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FALCONS GROUP

Culture and Business

BBA R1 (7th Semester)
Islamia University Bahawalpur
11/1/2016

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Contents
FALCONS GROUP ............................................................................................................................................... 3
OBJECTIVES OF OUR PRESENTATION ............................................................................................................ 4
1.

INTRODUCTION ..................................................................................................................................... 5
a.

WHAT IS CULTURE? ........................................................................................................................... 5

b.

CORPORATE CULTURE....................................................................................................................... 5

2.

ELEMENTS OF CULTURE: ....................................................................................................................... 6

a.

Language: .......................................................................................................................................... 6

b.

Religion: ............................................................................................................................................ 6

c.

Values and Attitudes ......................................................................................................................... 6

d.

Manners and Customs ...................................................................................................................... 6

e.

Education: ......................................................................................................................................... 7

3.

IMPACT OF CULTURE ON INTERNATIONAL BUSINESS .......................................................................... 8

a.

Holidays ............................................................................................................................................. 8

b.

The Business of Relationships ........................................................................................................... 8

4.

ISLAMIC CULTURE AND BUSINESS ........................................................................................................ 9

a.

Ban on interest:................................................................................................................................. 9

b.

Zakat:................................................................................................................................................. 9

c.

Research centers ............................................................................................................................... 9

d.

Moral guidelines ............................................................................................................................... 9

FUTURE OF CULTURE .......................................................................................................................... 10

5.
a.

The Consequences of Ignoring Culture ........................................................................................... 10

b.

Ignorance of culture ........................................................................................................................ 10

6.

Interesting Facts .................................................................................................................................. 11

a.

Number 13 and 17 .......................................................................................................................... 11

b.

Number 4 ........................................................................................................................................ 11

c.

Colors .............................................................................................................................................. 11

d.

Dunkin Donuts ............................................................................................................................... 11

e.

Barbie dolls...................................................................................................................................... 11

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Falcons Group
Faiz Ahmed Shah 04
Hafiz Zahid 07
Saad Malik 33
Hammad Ali Shamsi 36
Umair Khan 37
Siqandar Iqbal 41

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Objectives of our Presentation

To understand:
Culture
Elements of Culture
Impact of Culture
Future of Culture
Islam and Culture

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1. INTRODUCTION
Places and people differ. The Japanese tend to be very polite, the Australians characteristically
blunt. Red means danger or stop to the British, but in Turkey it signifies death and in China,
good fortune.

a.

WHAT IS CULTURE?

Culture can be defined as the sum total of the beliefs, rules, techniques, institutions, and
artifacts that characterize human populations or the collective programming of the mind

Sociologists generally talk about the socialization process, referring to the influence of parents,
friends, education, and the interaction with other members of a particular society as the basis
for ones culture. These influences result in learned patterns of behavior common to members
of a given society.

b.

CORPORATE CULTURE

At the most general level culture can refer simply to the lifestyle and behavior of a given group
of people, so corporate culture is a term used to characterize how the managers and
employees of particular companies tend to behave. But the term is also used by human
resource managers and senior management in their attempts to proactively shape the kind of
behavior (innovative, open, dynamic, etc.) they hope to nurture in their organizations.
Promoting a distinctive corporate culture is also expected to enhance the sense of community
and shared identity that underpins effective organizations.

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2. ELEMENTS OF CULTURE:
a.

Language:

Language is perhaps the most important key to understanding culture in general and the
specific values, beliefs, attitudes, and opinions of a particular individual or group. English is
widely accepted as the language of business; many global institutions and companies have
adopted English as their official language. For many firms, such as Toyota, NEC, Hitachi, and
IBM Japan, English-speaking ability is a prerequisite for promotion. However, any assumption
that speaking the same language removes cultural differences is dangerousit normally just
hides them. Moreover, a reliance on English by British and American managers, and a lack of
other language skills, can weaken their ability to empathize with and adapt to other cultures.

b.

Religion:

Religion, linked to both regional characteristics and language, also influences business culture through a
set of shared core values. African populations partly explains their acceptance of the ways things are,
because it is the will of God

c.

Values and Attitudes

Values represent a persons judgments about what is good or bad, acceptable or unacceptable,
important or unimportant, and normal or abnormal. Our values guide the development of our
attitudes and preferences. Attitudes are similar to opinions but are often unconsciously held
and may not have a rational basis. Prejudices are rigidly held attitudes, usually unfavorable and
usually aimed at particular groups of people. For example, typical values in North America,
northern Europe, and Japan include hard work, punctuality, and the acquisition of wealth.
People from such countries may misjudge those from developing economies who may not
embrace such values.

d.

Manners and Customs

Manners and customs are ways of behaving and conducting oneself in public and business
situations. Some countries are characterized by egalitarian, informal cultures in which people
are equal and work together cooperatively. In other countries, people are more formal, and
status, hierarchy, power, and respect are important. Customs that vary most worldwide are
those related to eating habits and mealtimes, work hours and holidays, drinking and toasting,
appropriate behavior at social gatherings, gift giving, and the role of women. Handshaking
varies across the world: limp handshakes, firm handshakes, elbow-grasping handshakes, and no
handshake at all. In much of the world, people greet by kissing each other on both cheeks. In
some countries it is appropriate to kiss the others hand. In Southeast Asia, greeting involves
placing the palms together in front of the chest, as in praying. In Japan, bowing is the norm. Gift
giving is a complex ritual in much of the world. It is ingrained in Japanese culture, where it is

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usually a blunder to not offer a gift in initial meetings. The Middle East is characterized by
generous gift giving.

e.

Education:

Schools, as a part of the social structure of a society, and one that students are exposed to in
their formative years, convey many cultural values and norms
The knowledge base, training, and educational opportunities available to a country's citizens
can also give it a competitive advantage in the market and make it a more or less attractive
place for expanding business. In nations that have a ready trained workforce for particular
types of jobs, it is easier to start operations than in nations where an investor will also have to
undertake time consuming and costly training.

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3. IMPACT OF CULTURE ON INTERNATIONAL BUSINESS

A business cannot simply rely on its current method of conducting business when it decides to
take its business at international level. Every country has a set of different variables which can
be new for an offshore company e.g. rules and regulation, taxation, different currency, different
holiday periods etc. Most important consideration in this regards is the difference in culture
Knowledge of organizational culture is vital for managers and should be considered in the
process of feedback, intrinsic and extrinsic rewards etc. E.g. the relation between level of pay
and job satisfaction is strong in the US but weak in Japan, so an international manager will find
it hard to motivate staff through increments in Japan (Money & Graham, 1999).
The importance of cultural understanding in successful international companies is reflected
from their marketing strategies which are grounded in the cultures of the target industries.
Alternatively, a company with weak understanding of the target companys local culture can
commit disastrous mistakes in developing the marketing strategy through designing
advertisements which offend people because of culturally unacceptable content.
Companies which do not completely understand the culture of target regions culture often
devise marketing strategies which do not attract consumers attraction and fail right from the
start. There are many past examples of culturally incompatible marketing content e.g. using an
owl in an advertisement in India where it is thought to be a bad luck symbol and animals
wearing prescription and sun glasses in an advertisement designed for Thailand market where
animals are thought to be lower forms of life. (Win Translation, 2014)

a.

Holidays

Holidays are actually quite important as they vary considerably from culture to culture. It is
advisable to recognize some of the most widely celebrated holidays in the countries where you
do business in order to better appreciate what people in different markets deem important in
their lives, as well as to avoid scheduling an important meeting on a day when no one in your
target market is in the office!

b.

The Business of Relationships

Due to the importance of relationships in many countries, an appreciation and understanding

of the culture of the person you are developing a relationship with is critical. It is also suggested
that you learn at least a few of the common words and phrases in the language of your target
market as this will be taken as a sign of respect and an indicator that you wish to pursue a longterm business relationship with their company.

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4. ISLAMIC CULTURE AND BUSINESS

In 1979 Pakistan took some major steps to give its economy an Islamic character.

a.

Ban on interest:

To satisfy the presumed Quranic ban on interest, banks were ordered to offer an interest-free
alternative (Current Account) to the conventional savings account and to purge interest from all
their operations within five years. According to an Islamic economist, interest inculcates love
for money and the desire to accumulate wealth for its own sake. It makes men selfish, narrow
minded and stone hearted. Another evil attributed to interest is that it transfers wealth from
the poor to the rich, increasing the inequality in the distribution of wealth. And yet another: it
draws peoples energies away from productive enterprise The purpose of Islamic banking is to
prevent such inefficiencies, moral failures, and injustices by allowing people to borrow and lend
without having to deal in interest.

b.

Zakat:

Zakat is Islamic tax on wealth and income. Zakat was made a legal obligation. The Pakistani
government now collects zakat from several sources. Zakat oppose inequalities in the
distribution of resources. Zakat is viewed as one of the Five Pillars of Islam Zakat is now
compulsory for certain groups in Malaysia, Saudi Arabia, and the Sudan. The impact of
Islamization is especially widespread in banking. The leading Islamic banks have also established
a presence in countries where Muslims form a small minority. New Zealand now has an Islamic
Finance Corporation, and California, an Al Baraka Bank corp.

c.

Research centers

Several research centers have been established to promote Islamic economics. Some of these,
including the International Center for Research in Islamic Economics at King Abdul-Aziz
University in Jeddah, the Journal of Islamic Banking and Finance, a quarterly published in
Karachi.

d.

Moral guidelines

The individual is encouraged to enjoy the rights of civilization, but he must be willing to share
his possessions with others, particularly with the less fortunate.. As a producer or trader, he is
free to seek personal profit. But in exercising this freedom he must avoid harming others. Nor
must he earn more than his efforts justify; he must pay fair wages to his employees and charge
just prices to his customers. Remaining honest in his economic dealings, he must admit his
mistakes and avoid false advertising. He must work hard and strive to fulfill his commitments.

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5. FUTURE OF CULTURE
If you are serious about entering and succeeding in foreign markets, then you must consider
culture in every aspect of your product development. As an organization moves into a region
with different culture it faces many hurdles such as different language, norms and beliefs,
tastes and preferences etc., if the organization does not align itself with the prevailing culture
then it cannot fully reap benefits of expansion.

a.

The Consequences of Ignoring Culture

One high-profile example of a company failing to recognize this important fact occurred with
Kakuto Chojin: Back Alley Brutal Xbox game published by Microsoft in 2002. In 2003, the game
was recalled due to the extremely negative and vocal reaction from some Islamic groups due to
the fact that verses from the Quran could be heard in the background.

b.

Ignorance of culture

Some examples of marketing failure based on ignorance of culture include:

Animals are viewed as a low form of life in Thailand, so when an eye glass company
attempted to sell their product using images depicting cute, little animals wearing glasses, the
advertisement was rejected by the target population.
Another company used an owl as part of its promotional strategy in India. Though the owl is
seen as a symbol of wisdom in some cultures, in India it is believed to be a symbol of bad luck

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6. Interesting Facts
a. Number 13 and 17
Number 13 is considered lucky in Italy, while the unlucky number is 17:
- Well known Italian airline company (Alitalia) does not have a seat with the number 17
- Renault sold its R17 model in Italy as R177

b. Number 4
Number 4 is considered unlucky in China, Korea, Japan, and Vietnam:
- Some buildings in East Asia do not have a 4th floor
- None of Nokias cell phone series begin with the number 4

c. Colors
You might be thinking, Sure, colors might represent different things to different people, but are they
really that big of a deal?
The answer to that question is most definitely yes. For example, the color red is often a symbol for
Christmas in North America, while in countries such as Russia, China and Vietnam, the same color
symbolizes Communism. The army of the former Soviet Union was actually known as the Red Army.
Perceptions around the color white are another example of extremely different reactions to the same color.
In many Western countries, white conjures up images of purity and innocence, brides in wedding dresses,
snow, and winter. On the other hand, some Asian cultures associate white with death and mourning.

d. Dunkin Donuts
In May 2008, Dunkin Donuts aired a commercial featuring Rachael Ray wearing a black and white scarf.
However, many people believed the scarf resembled a kaffiyeh, the traditional scarf worn by Palestinians
which some people perceive as symbolizing Palestinian terrorism and Muslim extremism. Because of the
outrage and controversy over the scarf and the possibility of misperception, the Dunkin Donuts chain
stopped airing the commercial.

e. Barbie dolls
What is acceptable in one culture may be frowned upon in another. In 2003, Mattel Barbie dolls were
outlawed in the Middle Eastern country of Saudi Arabia because the doll did not conform to the ideals of
Islam. An alternative doll named Fulla was designed to be more acceptable to an Islamic market, even
though Fulla is not made by Mattel Corporation. In Iran, Sara and Dara dolls are available as an
alternative to Barbie and Ken. These dolls are targeted to the Muslim population and feature modest
clothing and pro-family backgrounds developed by a government agency to promote traditional values.