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东华大学跨文化管理 2章

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Chapter 2
Managing Across Cultures

Learning objectives:
? Examine the strategic dispositions that

characterize responses to different cultures. ? Discuss cross-cultural differences and similarities ? Review cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each

Case: Waking up Heineken

Apple Vs. Samsung

2.1 The strategy for managing across cultures
1. Strategic Predispositions : ? Ethnocentric ? Polycentric ? Regiocentric ? Geocentric

Ethnocentric
? Home country is superior
? Assumptions:

- Products and practice that succeed in home country will be successful anywhere - Foreign operations are secondary or subordinate

Polycentric
? Each country is unique
? Each subordinate should develop its own

business and marketing strategy according to the specific situations in that country ? Problems: cost, control, headquarter out of game

Regiocentric & Geocentric
? Each region is unique and an integrated

strategy should be developed to serve that region ? The entire world is a potential market and integrated world market strategies should be developed.

Homework
? Study Table 2-1 on page 42 (or P39 for sixth

edition)
? Lenovo,Huawei, Haier are three Chinese

corporations which aiming at global market. Please identify these 3 corporations’ global strategic predispositions with evidence.

? 2. Meeting the Challenge
? Globalization imperative
one worldwide approach to doing business is the key to efficiency and effectiveness.

popular ≠ sucecessful

? Factors helping to facilitate the need to

develop unique strategies for different cultures:
? diversity of worldwide industry standards ? local customers’ demand ( consumer goods) ? the importance of being an insider ? The difficulty of managing global organizations ? the need to allow subsidiaries to use their own abilities and talents

Cases of responding to the cultural need s of local operations and customers
? Warner-Lambert: effective regional

strategies in maintaining worldwide market niches.
? Cosmetics and other products that vary

greatly in consumer use would face more acute challenge .
? McDonald’s performance in China.

Some cases: product and marketing message
are similar worldwide

? High-end products
? — lifestyles and expectations of the market

niche are similar regardless of the country
? Lower end of market for certain goods

? —Impulse purchases, novel products, fast

food

? In most cases, it is necessary to modify

products as well as the market approach for the regional or local market.
? The more the marketers understand about

the way in which a particular culture tends to view emotion, enjoyment ,friendship, humor, rules, status and other culturally based behaviors, the more control they have over creating marketing messages that will be interpreted in the desired way.

Different marketing way in USA and East-Asia —— by Advertisement
Let’s see SONY ads in different countries ! ! !
Neutral culture Emotional culture

USA: low-context culture
emotional culture. direct, expressive, focus on individualism.

East-Asia: high-context culture
neutral culture. indirect, subtle, group reference ,shared responsibility & interpersonal trust.

? Korea
? http://v.youku.com/v_show/id_XMTg0NDg5

?
? ? ?

ODE2.html USA http://v.youku.com/v_show/id_XMTQxODky MDg=.html Japan http://v.youku.com/v_show/id_XMTg0NDk0 MDI4.html

? Three major challenges for most MNCs to

adjust global strategies for regional markets: ? 1. Stay abreast of local market conditions and sidestep the temptation to assume that all markets are basically the same. ? 2. Know the strengths and weaknesses of their subsidiaries so that they can provide assistance needed in addressing local demands. ? 3.Give the subsidiary more autonomy so that it can respond to changes in local demands.

2.2 Cross-Cultural Differences and Similarities

Parochialism and Simplification High-context culture vs. low-context cultures.

High context

Low context

Japan Chinese Arabian Greek Mexican Spain Italian French Canadian English American Scandinavian German Swiss

Similarities Across Cultures
? Secret hope

False hope ? But there do exist some similarities across cultures some managerial activities (networking, communication activity, organizational behavior modification)

Many Differences Across Cultures
? HRM Practice
? 1) Criteria of evaluating personnel

HAIRL SYSTEM of appraisal in Shell Oil: a) Helicopter b) Analysis c) Imagination d) Reality e) Leadership

Netherland
Reality
Analysis Helicopter Leadership Imagination

France
Imagination
analysis Leadership Helicopter Reality

Germany
Leadership
Analysis Reality Imagination Helicopter

Britain
Helicopter
Imagination Reality Analysis Leadership

? 2) Compensation plans ? Hofstede’s cultural clusters & compensation strategies ? Different reaction towards Stock plans in different

countries
P48 table 2-4
? 3) The way of rewarding and training ? 4) Common assumptions and stereotypes may not be

valid

2.3 Cultural Differences in Selected Countries
? Doing business in China

? Doing business in Russia
? Doing business in India ? Doing business in France ? Doing business in Arab Countries

What is China
? http://video.sina.com.cn/v/b/63495115-

1563935731.html




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