CULTURE,PartII.pptVIP

CULTURE, Part II Hofstede’s Dimensions Globalization and anti-globalization Negotiations Western vs. Asian culture Globalization of Culture Books by Thomas Friedman The Lexus and the Olive Tree The World is Flat Technology allows easier communication and exchange between people International media Internet Increased trade among nations Anti-Globalism Johny Johansson, In Your Face: How American Marketing Excess Fuels Anti-Americanism “Three strikes:” Strike 1: Anti-marketing Strike 2: Anti-globalism Strike 3: Anti-Americanism Hofstede’s Cultural Dimensions Individualism (vs. collectivism) Power distance Masculine vs. feminine Strong vs. weak uncertainty avoidance Short vs. long term orientation (Confucianist dynamics) “The Foolish Old Man Who Moved the Mountain” Individualism vs. collectivism The extent to which Individuals as opposed to groups are rewarded It is desirable to “stand out” from others In collectivism, the unit of responsibility can be (sometimes depending on context) Work group Family Nation, community, or society as a whole Power Distance The extent to which “rank” is important in work and relationships Rank can be based on Position Family/ethnic status Age Implications for Strategy formation Delegation Correcting mistakes “Masculine” vs. “Feminine” “Masculine” values: Dominating environment, “conquering” nature, “progress” E.g., damming, tunnels, land development, land reclamation “Feminine” values: Harmony, preserving environment E.g., environmental impact, working around nature Uncertainty Avoidance Low uncertainty avoidance Willingness to Take risks Investments Social situations Consider new ideas High uncertainty avoidance Reliance on authority for decision making Long vs. short term orientation Not included in Hofstede’s original work Complications—is U.S. shortsighted? Short term financial performance Investment in new technologies; firms with high price/earnings ratios Net present value (NPV) analysis/discounted cash flows Economic s