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1、Business Across CulturesLearning Objectives Describe the skills that global managers must learn, practice, and refine to deal with foreign business cultures Compare how the characteristics of culture can influence the behavior and attitudes of managers Identify the Hofstedes original cultural dimens

2、ions Focus on German, Japanese, Arab and Russian business culture.Business Across CulturesLearning Objectives Describe the skills that global managers must learn, practice, and refine to deal with foreign business cultures Compare how the characteristics of culture can influence the behavior and att

3、itudes of managers Identify the Hofstedes original cultural dimensions Focus on German, Japanese, Arab and Russian business culture.Cross-Cultural SkillsInternational managers are now not only expected to be familiar with country marketing reports but should also conduct research on their business p

4、artners culture and regional etiquette.Stereotypes are the first source of information about cultures, but every negotiator is still an individual.Cross-Cultural SkillsNegotiators should accept the fact, that the members of the opposite party behave in different ways: it is not right or wrong, it is

5、 only different. A lack of knowledge about foreign cultures can lead to misunderstanding, frustration and even loss of business. Some examplesIn the Peoples Republic of China, dont write notes using red ink. This suggests that the writer will die soon.Avoid using the number four at all costs because

6、 this, too, signifies death.In India, the significance of a business arrangement is often determined by the amount of time spent in negotiations.Some examplesIn Saudi Arabia, the law prohibits the wearing of neck jewelry by men, and westerners have been arrested for neglecting to observe this rule.I

7、n Argentina, do not be offended if your business associate arrives 30 to 40 minutes late to a meeting.DIMENSIONS THAT DIFFERENTIATE CULTURES- Peoples relationship to nature- Individualism vs. collectivism- Time orientation- Decision making process - Informality- Language- ReligionHOFSTEDES CULTURAL

8、DIMENSIONSUncertainty avoidanceMasculinity-femininityIndividualism-collectivismPower distanceDegree to which people are comfortable with ambiguity & uncertainty.Dominance, independence vs. compassion, interdependence, & openness.Emphasis on individual goals, needs, & success vs. group needs, satisfa

9、ction, & performance.Degree to which people accept power & status differences in society.Individualism CollectivismIndividualismSelf interests ahead of group interestsAchievement and powerSelf and immediate familyLeadership is the idealCollectivismGroup interests ahead of self interestsExtended fami

10、lies and clansProtection in exchange for loyaltyBelief in group decisionsPower DistanceDefinedDegree to which culture accepts unequal distribution of powerCentralized authorityPhysical and psychological distance maintainedExamplesLarge power distanceDominican RepublicMost dependent, few interdepende

11、ntSuperiors and subordinates consider each other differentLow power distanceDenmarkMinimize inequalitySuperiors and subordinates considered alikeUncertainty AvoidanceDefinedAbility to deal with ambiguous environmentHighReduce uncertaintyPlanning to effect the futureLowWhatever happens will happenExa

12、mplesHigh UAJapanUncertainty is threateningConflict and competition lead to aggression and should be avoidedMedium - USALow UADenmark, Sweden Uncertainty in life easily acceptedTake each day as it comesMasculinity - FemininityMasculinityMoney and things are importantDominanceJapanFemininityEquality

13、between men and womenInterdependencePeople and the environment are importantDenmark Large power distanceLow individualismIndividualism and Power Distance121824303642485460667279859111 28 44 61 77 94 111Small power distanceLow individualismCOSPAKTALCOLPERKORTHACHLPHLEAFHOKMEXYUGWAFSINEQAVENIDOPORGUAP

14、ANPHIMALJAMURUGRETURBRAARAINDJPNARGSPASAFFRABELITAFINGERSWISWEIRENORAUTISRDENNZLCANNETGBRUSAAULSmall power distanceHigh individualismLarge power distanceHigh individualismSALIRAUncertainty Avoidance and MasculinityDENNORSWENETFINSINHOKMALJAMIREGBRINDPHISAFAULUSANZLCANIDOEAFWAFIRATHAARAPAKTAISWIGERAU

15、TMEXVENBELARGCOLITAJPNGRECHLCOSYUGISRBRAPORGUAURUSALPERPANTURSPAFRAKORWeak uncertainty avoidance FeminineWeak uncertainty avoidance MasculineStrong uncertainty avoidance FeminineStrong uncertainty avoidance Masculine816243240485664728088961041105 23 41 59 77 95Power DistanceLowIndividualism/ Collect

16、ivismHigh individualismMasculinityHigh use of masculine principalsUncertainty AvoidanceScore in the middleDoing business with GermansHOFSTEDES DIMENSIONS:Doing business with GermansBring plenty of business cards. Small talk is not only unnecessary but can actually be counterproductivePunctuality is

17、an extremely important feature of German business relations. The German side will arrive at the meeting well-informed, and will expect the same from you.Objective facts are the basis for truth.Its important that you bring a carefully planned, logically organized proposal to the meeting.The first mee

18、ting:Doing business with GermansGenerally, German businesspeople are reluctant to do something differently unless the reason is not only extremely convincing but also proven.Ensure you have plenty of data and other empirical evidence.Brochures aimed at the German market should be serious in tone, go

19、 into lengthy detail, and make claims that can be proven. Decision-making in German business culture is slow (every detail will be examined). Germans will sometimes look for deficiencies. Negotiating an agreement :Doing business with GermansOnly those at the top of the management hierarchy will make

20、 the final decision. Contracts are taken very seriously in German business culture.Once a decision is finally made, its unchangeable. If you break the rules, you will be reprimandedNegotiating an agreement :Doing business with GermansGermans can be very sensitive to criticism.Germans never discuss p

21、ersonal matters during business negotiations. Refrain from interrupting others; allow each speaker to make his or her point before responding.Refrain from complimenting your colleagues until you have established a close personal relationship. Business etiquettes :Power DistanceMediumIndividualism/ C

22、ollectivismCollectivismMasculinityHighUncertainty AvoidanceHighDoing business with JapaneseHOFSTEDES DIMENSIONS:Doing business with JapaneseIt is more important to see things as groups than as individuals. The concept WA is highly valued in Japanese society: it is similar to concord or harmony. Japa

23、nese communication : TATEMAE is public words; HONNE means true feelings or real intentions.Basic Values:Doing business with JapaneseConnections are very helpful in this country.Business cards (“meishi”) are an important part of doing business in Japan.Punctuality is an extremely important. The Japan

24、ese tend to think relying on feelings. Getting acquainted is the purpose of the initial meetings. Gift-giving is an important part of Japanese business protocol. The first meeting:In Japan, you will never meet with just one person but youll face a team.One person will assigned the monitoring of your

25、 body: you will be watched constantly.Decisions are made only within the group.Important part of the pre-negotiating ritual is the composition of your team.Senior person should be in attendance.His presence gives stamp of approval for future meetings.Doing business with JapaneseThe first meeting:Doi

26、ng business with JapaneseBe especially respectful to your older Japanese counterparts: age equals rank. Saving face (kao) is an important concept to understand. Negotiations generally have an atmosphere of grave seriousness.Do not show anger or other negative emotions to your business counterparts.

27、Business etiquettes :Doing business with JapaneseYou must describe how your product can enhance the reputation of the Japanese side.It is a good strategy to emphasize the size and wealth of your company. Refrain from making remarks such as “This is killing me!” or, “Youre kidding!”.If it is necessar

28、y to discuss bad news, use an intermediary.Negotiating an agreement :Doing business with JapanesePeriods of silence during meetings and conversations are considered useful. When the Japanese are trying to listen carefully, they sometimes appear to be sleeping with their eyes closed.The decision-maki

29、ng process can be very slow and negotiation takes patience (nintai).Negotiating an agreement :Doing business with JapaneseIt is considered polite to frequently say “Im sorry”.If you are a female business traveller, ensure that your Japanese colleagues are informed of your qualifications. Japanese wi

30、ll never give you negative feedback: a yes” usually means, “Yes, I understand you,” but not, “Yes, Ill do it.”Negotiating an agreement :Japanese ask for many probing questions.They may ask the same question in many different ways.They are trying to assess you and your company from many different ang

31、les.Answer each time as well as you can.If you do not know the answer, promise to find out as soon as possible and to get back to them.Doing business with JapaneseNegotiating an agreement :To the Japanese, taking time is a necessity.Do not attempt to rush negotiations.Any action on your part to do s

32、o would be counterproductive.Do not demand immediate answers.It could take up to 5 years before a firm business relationship is established.Doing business with JapaneseNegotiating an agreement :Status of contract to Japanese is very different from its preeminence in Western business cultures.Japanes

33、e place little confidence in contracts.View business relationships as constantly evolving.When dealing with West, the Japanese prefer contracts that are unspecific, informal, and with a renegotiation clause.Doing business with JapaneseBring home the contract :ImplementationJapanese are very detail-o

34、riented:“Just-in-time” mentality.You will be asked to show your high quality and commitment of your entire team.You will have to always consider the next generation of your product and the following generation.Doing business with JapaneseDoing business with ArabsBasic Values:A persons dignity, honor

35、, and reputation are of paramount importance. It is important to always act in a manner that will make a good impression on others.Loyalty to family takes precedence over personal needs.Arab countries, however, believe that the two sexes are completely different entities. Social class and family bac

36、kground are the major determinants of ones personal status.Basic Values:Everyone believes in God, acknowledges His power, and has some religious affiliation.Human cannot control all events: some things depend on God and fate.Piety is one of the most admirable characteristics in a person.In many Arab

37、ian countries, there should be no separation between church and state.Five times a day Muslims are obliged to pray: when staging promotional events, these prayer breaks should be scheduled. Doing business with ArabsThe Concept of FriendshipFriendships start and develop quickly.Never openly refuse a

38、friends request.A good personal relationship = successful business.At the beginning of meetings, a few minutes are set aside for light conversation.Doing business with ArabsBasic Values:Your contact-sponsor is vital to your business success. Non-Muslims may not enter in some Arabian countries withou

39、t an invitation, which typically involves being sponsored by a prominent person. Once you finally choose a sponsor, you will not be permitted to switch.The usual greeting in Arabian countries involves shaking the other persons hand. Business cards should be printed in Arabic on the reverse.Doing bus

40、iness with ArabsThe first meeting:Typically, business meetings start slowly, with plenty of questions regarding your health and journey.Take your sunglasses off and look people directly in the eye. Meetings are rarely private occasions: interruptions are to be expected.Doing business with ArabsThe f

41、irst meeting:The male leader is the key decision-maker, but he does not proceed until he has the consensus of the group. Since the pace of business is much slower in Arabian culture than in the West, patience is essential.Arabs will expect you to be sincere, honest, and respectful in your business d

42、ealings.Doing business with ArabsNegotiating an agreement :Arabs tend to have a relaxed attitude toward time. In Arabian business culture, punctuality is not as much of a priority. The work week runs from Saturday through Wednesday. Doing business with ArabsTime orientation:Women business travellers

43、 will be accepted without veils, but only if they dress conservatively.It is normal to speak in a verbose and almost aggressive manner. Loudness of voice, even shouting, are perceived as signs of sincerity.Appearing distant, reserved, quiet or shy can be a serious obstacle to your success. Doing bus

44、iness with ArabsBusiness etiquette:Saving face and avoiding shame are of deep importance to Arabians. Arabs expect regular praise when they have done good work and can be very sensitive to criticism.Do not hesitate to praise aspects of the country. Praising Arab women, however, is strictly out of bo

45、unds. Doing business with ArabsBusiness etiquette:Be aware: yes may actually mean possibly.Arabs may be reluctant to give you bad news about business.If your Arab counterpart boasts about his connections, he will expect your interest for them. Its a good policy to leave multiple copies of all brochu

46、res and materials. Doing business with ArabsBusiness etiquette:There are no words in Arabic meaning “constructive criticism” all criticism is taken very personally, so it is important to phrase it carefully.Do not give criticism in front of others.Begin with the good points and be sure to include yo

47、ur high regard for them.Doing business with ArabsBusiness etiquette:Arabs do not approve of long hair on men or mannish dress and comportment by women.People should not be photographed without their permission.When eating with Arabs, do not use left hand.Muslims are forbidden to eat pork, or consume

48、 alcohol (even if used in cooking). Most Arabs do not like to touch or be in the presence of household animals, especially dogs.Doing business with ArabsEtiquette :Social FormalitiesGood manners constitute the most salient factor in evaluating a persons character.HospitalityA drink will quickly be o

49、ffered, and to accept and drink at least a small quantity is considered an expression of friendship and esteem.Accept and hold the cup with right hand.Doing business with ArabsPower Distance: HighIndividuality: MediumMasculinity: MediumUncertainly Avoidance: HighDoing business with RussiansHOFSTEDES

50、 DIMENSIONS:Meetings must be face-to-face.Telephone used only to set time and place.Expect the meeting to start 20-30 minutes late, but you must be on time.Conservative clothes are important for first meetings.Shake hands firmly and look Russians in the eye.Next on the agenda is usually some small t

51、alk.Doing business with RussiansThe first meeting:Traditional Russians are very formal: to address a Russian by his first name, unless invited to do so, may be considered an insult. Russian officials expect to do business with only the highest-ranking executives.Have good supply of business cards.In

52、clude university degrees.Print in Cyrillic.Give card to everyone present.Doing business with RussiansThe first meeting:After exchange of business cards, leave card on table in front of you until meeting finishes.Meetings are usually without clear agendas.Russian business and government leaders are s

53、killed in long, impromptu presentations.Once the Russian finishes his presentation, the guest should be prepared to make his presentation.Doing business with RussiansThe first meeting:Often, Russians will respond to such a presentation with hard, sometimes hostile, questions. If the visitors respons

54、e is not strong enough, he or she may be subject to high-pressure tactics later. Russian businesspeople will enter all negotiations well-prepared:It is advisable to be accompanied by at least one technical colleague and one Russian lawyer.At the end of a formal visit, Russians like to exchange gifts

55、. Doing business with RussiansThe first meeting:Russian conversation:Do not jump from topic to topic quickly.Tend to stick with one topic, cover it thoroughly, then use obvious transitions to change to another subject.To be clear, you should use concrete examples in questions:Instead of asking “What

56、 are the characteristics of the Russian market?”, you should try this: “Our company sold a million boxes of Brand X detergent in Moscow during 1998. In 1999 we want to double those sales. If you were in our situation, what would be your recommendations?”Doing business with RussiansYou will need a gr

57、eat deal of patience and flexibility.Many businesses still owned in whole or in part by government.Trying to meet with businesspeople can be a time-consuming process.May have to go through several ministries and agencies.Doing business with RussiansNegotiating an agreement :Doing business with RussiansThe Russian side may try to convince you that they have experience to succeed. Your Russian counterparts may insist that they understand something, when this is

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