Cultural aspects of doing business in India

Company: Think-Export Click to edit Master subtitle style

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Flow of presentation

Understanding culture and the significance of nations and subcultures Identifying the components of culture and their impact on business Real scenario examples depicting the effects of culture on business Depicting culture differences with respect to technical models

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Definition of culture
Culture 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. --Geert Hofstede

Culture is the deeper level of basic assumptions

and beliefs that are shared by members of an organization, that operate unconsciously and define in a basic taken for granted fashion an organization's view of its self and its environment. --Edgar Schein
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What is Culture?
Set of values, beliefs, rules, and institutions held by a specific group of people

Ethnocentricity

Cultural literacy
Detailed knowledge of a culture that enables a person to function effectively within it

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Belief that ones own ethnic group or culture is superior to that of others

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Components of Culture
Physical environ ments Educatio n Personal communi cation
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Aesthetic s

Values & attitudes Manners & customs Social structure

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Cultu re
Religion

Aesthetics
Music Painting Dance Drama Architecture
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Values and Attitudes

Values
The ideas, beliefs, and customs to which people are emotionally attached

Attitudes
Positive or negative evaluations, feelings, and tendencies people hold toward objects or concepts

Freedom

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Responsibilit y Honesty

Time Work Cultural change

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Manners and Customs

Manners
Appropriate behavior, speech, and dressing in general

Customs
Traditional ways or behavior in specific circumstances

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Social Structure
Social structure
Cultures groups, institutions, social positions, and resource distribution

Social stratification
Process of ranking people into social layers

Social mobility
Ease of moving up or down a culture's "social ladder"
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World Religions

Christianity Islam Hinduism Buddhism Confucianism Judaism Shinto

Origin of Human Values

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Language Blunders
Japanese knife manufacturer labeled its exports to the

Japanese knife manufacturer labeled its exports to United StatesStates with Caution: Blade extremely the United with Caution: Blade extremely sharp! Keep out Keep out of children. sharp! of children. welcome to visit the cemetery where famous to visit the cemetery where famous Russians are buried Russians are buried daily, except Thursday. daily, except Thursday.

English sign in in Moscow hotel read, You are welcome English sign a a Moscow hotel read, You are

Sign for non-Japanese-speaking guests Tokyo hotel Sign for non-Japanese-speaking guests in ain a Tokyo

Sign in English at Copenhagen ticket office read, Sign in English at Copenhagen ticket office read, We We take your bags and send them in all directions.

hotel read, respectfully requested to take advantage read, You areYou are respectfully requested to take advantage of the chambermaids. of the chambermaids.

Braniff Airlines English-language slogan Fly in www.thinkexport.com 11 Braniff Airlines English-language slogan8/3/12in Leather Fly Leather was translated into Fly Naked in Spanish.

take your bags and send them in all directions.

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Mixed Signals
"Okay" "It's a secret"

"Crazy"

"Vulgar gesture"
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"Very nosey"

"Very clever"
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Education
Cultures pass on traditions, customs, and values through schooling, parenting, group memberships, etc.

Education level
Well-educated attract high-paying jobs, while poorly educated attract low-paying manufacturing jobs

Brain drain
Departure of highly educated people from one profession, geographic region, or nation to another
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Physical and Material Culture

These influence a cultures development and pace of change Topography Physical features characterizing the surface of a geographic region Climate Weather conditions of a geographic region Material Culture Technology used to manufacture goods and provide services
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Examples of Cultural conflicts in Business

A Japanese, American or German

negotiator may expect negotiations to start and stop promptly and follow a tight schedule while a Mexican, French or Greek negotiator may expect flexibility and a fluid schedule.

Canadian Mounted Police debated over

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whether policemen of the Sikh faith should be allowed to wear "Turbans" as their religion dictates, or must wear the official uniform hat. The Sikh constable of the www.thinkexport.com 8/3/12 RCMP won & wears his turban.

Culture Conflict and Business

Business-related cultural conflict can arise from difference in
Time orientation Nonverbal communication Spatial orientation Gender roles and similar factors

These factors affect areas of business such as

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Depicting cultural misunderstandings

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Hofstede Cultural Dimentions

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Hofstede Cultural Dimentions-INDIA

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MORE with respect to Hofstede

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Culture Conflict and Business.

Culture affects
Consumer behaviour Local demand Buying decisions Brand Image

Culture influences managerial styles and management decisions

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Culture affects the nature of business

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Culture and business in Indian context

Cultural tariff is a deeper tariff than trade

tariff.

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Culture and business in Indian context

In India people like to do their jobs in the

presence of religious or family photographs

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Culture and business in Indian context

Beef products cannot be sold in India.

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Cultural Aspects of Doing Business in India

Land of different cultures
people from North India more aggressive, from South India more conservative, from West India more businesslike

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Cultural Aspects of Doing Business in India

Both strongly held traditional values and

emerging modern business practices prevalent

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Cultural Aspects of Doing Business in India

Greet with a handshake or namaste

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Cultural Aspects of Doing Business in India

Always use formal titles (Mr., Dr., Sir,

Madam ) when greeting for first time and show them respect.

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Cultural Aspects of Doing Business in India

Punctuality be prepared for delays in

appointments, particularly in Government offices

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Cultural Aspects of Doing Business in India.

Most Indians are reluctant

to say no directly - try and understand the message behind the words

Get to know your counterpart as a person and gain his trust

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Cultural Aspects of Doing Business in India.

Be willing to share a cup of tea/coffee and indulge in small talk before getting down to the main business

Do not be offended at personal questions

Do not be too aggressive or forceful or confrontationist try and use reasoned logic after www.thinkexport.com understanding the 32 32 other persons problem

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