Chapter 5 Culture, Management Style, and Business Systems 165 Management styles differ around the world. Some cultures appear to emphasize the importance of information and competition, while others focus more on relationships and transaction cost reductions. However, there are no simple answers, and the only safe general-ization is that businesspersons working in another country must be sensitive to the business environment and must be willing to adapt when necessary. Unfortunately, to know when such adapta-tion is necessary is not always easy; in some instances adaptation is optional, whereas in others, it is actually undesirable. Understand-ing the culture you are entering is the only sound basis for planning. Business behavior is derived in large part from the basic cul-tural environment in which the business operates and, as such, is subject to the extreme diversity encountered among various cul-tures and subcultures. Environmental considerations significantly affect the attitudes, behavior, and outlook of foreign business-people. Motivational patterns of such businesspeople depend in part on their personal backgrounds, their business positions, their sources of authority, and their own personalities. Varying motivational patterns inevitably affect methods of doing business in different countries. Marketers in some countries thrive on competition; in others, they do everything possible to eliminate it. The authoritarian, centralized decision-making ori-entation in some nations contrasts sharply with democratic decen-tralization in others. International variation characterizes contact level, ethical orientation, negotiation outlook, and nearly every part of doing business. The foreign marketer can take no aspect of business behavior for granted. The new breed of international businessperson that has emerged in recent years appears to have a heightened sensitiv-ity to cultural variations. Sensitivity, however, is not enough; the international trader must be constantly alert and prepared to adapt when necessary. One must always realize that, no matter how long in a country, the outsider is not a local; in many countries, that per-son may always be treated as an outsider. Finally, one must avoid the critical mistake of assuming that knowledge of one culture will provide information about, let alone, acceptability in another. Summary Key Terms Cultural imperative Cultural elective Cultural exclusive Silent languages Monochronic time (M-time) Polychronic time (P-time) Bribery Lubrication Subornation Questions 1. Define the key terms listed above. 2. “More than tolerance of an alien culture is required; there is a need for affirmative acceptance of the concept ‘different but equal.’” Elaborate. 3. “We should also bear in mind that in today’s business-oriented world economy, the cultures themselves are being significantly affected by business activities and business practices.” Comment. 4. “In dealing with foreign businesses, the marketer must be particularly aware of the varying objectives and aspirations of management.” Explain. 5. Suggest ways in which persons might prepare themselves to handle unique business customs that may be encountered in a trip abroad. 6. Business customs and national customs are closely interrelated. In which ways would one expect the two areas to coincide, and in which ways would they show differences? How could such areas of similarity and difference be identified? 7. Identify both local and foreign examples of cultural impera-tives, electives, and exclusives. Be prepared to explain why each example fits into the category you have selected. 8. Contrast the authority roles of top management in different societies. How do the different views of authority affect mar-keting activities? 9. Do the same for aspirational patterns. 10. What effects on business customs might be anticipated from the recent rapid increases in the level of international business activity? 11. Interview some foreign students to determine the types of cultural shock they encountered when they first came to your country. 12. Differentiate between: Private ownership and family ownership Decentralized and committee decision making 13. In which ways does the size of a customer’s business affect business behavior? 14. Compare three decision-making authority patterns in interna-tional business. 15. Explore the various ways in which business customs can affect the structure of competition. 16. Why is it important that the business executive be alert to the significance of differing management styles? 17. Suggest some cautions that an individual from a relationship-oriented culture should bear in mind when dealing with some-one from an information-oriented culture. 18. Political payoffs are a problem. How would you react if you faced the prospect of paying a bribe? What if you knew that by
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