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Why and when does culture matter in international business
Why and when does culture matter in international business
Difference between two countries'cultures
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A. Introduction: Country
This report will provide a detailed cultural analysis of Japan, the host country, as compared to Singapore, the home country. It will also highlight on the business culture, differences between the home and host countries, as well as how the unique culture impacts international business and what businesses should consider in achieving high operation efficiency in the host country.
The rationale behind the choice of Japan as the host country for setting up a business is due to its long and interesting history; and the fact that Japan was isolated from the rest of the world and yet its culture flourished extensively makes it an even more attractive cultural destination for visitors today as well as businesses that
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Business Culture
Business ethic in Japan is unique in the sense that they value manners and customs highly therefore it is critical that foreigners know the basic values and attitudes practiced by the Japanese. Japanese are aware that it is not easy for foreigners to work in Japan. They do not expect foreigners to communicate in Japanese, or be extremely attentive to their strict cultural ethics. There is always room for mistakes as long as genuine respect is shown throughout the relationship.
Japanese prefer doing business with personal relationships and referrals or recommendations are held in high regard. Respect is seen as a crucial aspect of building a business relationship. The exchange of business cards is done frequently and bowing while exchanging is seen as a sign of respect. The decision making process involves a collective responsibility as it has wide consensus whereby the leader or senior person will make the decision while the rest follows as a group. Japanese are non-confrontational and therefore disagreements are often avoided at all costs whereas they will only use gestures or signs as a way of revealing their disagreement in situations. Face-saving and harmony are critical aspects of the Japanese culture. One has to observe and look out for such signs in order to avoid the embarrassment of their Japanese
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Language for conducting business in Japan is primarily Japanese, whereas the language conducted in Singapore business is English as it is the official language of the country. Therefore, a distinct difference between the host and home country is that a translator is generally required for business meetings. Another difference in business culture; Singaporeans are fast-paced, make decisions fast and they get direct to the point of business discussion (eDiplomat, 2015). In contrast with Japan’s business culture, this is the exact opposite of their slow decision-making
Aside from language difference, the use of appropriate non-verbal messages and gestures can be instrumental in effective communication. The use of excessive hand gestures, physical touch, and starring are deemed inappropriate in China. In formal business meetings, it’s best to give clients enough personal space and be physically neutral.
However, entering into a market as different as Japan is not without its risks, and must be ensured to be successful, with the help of market research, marketing, and operational theories, lest the new venture become a very costly mistake. Target Consumer Market When moving to a market with a consumer culture so different from the home market, a company must be careful to analyse its target audience in detail, to avoid costly cultural faux pas. To get a good feel for the Japanese culture, a good place to start would be the experts in the cultural studies field. Hofstede’s cultural dimensions, created during his in-depth GLOBE study of the cultures of the world, gives a good comparison between the priority differences between Japanese and English culture. A detailed analysis of the cultural differences will be given in the ‘Marketing Issues’ section of the report.
The rest of the book is spent discussing each of the countries in detail. For each country the authors give a brief explanation of the history of the culture. Then they give tips on what each country expects from a visiting businessman. This includes tips on whether or not it is okay to be late for meetings, proper behavior during a business lunch or dinner, and how to properly address people you come in contact with during your business trip. They also give a guide t...
Japan is a very homogenous society made up of about 98% ethnic Japanese. They tend to put a lot of emphasis on family and communities, and value the group more than the individual (Aliasis, 2013). The social hierarchy important and members of the society are expected to conform. One way is showing respect for one’s elders, for example the oldest member of a group is served first and their drinks are poured for them (AngloINFO, 2014). This mentality is common in the business world as well. Promotions are usually based on seniority and people often work at one company their entire lives. This way of life brings satisfaction and pride to the people (Aliasis, 2013). When greeting others it is customary to bow, although the Japanese are familiar with our ways and would expect us to want to shake hands rather than bow (Bazzel, 2013; Angloinfo, 2014). Also, being too direct about what one is really thinking is not socially acceptable. The Japanese use subtle language and rely heavily on non-verbal forms of communication (Aliasis, 2013).
Organizational Culture and Structure Successful organizations recognize the impacts of organizational culture and its influence on many facets of business. Strong culture serves to support a business’ structure and furthers its efficiencies by keeping the focus where it belongs. Organizational structure uses the company’s culture as a moral and visionary compass. Both organizational culture and organizational structure play significant roles in a company’s resulting ethics, job performances, and retention rates. Ethical Effects Organizational culture is the basis for which ethical behaviors are established.
When opening a business in an international realm, one must examine many factors including cultural differences and geographical locations. When opening a business in a foreign nation, one must examine the need for the product being offered, the acceptance of the product into the culture, and the most effective means of advertising. Disney opened its doors in Japan with much success; much of the success can be attributed to the Japanese culture being very fond of Disney characters. Disney decided to take the same methodology to Paris to open its new park in 1992, EuroDisney (Cateora & Graham, 2007).
In past experience, through travels outside of the country for business relations it was discovered very early on that most cultures will respect fairness and tolerance, but each to a different degree. American women in managerial positions have had to struggle to find ways to be effective in cultures where their authority and credibility are not traditionally the norm. Perhaps it was the value of fairness that clashed with tolerance or respect for diversity on this particular business trip to Japan over 10 years ago. However, even if there was an underlying agreement on such values, in this particular scenario these values were prioritized differently among the two different cultures and might have been expressed different for that reason.
Hill, C., Wee, C. and Udayasankar, K. 2012.International Business:An Asian Perspective. 8th ed. Singapore: McGraw-Hill.
A major challenge of doing business internationally is to adapt effectively to different culture. Such adaptation requires an understanding of cultural diversity, perceptions, stereotypes, and values (Hodgett &Luthans, 2005). Doing business overseas has its challenges as well as it rewards.
The Japanese culture is based on its long rich history and change is not welcome, things are done the way they were hundreds of years ago. People also don’t tend to voice their opinions like we do here in the States. Anyone who speaks out usually isn’t given much attention and they fall back into their place and a majority of the population is fine with that. Everyone is fine with fitting in and personal opinion is not voiced out loud most of the time. There are multiple practices that are part of the Japanese culture that are not found in American culture. A few of these are bowing instead of handshake when you address someone, slurping or loud noises are viewed as polite and that you’re enjoying your food, and tipping is viewed as an insult. These practices are somewhat opposite in the American culture, we are much more different than some people tend to realize.
Culture of an organization is a crucial factor in that organizations achieved success. A strong culture that everyone can fit into and feel welcomed enough to believe in the organization’s mission should be upper management’s primary goal. After all, it is essentially the bottom of the barrel employees who help hold together the glue that holds a company together. Without these employees, there would be no one there to keep the basics in order and of course, without someone above them, leading them along, these employees would not know the fundamentals of the organization. Two author’s Pascale and Athose proposed an idea that America had focused on the hierarchical approach of organizational structure, while Japan (America’s leading competitor) had focused more on the “shared values” approach of its structure. This paper will talk about the benefits of “shared values” within an organization and its effect on the employees and how a great culture can help enhance these
Our economic development will forever be defined as our ability to succeed internationally. PwC forecasts India’s real annual GDP growth until 2050 at 8.9 percent, Vietnam’s at 8.8 percent, and China’s at 5.9 percent. The list of fast-growing emerging markets goes on and on. The U.S. forecast is a meager 2.4 percent, comparable with most Western economies. The domestic companies that are likely to see incremental growth in the coming decades are those that are not only doing business internationally, but that are developing the strategic skill set to master doing business across cultures. Cross-cultural core competence is at the crux of today’s sustainable competitive advantage. For example, political environment will tell us, as to how and why political leaders control, whether and how of international business. Legal environment, both national and international will tell us about many kinds of laws by which business firms must work. The cultural environment will tell us about attitudes, beliefs and opinions important to business people. Economic environment will tell us about the economic system being followed by the host country, which may or may not be different from home country. It will also explain the variables such as level of development, human resources, Gross Domestic Per Capita and consumption patterns that determine a firm’s ability to do business. Geography will tell us about location, quantity, and quality of the world’s resources.
...verestimate etiquette! Although your Japanese business partners may look dead serious (and Japanese people usually take work dead-serious...), they also are human and know to laugh... Here is a famous story (not sure it's a true story though...) demonstrating what can happen with exaggerated cultural adaptation:
An examination of Japanese culture, and where it stands on Kluckholn and Strodbeck’s Value Orientation, Hall’s cultural dimensions, and what America needs to know in order to communicate properly with Japan.
Japan is a large island off to the east of China it is a great country that has a rich culture. The Japanese religion is based off of two main beliefs, the belief in Shinto and Buddhism many Japanese people believe consider themselves both. The Japanese people were known to be around as early as 4,500 B.C. They have constructed their government style to a constitutional monarchy where they do in fact have an emperor, but he has limited power within the country. The main power of the country is held by the Prime Minister of Japan. Japan is made up of many islands that extend along the Pacific coast of Asia. The land area is made up of a lot of forest and mountainous area that cannot be used for agricultural, industrial or residential use. Japan also has one of the largest and growing economies in the world. They are growing every day and it is all because the people of Japan work very hard in order for their economy to flourish as it has.