D1 Cultural Factors Continued

D1 Cultural Factors Continued

Unit 5: International Business

“Watch your thoughts, they become your words; watch your words, they become your actions; watch your actions, they become your habits; watch your habits, they become your character; watch your character, it becomes your destiny.”​

​

― Lao Tzu 

What we will do:

• Brain dump! (What did we do last week?)

• Do the 2020 Business Quiz

• D1 Cultural Factors Continued

Open Ended

BRAIN DUMP!

What can you remember from last week's lesson?

2020 Business Quiz

8 Multiple Choice Questions

Multiple Select

Which famous US singer helped fund the development of the Moderna coronavirus vaccine with a $1m donation?

• Miley Cyrus

• Billie Eillish

• Dolly Parton

• Dua Lipa

Multiple Select

Rishi Sunak grabbed the headlines in July after the Treasury released photographs of the chancellor preparing for his summer economic update, with something expensive on his desk. What was it?

• A bronze bust of Margaret Thatcher

• A Byron burger takeaway

• A "smart mug" costing £180

Multiple Select

Several household names have killed off long-running catalogues this year, but which retailer will still be printing its traditional shopping guide in 2021?

• Argos

• Next

• IKEA

Multiple Select

The coronavirus pandemic has plunged Britain’s economy into one of the deepest recessions in history, with a decline in gross domestic product (GDP) of 11.3% forecast for this year. When did the economy last shrink by more?

• 1709 - The Great Frost

• 1815 - End of the Napoleonic War

• 1918 - End of the 1st World War

Multiple Select

How much beer was pubs forced to pour down the drain due to coronavirus restrictions, according to the British Beer & Pubs Association?

• 70m pints

• 70m barrels

• 70 Olympic-sized swimming pools

Multiple Select

Tesla entrepreneur Elon Musk said the brain of which animal had been implanted with a computer chip, as part of his Neuralink venture?

• Harriet the sheep

• Gertrude the pig

• Frances the rat

Multiple Select

Leaked internal emails between employees working on the Boeing 737 Max said the aircraft had been designed by:

• Rocket scientists

• Clowns

• A team of former pilots

Multiple Select

Where does the UK's richest person live?

• Buckinhgham Palace

• One Hyde Park

• Monaco

Cultural Differences

Cultural differences occur because different types of people have different lifestyles, customs, and values. Therefore, their perception of situations is different.​

Cultural differences

Language, behavior, and gestures are interpreted differently. 

This means that businesses must employ people that have an awareness of the cultures of the markets in which they are operating.​

Cultural differences

This becomes more complex when dealing with a variety of cultures at the same time e.g. often seen in cosmopolitan centers such as London.​

Understanding other people’s behavior, whilst being able to put forward one's own views in a respectful way, is clearly important.

Open Ended

Why did McDonald's Fail in Iceland?

(Can you remember one of the reasons?)

Open Ended

What is the key to succeeding in Iceland?

Cultural Factors

• Language

• Ethnic make-up of populations

• Social structures

• Religion; Values

• Attitudes to business, attitudes to work

• Openness

Multiple Select

Which Language is seen as the business language of the world?

• French

• English

• Italian

• Chinese

Open Ended

Why do you think language is important in International Business?

Open Ended

Why should Global businesses access different ethnicities?

Multiple Select

What are Social structures?

• They are shared institutions within society where people interact and live together.​

• They are unshared institutions within society where people don't interact and live together.

Religious Factors

In International Business

Religion​

Religion has a significant impact on businesses looking to do business abroad​.

In many countries individuals and groups look to religion to establish what is acceptable in the business world.

Religion

For example, certain foods cannot be eaten or methods of finance differ​.

Offending different religious groups can ruin the reputation of a business, whilst ensuring products are suitable can lead to increased trade​

The sharing of a religious culture can enhance trade, particularly as networks can be established that allow for the selling of goods and services

Values​

International Business

Values

As part of these cultural differences it is apparent that people have different values. Value is subjective and is dependent on the individual.

However, upbringing and the environment in which one lives have had a significant impact on this.​

Values

This means that businesses can use their understanding of culture to help market their products.

Promoting products based on ethnicity, for example, will ensure that a marketing budget is more likely to be spent effectively.​

Again, having self-awareness and an understanding of where other people are coming from, ensures that the business is likely to be more successful.

Attitudes to business and work

International Business

Attitudes towards work

Attitudes to business and work vary across the globe​

The UK has some of the longest work hours in the EU, whilst countries such as France and those based in Scandinavia work less​ ‘Work to live, or live to work’ is a quote that reflects this​

Attitudes to business and work

A relaxed attitude to business and work in some countries is likely to require an informal approach to business​

This might include discussing work outside normal working environments such as the office​ Instead, contracts and other business might be discussed over a drink in the bar or whilst playing golf

Openness to change

International Business

Openness

The extent to which countries are open to change will have a big impact on exports​

Some societies remain very closed and are not prepared to tolerate major change​

Openness

This can affect the sales of goods and services that deviate from the norm in these societies​

A business that exports will have to take this into account.

Understanding local markets is therefore important 

Have a good Break!

No Independent Session