MGT340 - Week 5 Notes
MGT340 - Week 5 Notes MGT 340 100
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This 7 page Class Notes was uploaded by Rose_Esqui on Sunday October 4, 2015. The Class Notes belongs to MGT 340 100 at Pace University - New York taught by Hwang in Fall 2015. Since its upload, it has received 13 views. For similar materials see International Management in Business, management at Pace University - New York.
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Date Created: 10/04/15
Chapter 5 Managing Across Cultures I The Strategy of Managing Across Cultures A 4 Distinct Strategic Predispositions 1 Ethnocentric a A nationalistic philosophy of management that allows the values and interests of the parent company guide strategic decisions 2 Polycentric a A philosophy of management whereby strategic decisions are tailored to suit the cultures of the countries where the MNC operates 3 Regiocentric a A philosophy of management whereby the firm tries to blend its own interests with those of its subsidiaries on a regional basis 4 Geocentric a A philosophy of management whereby the company tries to integrate a global systems approach to decision making B Meeting the Challenge 1 The Globalization Imperative a Belief that one worldwide approach to doing business is key to efficiency and effectiveness b Many factors facilitate the need to develop unique strategies for different cultures i Diversity of worldwide industry standards ii Continual demand by local customers for differentiated products iii Importance of being an insider as in case of customers who prefer to 39buy local iv Difficulty of managing global organizations v Need to allow subsidiaries to use own abilities and talents unconstrained by headquarters 2 In advertising a French i Avoid reasoning and logic ii Advertising is predominantly emotional dramatic symbolic iii Spots are viewed as cultural events art for sake of money and reviewed as if they are literature or films b British i Value laughter above all else ii Typical broad selfdeprecating British commercial amuses by mocking both advertiser and consumer c Germans i Want factual and rational advertising ii Typical German spot features standard family of two parents two children and grandmother 3 What MNC Should Do To Adjust Global Strategies for Local Markets a Stay abreast of local market conditions i Don39t assume all markets basically same b Know the strengths and weaknesses of MNC subsidiaries i Provide them assistance in addressing local demands 0 Give the subsidiary more autonomy i Let it respond to changes in local demand II CrossCultural Differences and Similarities A Parochialism and Simplification 1 Parochialism the tendency to view the world through one39s own eyes and International Management Page 1 perspectives 2 Simplification the process of exhibiting same orientation toward different cultural groups B Six Basic Cultural Variations Table 5 2 EII Ease Eul uml 1ilfariliii tl l riartat i nna Hange rnif U3 riatiEina Wiria in nine amm if Female rmed Ird an exaliilmlui elmngnarllilei Fl mixture of gems and E39m39ill Evil ithaingaabiaflailici l angea hleil What is the paraambit rula tiunei iip tr i nariirui wwiiir aaiir IE1 harmg ir wijh nature Subjugafian What it the premiums relational nip 1 Gather people Linseal il liararzhi i Collateral im i utivi Imeli39irirlllalimtquot What ii the ruinsimilar f human activity Barringi Brainlg and Imam Thing Buying What is the tempera Twila of human activity Emma 9 Pr aginr Paar What is this eurieelititrrrp of apnea Pii39tl39 l a39 Mixed Public HerEire Haifa3395 me dumi am LLE orientation Euuyre res apted iru n the wui k at Humane Hunks mud leu h lm and Fr l L Humbledz C Similarities Across Cultures 1 Not possible to do business same way in every global location 2 Procedures and strategies that work well at home can39t be adopted overseas without modifications 3 Some similarities have been found a Russia and US for example i Traditional management ii Communication iii Human resources iv Networking activities v OB Mod D Differences Across Cultures 1 Far more differences and similarities found in crosscultural research 2 Wages compensation pay equity maternity leave 3 Importance of criteria used in evaluation of employees E Cultural Clusters in the Pacific Rim EU and United States International Management Page 2 Table 5 3 cultural Elmai tar i1 the Paci c Firm EIJ i ml UFIHEIEI Stain Hawaii Lilim a ainw i t li individualism Magnulliniw Aw idaimn F aui l iu iim Hang lining Malaysia Philippimm Singapme i T J23 pan 139 E u ih Kama aiwan EU Limited States France Spain aquot 1 Elf Belgium 1 139 Faringail Greece i I 7 Eenimarlnc Nei heirl ind m 1 l Germany Great Eiritain Ireland United Staten LIA F A Partially Completed Matrix for International Human Resource Management yl39l rl l l mull11 H E39l ii I 39 tl l la Tran F1 I 39i ll rmgj n39uam hz rna LEI h lr Filllr tl il ii JEl lI I llt l il39lx NatE indicates hih our aiming indimma law car weak Ermine Based an research by Human and prnsarn39tad in Fidel13rd M Handmade and Friend Luth ans quotLLE Mu itiuuariitmais E mpematiu u E t raitegiea iuxr Lanai Managemem EFDE Eu E U IFI KUF HII implication Samplingarm and f 39 f Hawaiir March April 1 p 4 H pmducad wink psErrntniriaivzin Elf Sage F39Iuhlliizaiiiziins lil39iE via Copyright Clearance CantHr vi Prepay i39uzur Innn1 matQM Ei l jJFI39r mm perm Him In Mr to 51w Eritreamm Hummii u Franticstamp whim FurlHim i39 btall i 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JIII IJIF h i39l rialmoi IUSn39 39r39l39i iIEIFEi 39i39a39GEIFlE nHamI i 235quot wll1 unl a i Tram unlm 115 EHII39Ijl39IiJI E All 39 e iiin ilzi I nj xilmlcns a an promrad izr man wags all altar kin rm 6 EI ft I39ll31h pm rillg iljhgl39l w rriflI39I I ur n miimm W afhr f i Utl illeIarEiall ld changing Mw gll39i LIEUElf lglw i FFEIJEW 1 r39 l rtr quot Inn uinlcnlaatlcn at MIKEIf I Elan Iliumquot EHH II39l mis t flill l L39Ii I btlir IWWE ima39r lumzsrnaa rrlasms Elffi Egii 39 1 I llHjlIrliI Hartl lEjarljicarl 39539 Il it rlii r 13mm micall Mil g i Li a au mmmma iiiWHE I Ll il Ilrlllrlilr39lfll Il39s rnuL l munmachines Ei ueczuumm rIIIrquotn5rikaIr iilililljl l 393 El lfh WEI MilHTM 1 main Grumman I lJ Iillu39gI j WEITIEIEE annual i i l i39ii ihi Ea wunhailr39 Ful llcilia Han I mfgnaming 7Lrllil1ra 39I IIEIipl Lili iiJM mtormln m im quot mmiws laIrpruzrt iil39nililiaI39HEJIHlIa ling Ii l39lil jl laI l ll Japan anmain MGR H3543 El39 ll Ella um Frmm Fro1i lL Li ill1x i E Faull dis Mariam am litaha w Llama115 5 Dancing micg Fewmm nippraw tl i i IHHM Hmnn Herman5 quot iin39i39n i ggsfin39iiiaE39J39id39ml39tlu i39 il39 awn 2 39IEIEIE ogrimmed wlm pzrmissiarn o1 JcI m wmg Eu SlitNi int 111 Cultural Differences in Selected Countries and Regions A Doing Business in China 1 The Chinese place values and principles above money and expediency 2 Business meetings typically start With pleasantries such as tea and general conversation about the guest s trip to the country local accommodations and family International Management Page 3 The Chinese host Will give the appropriate indication for When a meeting is to begin and when the meeting is over Once the Chinese decide who and what is best they tend to stick with these decisions a Although slow in formulating a plan of action once they get started they make fairly good progress In negotiations reciprocity is important a If the Chinese give concessions they expect some in return Because negotiating can involve a loss of face it is common to find Chinese carrying out the whole process through intermediaries During negotiations it is important not to show excessive emotion of any kind a Anger or frustration is viewed as antisocial and unseemly Negotiations should be viewed with a longterm perspective a Those who will do best are the ones who realize they are investing in a longterm relationship B Doing Business in Russia 1 10 Build personal relationships with partners a When there are contract disputes there is little protection for the aggrieved party because of the time and effort needed to legally enforce the agreement Use local consultants a Because the rules of business have changed so much in recent years it pays to have a local Russian consultant working with the company Ethical behavior in the United States is not always the same as in Russia a For example it is traditional in Russia to give gifts to those with whom one wants to transact business Be patient a In order to get something done in Russia it often takes months of waiting Russians like exclusive arrangements and often negotiate with just one firm at a time Russians like to do business facetoface a So when they receive letters or faxes they often put them on their desk but do not respond to them Keep financial information personal a Russians wait until they know their partner well enough to feel comfortable before sharing financial data Research the company a In dealing effectively with Russian partners it is helpful to get information about this company its management hierarchy and how it typically does business Stress mutual gain a Win Win in negotiations also works well in Russia Clarify terminology International Management Page 4 ll 12 a The language of business is just getting transplanted in Russia b Doublecheck and make sure that the other party clearly understands the proposal knows what is expected and when and is agreeable to the deal Be careful about compromising or settling things too quickly because this is often seen as a sign of weakness Russians view contracts as binding only if they continue to be mutually beneficial so continually show them the benefits associated with sticking to the deal C Doing Business in India 1 2 It is important to be on time for meetings Personal questions should not be asked unless the other individual is a friend or close associate Titles are important so people who are doctors or professors should be addressed accordingly Public displays of affection are considered to be inappropriate so one should refrain from backslapping or touching others Beckoning is done with the palm turned down pointing often is done with the chin When eating or accepting things use the right hand because the left is considered to be unclean The namaste gesture can be used to greet people a It also is used to convey other messages including a signal that one has had enough food Bargaining for goods and services is common a This contrasts with Western traditions where bargaining might be considered rude or abrasive D Doing Business in France 1 When shaking hands with a French person use a quick shake with some pressure in the grip It is extremely important to be on time for meetings and social occasions a Being fashionably late is frowned on During a meal it is acceptable to engage in pleasant conversation a But personal questions and the subject of money are never brought up Great importance is placed on neatness and taste a Visiting businesspeople should try very hard to be cultured and sophisticated Tend to be suspicious of early friendliness a Dislike first names taking off jackets or disclosure of personal or family details In negotiations they try to nd out what all of the other side s aims and demands are at the beginning but they reveal their own hand only late in the negotiations Do not like being rushed into making a decision and they rarely make International Management Page 5 important decisions inside the meeting 8 Tend to be very precise and logical in their approach to things and will often not make concessions in negotiations unless their logic has been defeated E Doing Business in Brazil 1 Physical contact is an acceptable form of communication a Brazilians stand close to others when having a conversation and may touch the person s back arm or elbow as a greeting or sign of respect 2 Facetoface interaction is preferred a Avoid email or telephone calls b Meetings may start 10 to 30 minutes late c Greet with a pleasant demeanor and accept refreshments 3 Trust is not a given in Brazil so be sure to form a strong relationship before bringing up business issues a Close relationships are very important because Brazilians will do anything for friends 4 Appearance is very important a It re ects you and your company b Men should polish their shoes and wear conservative dark suits c Women should dress nicely but avoid being too conservative or formal d Think fashion 5 Patience is key a Many processes are long and drawn out including negotiations b Expressing frustration or impatience and attempting to speed up processes may lose the deal c Brazilians will be very loyal and committed once the agreement is reached 6 It is not acceptable to be illprepared Presentations should be informative and expressive a b Consistency is important 0 Be sure to state your case multiple times 9 Brazilians often bring multiple people to negotiations e Subsequent meetings may include members of higher management requiring a rehashing of information F Doing Business in Arab Countries 1 It is important never to display feelings of superiority because this makes the other party feel inferior a Let one s action speak for itself and do not brag or put on a show of self importance 2 One should not take credit for joint efforts a A great deal of what is accomplished is a result of group work and to indicate that one accomplished something alone is a mistake International Management Page 6 Much of What gets done is a result of going through administrative channels in the country a It often is difficult to sidestep a lot of this red tape and efforts to do so can be regarded as disrespect for legal and governmental institutions 4 Connections are extremely important in conducting business Patience is critical to the success of business transactions a This time consideration should be built into all negotiations Important decisions usually are made in person not by correspondence or telephone a This is why an MNC s manager s personal presence often is a prerequisite for success in the Arab world b The person at the top Will rely on personal impressions trust and rapport International Management Page 7