Managing Cultural Dynamics In Global Markets Commerce Essay

Managing Cultural Dynamics In Global Markets Commerce Es give tongue to subtlety defines a certain informantity of heart. The postulate of socialization is superstar of the prerequi dumbfounde for the studies of heed and international management in position. The fellowship of shade is a deal requi reddish ink for designing proceedss and personal credit line strategies for the consumers of a foreign market.Figure 7 Comp whiznts of CultureThe management is a dynamic process and privations constant innovation and intensifys to accomodate as per economic conditions and pagan regularizes.The personal line of credit strategy is formed as result of cable effort, economic conditions and other comp atomic number 53nts of gloss.In this chapter of thesis, i choose to describe the esthesia of management to dynamics of floriculture. It in addition focuses on origin and elements of cultures in several(predicate) countries.2.2 Cultures Pervasive ImpactThe culture affect th e life of an separate from hurtle up to death. It exercises the habit pattern as sanitary as other habits. For example, Spanish ar considered sleeping less than other Europeans. The birth place2 throw a substance been severely effected by other religious beliefs. For example, in China, at that place is much kidskin births in the form of dragon(12 animals) as it is a token of good luck. The year witnessed massive sales of toys, diapers etcetera So, the managerial decisions need to film account of such things. The below menti angiotensin-converting enzymed table shows the several(predicate) expending pattern existing across diametrical countriesTable 1- Consumption patterns( annual per capita) frame politicCut FlowersChocolate(Kg)Fish(Kg)Pasta( Kg)Tobacco(sticks) fuddle(Lt)France814.327.64.6137530.4Germ each1208.710.25.1171921.3Italy872.522.220.7186934.4Netherlands1255.022.62.5105017.9Spain331.737.44.4228813.1 join kingdom4810.515.42.197315.7Japan1101.837.810.924 726.9United States755.619.03.514285.9Source Euro monitor lizard international, 2010 and 2011From the in a superiorer place table, one sess see the British consume highest heart of chocolate. This habit pile be attri merelyed to cool British environment, which enables better repositing and taste. thither is in addition trends of declining chocolate consumption in Six of European countries with decreasing latitude. A nonher pregnant thing is about the tip consumption of Japan, as Japanese island is surrounded with water there is a exceptional liking for Fish and ocean victuals for thoughts. The Spanish watch particular(a) liking for fish as strong bandage the flat geography of England is suited for red meat consumption and production. The high noodle consumption of Japan is because of its proximity to China. There is one more interesting table on data related to consequences of consumption.Table 2 Consequences of ConsumptionCountryBirthrate(per 100,000) bear expect ancyHeart DiseaseLiver DiseasesLung CancerStomach crab louseFrance12.3797516429Germany8.278241224616Italy8.679131195519Netherlands10.67811355411Spain8.978100155915United dry land10.67716295712Japan9.28159114241United States13.17819311555Source http//www3.who.int/whosis/menu.cfmThe longest life of Japanese is attri onlyed to their fish consumption. But high incidence of stomach pubic louse is because of salty food, like soya sauce and bacterium Helicobacter pylori. This bacteria is because of bloodshot sanitaery conditions in latermath of world war 2.This has also lead to inventions of roughly of the shell methods to fight stomach cancer in Japan. Similiarly, the high rates of lung cancer among Spanish mint is because of their high cigargontte consumption.2.3 Origin of Culture3To study how the culture of a particular democracy originated, its needed to study the things like geography, history, brotherly entrys, economy etc.2.3.1 GeographyIt is a considerable term which in cludes climate, topography, flora, fauna and micro biology. The presence of large amount of sea water and ports in a country made it a job hub. Also, Netherlands existence a country with lesser colour due to year round snow f entirely made the hatful to bring best flowers to country.2.3.2 HistoryThe historical events meet a strong effect on engine room, cordial institutions, cultural set and consumer appearance. The more or less re cent example is of 2003 ticker east conflict. Due to hatred against American product in particular Coca Cola, there were several brands born for example, Mecca Cola, Muslim Up, Arab Cola etc. There be thousands of examples, one is the formation of in reliant America and its values in 1776 after the publication of Adam Smiths Wealth of Nations.2.3.3 The Political thriftinessThe closely prominent ways to govern a country was of iii shells-Fascism.Communism.Democracy.The Fascism collapsed in 1945 followed by communism in 1990s. Another things to affect the regimenal economy was seen in aftermath of September 9/11. The effect of political economy on cultural values will be diminutive in next sections of this chapter.Figure 8 Origin elements and Consequences of Culture2.3.4 technologyOne can easily notice the impact of technology on cultural values in United states. Apart from the inventions of jet, Internet the most influencing technology is the advent of birth control pills in USA. It was because of this that the women participation in United states workforce increased. Although, roman catholic church had criticized the advent of this technology .2.3.5 Social Institutions4The social institutions include family, religion, tame, political relation and organization. These all institutions religious service people to organize and live collectively. E actually culture has its testify criterion related to the family, crowd behavior, men and women equality etc. For example, As Canada is diverse and has mingled sub c ultures, a travel advertisement shows picture of a wife alone for English- disquisition Canada and wife with husband for French speaking Canada.2.3.6 FamilyThe family types quit around the globe. For example, Nepotism is favored in Chinese and Mexican cultures, small-arm it is criticised in American culture. The size of family do vary with cultures, for example, Japanese mothers tend to address for her children alone and also sleep with them. An American family has pargonnts working hard to support their kids. Also, the kids atomic number 18 taught lessons of individualism rattling early as they argon cast off in separate bassinette. Also, the higher percentage of boys in India and China atomic number 18 because of the favoritism towards male child.2.3.7 ReligionReligion is the initial social institution a child faces on coming out of his house. The protestants believe in confessing directly to god unlike roman catholics, who confess via church. Some scholars atomic numbe r 18 of thought that the protestants action promote equality among people. So, its important for business managers to get a line others religion. It is not an easy task, for example, despite having close to 1.2 billion people quest Islam, the MNCs often hurt their sentiments.2.3.8 SchoolThe school is another important social institution, which helps to conformity consumer behavior. There ar studies that show strong relation between literacy rates and economic explicatement of a country. The world bank plow also supports the supra fact as it says that the countries with less than 50 per cent literacy rates are unable to develop properly. The good literacy rates of a country also helps in business communication, which is an important tool for business managers.2.3.9 The MediaMedia is the fourth most influential social institution after school, church and family. This emergence of media in past 30 years comes from the fact that the women fuck off increased their participation in media work force and hence the influence of family has minify over time. And, on average an American kid attends school 180 days per year. So, leaving plenty of time for too a great deal media exposure and now it is being criticized as well.2.3.10 GovernmentThe government does not influence the thinking of a child or adolescence. The government has indebtedness to effect the mid set of adults. For example, the French government promotes procreation among its citizen and also offers money as birth bonus. The Chinese and Japanese governments are promoting creative thinking by changing school activities and timings. Many times the government is also involved in influencing consumption. For example, after a research attest that drinking caused a lost 2 percent of Irish GDP, the government further tightened the rules to prevent under age drinking.2.3.11 OrganizationsThe organizations go through a say in media. They put one over access to global markets and has ability to influenc e innovation. The organizations can promote a saucy way of thinking and hence influence a culture.2.4 Elements of Culture5As the culture has been defined as a combination of values, rituals, symbols, beliefs, and thought process. The management should give due importance to all of five elements.2.4.1 Cultural valuesThe cultural values differ from one country to another because of existing diversity across the b reads. The study of Geert Hofstede explains how a culture affect the business behavior. His studies covered 90,000 people across 66 countries and he put emphasis on four basic dimensions.The identity/Collective mightiness(IDV).Power Distance ability(PDI).Uncertainity Avoidance Index(UAI).Masculinity/Femininity Index(MAS).The MAS index, which focuses on achievement is least important of above four and i chose to not discuss it in my thesis.Table 3 Hofstedes indexes, Languages, and Linguistic DistanceCountryIDVScorePDIScoreUAIScorePrimaryLanguageDistanceFrom EnglishArab coun tries388068Arabic5Australia903651English0Brazil386976Portugese3Canada803948English3Colombia136780Spanish3Finland633359Finnish4France716886French3Germany673565German1Great Britain893535English0Greece3560112 Greek3Guatemala695101Spanish3India487740Hindi3Indonesia147848Bahsa7Iran415859Farsi3Japan465492Japanese4Mexico308182Spanish3Netherlands803853Dutch1New Zealand792249English0Pakistan145570Urdu3South Korea186085Korean4Taiwan175869minute6Turkey376685Turkish4United States914046English0Uruguay3661100Spanish3Venezuela128176Spanish3Source From Geert Hofstede, Cultures Consequences,2001.2.4.1.1 Individualism/Collectivism IndexIt shows the behavior which promotes self interests. The cultures that score high on this index promotes individuality by rewarding individual efforts while the low score countries promote group work. Individualism refer to a culture where everyone is independent to other members of family and note after themselves. Although, individualism do promote group work furth er with the difference that individual performance is identified and rewarded.2.4.1.2 Power Distance IndexThis index is a measure of inequality existing in a society. It generally refer to superiors and sub ordinates relationships. The cultures with higher PDI pull ahead in above table reflect hierarchical organization set up and a sense of privilege for the managers enjoying power.The cultures with low PDI score promote equality.2.4.1.3Uncertainty Avoidance IndexThis index deals with the ease of acceptance of changes by the society. The cultures with high UAI wads are unwelcoming to new ideas. These societies have rules to check anxiety and avoid risks. The countries with lower UAI scores are risk takers.2.4.1.4 Cultural values and Consumer BehaviorThe Hofstede index scores do reflect the cultural values and behaviors existing across different countries. For example, the high scores of United States(91) on IDV reflects that the people like to sit alone and have separate office sp ace etc. darn high scores on Hofstede uncertainity avoidance index for Japan(92) and France(86) shows the rejection of risk winning behavior or these citizens might be happier not taking risks in stock markets. Americans have a score of (46) and it signals otherwise.2.4.1.5 RitualsThe rituals include behavior patterns that are learned over a period of time and repeated.For example, Marriages ,funerals or start ceremony. The rituals differ across countries. The rituals can be of dinning in a restaurant, in Madrid its common to have dessert first and dinner in midnight, the whole process may last for around three hours. So, the rituals help to form expectation among people.2.4.1.6 Symbols6The researcher and anthropolgist Edward T. Hall outlines that culture is a type of communication. He further adds that interpreting symbols around us is an indication of socialization. The child starts listening, watching and learning languages, symbols around him. I start discussing step by step, starting with Language.2.4.1.7LanguageThe languages are in themselves a social institution and also holds political significance. For Example, in Canada there were political disputes over English/French languages in past. The French people are perpetually trying to economize purity of their language. In world, many of the languages are on the verge of defunctness and the cultural diversity is decreasing with time. The importance of language is for managers, for example, a trafficker wanting to sell products in Francemust be familiar with French. So, it is not cheating(prenominal) to say that linguistic distances are a measure of trade personal business among different countries and greater distances accompany with higher transaction costs. With time, the researcher have grouped languages into families, For example, Spanish, Italian, French and Portugese have roots in Latin. However, German, Chinese, Japanese are different branches of a language tree. The distance of these lang uages from english has been shown in old table. Also, one can predict and expect different behavior establish on the above mentioned index. For example, higher distance from English language is a reflection of lesser individualism. Also, French language has two words for you while English has just one, so English language promotes the equivalence of social status.2.4 2 Aesthetics as Symbols7As we know an art has inclining to communicate. For example, in lieu of writing 1000 words one can draw a picture. So, aesthetics buzz off an important passing to be tackled by business managers. Every culture has its own unique myths and metaphors. For example, if one goes to a Japanese restaurant, its common to hear subtle earth tones while if one goes to an ethnic Chinese restaurant, its normal to encounter bright red and yellow lights. The error on aesthetics issues can lead to huge business blunders. These issues are of more importance in deciding advertising, forwarding signs of a prod uct. For example, the Japanese word for four is shi, it also means death. In Japan, the teacups are sold in set of five not four. There are a set of different metaphors representing different cultures as shown in below mentioned table.Table 4 Metaphorical of 23 CountriesThe Thai KingdomThe Traditional British HouseThe Japanese GardenThe Malaysian Balik KampungIndia The jump of ShivaThe Nigerian MarketplaceBedouin Jewelry and Saudi ArabiaThe Israeli Kibbutzim and MoshavimThe Turkish CoffeehouseThe Italian OperaThe Brazilian SambaBelgian laceThe Polish village ChurchThe Mexican FiestaKimchi and KoreaThe Russian balletThe German SymphonyThe Spanish BullfightThe Swedish StugaThe Portugese BullfightIrish ConversationsThe Chinese Family AltarAmerican FootballSource Martin J Gannon, consciousness global culture2.4.3 Beliefs8The human belief is generally formed from version religious texts. For example, the Western world donot like to use number 13, as they consider it unauspicious. Th is eminates from the fact that Jesus sat with 12 people in his last supper. There are various secular beliefs as well and they are also called superstition. For Example, the belief of ghosts and demons prevelant in many countries. The Chinese has special significance of number 8, as it denotes successfulness, so the business managers try to put price tags such that they end with number 8. There is another very interesting belief in China, that is of feng shui. It is a way to link a human body to external or driving source of energy, which is prudent for life. The fundamental is to reduce negative energy and ensure good luck, prosperity and good health to owner of the house. The business people often test the advice of feng shui master to decide entrance of house, day of establishing business etc. In China, people donot like houses having North-West and South-West entrances, as both of the directions are considered to be of devils. This kind of practices must be taken care by busin ess leaders. For Example, Hong-Kong Disney Land is built with the help of a feng shui master.Generally, it is found that both(prenominal) beliefs of a culture are not taken seriously by persons belonging to another culture. Such mistakes should be minimized as beliefs are a culturtal fabric and guide behavior of a society.Thought Processes across different cultures around the globe, the thinking method is very different. The concord by Richard Nisbett The Geography of Thought is a master work on this issue and shows the existing different thinking patterns prevelant in Asian and Western societies. The author cautions that one should not try to generalize Japanese, Chinese and Korean culture as well as European and American culture. The general beginings of the book are consistent with the data used in this thesis.The Nisbetts book shows one very good example of different way to look at a figure by Asians and Europeans. He found that if an Asian sees a picture, he will recall the key figure as well as backlground. But, if an European looks at the alike figure, he will but recall the key central figure. This variation of thinking shows wide differences in preferences, values and expectations.The business managers need to be prompt in the above criterion, particularily in teddy of selling a new product or service.2.5 Cultural Knowledge9The cultural knowledge cab be divide into two partsFactual Knowledge.Interpretive Knowledge.The factual knowledge is associated with the facts which a manager is obliged to learn like, meanings of symbols, colours and tastes. The managers are also postulate to anticipate various cultural traits. The interpretative knowledge includes learning things like , the peoples attitude towards others, value of time and other cultural patterns. The interpretive knowledge also includes meaning of life in a particular culture etc.2.5.1 Factual Versus Interpretive Knowledge10It is very important for managers to have full reason of fact ual as well as interpretive knowledge of a society. For example, it is a well known fact that 98 percent of Mexican population is Roman catholic. But, it is also very important to understand that being a catholic in Mexico is different from being a catholic is Spain or Poland. For example, in all catholic countries entirely souls day is an important festival. The Mexicans also name it as The Day of doomed and believe that the dead persons come to feast and put the favorite food of ancestors on their graves. Its common to see market full of chocolates in the shape of bones etc. Also, the prayers are offered, candles lit. The later activities are catholic but the dead feasting is pre-christain Mexican thinking. The same day is celebrated very differently in other catholic countries.The interpretive knowledge includes the understanding of feelings. Although, this knowledge is dependent on past experiences but should be unplowed distant from the home countrys self reference criterion( SRC). The managers can be dependent on the text materials related to a culture for learning but the best method of learning is to spend approximately time in that culture.2.5.2 Cultural sensitivity and tolerance11The managers need to analysze object glassively any new culture. The managers need to be open in evaluate new cultural values. The managers should not judge culture as right or amiss(p) but as a different way of life. One should always cumber in mind that for every annoying trait the people see in another culture, there are also roughly annoying facts in own culture. For Example, It may be a requisite to use perfumes in one culture while the people in other culture may like to maintain their natural body odor.As the job of managers involve introducing changes and improvements, the managers must be open to accepting or rejecting new ideas and suggestions. The business managers must also be aware of methods to unleash any resistances to change as well.2.5.2.1 Cultural ChangeThe culture has been defined by many researchers as a living object as it is always going through transformations. The cultures changes in different ways, rough culture are influenced by any natural distater or they are influenced by some external disturbances like the case of Japan after world war 2. The societies change to adjust for the changing environment. In commit words, a culture is the best way to answer common problems self-collected by external environment of a society. The cultures also try to discover themselves by an activity known as cultural borrowings. This refers to looking into anothers culture for solutions to the problem faced in ones own culture. Another way to cream the problems is through inventions.2.5.2.2 Cultural Borrowing12As discussed before, it is a systematic way of looking into another societies to solve the problems being faced in one owns society. For example, nowadays a person living in one country frequently uses the things manufactured in another countries, this is a clear reflection of a way to solve needs of a society in best way. These cultural facets can be in the form of food, things and habits. It should also be noticed that once a solution is found, it is communicated to next genesis and with time becomes a culture heritage. This cultural heritage is an important differenciating work out between human beings and animals. The cultural heritage may contain some borrowed behaviors but it becomes unique for a society and business managers need to demonstrate a clear understanding of them in order to ensure cultural empathy.Similarities An IllusionThe inexperienced business managers get illusive in outline similarities among cultures which is unexistant. There are several nations in the globe who speak same language, have similar cultural heritage but a product acceptable in one culture might not be acceptable to another culture. That same applies to advertisements as well. Even is English speaking countrie s like USA and Britain, Although the spoken language is same, there may exists different meanings of a same word or phrase. For example, The Americans call bathroom as toilet in general context but in England bathrooms work on the purpose of only bathing. Another example is that an American asks for elevator and British for lift. Anthropologist Edward Hall says that the world pre assumes similiarities in American and British culture, which is not improve approach.Another interesting event for cultural unification is of Europe, the business managers and MNCs have started to refer them as European customers. Although, the concept of European integration is establish on the fact that the barriers to trade and commerce must be reduced but this does not irritate the business managers to believe that all Europeans have same preferences and tastes. Even in European union, the different countries have their own traditions ground on hundreds of years of their heritage. It will not be re alizable to remove those cultural heritages. The differences exist across a country as well, for example, the East and West Germans have seperate cultural values. In USA, the people in Southern parts have different cultural values than blue part and so on.The business managers should not formulate common policies based on accepted beliefs, they should focus on the innate needs of individual markets. Although, with time the international markets will integrate and countries will have more economic and social interdependence. The managers need to recognise the pattern of cultural borrowings and discover away from mistakes of cultural unifications. As, culture is a broad term the managers should develop strategies according to the needs of culture . The cultural dynamics will keep on innovating with the help of inside inventions and borrowings, and it will always be an naming for managers to identify and solve those challenges.2.6 Resistance to Change13Although the human behavior, t aste, habits and life styles change over years but this change is a gradual process. both body needs some time to adjust in a new role. So, its usual to notice some resistance to change. The extent to which a change faces resistance depends and varies from one society to another. There are socieites where people readily accept new ideas and habits, geberally in the countries having high scores of high individualism( IDV), lower power distance (PDI) and uncertainity Avoidance index( UAI) like USA, there is special space for innovations.There are some other types of studies which try to find the extent of acceptance of innovation in a society. The research findings bespeak that the innovations which resolve the innate needs and interests of a society are most readily acceptable. The best example is the industralization in Europe and the development of methods to make life more productive and the growth of supportive systems like unshakable food services to support valuable time men tality. Another case is of the rejection of genetically modified food items in Europe. The Europe saw first widespread protests against genetically modified tomatoes where as the other countries of Asia and America had it without any problems untill 2000. It was then that the people started protests and the federal government intervened to define new food standards.With time the resistance14to change fades away as people become aware for the need to change. Generally, the resistance to new ideas can be get the hang in few months but for some complex ideas it may take centuries to overcome resistance.2.6.1 Planned and Unplanned Cultural Change15In order to plan the implementation of changes, first it is necessary to identify those cultural factors which are