Chapter 7: Cultural Considerations

Question 1

Culture Defined

Answer 1

• Set of customs, values, beliefs, behaviours and traditions that have developed among groups of people over decades and centuries.
=Influences and defined by geography, language, religion, history , war, food, clothing, climate and other variable

Question 2

Culturally diverse workforce can help fast-track entry into new markets

Answer 2

○ Development of language and slogans
○ Packaging and design
○ Colour and graphics
=Adaption of product or services.

Companies that do not that this advantage should consider using third parties.

Question 3

What is cross cultural marketing?

Answer 3

• Involves learning how to adapt a company’s marketing strategies and communications to the cultural differences in various international markets.
○ By apply cross cultural techniques, companies can maximize effectiveness in international trade
=Identifying and understand the values of another society is a complex exercise that involves differentiating between the significant core values and the superficial features of a culture

Question 4

Gaining cross-cultural competency

Answer 4

• Just because people do things differently in different cultures, does not make their methods inferior or superior.
=It’s important to be open-minded, flexible and non-judgmental

Question 5

High context culture

Answer 5

○ Context in which a conversation occurs is as important as the words that are actually spoke.
○ Cultural cues are important
○ Interpersonal relationships are extremely important
(Arab, Japanese, Chinese, Greek

Question 6

Low-context culture

Answer 6

○ Words used by the speaker explicitly convey the message to the listener.
○ Rely less on relationship build an non verbal cues
USA, Swiss, German

Question 7

Effective Communication

Answer 7

• Communication is the cornerstone of business, so make sure that it is clear and not easily understood. 
Cross cultural communication presents challenges :
- non-verbal communication
- gestures
- touching
-facial expressions
-space
-verbal communication 
- humour
-spoken language
-learn the language
- Intercultural meetings 
- Face 
-Eye contact
-silence
-gift giving protocol

Question 8

Effective Communication : non verbal communication

Answer 8

○ Body movement, gestures, ficial expressions, touching, eye contact
=Every culture reveries and interprets non-verbal communication differently, to avoid unintentionally insulting someone, it is important to understand the cultural aspects of non-verbal communication in foreign environments

Question 9

Effective Communication gestures

Answer 9

Improper gestures can lead to embarrassment.

Question 10

Effective Communication : touching

Answer 10

○ Different forms of touching shows a strong relationship in different cultures
○ Western culture is handshake
=Asian culture it is common for friends to walk around holding hands

Question 11

Effective Communication : facial expressions

Answer 11

-

Question 12

Effective Communication : space

Answer 12

-

Question 13

Effective Communication : verbal communication

Answer 13

○ The meaning of spoken words will differ from culture to culture
-At times even the absence of words may have meaning

Question 14

Effective Communication : humour

Answer 14

Can be useful in relationships to translate or combat stress however can be taken very differently across cultures.

Question 15

Effective Communication : spoken language

Answer 15

How you say something, where you take a pause, what word you emphasize can create different meanings across culture. Be sure to go slow and be concise using easy words to convey your actual meaning

Question 16

Effective Communication : learn the language

Answer 16

○ Best way to understand the culture

–Shows respect and interest in the other businesses culture

Question 17

Effective Communication : internationalizing language

Answer 17

English could be your business partners second language, make an effort to ensure that they understand everything.

Question 18

Effective Communication : Written communication

Answer 18

○ Key difficulties:
§ Use of slang
§ Ineffective translation that do no convey the real meaning
§ Inaccurate interpretation of written contracts
==Even with translator mistakes can be made. Have two translators , one to convey the message to the other parties translators (also called back translating)

Question 19

Effective communication: Intercultural meetings

Answer 19

○ When attending meetings in foreign markets, cultural aspects should be considered carefully
§ Room set up –> set up according to cultural and logistical needs of meeting.
□ don’t make someone of import ants sit in a subordinate place because it can be seen as insulting. Those of equal rank should be seemed equally
§ Time
□ Make enough time for people to get comfortable
□ Understand that in some cultures being late is acceptable and in others (German and Japanese) it is extremely rude.
§ Refreshments
□ Appropriate to cultures. Alcohol is okay for some cultures but offensive in others
§ Business attire
□ Be appropriate
§ Small talk
□ High context cultures require small talk before business, other cultures get straight to the point
§ Interpreters
□ Some cultures see them as part of the team, and require them to translate all verbal and non verbal
□ Important to have an interpreter who knows much about the culture you are doing business with so they can assist you in your transactions.
§ Room décor
□ Should be appropriate with respect to colours, flowers, furnishings and ambience
§ Protocol
□ Preparation is crucial
□ Who should speak first?
Crucial in for mail , hierarchical societies

Question 20

Effective communication: Face

Answer 20

○ Basically means one image.
○ “Saving Face”- is to take precautions to insure one’s image, or that of a client, is not tarnished or injured.
—International trade this is important because doing something embarrassing , stupid, or insulting could cost one a business relationship

Question 21

Effective communication:Eye contact

Answer 21

○ Unique culture to culture
==Some see it as a form of respect or attention, while others (France) would find it very uncomfortable and that you are not giving that individual there space.

Question 22

Effective communication:Silence

Answer 22

○ Low context- silence is uncomfortable and a portrayal that something is wrong (pausing after a question being asked–>may lead to someone thinking that something is wrong with the question.
○ High-context
=Silence is treated as a period to reflect, digest what was said and give ones full attention to the matter at hand.

Question 23

Effective communication: Gift giving protocol

Answer 23

○ In cultures with high degree for ability, formal speech and conduct are values and tiles and academic degrees are highlights.
○ Cultures that value informatility, people conduct themselves in a friend and familiar manner. Personally and achievement are more important than titles, and spontaneity is welcomed
○ Gift giving can be seen as essential is some countries and inappropriate in others
Find out if it is expected and then decide whether the gift will be appropriate.

Question 24

Impacts of Culture

Answer 24

Religion
Values and Attitudes
Age
Hierarchy
Education
Gender
Behaviour
Property and Materialism

Question 25

Impacts of Culture: Religion

Answer 25

○ Varies from culture to culture

It is important to note that most religions have special requirements that may affect business operations.

Question 26

Impacts of Culture:Values and Attitudes

Answer 26

○ Understating values, beliefs, assumptions an superstitions of target market can provide insight into local goals, priorities and motivations
○ This information is essential

Question 27

Impacts of Culture:Age

Answer 27

○ Western culture doesn’t value age when others (Asia), see it as accumulated wisdom

Question 28

Impacts of Culture: Hierarchy

Answer 28

Cultures that favour age usually emphasize hierarch, more decisions are made by those with power

Question 29

Impacts of Culture: Education

Answer 29

Some cultures restrict education based on status or gender

Question 30

Impacts of Culture: Gender

Answer 30

Some believe that gender equality is the way to go, other cultures have a more traditional outlook

Question 31

Impacts of Culture: Behaviour

Answer 31

Behaviours have particle meaning and communicate something

Question 32

Impacts of Culture : Property and Materialism

Answer 32

Cultures attach varying degrees to the importance of ownership.

Question 33

Intercultural Relationships

Answer 33

• Importance of personal relationships varies throughout the world, but relationship building skills are important to any business professional. This is affect by other competencies since knowledge, understanding, communication and respect are the cornerstones of meaningful relationships
==Relationships are developed over time and continually need to be strengthened

Question 34

Critical attributes of successful relationship builders

Answer 34

○ In depth knowledge of the similarities and differences in the norms of socialize injured in the home country and foreign country
○ An ability to initiate conversations in the foreign language
○ An understanding of how personal and professional relationships are intertwined into foreign culture
○ An awareness of negative perceptions that may exist in the foreign culture and the ability to overcome stereotyping;
=The capacity to instil confidence and trust Ina cross cultural environment through effective business practices, fair and equitable treated of all counterparts and ethical practices.

Question 35

Cost

Answer 35

May be pricey at first especially if in high context but with be more cost effective in the long run because you will have more resources and can most likely offer a better prices

Question 36

Personal commitment

Answer 36

○ one must be highly dedication and committed to their business venture to overcome the difficulties and challenges of cross cultural business operations
-Without it the relationship will most likely fail.

Question 37

• Intercultural negotiation

Answer 37

○ Win-win are preferable as you want to promote future business in the relationship.
Can be challenging in multicultural environment because culture affects how people work and think

Question 38

Four common phases in negotiation

Answer 38

§ Developing a relationship with the other negotiating parties
□ 1st step to negotiation, varies from low to high context cultures
§ Exchanging information about the topic or issue under negotiation
□ Generating trust may require disclosing certain faces at the beginning , this could be background information and the positive outcome one believes will result from the exercise
§ Persuasion
□ Goal is to persuade the counterparts to accept an agreement that provides both sides with what they wants.
□ Varies from culture to culture– general rule is to make inclusive statement “together we can increase the share of the market”
§ Concession
What both parties feel they can live with