Chapter 3- Cultural Environment

Question 1

Define Culture

Answer 1

A system of values and norms that are shared among a group of people

Question 2

Define Values

Answer 2

Are abstract ideas about what a group believes to be good, right and desirable

Question 3

Define Norms

Answer 3

Social behaviour towards others embraced within our culture, social rules,

Question 4

What are the two Norms, and examples of each

Answer 4

Folkways: routine conventions of everyday life informal rules, holding the door open, standing your turn in a line- could be considered an expectation with in a culture
MorEs: a social line that has been crossed: marital affairs- big consequences- seen as central to the functioning of a society

Question 5

What are the 6 determinants of culture?

Answer 5

Social Structure, language, Education, economic Philosophy, political philosophy, religion. L E EP PP R SS

Question 6

what factors are part of a Social Structure?

Individual vs…
and ?

Answer 6

1)Individual vs. Group
2)Social Stratification

Question 7

Social Structure: Individualism- Define

Answer 7

Western societies: as an example, in the United States and Canada
the emphasis on individual performance
* Individual performance is often recognized- employee of the week reward

Question 8

Social Structure: Groups

Answer 8

two or more individuals who have a shared sense of identity
common set of expectations about each other’s behavior
Collectivism ie. China

Question 9

Define: Social Stratification

Answer 9

society’s categorization of its people into groups based on socioeconomic
factors like wealth, income, race, education, gender, occupation

Question 10

Caste System

Answer 10

closed system of stratification in which social position is determined by the family into which a person is born. (no Social mobility- moving from middle class to upper)-

Question 11

Education

Answer 11

Education is important in determining a nation’s
competitive advantage.
Direct= social aspects
Indirect=authority, influence, punctual

Question 12

Class Consciousness

Answer 12

refers to people perceiving themselves in terms of their
class background, which shapes their relationships with
members of other classes.

Question 13

Hofstede’s model

6 Dimensions to describe differences among cultures (attitudes, values)
Scale 1-100

Answer 13

1) Power distance
2) Individualism versus Collectivism
3) Uncertainty avoidance
4) Masculinity vs. Femininity
5) Long-term vs Short-term orientation
6) Indulgence vs Restraint

Question 14

Power Distance Index

Answer 14

Class Consciousness- Social Strata
*higher degree of the index indicates that hierarchy is
clearly established
* A lower degree of the index signifies that people question
authority and attempt to distribute power.
* Examples:
1. Latin American countries- Scores higher- lots of social disparity-society that believes that inequalities amongst people are acceptable
2. Germanic countries such as Austria or Denmark- Scores are low-riots

Question 15

Individualism vs Collectivism

Answer 15

societal, not an individual’s, characteristics and identifies the extent to which people in a society are integrated into groups.
* In an individualist society, there is an expectation that
individuals look after themselves and connections between
individuals are loose- Canada scores high
* in a collectivist society, individuals are integrated into
strong, cohesive groups, which may often involve
extended family- China scores low

Question 16

Uncertainty Avoidance

Answer 16

Indicates the comfort level with unstructured situations- encompasses a culture’s tolerance for ambiguity. Structure vs unstructured. The uncertainty avoidance dimension is different from the “risk avoidance” flexiable vs ridgid
Cultures high in uncertainty avoidance avoid unstructured situations with “strict behavior codes
*Belgium scored high- Ridgid
*Sweden scored low- likes ambiguity- unclear- confusion- flexible- fewer and general laws and regulations

Question 17

Masculinity vs. Femininity

Answer 17

A high score (Masculine) on this dimension indicates that the
society will be driven by competition, achievement and
success, with success being defined by the winner / best in
field – a value system that starts in school and continues
throughout organizational life.
* A low score (Feminine) on the dimension means that the
dominant values in society are caring for others and quality
of life.. Society at large is more consensus-oriented.- conscious orientated
* In the business context Masculinity versus Femininity is
sometimes also related to “tough versus tender” cultures
Examples
1) Norway- scores low - tender
2) Japan- scores high- tough

Question 18

Long term vs Short term Orientation

Answer 18

A high score indicates a Long-term orientation: Progressive society- embraces change Thrift and investments in modern education are encouraged.
* A Short-term orientation are societies that score low on
this dimension, prefers to maintain time-honored traditions
and norms while viewing societal change with suspicion.
Examples:
South Korea long term- high
Ireland- short term- low

Question 19

Indulgence vs. Restraint

Answer 19

This dimension refers to the degree of freedom that
societal norms give to citizens in fulfilling their human
desires.
* Indulgence stands for a society that allows relatively free
gratification of basic and natural human drives related to
enjoying life and having fun.
* Restraint stands for a society that suppresses gratification
of needs and regulates it by means of strict social norms.
Examples:
1) Mexico- high
2) Spain- low

Question 20

Cross-Cultural Literacy

Answer 20

Cross-cultural literacy is an understanding of how cultural differences across and within nations can affect the way business is practiced.

• Doing business in different cultures requires adaptation to
  conform with the value systems and norms of that culture.
• Adaptation embraces all aspects of an international firm’s
  operations in a foreign country, including:
• The way deals are negotiated
• The appropriate incentive and pay systems for salespeople
• How the workforce is managed
• The structure of the organization
• The name of a product
• The manner in which the product is promoted