Why
is the Socio-cultural environment so influential on international business?
Give some examples.
Discuss for Meeting 4
Because attitudes and beliefs are always owned by every culture, almost all aspects of human behavior help bring order in society and other individuals. Among the wide variety of subjects covered by attitudes and beliefs, some of which are very important to business people including attitudes toward the timing of work achievement and towards change.
Attitudes towards change or new ideas will be more acceptable if they can be linked more closely to the traditional while at the same time showing superiority relative to the traditional. In other words, the more consistent a new idea is with people's attitudes and experiences, the faster the idea will be adopted.
Religion is an important cultural component responsible for many of the attitudes and beliefs that influence human attitudes and behavior.
For example, Japan has cultural values ΓÇïΓÇïthat are applied when starting a business such as harmony, respect, listening and not being emotional. We as someone who comes from outside of Japanese culture must align with the cultural values ΓÇïΓÇïapplied by the Japanese people such as the respect for Japanese and Indonesian people is very different. Japanese people tend to bow their heads to show respect while Indonesians are different so we must also align them with use Japanese respect.
Attitudes towards change or new ideas will be more acceptable if they can be linked more closely to the traditional while at the same time showing superiority relative to the traditional. In other words, the more consistent a new idea is with people's attitudes and experiences, the faster the idea will be adopted.
Religion is an important cultural component responsible for many of the attitudes and beliefs that influence human attitudes and behavior.
For example, Japan has cultural values ΓÇïΓÇïthat are applied when starting a business such as harmony, respect, listening and not being emotional. We as someone who comes from outside of Japanese culture must align with the cultural values ΓÇïΓÇïapplied by the Japanese people such as the respect for Japanese and Indonesian people is very different. Japanese people tend to bow their heads to show respect while Indonesians are different so we must also align them with use Japanese respect.
Cultural Influence On Economic Performances. In the analysis of
economics, cultural influences on the performance of an economy still an
assumption of binding, due to the difficulty of economics to understand it. It is
difficult to quantify the variables associated with culture, and also because the
culture itself is embedded everywhere as in tastes, habits and so forth. But in its
development, economists began to recognize that culture has an important role
in supporting the performance of the economy, because it is associated with the
formation of trust within the group, thereby reducing transaction costs.
Culture also greatly influences all
business functions, for example in marketing,
diverse attitudes and values
discourage many companies to
use the same marketing mix
in all markets. Likewise deep
human resource management, culture
national is the key determinant for
evaluate managers, as well as in
production and financial cultural factors
very influential in activities
production and finance.
Cultural characteristics are necessary
attention because it has
relevance to international business
a) Culture reflects learned behavior
(learned behavior) passed on from one member
the rest of society.
b) Cultural elements are interrelated
c) Culture is adaptable (adaptive),
means that culture changes according to the strengths
external forces affecting society
the.
d) Culture is shared (shared) by members
members of the society and of course
determine the membership of that society. the people
who both have a culture is
members of a community; people who don't
have it outside the boundaries of that society.
EXAMPLE OF THE INFLUENCE OF CULTURE IN INTERNATIONAL BUSINESS
Throughout the whole period, cultural influences on international management
is depicted with basic beliefs and behaviors.
Here's an example
specifics where the culture of the community can directly influence
international management approach:
a) Centralized vs Decentralized decision making. In some societies,
all organizational decisions are made by top-level managers, meanwhile
these decisions are disseminated through companies and mid-level managers and
down actively participate and make key decisions.
b. Safety vs risk. From several societies, decision makers
organizations are usually reluctant to take risks and earn a lot
difficulty in uncertain conditions, on the other hand taking risks
recommended, and decision-making under those uncertain conditions
general.
c. individual awards vs group awards. In some countries,
members who do a good job individually will receive
bonuses and commissions, while in other countries cultural norms require
group awards and individual awards are not approved.
d. Informal vs formal procedures. In a few
society, mostly resolved through an understanding
informal. Meanwhile, formal procedures are regulated onwards and
followed rigidly
e. Low loyalty vs low loyalty to the organization. In a few
community, the community is identified as very strong against
organization or employer. Meanwhile, on the other hand
society siding with the work of the group,
like a mechanic.
f.Cooperation vs Competition. Some communities advocate
to co-operate between people, others
compete with people.
g. Short term vs long term. Several Countries
focus on the short term, such as long term goals
short of profit and efficiency, others are more focused on
long-term, like long-term goals, like markets
capital and technology development.
h.Stability vs innovation. Cultures of several countries
advocates for stability and internal durability
change. Other cultures take high values of innovation and change.
economics, cultural influences on the performance of an economy still an
assumption of binding, due to the difficulty of economics to understand it. It is
difficult to quantify the variables associated with culture, and also because the
culture itself is embedded everywhere as in tastes, habits and so forth. But in its
development, economists began to recognize that culture has an important role
in supporting the performance of the economy, because it is associated with the
formation of trust within the group, thereby reducing transaction costs.
Culture also greatly influences all
business functions, for example in marketing,
diverse attitudes and values
discourage many companies to
use the same marketing mix
in all markets. Likewise deep
human resource management, culture
national is the key determinant for
evaluate managers, as well as in
production and financial cultural factors
very influential in activities
production and finance.
Cultural characteristics are necessary
attention because it has
relevance to international business
a) Culture reflects learned behavior
(learned behavior) passed on from one member
the rest of society.
b) Cultural elements are interrelated
c) Culture is adaptable (adaptive),
means that culture changes according to the strengths
external forces affecting society
the.
d) Culture is shared (shared) by members
members of the society and of course
determine the membership of that society. the people
who both have a culture is
members of a community; people who don't
have it outside the boundaries of that society.
EXAMPLE OF THE INFLUENCE OF CULTURE IN INTERNATIONAL BUSINESS
Throughout the whole period, cultural influences on international management
is depicted with basic beliefs and behaviors.
Here's an example
specifics where the culture of the community can directly influence
international management approach:
a) Centralized vs Decentralized decision making. In some societies,
all organizational decisions are made by top-level managers, meanwhile
these decisions are disseminated through companies and mid-level managers and
down actively participate and make key decisions.
b. Safety vs risk. From several societies, decision makers
organizations are usually reluctant to take risks and earn a lot
difficulty in uncertain conditions, on the other hand taking risks
recommended, and decision-making under those uncertain conditions
general.
c. individual awards vs group awards. In some countries,
members who do a good job individually will receive
bonuses and commissions, while in other countries cultural norms require
group awards and individual awards are not approved.
d. Informal vs formal procedures. In a few
society, mostly resolved through an understanding
informal. Meanwhile, formal procedures are regulated onwards and
followed rigidly
e. Low loyalty vs low loyalty to the organization. In a few
community, the community is identified as very strong against
organization or employer. Meanwhile, on the other hand
society siding with the work of the group,
like a mechanic.
f.Cooperation vs Competition. Some communities advocate
to co-operate between people, others
compete with people.
g. Short term vs long term. Several Countries
focus on the short term, such as long term goals
short of profit and efficiency, others are more focused on
long-term, like long-term goals, like markets
capital and technology development.
h.Stability vs innovation. Cultures of several countries
advocates for stability and internal durability
change. Other cultures take high values of innovation and change.
The main challenge in doing international business is to adapt in a manner that is effective to culture, as it requires an understanding of the diversity of cultures, perceptions, cliches and values. In fact, culture is very influential on the smooth running of world business both in the development of business on a national and international scale. Something new that is not in accordance with the culture of a nation will be accepted or developed in that country. Culture also influences the values ΓÇïΓÇïand attitudes of the members of a society. Values ΓÇïΓÇïare the principles and standards that these members accept; consists of the actions, feelings, and thoughts that these values ΓÇïΓÇïproduce. Cultural values ΓÇïΓÇïoften stem from very deep beliefs about the existence of the individual in relation to the Divine, family and social hierarchies. Cultural attitudes toward factors such as time, age, education and status reflect these values ΓÇïΓÇïand on the patterns of behavior and opportunities available to international businesses in a given country.
Cultural influences on international management
In the total period, the influence of culture on international management is represented by basic beliefs and attitudes. Here are specific examples where people's culture can directly influence international management approaches:
A. Centralized vs Decentralized Decision Making.
In some societies, all organizational decisions are made by top level managers, whereas these decisions are propagated through the company and middle and lower level managers actively and make key decisions.
B. Safety vs Risk.
In some societies, organizational decision makers are usually reluctant to take risks and get into a lot of trouble under uncertain conditions, on the other hand taking suggested risks, and decision making under uncertain conditions is common.
Cultural influences on international management
In the total period, the influence of culture on international management is represented by basic beliefs and attitudes. Here are specific examples where people's culture can directly influence international management approaches:
A. Centralized vs Decentralized Decision Making.
In some societies, all organizational decisions are made by top level managers, whereas these decisions are propagated through the company and middle and lower level managers actively and make key decisions.
B. Safety vs Risk.
In some societies, organizational decision makers are usually reluctant to take risks and get into a lot of trouble under uncertain conditions, on the other hand taking suggested risks, and decision making under uncertain conditions is common.
The Socio-cultural Environment so influential on International Business because the key concept of Socio-cultural Environment emphasizes on the differences of the cultures and societies that has impact on the way of managing International Business. In order to stay ahead of the competitors, the business needs to adapt and improve their strategies according to the aspects of nation and ethic.
It is also very important to achieve business success as well as understand local people who live in the area that business is going to operate. Working with people who come from various nations and have different cultural backgrounds and experiences is also difficult to understand the diversity. Therefore, the company needs to concern about the ethical issues and also national aspects in order to contribute peaceful relationship at particular working environment and avoid misunderstanding during the interaction with people.
For the example, what may be acceptable business practice in one country, may be very different from the approach that is used by businesses overseas. Therefore, recognising how culture can affect international business is something that should be understood in order to avoid misunderstandings between colleagues and clients, and also to make sure that businesses are presenting themselves to their new market in the best way they can. It is why communication plays an important role in international business, and sometimes effective communication can be the difference between succeeding or failing in a new market. Because the first thing that should be considered when looking into communication is any language barriers that may hinder the communication between you and your new market. However, this goes deeper than just the language that is used to communicate, itΓÇÖs how the messages are conveyed thatΓÇÖs important. Language barriers not only relate to people speaking different languages, but also to the tone used in those languages. For example, in countries like the US or Germany, it is common for people to speak loudly and be more assertive when sharing ideas amongst colleagues. However, in countries like Japan people typically speak more softly and have a more passive tone when making suggestions to colleagues.
Another thing to consider are also the basic customs, mannerisms and gestures that are commonly accepted in that culture. It is because behaviour that might be commonplace in one culture could be unusual or potentially offensive to a client or colleague overseas.
It is also very important to achieve business success as well as understand local people who live in the area that business is going to operate. Working with people who come from various nations and have different cultural backgrounds and experiences is also difficult to understand the diversity. Therefore, the company needs to concern about the ethical issues and also national aspects in order to contribute peaceful relationship at particular working environment and avoid misunderstanding during the interaction with people.
For the example, what may be acceptable business practice in one country, may be very different from the approach that is used by businesses overseas. Therefore, recognising how culture can affect international business is something that should be understood in order to avoid misunderstandings between colleagues and clients, and also to make sure that businesses are presenting themselves to their new market in the best way they can. It is why communication plays an important role in international business, and sometimes effective communication can be the difference between succeeding or failing in a new market. Because the first thing that should be considered when looking into communication is any language barriers that may hinder the communication between you and your new market. However, this goes deeper than just the language that is used to communicate, itΓÇÖs how the messages are conveyed thatΓÇÖs important. Language barriers not only relate to people speaking different languages, but also to the tone used in those languages. For example, in countries like the US or Germany, it is common for people to speak loudly and be more assertive when sharing ideas amongst colleagues. However, in countries like Japan people typically speak more softly and have a more passive tone when making suggestions to colleagues.
Another thing to consider are also the basic customs, mannerisms and gestures that are commonly accepted in that culture. It is because behaviour that might be commonplace in one culture could be unusual or potentially offensive to a client or colleague overseas.
The socio-cultural environment is one of the factors that influence the success of an international business. It's because the socio-culture of each country is very complex and different, which makes each society in each country have its own socio-cultural character. So that, business decisions made by international business companies are also influenced by these socio-cultural characteristics.
The socio-cultural environment affects production operations, marketing, finance, human resource management, and negotiations. Thus, the companies that do international business need to pay attention to, learn, and understand the socio-cultural environment in one country and another, in order to make good management decisions and strategies, and be able to adapt their products to the local socio-cultural.
There are several socio-cultural components that influence international business, i.e, attitudes and beliefs, religion, material culture, aesthetics, education, language, community organizations, gender roles, decision-making processes, interpersonal orientation, social relationships and interactions, perceptions of time, and so on.
Examples of socio-cultural affecting international business:
The socio-cultural environment affects production operations, marketing, finance, human resource management, and negotiations. Thus, the companies that do international business need to pay attention to, learn, and understand the socio-cultural environment in one country and another, in order to make good management decisions and strategies, and be able to adapt their products to the local socio-cultural.
There are several socio-cultural components that influence international business, i.e, attitudes and beliefs, religion, material culture, aesthetics, education, language, community organizations, gender roles, decision-making processes, interpersonal orientation, social relationships and interactions, perceptions of time, and so on.
Examples of socio-cultural affecting international business:
- Religion is one of the socio-cultural components that affecting international business. For example, McDonald's adapts its products in India, by providing vegetable burgers as a substitute for beef burgers. As well as foreign companies that build their companies in Indonesia adjust their holidays with the day of celebration of religions in Indonesia. 
- Attitudes and beliefs also affecting international business. For example, the attitude of Japanese businessmen who are silent when conducting negotiations can lead to misunderstanding if the other party does not understand this attitude. The silence of these Japanese businessmen is shown that they are thinking.
- Language is also one of the socio-cultural components that affecting international business. The differences in language in international business can be handled with language translation, such as in terms of advertising or operational instructions. However, the translation process requires sensitivity and focus in translating the basic ideas. For example, the phrase "finger lickin' good" is an expression of praise for good food belonging to KFC. When it is translated into Chinese, the translation was wrong, because when it is translated back into English it becomes "eat your fingers off". Thus, the things like that need to be anticipated by every company so as not to have a bad impact on their company.
- Still related to the phrase "finger lickin' good" which is an expression of praise for good food belonging to KFC. In August last year, KFC thought that their tagline did not match with the current pandemic conditions which require us to avoid touching our eyes, nose, and mouth with unwashed hands. Therefore, KFC temporarily stopped using their tagline. This thing shows their ethics and understanding of the socio-cultural environment in the scope of international business.
In addition to a company's interactions with the market and its customers, socio-cultural factors also impact a company's internal decision- making process. For example, changing gender roles and increasing emphasis on family life have led to increased respect for maternity and even paternity leave with organizations.
The role of culture is very important in international marketing activities. Because culture is used as identity in interacting with the international community. In international marketers we must know the influence of culture and must prepare ourselves to face the challenges that will be faced as a result of this cultural aspect. In global society, there is still an assumption from social groups that their group is the most superior or what we usually call ethnocentrism. Ethnocentrism has positive and negative impacts in a multicultural society. The way to overcome ethnocentrism in global marketing multiculturalism is to explore or 'experience' other people's cultures. Because we will make the global community a market share that its market potential must be maximized. By not degrading other people's culture, but obeying the customs of the place where the market share will be aimed. So that the identity of each group is not lost and also can maintain the association of the global community. This is because each region and region has a different culture. So that in making a product, culture is one of the factors that will affect the characteristics of the product. It is also based on purchasing behavior and consumer needs driven by cultural norms. Cultural background also influences consumers in processing information and the factors that motivate consumers to make purchases. Companies doing global business mean dealing with consumers, strategic partners, distributors and competitors with different cultural mindsets.
Example: McDonald's adapt the eating culture in each country so that, McDonald's adapts the menus in their outlets to the dining culture of a particular country. Like in Indonesia, the main menu is replacing potatoes with rice. But if we still want to eat potatoes, that menu will still be available.
Example: McDonald's adapt the eating culture in each country so that, McDonald's adapts the menus in their outlets to the dining culture of a particular country. Like in Indonesia, the main menu is replacing potatoes with rice. But if we still want to eat potatoes, that menu will still be available.