3rd partial Flashcards
Acquired norms based on values, attitudes and beliefs of a group of people
culture
elements of culture which are basis of how IB make decisions
material social institutions religion and superstitions aesthetics language
established since childhood and hard to modify
cultural values
how can cultural values can change?
due to choice
imposition (cultural imperialism)
contact with other cultures
occurs when divergent cultures interact
- when company implements practices less effective than planned
- when employees have conflict due to foreign behaviors
cultural shock
behavior practices that affect IB
- language
- social stratification
- work motivation
- communication context
- time management
- cultural dimensions
affiliation to groups
- assigned group (by sex, family, age, nationality)
-acquired group (choosing to be a part of)
social stratification
6 types of work motivation
materialism
success expectation and reward
performance and achievement
hierarchy of needs
to obtain economic retribution
materialism
to obtain a larger sentimental and material retribution
success expectation and reward
to prove something
performance and achievement
basic needs first and then the most sophisticated
hierarchy of needs
maslow’s hierarchy of needs
physiological safety love / belonging esteem self-actualization
depends on non verbal elements
high context
explicit communication
low context
type of time management
sequential work
time divided in small units
tangible
monochromic time
type of time management
parallel work, different things happen at the same time
human transactions are more important than complying with time
polychromic time
hofstede cultural dimensions
power distance individualism masculinity uncertainty avoidance long term orientation indulgence
Alta distancia al poder
se obedece la autoridad sin cuestionar
los gerentes toman las decisiones autocráticas y paternalistas
los subordinados obedecen las órdenes sin replicar
existe un control riguroso de las operaciones
ética de trabajo es bastante débil
propia para países latinoamericanos y asiáticos (Malasia, Filipinas, México, Venezuela)
Baja distancia al poder
gente da mucha valor a la independencia
los gerentes consultan decisiones con los subordinados antes de tomarlas
existe una ética de trabajo fuerte
existe en países de América del Norte y muchos países europeos (EE.UU.,Canadá, Dinamarca, Gran Bretaña y Austria)
power distance
The degree of interdependence a society maintains among its members
Individualism – Me and my family
Colectivism – The community
individualism
se espera que las personas sean autosuficientes
se da mucha importancia a la iniciativa y logros individuales
se aprecia mucho la autonomía y la seguridad financiera individual
se alienta a la gente a tomar decisiones personales sin contar con el resto del grupo
se detectó principalmente en países industrializados
alto individualismo
se da mucha importancia a las decisiones en grupo
nadie quiere ser en el centro de atención aún realizando bien su trabajo
el sentido de pertenecer es muy importante
la fuerza proviene del grupo
Países con esa característica: Ecuador, Guatemala, Paquistán e Indonesia
bajo individualismo
society will be driven by competition, achievement and success, with success being defined by the winner
The fundamental issue here is what motivates people, wanting to be the best (Masculine) or liking what you do (Feminine).
masculinity
dominant values in society are caring for others and quality of life.
feminine
Alta inclinación a evitar incertidumbre
se trata de atenuar el riesgo y de idear sistemas y métodos para afrontar ambigüedad
las actividades organizacionales se formalizan
existen muchas normas y reglas para asegurarse de que la gente sepa lo que debe hacer
se observa alto grado de ansiedad y estrés entre las personas
se nota la preocupación por seguridad
las decisiones se toman en grupo
se da en Grecia, Uruguay, Guatemala, Portugal, Japón y Corea
Baja inclinación de evitar incertidumbre
existe menor estructuración de las actividades
se estimula gente a asumir riesgos
las personas con menos estrés aceptan mejor la disidencia y desacuerdo
se recurre mucho mas a su iniciativa personal
se encontró en Singapur, Suecia, Gran Bretaña, EE.UU. Y Canadá
uncertainty avoidance
extent of threat of unknown situations
Alto Pragmatismo
La sociedad comprende que mucho de lo que sucede no puede ser explicado. Culturas que se enfocan más en los detalles que en principios abstractos.
Bajo Pragmatismo (Idealismo) Culturas que se enfocan mas en establecer principios generales antes de intentar resolver pequeños asuntos.
long term orientation
The extent to which people try to control their desires and impulses
Indulgence Vs. Restriction
Money denominated in the currency of another nation or group of nations.
foreign exchange
price of a currency
*Number of units of one currency that buy one unit of another currency.
exchange rates
systems of exchange rates
fixed
floating
based on government intervention
fixed
FIXED (12.2%)
Tied to a specific value
based on supply and demand of currency (market forces)
floating
MANAGED FLOATING(45.7%) Rigid with a few changes based on market trends
FLOATING (42.1%)
Based on supply and demand
Forms of calculating exchange rates
direct
indirect
cross
cost of one unit of foreign currency is given in units of local currency
direct
cost of one unit of local currency is given in units of foreign currency
indirect
to determine the value of an exchange rate between two currencies, you need a third common value
cross
the price at which the dealer is willing to buy the foreign currency
bid (buy) rate
the price at which the dealer is willing to sell the foreign currency
offer (sell) rate
the difference between the bid and offer rates, the dealer’s profit margin
spread
company’s decisions for market selection
- where to locate sales, production and administration
- what sequence of steps to follow to enter different countries
- what portion of resources to assign to each country of operation
2 steps to select
- exploration
2. detailed analysis
examine most countries, eliminating countries until left with the most promising
comparing info easily available
exploration
complete detailed analysis
involves visiting countries and on topics focused and aligned with company’s objectives ($$$$)
detailed analysis
Method to select the optimal country to export a product out of a list of possibilities.
To measure the possibilities of success, it takes into account the factors
Wicklund method
Select the most relevant variables to make the decision based on the research. (Select 8 variables)
step 1 decision variables
Assign a “weight” to each variables, the weight indicated the relative importance to the decision. (May be a value, 0< weight <1, where 1 is the most important)
weight assignment 2
Each country is assigned a numerical value in accordance to the performance researched. A rubric should be created for each type of variable. (Value 0< performance <10 where 10 is the best performance)
performance evaluation 3
Multiply the weight of each variable times the performance value. Sum up the totals per country.
calculation 4
The country with the highest global performance is chosen as the optimal market to export.
conclusion 5
