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The Culture Environments Facing Business
The Culture Environments Facing Business
The Culture Environments Facing Business
LESSON 17
THE CULTURE ENVIRONMENTS FACING BUSINESS
To Change customs is a difficult thing. -Lebanese Proverb that culture-the specific learned norms based on attitudes,
Objectives values, and beliefs that exist in every nation-is an integral part of
external environments. This chapter will first examine cultural
• To discuss the problems and methods of learning about
awareness, especially the need for building it. Second, the
cultural environments chapter will discuss the causes of cultural differences, rigidities,
• To explain the major causes of cultural difference and change and changes. Third, the chapter will describe behavioral factors
• To examine behavioral factors influencing countries’ business that affect the conduct of business internationally. Finally, the
practices chapter will explore why businesses and individuals adjustor
• To examine cultural guidelines for companies that operate don’t adjust-to another culture.
internationally Figure 6.1 Culture Influences on International business
Introduction
The opening case illustrates how important it is for companies
to adjust when entering different cultures. PRI’s lack of
adjustment led to its failure; Harvey Nichols’s adjustments are
leading to its success. The major problems of cultural collision
in international business are when
• A company implements practices that work less well than
intended.
• A company’s employees encounter distress because of an
Cultural Awareness
inability to accept or adjust to foreign behaviors.
Building cultural awareness is not an easy task, and no fool-
Business employs, sells to, buys from, is regulated by, and is proof method exists for doing so. As we just said, culture
owned by people. Because international business includes consists of specific learned norms based on attitudes, values,
people from different cultures, every business function and beliefs, all of which exist in every nation. Visitors remark
on cultural differences, experts write about them, and interna-
tional businesspeople find that they affect operations. Yet
controversy surrounds these differences because people disagree
on what they” are, whether they are widespread or exceptional
differences, and whether the differences are deep-seated or
superficial. Further, culture cannot easily be isolated from such
factors as economic and political conditions. For example, an
opinion survey of a country’s citizens that measures, say,
attitudes toward buying a new product may reflect a response to
temporary economic conditions rather than basic values and
beliefs that will have lasting effects on the product’s acceptance.
Some differences, such as those regarding acceptable attire, are
discerned easily; others may be more difficult to perceive. All
managing a workforce, marketing output, purchasing supplies, people have culturally ingrained responses to given situations
dealing- with regulators, securing funds-is subject to potential and sometimes expect that people from other cultures will
cultural problems. An international company must be sensitive respond the same way as people in their own culture do. For
to these cultural differences in order to, predict and control its example, in the opening case, the British salesmen for PRI
relationships and operations. Further, it should realize that its budgeted their time and so regarded drinking coffee and
accustomed way of doing business may not be the only or best chatting about nonbusiness activities in a cafe as “doing
way. When doing business abroad, a company should first nothing,” especially if there was “work to be done.” In fact,
determine what business practices in a foreign country differ their compensation system did not give them the privilege of
from those it’s used to. Management then must decide what, if spending much time on each business transaction. The Arab
any, adjustments are necessary to operate efficiently in the businessmen had no compulsion to finish at a given time,
foreign country. viewed time spent in a cafe as “doing something,” and consid-
ered “small talk” an indication of whether they could get along
You learned that companies need to understand external with potential business partners. Because the Englishmen
environments to operate efficiently abroad. Figure 6.1 illustrates
shown an interest in languages in college, he was able to attend demands were justified.
the Army Language School for intensive training in Japanese. Although Prescott believed it was helpful to learn the feelings
Fifteen months later, he was assigned as an interpreter and of middle managers from Higgins, he disliked having to deal
translator in Tokyo and took more courses in Japanese lan- with Higgins as an adversary rather than as an ally. Prescott
guage, literature, and history. He made many Japanese friends, became hesitant to ask his assistant’s opinion because Higgins
fell in love with Japan, and vowed to return there. After five invariably raised objections to changes that were contrary to the
years in the army, Higgins returned to college. Because he Japanese norm. Prescott believed that there were dynamic
wanted to use Japanese as a means rather than an end in itself, changes occurring in traditional Japanese customs and culture,
he finished his college work in management, graduating with and he was confident that many Japanese were not tied to
honors, and then joined Weaver. After a year in the company existing cultural patterns as rigidly as Higgins seemed to think
training program, Weaver assigned him to Japan, a year before they were. Indeed, Japanese subordinates were more willing
Prescott’s arrival. than Higgins to tryout new ideas. Prescott also thought that
Higgins was pleased to return to Japan, not only because of his there was no point in a progressive U.S. company’s merely
love for the country but also because of the opportunity to copying the local customs. He felt that the company’s real
improve the “ugly American” image held abroad. His language contribution to Japanese society was in introducing innova-
ability and interest in Japan enabled him to intermingle with tions.
broad segments of the Japanese population. He noted with There were more incidents that made. Prescott doubt Higgins’s
disdain that U.S. managers tended to impose their value judgment. One was the dismissal of a manager who, in
systems, ideals, and thinking patterns on the Japanese. Prescott’s opinion, lacked initiative, leadership, and general
Under both Prescott and his predecessor, Higgins’s competency. After two years of continued prodding by his
responsibilities included troubleshooting with major Japanese superiors, including Prescott, the manager still showed little
customers, attending trade meetings, negotiating with govern- interest in improvement. Both Higgins and the personnel
ment officials, conducting market research, and helping with manager objected vigorously to the dismissal because the
day-to-day administration. Both general managers sought his company had never fired anyone before. They also argued that
advice on many difficult and complex administrative problems the employee was loyal and honest and that the company was
and found him capable. Prescott became concerned, however, partially at fault for having kept him on for the last 10 years
with Higgins’s attitude and thinking. He felt that Higgins had without spotting the in competency. A few weeks after the
taken to the Japanese culture to such a degree that he had lost dismissal, Prescott learned that Higgins had interceded on
the U.S. point of view. He had “gone native,” resulting in a behalf of the fired employee, so that Yamazaki Pharmaceutical
substantial loss of administrative effectiveness. transferred him to its own operation. When confronted,
Prescott mentally listed a few examples to describe what he Higgins said that he had done what was expected of a superior
meant by Higgins’s complete emotional involvement with in any Japanese company by assuring a subordinate’s continued
Japanese culture. The year before, Higgins had married a employment.
Japanese woman. At that time, Higgins had asked for and Prescott believed these incidents suggested a serious problem.
received permission to extend his stay in Japan indefinitely. Higgins had been an effective and efficient manager whose
According to Prescott, this marked a turning point in Higgins’s knowledge of the language and the people had proved
behavior. Higgins moved to a strictly Japanese neighborhood; invaluable. Prescott knew that Higgins had received several
relaxed in a kimono at home; used the public bath; and was outstanding offers to go with other companies in Japan. On
invited to weddings, neighborhood parties, and even Buddhist numerous occasions, Prescott’s friends in U.S. companies said
funerals. Although Weaver had a policy of granting two they envied him for having a man of Higgins’s qualifications as
months of home leave every two years, with paid transporta- an assistant. However, Prescott felt Higgins would be far more
tion for the employee and his family, Higgins declined to take effective if he had a detached attitude toward Japan. In
trips, preferring instead to visit remote parts of Japan with his Prescott’s view, the best international executive was one who
wife. retained a belief in the fundamentals of the home point of
At work, Higgins also had taken on many characteristics of a view while also understanding foreign attitudes.
typical Japanese executive. He spent considerable time listening
Questions
to the personal problems of his subordinates, maintained close
social ties with many men in the company, and had even 1. How would you describe Higgins’s and Prescott’s attitudes
arranged marriages for some of the young employees. Conse- toward implementing U.S. personnel policies in the Japanese
quently, many employees sought out Higgins to register operations?
complaints and demands. These included requests for more 2. What are the major reasons for the differences in attitude?
liberal fringe benefits, such as recreational activities and the 3. If you were the Weaver corporate manager responsible for
acquisition of rest houses for employees to use at resort areas. the Japanese operations and the conflict between Higgins
Many employees also complained to Higgins about a new and Prescott came to your attention, what would you do? Be
personnel policy, which Prescott instituted, that moved away sure to identify some alternatives first and then make your
from basing promotions on seniority, considering instead recommendations.
superiors’ evaluations of subordinates. The employees asked