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Interacting Spheres of Culture

Culture can be discovered in many places:Regional cultures within countries: urban vs rural, north

vs south),

Among groups of nations: (Nordic vs Latin American)

Industry Culture: pharmaceutical vs automotive)

Corporate cultures and sub cultures: Professional or

functional groups

REGIONAL CULTURES: Refers to dif ferences w ithin

countr ies and sim i lar i t ies between countr ies.

Regional cultures have evolved due to geography,

history, political and economic forces, language and

religion.

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Product/market Characteristics: The need to protect

patents or standardize products will influence the degree

of information sharing.

Regulation: Impacts on market conditions, such as level

of competition which in turn influences customer

orientation.

Technology: Government regulation determines degreeto which technology is developed and protected.

Sources of Competitive Advantage: Concerns for

efficiency over customer satisfaction, or cost

effectiveness over quality, may predominate in heavy

industries over service industry. Need for resources or

different sorts of capital- financial human, intellectual-

drive cultural differences in capital, labour andknowledge-intensive industries.

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Interaction Effects: National culture can interact

with industry culture to provide competitive

advantage.

PROFESSIONAL CULTURE:1. Reliance on

judgment 2. Acquire judgment through intensive

training, supervision, and socialization. 3.

organizations are becoming network ofspecialists.

4. Proper behaviour 5. Dress codes. 6.

Difference in beliefs, methods and values.INTERACTION EFFECT: Choice of profession

depends on personal abilities, interests and

values as well as social signals.

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Functional Culture

Different Functions- finance, production,marketing, and R&D- have different cultures

The reasons for these differences can be found

in the external environment- stakeholderdemands and the nature of the task - task

interdependence- reciprocal versus sequential.

Different functions will hold positions of power

in companies at different times in history.

Interaction effects: 1. Nature of the Industry 2.

Corporate culture 3. National culture

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Reasons for Differences in Corporate Culture

Role of Founder: Influence through their values

and beliefs.

Leaders: Through their vision, innovativeness etc.

Administrative Heritage: Different structures,

standard operating procedures or routines thatevolve over a time shape culture by prescribing

specific behaviour and reinforcing certain

values and beliefs.Stages of development: Technology driven to

market driven