats, her approach in job search is wrong. She should have informed the executives prior before approaching them. A cover letter and updated resume is the basic, else there are nothing for the executives...
Words: 876 - Pages: 4
...Book review: “Business culture in international business: from collision to an understanding” written by Richard D. Lewis Prepared by Kamalov Artem In the present time Internalization of business and economics has become a global problem. Entrepreneurship goes far beyond national boundaries, drawing into its orbit increasing number of people with different cultural views. As a result cultural differences are starting to play an increasing role of business organizations and stronger influence on the marginal efficiency of business. This book “Business culture in international business: from collision to an understanding” created as study materials for practitioners, business mans, who want to avoid some conflicts and misunderstanding because of their own ignorance. I chose this stuff, because logic and the main idea of writer are easy. At the beginning he talk about the basic concepts and ideas of language in culture and about the culture of which he defines as "the collective programming of behavior." The second biggest part represents analysis of aspects common for all types of business culture and specifically for each other: use of time, space, structure of decision making, rituals, humor and so on. Finally, at the third part, he characterizes business culture of separate counties, regions including Russia. The main idea of this book is help to understand a local culture from different countries. In theoretical plan R. Lewis suggested a highly original approach to solving...
Words: 688 - Pages: 3
...Ethic Analysis According to all the effects and changes that have been taken during the interaction between cultures, it is very difficult to agree with other people who are from another country and have different way of thinking. It is important to be informed about the culture that we are interacting and everything that involves it since at the time of making decisions, it is necessary to take into account the effect that may have these differences. In this analysis I´m going to compare and discuss the differences between the ethics from one country with another, which are the United States and Mexico, and how they can affect the way they make their business. Starting with the United States, the government had decide to established corporations who engage the audits in each of the companies in the country to have more control in their regulations and to be sure that they are fulfilling all the laws and regulations that were previously set. With these regulations it has been a reduction of frauds that has being done, and also illegal operations between companies from another countries. These had been set also because corruptions has becoming more and more strongly to the country, so the government wants to have a total control. On the other hand it is Mexico, in several of their companies and general business, there have been problems because of the high levels of corruption, but the difference from US is that in Mexico the government is the one that is involve along...
Words: 282 - Pages: 2
...Chapter 3 Managing Global and Workforce Diversity Culture Shock Warren Oats was a highly successful executive for American Auto Suppliers, a Chicago-based company that makes original-equipment specialty parts for Ford, GM, and Chrysler. Rather than retreat before the onslaught of Japanese automakers, AAS decided to counterattack and use its reputation for quality and dependability to win over customers in Japan. Oats had started in the company as an engineer and worked his way up to become one of a handful of senior managers who had a shot at the next open vice-presidential position. He knew he needed to distinguish himself somehow, so when he was given a chance to lead the AAS attack on the Japanese market, he jumped at it. Oats knew he did not have time to learn Japanese, but he had heard that many Japanese executives speak English, and the company would hire a translator anyway. The toughest part about leaving the United States was persuading his wife, Carol, to take an eighteen-month leave from her career as an attorney with a prestigious Chicago law firm. Carol finally persuaded herself that she did not want to miss an opportunity to learn a new culture. So, armed with all the information they could gather about Japan from their local library, the Oats headed for Tokyo. Known as an energetic, aggressive salesperson back home, Warren Oats wasted little time getting started. As soon as his office had a telephone—and well before all his files had arrived from...
Words: 721 - Pages: 3
...Article 2: Communication in international business- to- business marketing channels Does culture matter? This article deals with the question if and how cultural variations influence channel communication . Finding show that there is a relationship between culture and channel communications in international channels. The autor , Bert Rosenbloom, described Hall’s (1976) proposed high-contex versus low- contex dichotomy to explain the different cultural orientations. It is a simple two category basis for grouping the cultures of many different countries to help understand the hidden codes in communication, stemming from „cultural distance“. The expressions "high context" and "low context" are labels which shows the cultural differences between societies. High-context and low-context communication refers to how much speakers rely on things other than words to convey meaning. First, Hofstede's cultural model and the model approaches Hall presented, where the main cultural differences are described. The cultural model of Hofstede with its five dimensions and the corresponding index values provides information about cultural differences and their possible impact in intercultural cooperation. The five dimensions in Hofstede's cultural model, "power distance", "collectivism versus individualism," "femininity versus masculinity," "uncertainty avoidance" and "long-term versus short-term orientation". Together, the five dimensions of a cultural model in which differences can be measured...
Words: 635 - Pages: 3
...Cultural Issues and Ethics in International Business Introduction The expansive and unstoppable process of globalization has forced employers to form their ability to trade and negotiate with the outside world. However, it is important not only they are immersed in this subject, your staff, or one who is qualified to do so, you should also have access to the most significant aspects of foreign trade, logistics, and the impact. Companies are not limited to conduct private and government operations locally, but also with other countries. Precisely what we call international business is the relationship between an organization and its external world (Maddox, 1993). This type of activity also involves foreign trade and international, which includes transactions such as exports, imports, investments, or financing that are performed worldwide. Among the success factors that can be mentioned in the international business operations are competitiveness, financial support between the parties and logistics. This aspect is very important because when the actors involved are from different countries or regions, the business success is more complicated. In analyzing the economy, we must review the dimension that transcends the borders of a country, i.e. which addresses the problems international economic purposes (Maddox, 1993). The importance of international relations in trading, politics or culture has reached a global level, a deeper meaning that one cannot speak only about...
Words: 1481 - Pages: 6
...What are International Business Ethics? International Business Ethics The importance of international business ethics has been rising steadily along with the growth of international business. Technologies like the Internet have made international business all the more viable, and many companies can only find the desirable growth and profit they seek by expanding into new markets. This means that just as business ethics domestically have grown in importance along with the power and significance of major businesses, so must international business ethics take center stage as a major concern of the modern era. The primary problem of international business ethics lies in the fact that most cultures and nations hold entirely different standards of both law and ethics. In America, business ethics can be employed because, in general, the disagreement between what actions are ethical and what actions are unethical in a single culture will be lesser than the disagreement between two entirely different cultures with different values and cultural practices. As a result, one business might believe it is acting perfectly in accordance with international business ethics, while another would view that first business as acting in a completely unethical fashion. Many businesses adopt the policies of cultural relativism, in which they attempt to take on the business ethics exhibited by the nation in which the business is working a particular deal, as opposed to attempting to carry any...
Words: 1192 - Pages: 5
...| | |[pic] | |United Business Institutes | |Full Name | | |Student ID | | |Program |BBM | |Module Code |MGT 402 | |Module Name |International Business Management | | | | |Submission Date | | |Total Pages (Including Cover Page) |19 | | | | |Face-to-Face...
Words: 3722 - Pages: 15
...African Journal of Business Management Vol.6 (22), pp. 6456-6464, 6 June, 2012 Available online at http://www.academicjournals.org/AJBM DOI: 10.5897/AJBM11.2673 ISSN 1993-8233 ©2012 Academic Journals Review Key issues in cross-cultural business communication: Anthropological approaches to international business Tian Guang* and Dan Trotter Shantou University, Shantou City, Guangdong Province, Southern China. Accepted 8 March, 2012 Cultural factors have long been known to influence the communication and success potential of competition. Cultural awareness shapes how business firms behave in cross-culturally reflected international markets. It is broadly recognized that cultural factors act as invisible barriers in international business communications. Understanding cultural differences is one of the most significant skills for firms to develop in order to have a competitive advantage in international business. This paper probes some key elements of cross-cultural issues in international business communication and provides a framework for creating competitive advantage for firms engaged in international business. Culture affects many aspects of international business communication. It impacts free trade policies, localization and standardization strategy decisions, advertising, brand effectiveness, business relationships, international business management, international marketing, international negotiation, and consumer behavior. Seven themes are suggested as guidelines...
Words: 6912 - Pages: 28
...Knowledge of Cultures and Politics as Critical Success Factors in Enhancing Managers Success in Managing International Business Dzulfakar Bin Abdullah (Student no: 20131241445) UiTM Programme Code : BM 995 (Doctor of Philosophy in Business Management) Course Code : MGT 950 (Global Strategic Sustainable Management) Assignment 3: Theoretical Paper Lecturer : AP Dr Roshidi Hassan ABSTRACT Business life in the new millennium is becoming increasingly global. The concepts of globalization apply to both large multi-national corporations as well as to local organizations. Knowledge of local culture and politics has become critical success factors (CFSs) for multi-national corporations in their effort for global expansion. Thus in enhancing the success of managing international business (IB) managers must have knowledge of local cultures and political situations. Research on the impact of local culture and political stability on successful management of international business has become of interest only recently due to globalization process. The paper reviews several literatures that try to prove that knowledge of culture and political situation as CFSs for the success of managing international business. Keywords: Critical Success Factors (CFSs), Knowledge, Culture, Politics, International Business, Success. Knowledge of Cultures and Politics as Critical Success Factors in Enhancing Managers Success in Managing International Business Introduction Globalization...
Words: 3533 - Pages: 15
...incentives, processes, culture and people. Superior organization profitability requires three conditions: An organization’s architecture must be internally consistent. Strategy and architecture must be consistent. Strategy, architecture and competitive environments must be consistent. McGraw-Hill/Irwin International Business, 5/e Organizational architecture Fig 13.1 To maximize profitability a firm must achieve consistency between the various components of its architecture McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-3 13-4 Organizational architecture Organizational structure: Location of decisionmaking responsibilities within the structure (vertical differentiation) Formal division of the organization into subunits e.g. product divisions (horizontal differentiation) Establishment of integrating mechanisms including cross-functional teams and or pan-regional committees Organizational architecture Incentives: Devices used to reward appropriate employee behavior Closely tied to performance metrics Control systems : metrics used to measure performance of subunits and judge managerial performance McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Processes: Manner in which decisions are made and work is performed McGraw-Hill/Irwin International Business, 5/e © 2005 The...
Words: 2331 - Pages: 10
...Differences in Forming a Business Strategy 1. Introduction International business covers all transactions undertaken between enterprises from two or more countries. In order to finalise a transaction companies have to form international operational structures distinct from those applied in their domestic market. Besides knowledge of international strategies managers need to comprehend the interdependence between the strategies and their financial results. Differences between an international and a domestic business concern commercial practices, the scope of managerial decisions, disparities in legal systems, as well as restraints put in place by governments, limitations connected w ith different currencies, not to mention cultural differences. Different business cultures in different countries lead to distinct commercial practices. Therefore, executives operating internationally encounter difficulties that people managing enterprises on a local scale do not have to face. Cultural differences are of fundamental importance for running an international business . The aim of this essay is to indicate the impact of cultural differences on the business strategy formulated for various countries and to show the significance of knowledge about the culture, behaviours, customs and traditions of the partner country in international business. This article is composed of three parts. The two first parts comprise a theoretic essay, in which native cultures are described in the...
Words: 3567 - Pages: 15
