Chapter Three

Cultural Foundations
MKT568
Global Marketing Management
Dr. Fred Miller
3-1
Understanding Culture
Academic approaches
How are cultures organized? What do they value?
History
Anthropology
Geography
Humanities
University Studies courses
Professional/pragmatic approaches
How should managers operate in multiple cultures?
Social and professional values
Social and professional behavior
Intercultural communication and negotiation
Multicultural interpersonal interaction
International business, management, marketing courses
Sample Essay Question
Schmidts has chosen to enter the Thai market and is preparing to
send a delegation to Bangkok to negotiate a sales contract with the
largest Thai mass merchandise retailer. You must prepare a
briefing on intercultural communication for this team.
Relative to Hofstedes indexes, Thailand is classified as Feminine,
Collectivist, Large Power Distance and High Uncertainty
Avoidance. Select three topics from the Cultural Passport video
and explain the importance for conducting international business.
For each, describe the behavior patterns you would anticipate in
Thailand based on the countrys Hofstede values. Explain your
reasoning.
Culture Across Countries
High vs low context cultures

Silent languages

Hofstedes cultural dimensions

Gannons metaphors

Rapailles Decoding Cultures
High vs Low Context Cultures
3-2

High Low
Verbal Behavior
Words chosen have
numerous possible
interpretations;
meaning is derived
from matching
words with non-
verbal cues and the
specific situation
High reliance on
verbal
communication to
convey meaning;
words are carefully
selected to convey
precise, specific
meanings.
Nonverbal
Behavior
High reliance on
nonverbal behavior
to convey meaning
Nonverbal aspects
play secondary or
confirming role
Societal Makeup
Homogeneous Diverse
Ability to
communicate
relies heavily on
similarity in
communicants'
backgrounds
yes no


Halls Silent Languages
Space
Possessions
Friendships
Agreements
Time
Gannons Metaphors
1. American football: Individualism and competitive speculation; huddling;
ceremonial celebration of perfection.
2. The British house: Laying the foundations; building the brick house; living
in the brick house.
3. The German Symphony: 0rchestra; conductors; performance society;
education, and politics.
4. The French wine: Purity; classification; composition; compatibility;
maturation.
5. The Italian family opera: Pageantry and spectacle; voice expression;
chorus and soloists.
6. The Swedish summer house: Love of nature; individualism through self-
development; equality.
7. The J apanese garden: Wa and shitaki, harmony and form; seishin, spirit
of self-discipline; combining droplets.
8. The Chinese family altar: Confucianism and Taoism; roundness, harmony
and fluidity.
9. India: cyclical Hindu philosophy: The cycle of life; the family cycle; the
social cycle; the work cycle.

3-7
Source: Martin Gannon, Cultural Metaphors, Understanding Global Cultures, pp. v-vii,
1994 by Martin Gannon. Reprinted by permission of Sage Publications.
Hofstede Calculations and Matrix
8 56 112
Low Uncertainty Avoidance High

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9
4



Hofstede Calculations
Question PDI UAI Member PDI UAI
1 5 5 1 55 50 High =
2 2 2 2 58 67 Low =
3 4 2 3 68 78 Contrary =
4 4 5 4 42 70
5 1 1 Average 56 66
Score 55 50 US 40 46
Midpoint 50 62
Power Distance and Individualism Scales
-
ARG Argentina
BRA Brazil
CHL Chile
COL Columbia
GRE Greece
HOK Hong Kong
IND India
IRA Iran
JAP Japan
MEX Mexico
PAK Pakistan
PER Peru
PHI Philippines
POR Portugal
SIN Singapore
TAI Taiwan
THA Thailand
TUR Turkey
VEN Venezuela
YUG Yugoslavia
Small Large
Power Distance
I
n
d
i
v
i
d
u
a
l
i
s
m

C
o
l
l
e
c
t
i
v
i
s
t

12
50
30
Small power distance
collectivist
Large power distance
collectivist
Reprinted by permission of the author from Cultures Consequences,
published by Sage Publications. 1990 by Gert Hofstede
PAK
COL
VEN
TAI
PER
THA SIN
CHL
POR
HOK
YUG
MEX
PHI
GRE
TUR
BRA
IRA
ARG
JAP
IND
+11 +28 +44 +64 +77 +94
Power Distance and Individualism Scales
AUL Australia
AUT Austria
BEL Belgium
CAN Canada
DEN Denmark
FIN Finland
FRA France
GER Germany
GBR Great Britain
IRE Ireland
ISR Israel
ITA Italy
NET Netherlands
NZL New Zealand
NOR Norway
SAF South Africa
SPA Spain
SWE Sweden
SWI Switzerland
USA United States
Small Large
Power Distance
I
n
d
i
v
i
d
u
a
l
i
s
m

I
n
d
i
v
i
d
u
a
l
i
s
t

53
91
71
Small power distance
individualist
Large power distance
individualist
Reprinted by permission of the author from Cultures Consequences,
published by Sage Publications. 1990 by Gert Hofstede
SPA
SAF
FRA
BEL
ITA
AUT
ISR
FIN
GER
NOR
SWI
SWE IRE
DEN
NZL
CAN
NET
GBR
USA

AUL

+11 +28 +44 +64 +77 +94
Academic/Pragmatic Integration?
In the Hofstede matrix using the IDV and PDI
scales, how are each of the following groups of
countries concentrated? What historical/cultural
trends are consistent with these concentrations.
Former British Empire countries
Asian countries
Latin American countries
Northern European countries


Cross Cultural Management
Managing in a cross cultural environment

country cultural and business information
culture and managerial skills
managerial styles in the Triad
culture and negotiations
limits to adaptation

Hofstedes Classification of Triad Countries
3-8
Japan North America W. Europe

(Canada, USA,
Great Britain)


Northern Continent Greece
Individualism low high high high low
Power distance high low low high high
Masculinity high high low high high
Uncertainty
avoidance
high low low high high
Context high low high low

Note: Context added.
Source: Adapted from Hofstede, 1980
Exhibit 3.4

Cross Cultural Issues in Business
Which of the following patterns of business behavior
would you expect in a Collectivist country with Large
Power Distance?
Decentralized organizations with autonomous units
Centralized, hierarchical organizations
Subordinates who expect exact instructions
Multiple people and groups involved in decision
making
Concentration of decision making in top management
Multi-track, manager to manager negotiating styles
Division managers willing to make their own decisions
Cross Cultural Issues in Business
Which of the following patterns of business behavior
would you expect in a Feminist country with Weak
Uncertainty Avoidance?
Willingness to undertake risky ventures
Emphasis on reaching quantitative performance goals
A zero sum approach to negotiations
Concern for interpersonal environment of the firm
Integration of professional and personal goals
Reluctance to try new approaches
A win-win approach to negotiations
Four Stages of Business Negotiations
3-9
Stage Japanese American
1. Nontask
sounding
Considerable time and
expense devoted to such
efforts.
Relatively shorter periods
are typical.
2. Task-related
exchange of
information
This is the most
important step- high first
offers with long
explanations and in-
depth clarifications.
Information is given
briefly and directly.
Fair first offers are
typical.
3. Persuasion Persuasion is
accomplished primarily
behind the scenes.
The most important step:
Minds are changed at the
negotiation table and
aggressive persuasive
tactics are used.
4. Concessions
and
agreement
Concessions are made
only towards the end of
negotiations a holistic
approach to decision
making.
Concessions and
commitments are made
throughouta sequential
approach to decision
making.
Source: Adapted from John L. Graham, A Hidden Cause of Americas Trade Deficit with
Japan, Columbia Journal of World Business, Fall 1981. p. 14.
Cultural Passport Video
Explain why each of the following components of the Cultural
Passport are important for success in international business.
Greeting and addressing people
Conversation
Body language
Sensitivity
Table Manners
Gender Awareness
Negotiating styles
Time
Contracts
Attitudes and Values
Chapter Three
Cultural Foundations
MKT568
Global Marketing Management
Dr. Fred Miller
3-1