Cultural Traits Relevant to Business Strategy

CULTURAL TRAITS AND DIMENSIONS RELEVANT TO BUSINESS STRATEGY Monochronic vs Polychronic  Monochronic cultures do one thing at a time sequentially with clear priorities. Most developed societies are monochronic.  Polychronic cultures handle multiple goals simultaneously, interacting with many people at once. It is common in emerging societies. Cultural Traits Understanding cultural dimensions aids international business. High vs Low Context  High context cultures value intangibles like relationships, respect, trust.  Low context cultures focus on facts, figures, task performance. Atmosphere and relationships matter less.  High context cultures look beyond deals' tangible aspects. Low context cultures assume partners share basic knowledge. Universalism vs Particularism  Universalism assumes ideas/practices apply universally. Focus is on formal rules over relationships. Contracts are strictly adhered to.  Particularism dictates ideas be contextualized. Focus is on relationships and trust over formal rules. Contracts get modified based on relationships. Masculine vs Feminine  Masculine cultures appreciate aggressiveness, material acquisition, achievements.  Feminine cultures appreciate relationships, quality of life, helping others.  Masculine cultures see success as an individual function with leaders and followers. Business pace is rapid, achievementfocused and contractual.  Feminine cultures see business as friends dealing with friends. Pace is slower; relationships matter more than efficiency. Neutral vs Emotional  Neutral cultures restrain open emotional expressions, maintaining composure. Examples are Japan and UK.  Emotional cultures express emotions openly and naturally. Examples are Mexico, Switzerland, Netherlands. Specific vs Diffuse  Specific cultures have a clear public-private separation. Work and personal life are separate.  Diffuse cultures have strong public-private overlap. Work and personal life are interlinked. Achievement vs Ascription   Achievement cultures accord status based on performance. Ascription cultures attribute status based on age, gender, connections etc. Implications Firms must formulate culturally appropriate strategies and adapt execution to contextual dimensions. For instance, high relationship orientation needs one approach while low context needs another. Not adapting risks failures. Religion Different religious convictions, customs, rituals etc critically impact business. Ignoring them can be very costly. Examples:  Beef taboo in India despite sizable beef consuming population  Pork banned in Muslim nations  Ramadan customs operating hours  Christian Lent consumption  Islamic interest  Astrology influencing launch timing, brand names etc. in India  Marriage/naming customs defining related product markets altering altering banking food prohibiting  Ethnic domination of trades like automobile spare parts by Sikhs in India  Growing religious influence on politics and regulations Language Language differences significantly impact business communication. Switzerland has French, Italian, German. South America has over 40 languages. Africa is highly diverse. Even sub-cultures within a language have vocabulary variations and multiple meanings of words across geographies. Firms must meticulously adapt branding and communication to local languages and meanings. In essence, culture underlies strategy formulation and execution. Substantial adaptation to cultural dimensions and traits is essential for competitiveness across diverse international markets.