Cultural & Social Environment

-Prof Uddeepan Chatterjee

Important Factors of Business

• Language(Verbal/Nonverbal)

• Customs,Traditions & Beliefs

• Tastes

• Buying & Consumption Habits

-What is Liked by the people of one culture may not be liked by those of some Other Culture.-One of the most imp. reasons for the failure of a no. of orgn in foreign market is their inability to understand the cultural environment of these markets & to formulate business strategy for these market.

Culture-Defined

- Culture is a set of learned core values,beliefs,standards,morals

knowledge & behaviours shared by individuals and societies

that determines how an individual acts,feels & views oneself and others.

- Culture is the total sum total of societal behaviour

- Culture is the total life way of a people.

Elements of Culture

• Knowledge & Beliefs

• Ideals

• Preferences

• Education Characteristics of Culture

1.Learned2.Shared3.Transgenerational4.Adaptive

Level of Culture

OccupationalCulture

OrgnCulture

NationalCulture

Business Culture

Culture & International Business

• Spreading Cross cultural Literacy.(HOW?)

• Culture & Competitive advantage

(A country that has a strong culture support always attract vast inflow of FDI).

• Managing diversity in organisations.

(Employee exchange program in IT firms)

Culture & International Business

• Culture & Strategy Fit

( A culture & Strategy fit is essential for the success of an International business)

Examples:- Coca Cola(Lables on bottles supplied to Gulf-Containes

no alcohols.)- Nokia(Hindi SMS for Indian cellphone users).- McDonald’s(“Meat prepared after halal” is printed on the

lables before exporting to Saudi Arabia.)

Culture & Business Ethics

• Many Ethical Principles are Universally held across all cultures.

• Some are culturally bound:eg.-Giving Gifts in return

• Respect for core Human Values(Human Rights)eg.of Levi

• Respect for local tradition.

Some Examples to share..

• Islamic financial services(By Citigroup & HSBC)

• McDonald’s and Hindu culture.

Questions

?

Thanks