Week 8 - Culture Change and International Marketing Mgmtsv [Compatibility Mode]
Transcript of Week 8 - Culture Change and International Marketing Mgmtsv [Compatibility Mode]
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Dr Shamika Almeida
CULTURAL CHANGE IN ORGANIZATIONS –
CHAPTER 1
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External Forces for Change
GlobalizationWorkforce
Diversity
Changing
TechnologyEthical
Behaviour
3Source: Waddell et al (2011)
Internal Forces for Change
Declining
Effectiveness
Changing
Employee
Expectations
Company
Crisis
Changing
Work Climate
Source: Waddell et al (2011) 4
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The process of change
Two differing concepts of change, shift versus
transformation
• In ‘doing’ cultures people and groups are mostly defined
in terms of what they do, what they achieve
– organisational change seen more in linear fashion,
putting the past state of affairs behind and pushing on
with the new
• In ‘being’ cultures people and groups are defined more interms of affiliation, relationships with others
– the past state of affairs gradually transforms to become
a new state of affairs.
The process of change (Continued)
• Managing change involves ensuring the continuing
running of the organisation, re-assigning tasks,
maintaining overall stability, but this is not enough.
• Inspirational guidance also needed: a leader who
engages people’s minds through vision.• Minds cannot be managed, but they can be
transformed through inspiring leaders who spread
new visions that advocate new meanings and lines
of thinking.
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The process of change (Continued)
According to Deal and Kennedy (2000), many company
managers may go about dealing with tangible factors
involved in change without paying attention to the cultural
issues involved:
• To become, for example, more marketing-oriented involves
subjecting the company to a fundamental cultural change which
involves everyone in the organisation.
• The change is not just changing routines but also identifying
with role-models who embody a new purpose or goal.• Such fundamental change is often a gradual and sometimes
painful transformation.
The mechanisms of change
according to Schein (2004)
Primary mechanisms for changing culture
• What a leader considers important and pays attention to,
what must be measured and controlled.
• The way a leader react to difficult situations and crises:shows others how to react in similar situations.
• The priorities set by a leader when allocating resources.
• The examples set by a leader: these deliberately teach and
reinforce the desired values and behaviours.
• The criteria which a leader uses to allocate rewards and
status as well as to reinforce desired behaviours.
• The criteria used for recruitment, promotion and dismissal.
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Secondary mechanisms for shaping the culture(only effective if consistent with primary mechanisms)
• The design and structure of the organisation
• The systems and procedures used
• The ‘rites and rituals’ used
• The design and layout of the organisation’s physical
space
• Stories of important events and people
• Formal statements of the organisation’s philosophy.
The mechanisms of change
according to Schein (2004) (Continued)
Table 10.2 Mechanisms of cultural changeSource: Schein (1989) p. 66, Figure 4-3, adapted
Natural evolution A culture of what works best as organisation grows (without
too much stress)
Self-guided evolution (therapy)‘Unfreeze’ organisational culture allows changes whereneeded
Managed evolution (hybrids)Changes made by insiders in key positions, thus meeting
less resistance
Planned change and organisational
development
Reduce conflict between sub-cultures resulting from
expansion
Technological seduction
Technology changes force cultural changes (different
behaviour patterns)
Change through scandal, explosion of
myths
Discrepancies between values and actual practices, culture
must be revised
IncrementalismChange realised gradually (e.g. recruitment and selection
policies changed)
Coercive persuasionChange agents put forward new assumptions, rewardmanagers who take them on board
TurnaroundTurnaround individual or team knows where org. must go:
uses some or all of above mechanisms
Re-organisation and rebirth Group bearing the old culture is replaced
The mechanisms of change
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Change strategies
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‘Weak’ cultures versus ‘Strong’ cul tures
Is cultural change easier to implement in an
organisation with a ‘weak’ culture rather than a ‘strong’
culture?
• Laurent (1989) considers that both are in a way
doomed to extinction: – The organisation with a weak culture may eventually
crash since it is poorly coordinated, lacks direction
and consistency
– The organisation with a strong culture may be throttled
by rigid norms and behaviour and the resulting lack of
innovation.
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Do organisational values push aside or dilute the
national culture of an organisation’s environment?
• Laurent’s conclusions drawn from his research:
– Cultural differences among managers working within
a multinational company were significantly greater than
those cultural differences among managers working for
companies in their own (native) country.
– ‘Nationally bounded’ collective perceptions oforganisations did not appear to be diminished in any
way through international business.
– On the contrary, these perceptions appear to be
reinforced through the international exposure.
Tension between organisational
and national cultures
Tension between organisational and
national cultures (Continued)
• The different national companies of multinationals
probably prefer different ways of bringing about
the changes which HQ wishes to implement.
• The transformation of an organisation from A to B
may involve following a different path in one partof the multinational than in another, even if the
end-result (B) is the same.
• The outset of the transformation to B will depend
on how the national organisation interprets its own
present situation ( A).
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Mapping corporate culture change
• Cameron and Quinn (1997) have devised what they call a
Competing Values (CV) framework.
• This is used to categorise organisational effectiveness
perspectives and associated types of organisation.
Figure 10.1 The competing
values framework
Source: Cameron and
Quinn, 1999: 32.
The CV framework
Table 10.3 The characteristics of the CV framework quadrants
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Chapter 11
Culture and international
marketing management
Modern concept of marketing
Market-driven management should:
• Focus on the consumer :
– Anticipate and respond to consumer needs
– Define and deliver customer value.
• Integrate marketing functions in all parts of a
company.
• Develop relationship marketing: link the company
to the market:
– Create networks
– Connect with customers.
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International marketing• Definition:
– Marketing activities – in line with the focus of a
company’s operations – that cross national borders
• Application:
– Companies have different orientations, such as:
– Sales orientation
– Social marketing orientation
• Change of orientation may be necessarybecause of:
– legal, cultural, economic reasons.
Intercultural marketing
Is about adapting products and marketing
strategies to consumer preferences.
• Cultural identification with a product
(Usunier and Lee, 2005):
– Notion of identity
– Notion of exoticism
• Consumers share cultural characteristics:
– Geographical cultural affinity zones
– Cultural affinity classes.
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Cross-cultural consumer behaviour
Increasing uniformity in consumer taste and behaviour:
• However :
– behavioural intentions of consumers need to be
established
– different weightings between attitudes and norms.
• Therefore: – Take into consideration:
• the characteristics of the consumers’ culture;
• their underlying models.• https://www.youtube.com/watch?v=OCG7ScRP1ws
Cross-border market research
Problems for marketers and market researchers:
• Language barriers
• Sensitivity of questioning
• Research techniques
• Cultural differences
• Suspicion
• Statistical comparisons
• Fragmentation.
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Marketing communication
across cultures
Marketing is also a process in which communication
plays an important role.
• Promoting brands internationally
• What is a brand?
– Identifies a range of products and services.
– Registered brand becomes a trademark
• Multinationals need to use a uniform brand
• Language may be a problem:
– Pronunciation
– Different alphabet.
Brand and national images
Important is:
• Relationship between the nationality of a product
and the image it evokes
• Elements that contribute to the consumer’s
perception of product nationality – Such elements can be related to one country, several
countries, or a geographical area.
• Role of stereotypes
• Country of origin
– Same product under the same brand worldwide
– Country-of-brand versus country of origin.
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Impact of culture on advertising
• Companies websites: online advertising and salespromotion worldwide
• Simplest definition: information intended to createa link between the producer and consumer
• Cultural approach in advertising:
– Language and behavioural differences
– Meanings of the consumers• Advertising adapted to the local market:
– Products/services presented in a symbolic way
– Image of product associated with product concept.
Effective communication
Figure 11.3 Effective communication
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Conclusion• One crucial factor in any change process is the
extent to which a company is aware of its culture
and of the operational environment.
• Any transformation carried out will need to reflect
the national culture and ensure that the
subsidiaries involved remain integral parts of the
whole multinational
• In international marketing management and
research focus is more on the consumer than on
marketing methods
• Communication: balance between product, messageand perception that people may have about a
product.
• Cultural diversity in organisations
• Chapter 12
• It was great to have you all here!
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Have a great break and see you in 2 weeks