Chapter 1 - Introduction

Question 1

What is the definition of Culture?

Answer 1

Culture is a system of values and norms shared among a group of people.
This is a design for living

Question 2

What are cultural differences?

Answer 2

Cultural differences can be both a synergy and disruption in international business issues

Question 3

Explain the communication process

Answer 3

Sender encodes message =>
Medium message =>
Receiver decodes message

Cultural noise at each step

Question 4

What is non-verbal communication.

Answer 4

• Subte messages
• Kinesic behavior
• Proxemics
• Paralanguage

Question 5

What is the “Context” in a culture?

Answer 5

• High-context cultures (Asia, the Middle East, Africa, and the Mediterranean)
  => Feeling and thoughts are not explicitly expressed, one has to read between the lines
  => Key information is embedded in the context rather than explicit
• Low-context cultures (Switzerland, Scandinavia, North America)
  => Communication emdia have to be more explicit
  => Feeling and thoughts are expressed in words

Question 6

What are the practical implications of Context in Cultures?

Answer 6

• Careful encoding
• Selective transmission
• Careful decoding of feedbacks

Question 7

How can you be more aware of cultural differences?

Answer 7

You need to have cultural sensitivity, cultural intelligence, cultural quotient, cross-cultural literacy
=> Risk of ethnocentricism

Question 8

What are the 3 school of thoughts for strategy?

Answer 8

• Strategy as Plan
• Strategy as Action
• Strategy as Theory (integration)

Question 9

Define Strategy as Plan

Answer 9

Explicit, rigorous formal planning

Question 10

Define Strategy as Action

Answer 10

A set of flexible, goal-oriented actions
=> Intended strategy + emergent strategy

Question 11

Define Strategy as Theory

Answer 11

How to compete successfully
=> integration of both plan and action school
=> integrating both formulation and implementation
Articulation and communication so powerful and easy to remember + coherence to decisions and action

Question 12

What are the 4 fundamental questions in Strategy?

Answer 12

• Why do firms differ?
  => cultural differences, supporting institutions
• How do firms behave?
  => industry, resources, and institutions based view
• What determine the scope of the firms?
  => growth or contraction, integration and geographic boundaries
• What determine the success of failure of firms around the globe?

Question 13

What is global strategy?

Answer 13

Provide standaridized goods and services on a worldwide basis

Question 14

What is globalization?

Answer 14

The close integration of countries and people of the world
=> pendulum view
=> semiglobalization