Topic 6 Culture1.pptVIP

Topic 6 Culture As firms expand their operations across borders, they acquire new customers and new partners in new environments. Two distinct tasks become necessary: first, to understand cultural differences and the ways they manifest themselves and, second, to determine similarities across cultures and exploit them in strategy formulation. Success in new markets is very much a function of cultural adaptability: patience, flexibility, and appreciation of others beliefs. Recognition of different approaches may lead to establishing best practice; that is, a new way of doing things applicable throughout the firm. Ideally, this means that successful ideas can be transferred across borders for efficiency and adjusted to local conditions for effectiveness. Cultural diversity is everywhere. Managers both at home and abroad must plan strategies without assuming mutual understanding. People from different cultures share basic concepts but view them from different angles and perspectives, leading them to behave in ways that may seem irrational or even directly contradictory to what others consider appropriate. It is critical to remember that while all managers evaluate and criticize others behavior, their own actions are also coming under scrutiny. The following perceptions of U.S. managers practices highlight the point. Hans Riedel, Germany; Executive Vice President/ Sales and Marketing, Porsche AG We are coming from two different cultures, but we have to deal with each other. This starts with little things such as scheduling meetings on Thanksgiving. It does not show up in our [German] calendars or in our perceptions, but we should make it our business to know about this most important holiday. The same should go for Americans and German holidays. jaime Zevada, Mexico; Manager of Investor Relations, Bufete Industrial, SA. Time represents something else for an American than for a Mexican. If you have a meeting at 1:30, for a Mexican that could mean 1:45 or 2: