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A Synthesis – Relationship-Oriented vs. Information-Oriented Cultures

A Synthesis – Relationship-Oriented vs. Information-Oriented Cultures

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Dimensions of Culture, A Synthesis

Exhibit 5.7


Negotiations Emphasis

• Business negotiations are perhaps the most

fundamental business rituals

• The basic elements of business negotiations are

the same in any country

– They relate to the product, its price and terms, services

associated with the product, and finally, friendship between

vendors and customers

• One standard rule in negotiating is “know

thyself” first, and second, “know your



Marketing Orientation

• A company’s marketing orientation has been

positively related to profits (U.S.)

• Other countries have more traditional approach

– Production orientation (consumers will prefer products that are

widely available)

– Product orientation (consumers will favor products that offer the

most quality performance, or innovative features)

– Selling orientation (consumers and businesses alike will not buy

enough without prodding)

• Encouraging a marketing orientation across

global business units can be difficult


Bribery –

Variations on a Theme

• Bribery and Extortion

– Voluntary offered payment by someone seeking unlawful advantage is


– If payments are extracted under duress by someone in authority from a

person seeking only what he are she is lawfully entitled to that is


• Subornation and Lubrication

– Lubrication involves a relatively small sum of cash, a gift, or a service

given to a low-ranking official in a country where such offerings are not

prohibited by law

– Subornation involves giving large sums of money, frequently not

properly accounted for, designed to entice an official to commit an illegal

act on behalf of the one offering the bribe


Ethical and Socially

Responsible Decisions

Difficulties arise in making decisions, establishing policies, and

engaging in business operations in five broad areas

Employment practices and policies

Consumer protection

Environmental protection

Political payments and involvement in political affairs of the country

Basic human rights and fundamental freedoms

Laws are the markers of past behavior that society has deemed

unethical or socially irresponsible

Ethical principles to help the marketer distinguish between right

and wrong, determine what ought to be done, and justify actions

Utilitarian Ethics

Rights of the Parties

Justice or Fairness


Culture’s Influence

on Strategic Thinking

• British-American

– Individualistic

• Japan & Germany

– Communitarian

• In the less individualistic cultures labor and management


• A competitive, individualistic approach works well in the

context of an economic boom

• Fourth kind of capitalism –

– Common in Chinese cultures

– Predicted by culture



• Some cultures appear to emphasize the importance of

information and competition while others focus more on

relationships and transaction cost reductions

• Businesspersons working in another country must be

sensitive to the business environment and must be

willing to adapt when necessary

• Understanding the culture you are entering is the only

sound basis for planning

• Business behavior is derived in large part from the basic

cultural environment in which the business operates and,

as such, is subject to the extreme diversity encountered

among various cultures and subcultures



• Environmental considerations significantly affect the

attitudes, behavior, and outlook of foreign


• Varying motivational patterns inevitably affect methods

of doing business in different countries

• The international trader must be constantly alert and

prepared to adapt when necessary

• No matter how long in a country, the outsider is not a

local – in many countries that person may always be

treated as an outsider

• Assuming that knowledge of one culture will provide

acceptability in another is a critical mistake


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