Culture and its Impact on Global Marketing | My Assignment Tutor

1Session 3: Culture and its Impact on GlobalMarketingICTM Module Delivery TeamBy the end of the session, the student will be able to: Define culture and identify the role of culture in globalmarketing Identify and evaluate the major cultural changes and identifythe causes of these changes Conduct a cultural analysis of global marketsICTM Module Delivery Team1 22 ICON College of Technology and ManagementGlobal Economies and International Markets Week 4 Activities PlannerWk 4StepsDescriptionExample Activity TypesTool that will suport this activity1Introduction(Informinglearners of theobjective)Define culture and identify the role of culture in global marketingIdentify and evaluate the major cultural changes and identify the causes of these changesConduct a cultural analysis of global marketsIdentify the areas of culture which have caused significant problems to the global marketers in thepastAnalyse the impact of cultural change on the organization change; areas of culture which causesignificant problems to global marketersRead Levitt’s article on Globalisation and onthe ICON VLE and summarise his argumentsin the Forum created for your groupICON VLE: Theodore Levitt (1983), The Globalisation of Markets.Published by Harvard Business Review. Also available at: anddeliverymethodSession 4: Culture and its impact on Global Marketing: The importance of global marketsegmentation; the role of culture in global marketing; the major cultural changes and identify thecauses of these change and areas of culture which cause significant problems to global marketers:Instructor-led with Q&A for students engagementPresentation, video on “Culture andInternational Business” – My Media url to video.Lecture material on ICON VLE3ActivityGroup work on case study ‘Hofstede and his Critics’. Identify factors which Levitt believes have led toglobalisation. List 10 global products according Levitt’s definition of globalIdentify and evaluate the restraining forces to development of global marketingLevitt’s article on ‘Globalisation of Markets’Breakout Rooms in Kaltura4Reflection andFeedbackIndividuals summarise the importance of culture and its impact on international markets.Feedback; Reflective journal a record of the results of the- students keepICON VLE and Kaltura5Consolidationand IntegrationStudents share their summaries of the importance of culture and its impact on internationalbusiness. These summaries are uploaded onto the ICON VLEStudents are divided into groups inbreakout room to share their summaries ofthe importance of environmental factors onan organisation of their choiceKaltura and ICON VLE ICTM Module Delivery Team Business operating at the international level has to facea variety of social and cultural environments wheresocial characteristics, structures, and institutions maydiffer significantly Societies across the world can differ enormously interms of demography, health, class structures,composition by ethnic group, incidence of corruption,the importance of pressure groups and in norms andvalues.ICTM Module Delivery Team3 43 The be successful, business has to be aware of the differencesthat could be important to it regarding levels and patterns ofdemand, the quality and quantity of labour, and the policies andstrategies to be adopted Culture: that can be seen as a system of shared beliefs, values,customs, and behaviours prevalent in a society and that aretransmitted from generation to generation (Bates and Plog1990; also cited in Hamilton and Webster, 2012)ICTM Module Delivery Team Hofstede (1994), the management scientist, described theseelements of culture as the software of the mind, ‘the collectiveprogramming of the mind which distinguishes the members ofone category f people from another’ The values in the culture are enforced by a set of norms whichlay down rules of behavior These rules are supplemented by a set of sanctions to ensurethat the norms are respectedICTM Module Delivery Team5 64 Culture comprises a whole variety of different aspects,including religion, language, non-verbal communication, diet,dress and institution to ensure that values and beliefs aretransmitted from one generation to another Culture is dynamic, in other words, it changes over time notleast due to the process of globalization with the increasingcross-border movements of goods, services, capital and themigration of peopleICTM Module Delivery Team Different cultures can have significantly different attitudes andbeliefs on a whole range of issues For example, the various social models, there is a significantdivide between the USA and Continental Europe on attitudes tosocial issues such as poverty In the USA poverty tends to be seen as the fault of the poorwhereas in Europe the poor tend more to be seen as victim ofthe system Cultural attitudes can also vary towards issues such as,corruption, women at work, sexuality, violence, suicide and timeICTM Module Delivery Team7 85Five cultural dimensions were identified by Hofstede: Individualism Uncertainty avoidance Masculinity Power Distance Long term/short termICTM Module Delivery TeamBased on research – each country ranked on five dimensions: Power Distance – how people respond to power Individualism – how much people care about the wellbeing ofothers Masculinity – based on whether a culture believes in male / femaleequality Uncertainty Avoidance – whether people need structure, rules andprocess or if they are risk takers Pragmatism – about respect for tradition Indulgence – the extent to which people try to control their desiresand impulses10 minutes with Geert Hofstede videos and ppt Module Delivery Team9106Source: Waldon, S. (2017).ICTM Module Delivery TeamHofstede work is widely recognised as a major contribution to theunderstanding of cross-cultural relationships.His work has also been criticised on five major grounds:1. Surveys are not a suitable way to measure cultural differences. It isnot a good way of measuring phenomena that are subjective andculturally sensitive2. Nations are not the best units for studying culture.3. Studying the subsidiaries of a single multinational IBM, is not a validmethod of uncovering the secrets of entire national cultures4. The data are old and obsolete5. Five dimensions are not enough to represent the complexityof culture Source: Bond 2002; Hofstede and Bond 1998; Hofstede 2001 and 2007; McSweeney 2002 and 2002a; Redpath 1997; alsocited in Hamilton and Webster, 2012:163. The case study is also available at:’The%20International%20Business%20Environment’&f=falseICTM Module Delivery Team11127 Cultural characteristics have important implications forinternational business. According to Hofstede, centralizedcorporate control is more feasible in societies with largepower distances while decentralization fits better in smallpower distance cultures Collectivism is more likely to favour group rewards and familyenterprises while job-hopping and individual remunerationsystems are more acceptable in individualistic culturesICTM Module Delivery Team Masculine cultures prize competition and survival of the fittest whilefeminine cultures favour solidarity and sympathy for the weak Uncertainty avoiding cultures are comfortable with strict adherence to ruleand principles, while their counterparts are happy to shape policies according to particular circumstances and are more tolerant of deviantbehaviour (Hofstede 1994) Studies in many countries show that culture has implications for humanresource management, the management of change, entry strategies intoforeign markets, the targeting consumers and selling to industrialcustomersTEDx Talks at and International BusinessICTM Module Delivery Team13148 ComponentDescriptionDemographicsThe size, growth rate, and age distribution of different sectors of the population. Itincludes the geographic distribution of the population, the distribution of incomeacross the population, and trends in these factors.Social forcesSocietal values, attitudes, cultural factors, and lifestyles that impact businesses.Social forces vary by locale and change over time.Political, legal,and regulatoryfactorsPolitical policies and processes, as well as the regulations and laws with whichcompanies must comply—labor laws, antitrust laws, tax policy, regulatory policies,the political climate, and the strength of institutions such as the court system.NaturalenvironmentEcological and environmental forces such as weather, climate, climate change, andassociated factors like water shortages.TechnologicalfactorsThe pace of technological change and technical developments that have thepotential for wide-ranging effects on society, such as genetic engineering, the rise ofthe Internet, changes in communication technologies, and knowledge andcontrolling the use of technology,Global forcesConditions and changes in global markets, including political events and policiestoward international trade, sociocultural practices and the institutional environmentin which global markets operate.GeneraleconomicconditionsRates of economic growth, unemployment, inflation, interest, trade deficits orsurpluses, savings, per capita domestic product, and conditions in the markets forstocks and bonds affecting consumer confidence and discretionary income. THE SE Seven COMPONENTS OF THE MACRO ENVIRONMENTICTM Module Delivery TeamBUILDING BLOCKS FORSCENARIOSICTM Module Delivery Team15169The Most Common Drivers of Industry Changen rivers of Industry Change 1. Changes in the long-term industry growth rate2. Increasing globalization3. Changes in who buys the product and how they use it4. Technological change5. Emerging new Internet capabilities and applications6. Product and marketing innovation7. Entry or exit of major firms8. Diffusion of technical know-how across companies andcountries9. Improvements in efficiency in adjacent markets10. Reductions in uncertainty and business risk11. Regulatory influences and government policy changes12. Changing societal concerns, attitudes, and lifestyles ICTM Module Delivery Team In different countries, the state takes on varying degrees ofresponsibility for the welfare of its citizens In developed countries, the state spends more on welfarethan all other programmes. This spending takes the forms ofbenefits to the elderly, the disabled, the sick, the unemployed,and the young It also usually involves spending on health care andeducationICTM Module Delivery Team171810➢ The liberal social model found in the USA, Canada, andAustralia and also, to an extent, the UK, is based on a cleardistinction between the deserving and undeserving poor, withlimits on the level of benefit of payments➢ In liberal welfare states like the USA and the UK there is asharp cut-off in unemployment benefits to discouragedependency and to force people back to workICTM Module Delivery TeamThe corporatist model is typical of continental Europeancountries such as Germany, France, Austria and Italy. Japanand Southern Europe also display elements of the corporatistmodel but spending is not as generous as in France orGermanyICTM Module Delivery Team192011 The social democratic model, found in Scandinaviancountries, has several defining characteristics. Sweden,where total spending makes up 60% of the economy,spends almost twice as much on social welfare as theUSA Britain falls between the low-spending USA and thehigh-spending continental European countries.ICTM Module Delivery Team Cultural changes are set in motion in three ways. The first isinvention, the process of creating new cultural elements.Invention has given us the telephone, the airplane and thecomputer each of these elements of material culture has had atremendous impact on our way of life The same is true of the minimum wage, school desegregation, andwomen’sshelterseachanimportantelementofnonmaterialconstantly.culture. Theprocess ofinventiongoes on ICTM Module Delivery Team212212 Discovery, a second cause of cultural change, involvesrecognizing and understanding more fully something already inexistence perhaps a distant star or the foods of another cultureor women’s political leadership skills The third cause of cultural change is diffusion, the spread ofcultural traits from one society to another. Because newinformation technology sends information around the globe inseconds, cultural diffusion has never been greater than it istodayICTM Module Delivery Team Case Study: The clash of social models pp:175-176’The%20International%20Business%20Environment’&f=false What is the difference between a theory, model, method and approach insocial work?YouTube by Siobhan Maclean The difference between Concepts Models and TheoriesYouTube by NurseKillamICTM Module Delivery Team232413Hamilton, L. and Webster, P. (2015). The International Business Environment.Third Edition. Oxford University Press. Also available at:, S. (2017). Culture Plays A Vital Role In International Marketing Efforts Module Delivery TeamICTM Module Delivery Team2526


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