Business Customs In Global Marketing 69f1y

BUSINESS CUSTOMS IN GLOBAL MARKETING . Business customs are as much a cultural element of a society as is the language. . Culture not only establishes the criteria for day-to-day business behavior but also forms general patterns of attitude and motivation. . Knowledge of the business culture, management attitudes and business methods existing in a country and a willingness to accommodate the differences are important to success in an international market. REQUIRED ADAPTATION Degree of Adaptation . Business executives must be aware of local customs and be willing to accommodate those differences that can cause misunderstanding. . The key to adaptation is to remain American but to develop an understanding of and willingness to accommodate the differences that exist. Imperatives, Adiaphora and Exclusives Cultural Imperatives Cultural imperatives are the business customs that must be met and conformed to or avoided. A complicating factor is that what may be imperative to avoid in one culture is an imperative to do in another. Cultural Adiaphora Cultural adiaphora are the business customs that cultural aliens may wish to conform to or participate in but that are not required. For the most part adiaphora are customs that are optional, although adiaphora in one culture may be perceived as imperatives. Cultural Exclusives Cultural exclusives are the customs in which an outsider must not participate. These customs or behavior patterns are reservedexclusively for the locals and from which the foreigner is excluded. METHODS OF DOING BUSINESS Sources and Level of Authority Business size, ownership, public ability and cultural values combine to influence the authority structure of business. In high PDI countries, subordinates are not likely to contradict bosses, but in low PDI countries they often do. Authority patterns . Top-level management decision making This pattern of decision making is generally found in the following situations – • Where businesses are small • Where family or close ownership gives absolute control to owners • For government-owned companies where the professional managers have to follow decisions made by politicians. . Decentralized management decision making . Decentralized decision making allows executives at different levels of management to exercise authority over their own functions. . This is typical of large-scale businesses with highly developed management system. . Committee decision making . Committee decision making is by group or consensus. 1

. Business emphasizes group participation, group harmony and group decision making – but at top management level. . The cultures and religions, that tend to emphasize harmony and collectivism, generally follow this pattern of authority. Management Objectives and Aspirations . Personal goals In some countries, people emphasize profit or high wages to set their personal/individual goals. In other countries, security, good personal life, acceptance, status, advancement or power may be emphasized. . Personal security and job mobility . Good wages and the training and ability required for moving from company to company within the business hierarchy. . The security of lifetime positions with their companies. . Adequate retirement plans and other welfare benefits. . Social acceptance In some countries, acceptance by neighbors and fellow workers appears to be a predominant goal within business. . Personal life For many individuals, a good personal life takes priority over profit, security or any other goal. For others, their work is the more important part of their overall lives. . Power In some countries, many business leaders are not only profit oriented but also use their business positions to become social and political leaders. Communications Emphasis Even though language is the basic communication tool of foreign marketers, managers often fail to develop a basic understanding of a foreign language. The translation and interpretation is most impossible when slang is added, as it puts the interpreter in the uncomfortable position of guessing at meanings. The best policy, when dealing with other languages, is to stick to formal language pattern. Whose English? United States United Kingdom Trunk Boot Hood Bonnet Convertible Top Hood Elevator Lift Toilet W.C. Bathroom Tub or Shower Vacuum Hoover 4-8 Hall’s high- and low-context cultures High-context culture • Communication depends heavily on the implicit, nonverbal aspects of communications. • It takes considerably longer to conduct business because of the need to know more about a businessperson before a relationship develops. • Examples: Japan and Saudi Arabia Low-context culture • The communication depends more on explicit, verbally expressed communications. • One gets down to business quickly. • Managers in general probably function best because they are accustomed to reports, contracts and other written communications. • Example: North America 2

Formality and Tempo . The informality may appear to be exclusives that businesspeople from other countries not only fail to share but also fail to appreciate. This apparent informality does not indicate a lack of commitment to the job. . Haste and impatience are probably the most common mistakes of marketers; because in some countries, negotiations are likely to be prolonged. P-Time versus M-Time Monochronic Time (M-Time) Most low-context cultures operate on M-time. . The cultures tend to concentrate on one thing at a time. . They divide time into small units and are concerned with promptness. . The countries desire to get straight to the point and get down to business is a manifestation of an M-time culture. . M-time is used as a linear way. Polychronic Time (P-Time) . Most high-context cultures operate on P-time. . In these cultures, the completion of human transaction is emphasized more than holding to schedules. . P-time is characterized by the simultaneous occurrence of many things and “by a great involvement with people” (building relationship). . The P-time system gives rise to looser time schedules, deeper involvement with individual, and a wait-and seewhat-develops attitude Negotiations Emphasis . The basic elements of business negotiations are the same in any country – • The product • Its price and • Services associated with the product • Friendship between vendors and customers . The negotiation process is complicated and the risk of misunderstanding increases when negotiating with someone from another culture. Gender Bias in International Business . The gender bias against women managers exists in some countries where a small percentages of employees are chosen for international assignments. . In many cultures, women are not typically found in upper levels of management, and men and women are treated very differently. . A key to success for either men or women often hinges on the firm’s training systems and especially, the strength of the firm’s backings. BUSINESS ETHICS . Bribery Voluntarily offered payment by someone seeking unlawful advantage is bribery. . Extortion It is extortion if payments are extracted under duress by someone in authority from a person seeking only what they are lawfully entitled to. Bribery: Variation on a theme Bribery and Extortion . Lubrication Lubrication involves a relatively small sum of cash, a gift, or a service given to a low-ranking official in a country where such offering are not prohibited by law. . Subornation Subornation involves giving large sums of money designed to entice an official to commit an illegal act on behalf of the one offering the bribe. Lubrication and Subornation 3

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