International
Business Management I
Week 4
National Differences in
Cultural and Competitive
Environments
McGraw-Hill/Irwin
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
Learning Outcomes
Explain what is meant by the culture of a society.
Identify the sources that lead to differences in social culture.
Identify the business and economic implications of differences in culture. Describe how differences in social culture influence values in the work place.
Discuss the economic and business implications of cultural change. Apply Porter’s 5 Forces model to analysis the competitive environment Define competitive vs. collaborative behavior in industries
Understand the implications of competitions towards international business
1-3
What Is Cross-Cultural Literacy?
Cross-cultural literacy is an understanding of how cultural differences across and within nations can affect the way in which business is practiced
A relationship may exist between culture and the costs of doing business in a country or region
3-4
What Is Culture?
Culture is a system of values and norms that are shared among a group of people and that when taken together constitute a design for living where values are abstract ideas about what a group believes to be good, right, and desirable
norms are the social rules and guidelines that prescribe appropriate behavior in particular situations
Society refers to a group of people who share a common set of values and norms
The changing culture: the impact of globalization
3-5
What Are Values And Norms?
Values provide the context within which a society’s norms are established and justified and form the bedrock of a culture. Values include attitudes toward Individual freedom, democracy, truth, justice, honesty, loyalty, social obligations.
Values are also reflected in the political and economic systems. Norms include folkways (the routine conventions of everyday life, but generally