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Differences in Culture

Learning objectivesKnow what is meant by the culture of a society. Identify the

sources that lead to differences in social culture. Identify the business and
economic implications of differences in culture. Understand how differences in
social culture influence values in the work place. Develop an appreciation for the
economic and business implications of cultural change. This chapter explores the
role of culture in international business: how differences in culture across and
within countries can affect the practice of business. The discussion then addresses
the major questions of the chapter: What is culture? How does it play itself out
in social structures, religious and ethical systems, language, and education? The
need for cross-cultural literacy and an appreciation of the impact of culture on
competitive advantage are all addressed. The opening case is explores Wal-Marts
international expansion efforts. The closing case, examines the practice of guanxi
and its implications for doing business in China.

OUTLINE OF CHAPTER 3: DIFFERENCES IN CULTUREOpening Case: Wal-Marts Foreign

ExpansionIntroductionWhat Is Culture?Values and NormsCulture, Society, and the
Nation-StateThe Determinants of CultureSocial StructureIndividuals and GroupsSocial
StratificationReligious and Ethical SystemsChristianityIslamHinduismBuddhism
ConfucianismCountry Focus: Islamic Capitalism in TurkeyManagement Focus: McDonalds
and Hindu CultureLanguageSpoken LanguageUnspoken LanguageEducationCulture and the
WorkplaceCultural ChangeImplications for ManagersCross-Cultural LiteracyCulture and
Competitive AdvantageCulture and Business Ethics
Management Focus: CrossCultural IlliteracyChapter SummaryCritical Thinking and Discussion QuestionsClosing
Case: DMG-Shanghai

CLASSROOM DISCUSSION POINTAsk students about what they might expect in the way of
cultural differences if they were to go to Saudi Arabia. What might they expect if
they were to go to France, Brazil, or South Korea?Next, ask students what they
think students from Saudi Arabia, France, South Korea, or Brazil might expect from
American culture. As students respond, jot their ideas on the board and try to
develop categories similar to the elements of culture discussed in the text. Then,
discuss why these elements of culture exist, and why they differ between countries.
Finally, ask students to consider what they mean for international companies. If
there are foreign students in the class, draw on their special expertise by asking
what differences they experiences when they first came to the United States. OPENING
CASE: Wal-Marts Foreign ExpansionSummaryThe opening case explores the
international expansion of Wal-Mart, the worlds largest retailer. Wal-Mart began
its international expansion in the early 1990s in an effort to continue its growth.
The company began with a joint venture in Mexico with local retailer, Cifra.
Initially, the company tried to implement strategies similar to those that had
proved so successful in the United States, however Wal-Mart quickly realized that
to succeed, it would have to adapt to local demands. The company hired local
managers who understood the Mexican culture and buying preferences, and changed its
strategies accordingly. Wal-Mart continued its international expansion by
establishing operations in Europe and South Korea, but in these markets, the
company had less success. Not only did Wal-Mart compete head-to-head with
established retailers, but its product offerings did not match the needs of
consumers. Wal-Mart has had much greater success in China where it has found some
parallels between the shopping habits of Chinese and Americans. Wal-Mart has also
adapted its strategy to fit the local market and now not only allows unions, but is
also selling a product mix designed to meet the demands of China. Discussion of
the case can revolve around the following questions:1. What did Wal-Mart learn from
its experiences in Mexico? How, if at all, did Wal-Mart apply those lessons to its
expansion in Europe and China?2. Why has Wal-Mart been so successful in China? How
have similarities between American shopping habits and Chinese shopping habits
facilitated its success there?

3. Describe Wal-Marts efforts in Europe. In your opinion, why has Wal-Mart run
into roadblocks? How might the company change its strategy to better succeed?
Another Perspective: To explore Wal-Marts foreign operations in greater detail,
go to the companys web site at {# HYPERLINK "http://www. walmart. com"
##http://www. walmart. com#}. LECTURE OUTLINE This lecture outline follows the
Power Point Presentation (PPT) provided along with this instructors manual. The
PPT slides include additional notes that can be viewed by clicking on view, then
on notes. The following provides a brief overview of each Power Point slide
along with teaching tips, and additional perspectives. Slides 3-3-3-4 What is
Culture?Culture is a system of values and norms that are shared among a group of
people and that when taken together constitute a design for living. Values are
abstract ideas about what a society believes to be good, right, and desirable.
Norms are social rules and guidelines that prescribe the appropriate behavior in
particular situations. Business success requires cross-cultural literacy.
Managers need an understanding of the culture, or cultures, that prevail in the
countries where they do business. The cost of doing business in a country is
influenced by culture different cultures are more or less supportive of the
capitalist approach to production. Culture is dynamic. Slide 3-5 Values and Norms
Values and norms are the basic components of culture. Norms can be further divided
into folkways and mores. Values include attitudes towards concepts like freedom,
honesty, loyalty, justice, responsibility, and personal relations including
marriage. Norms shape the actions of people towards one another. Norms can be
divided into folkways and mores. Slide 3-7 Culture, Society and Nation StateWhile it
is possible for a nation-state to have a uniform culture, this is not always the
case. Within a nation-state multiple cultures can exist, and cultures can also cut
across national borders. Slide 3-8 The Determinants of CultureCulture is an
evolutionary product of a number of factors. Political philosophy, economic
philosophy, education, dominant language, social structure, and dominant religion
are all determinants of culture.

Slide 3-9 Social StructureThe social structure of a country can be described along
two major dimensions: individualism vs. group, and degree of stratification into
classes or castes. Slides 3-11-3-13 Individuals and Groups A focus on the
individual and individual achievement is common in many Western societies. An
emphasis on individual achievement has positive and negative implications. On the
positive side, the dynamism of the United States economy owes much to people like
Sam Walton, Steve Jobs, and Bill Gates - people who took chances, tried new things,
succeeded, and encouraged others to do likewise. On the other hand, individualism
can lead to a lack of company loyalty and failure to gain company-specific
knowledge, competition between individuals in a company rather than team building,
and limitation of people's ability to develop a strong network of contacts within a
firm. In sharp contrast to the Western emphasis on the individual, in many Asian
societies the group is the primary unit of social organization. While this emphasis
on the group may discourage job switching between firms, encourage lifetime
employment systems, and lead to cooperation in solving business problems, it tends
to suppress individual creativity and initiative. Slides 3-16-3-18 Social
StratificationAll societies have some sort of stratification, where individuals in
higher strata or castes are likely to have a better education, standard of living,
and work opportunities. Social structure is linked to the ease with which an
individual can move between strata. Additionally, the social structure created by
the strata levels and the social significances of each strata level can have
implications for the way business is conducted. The significance of the social
strata can have important implications for the management and organization of
businesses. In cultures where there is a great deal of consciousness over the class
of others, the way individuals from different classes work together (i. e.
management and labor) may be very prescribed and strained in some cultures, or have
almost no significance in others. Slides 3-19,-3-20 Religious and Ethical Systems
Religion can be defined as a system of shared beliefs and rituals that are
concerned with the realm of the sacred.

Ethical systems refer to a set of moral principles, or values, that are used to
guide and shape behavior. The ethical practices of individuals within a culture
are often closely intertwined with their religion. Another Perspective: Duke
University's Department of Religion sponsors a web site that offers links to and
brief descriptions of four of the most comprehensive sites for religion on the
Internet. These are excellent sites that provide a broad array of information to
augment the information about religion provided in the textbook. The site is
available at {# HYPERLINK "http://www. duke. edu/religion/main/links. html"
##http://www. duke. edu/religion/main/links. html#}. Slide 3-21 Christianity
Christianity, the largest religion, is common throughout Europe, the Americas, and
other countries settled by Europeans and has three major branches: Protestant,
Roman Catholic, and Eastern Orthodox. The "Protestant work ethic" a focus on
hard work, wealth creation, and frugality - is considered the driving force of
capitalism. In the workplace this work ethic translates into a significant
emphasis on quality and productivity. Slide 3-22 IslamIslam has the same
underlying roots of Christianity (Christ is viewed as a prophet), and suggests many
of the same underlying societal mores. Islam, however, extends this to more of an
all-embracing way of life that governs one's being. Islam also prescribes many
more rules by which people should act and live. In Islam people do not own
property, but only act as stewards for God and thus must take care of that with
which they have been entrusted. They must use property in a righteous, socially
beneficial, and prudent manner; not exploit others for their own benefit; and they
have obligations to help the disadvantaged. Thus, while Islam is supportive of
business, the way business is practiced is strictly prescribed. For instance, no
interest may be paid on business loans. Slide 3-23 HinduismHinduism, practiced
primarily on the Indian sub-continent, focuses on the importance of achieving
spiritual growth and development, which may require material and physical selfdenial. Since Hindus are valued by their spiritual rather than material
achievements, there is not the same work ethic or focus on entrepreneurship found
in some other religions. Likewise, promotion and adding new responsibilities may
not be the goal of an employee,

Slide 3-24 BuddhismBuddhists also stress spiritual growth and the afterlife, rather
than achievement while in this world. Buddhism, practiced mainly in Southeast
Asia, does not support the caste system, however, so individuals do have some
mobility not found in Hinduism, and can work with individuals from different
classes. Slide 3-25 ConfucianismConfucianism, practiced mainly in China, teaches the
importance of attaining personal salvation through right action. Unlike religions,
Confucianism is not concerned with the supernatural and has little to say about the
concept of a supreme being or an afterlife. The needs for high moral and ethical
conduct and loyalty to others are central in Confucianism. Three key teachings of
Confucianism - loyalty, reciprocal obligations, and honesty - may all lead to a
lowering of the cost of doing business in Confucian societies. Slide 3-27 Language
Language refers to the spoken and unspoken means of communication, and is one of
the defining characteristics of culture. Slide 3-28 Spoken LanguageWhile English is
clearly the language of international business, knowing at least some of the local
language can greatly help when working in another country. In some situations
knowing even a bit of the local language can be critical for business success.
Such knowledge may be understood as a sign that the businessperson is willing to
learn from the local firmSlide 3-29 Unspoken LanguageUnspoken language refers to
nonverbal communication such as facial expressions, personal space, and hand
gestures. Managers that fail to understand the nonverbal cues of another culture
may experience a breakdown in communication. Slide 3-31 EducationFormal education is
the medium through which individuals learn many of the language, conceptual, and
mathematical skills that are indispensable in a modern society. Education is part
of the social structure of a country, and is instrumental in shaping many cultural
values and norms. The knowledge base, training, and educational opportunities
available to a country's citizens can contribute to a competitive advantage in the
marketplace.

Slides 3-32-3-35 Culture in the WorkplaceGeert Hofstede conducted what is probably

the most famous study about the connection between culture and values in the
workplace. Hofstede made a study of IBM employees worldwide, and identified four
dimensions to describe cultures: power distance, individualism vs. collectivism,
uncertainty avoidance, and masculinity vs. femininity. Power distance focuses on
how a society deals with the fact that people are unequal in physical and
intellectual capabilities. Individualism versus collectivism focuses on the
relationship between the individual and his or her fellows. Uncertainty avoidance
measures the extent to which different cultures socialize their members into
accepting ambiguous situations and tolerating ambiguity. Masculinity versus
femininity looks at the relationship between gender and work roles. Hofstede later
expanded his study to include a fifth dimension called Confucian dynamism which
captures attitudes toward time, persistence, ordering by status, protection of
face, respect for tradition, and reciprocation of gifts and favors. Slide 3-37
Cultural ChangeCulture is not a constant, but evolves over time. As countries
become economically stronger, cultural change is particularly common. Slide 3-38
Implications for ManagersManagers need to be aware that societies differ because
their cultures vary, and cultures vary because of profound differences in social
structure, religion, language, education, economic philosophy, and political
philosophy. There are three important implications that flow from these differences:
1) The need to develop cross-cultural literacy2) There is a connection between
culture and national competitive advantage3) There is a connection between culture
and ethics in decision making Slide 3-39 Cross-Cultural LiteracyIndividuals and
firms must develop cross-cultural literacy. International businesses that are ill
informed about the practices of another culture are unlikely to succeed in that
culture. One way to develop cross-cultural literacy is to regularly rotate and
transfer people internationally. Managers need to be aware of ethnocentric
behavior, or a belief in the superiority of their own culture. Another Perspective:
To give students an opportunity to experience cultural differences create a mock
business meeting. Executive Planet maintains a web site, {# HYPERLINK
"http://www. executiveplanet. com/index. php?title=Main_Page"
##http://www. executiveplanet. com/index. php?title=Main_Page#}, with guidelines for
doing business in different countries. The site allows visitors to explore
relevant issues in a variety of cultures.

Slide 3-340 Culture and Competitive Advantage The connection between culture and
competitive advantage is important because it suggests which countries are likely
to produce the most viable competitors, and it has implications for the choice of
countries in which to locate production facilities and do business. CRITICAL
THINKING AND DISCUSSION QUESTIONSQUESTION 1: Outline why the culture of a country
influences the costs of doing business in that country. Illustrate your answer
with examples. ANSWER 1: This question has be explored throughout the chapter, and
since there can be numerous reasons and examples of how culture influences the
costs of doing business, there is no single acceptable response to the question.
Several are highlighted below, but there could be numerous others. When there are
simply different norms between how individuals from different countries interact,
the costs of doing business rise as people grapple with unfamiliar ways of doing
business. For example, while in the US people get down to business first, and then
get to know each other socially later, in many South American countries it is
important develop a good social relationship before trying to discuss business
issues. Different class structures and social mobility also raise the costs of
doing business, for if there are inhibitions against working with people from
different classes, then the efficiency with which information can flow may be
limited and the cost of running a business increased. A country's religion can
also affect the costs of business, as religious values can affect attitudes towards
work, entrepreneurship, honesty, fairness, and social responsibility. In Hindu
societies where the pursuit of material well-being can be viewed as making
spiritual well being less likely, worker productivity may be lower than in nations
with other religious beliefs. Finally, a country's education system can have
important implications for the costs of business. In countries where workers
receive excellent training and are highly literate, the need for specific worker
training programs are decreased and the hiring of additional employees is
facilitated. QUESTION 2: Do you think that business practices in an Islamic
country are likely to differ from business practices in the United States? If so
how?ANSWER 2: The cultural differences between a Muslim country and the US will
cause business practices to differ dramatically. The public role women can take,
appropriate etiquette (including simple things like not passing objects with the
left hand), holidays, and wining and dining all differ from patterns in the US.
But beyond these, the underlying ideal and understanding of the role of business
differs.
Since Muslims are stewards of property for God, rather than owners, they
are more likely to use their resources carefully and may be less likely to give up
or sell something to a person who may not practice the same stewardship. The
importance of fairness to all parties in all relations means that overaggressiveness and self-interest may not be well received, and breaking an
agreement, even if technically/legally permissible, may be viewed as inappropriate
and the sign of a huge character flaw. Finally, the prohibitions on interest
payments in some Muslim countries means that the wording of the terms of an
agreement must be careful so that "fair profits" are not construed as being
"interest payments. "

QUESTION 3: What are the implications for international business of differences in

the dominant or ethical system of a country? ANSWER 3: Differences in the dominant
religion of a country affect relationships, attitudes toward business, and overall
economic development. First, differences in religion require inter-cultural
sensitivity. This sensitivity requires things like simply knowing the religious
holidays, accepting that some unexpected things may happen "because of Allah's
will," or understanding how interpersonal relationships may be different between
"believers" and "non-believers. " (Hence non-believers may be treated differently. )
Second, religious beliefs can significantly affect a countrys attitude toward
business, work, and entrepreneurship. In one country successfully beating a
competitor may be considered a great achievement while in another it may be thought
of as showing a lack of compassion, or disruptive to the society and persons
involved, both attitudes that may be derived from underlying religious beliefs.
Likewise, hard work may be either rewarded positively or viewed as something of
secondary importance to spiritual peace and harmony. Third, different dominant
religions may affect the overall competitiveness and potential for economic growth
of a nation, and hence attractiveness of a country for international business.
Basic, unarticulated assumptions about what has value, what is right and wrong, and
what constitutes good are embedded in our religions. Should rules or laws apply to
all people all the time (in the US, the answer here is probably yes); or should
they change depending on the circumstances of the particular situation (in Asia,
the answer would be, of course)? Religion plays a basic, influential role in our
most fundamental values and the norms that arise from them. So if an international
business venture faces a different dominant religion in its foreign market,
managers there will have to make special efforts to understand what is really
underlying practice differences. QUESTION 4: Choose two countries that appear to be
culturally diverse. Compare the culture of those countries and then indicate how
cultural differences influence (a) the costs of doing business in each country, (b)
the likely future economic development of that country, and (c) business practices.
ANSWER 4: Responses to this question will obviously vary based on the countries
chosen by students, and their knowledge of the countries. Hopefully, students can
present some information on the dimensions of culture including values, norms,
social structure, religion, language, and education of the countries and also
describe the key differences and similarities of the countries along these
dimensions. Relating the differences between the countries along these dimensions
to differences in the costs of doing business, the potential for economic
development, and business practices would fully answer the question. (While it may
be more difficult for students to come up with really good examples relative to
business practices, the costs and prospects for economic development should be
quite feasible. )

Another Perspective: The US CIA website is a good place for introductory-level

information (economic, demographic, climate, background) on countries. The site is
available at {# HYPERLINK "http://www. cia. gov/cia/publications/factbook"
##http://www. cia. gov/cia/publications/factbook#}. QUESTION 5: Reread the Country
Focus on Islamic Capitalism in Turkey. Then answer the following questions:a) Can
you see anything in the value of Islam that is hostile to business?b) What does the
experience of the region around Kayseri teach us about the relationship between
Islam and business?c) What are the implications of Islamic values towards business
for the participation of a country like Turkey in the global economy?ANSWER 5: a)
Many students will probably focus on the comment by the sugar factory manager that
if you are not a good Muslim, dont pray five times a day and dont have a wife
who wears a headscarf, it can be difficult to do business here when they respond
to this question. Some may perceive this comment to be a gentle warning that only
Muslims will be successful in Turkey. Others however, will probably perceive this
comment as a reminder that companies coming into the region need to respect the
local way of doing things. b) The area around Kayseri that has been growing
rapidly is strongly influenced by Islam. In addition to incorporating gestures
like prayer rooms, some companies are also adhering to the Islamic value of equal
opportunities in business, and are now changing their strategies to create new
opportunities for other companies. c) Some students might focus on the lack of
competitiveness that is sometimes associated with Islam. Others might note though,
that at least for Turkey, this doe not seem to be an issue. Many students will
probably conclude that in this day and age of globalization and interdependency,
Muslims, like other distinct groups, must find a comfortable balance between their
beliefs and what is occurring around them. QUESTION 6: Reread the case on McDonalds
and Hindu Culture that answers ha following questionsa) McDonalds has been
reasonably successful in India, despite the countrys very different food culture.
Why?b) Do you think that McDonalds could have and should have foreseen the
problems it ran into in India when using beef extract in its oil? What could it
have done differently?

ANSWER 6: a) In response to the needs of the Indian market, McDonalds changed its
menu to include mutton and chicken products rather than the beef based products
that are featured in its regular menu. Most students will probably suggest that
even with the changes, the company remained true to its identity because it used
names similar to traditional names to describe the new products, and built its
restaurants following the traditional American style. b) The lawsuit against
McDonalds over the presence of beef extract in its French fries caught the company
off-guard. McDonalds quickly acknowledged its mistake, and settled the lawsuit.
The company also made a public apology and vowed to be more accurate in its food
labeling in the future. However, many students will probably argue that the
company failed to adequately reassure consumers in India, where angry Hindus
protested in the streets. Students might suggest that the company should have
responded not only to the Indians located in the United States who prompted the
lawsuit, but also to the citizens of India, and other Hindu customers. CLOSING CASE:
DMG - ShanghaiThe closing case explores guanxi, or the relationships and
connections that are so important in the Chinese business world. The notion of
guanxi comes from the Confucian philosophy of valuing social hierarchy and
reciprocal obligations. Dan Mintz, founder of DMG, one of Chinas fastest growing
advertising agencies, credits guanxi for his success. Mintz established
connections with two Chinese who have access to high ranking government officials.
Through these guanxiwang, or connections, Mintz has been able to get permission to
shoot advertisements in locations that are usually closed to foreigners. A
discussion of the case can revolve around the following questions:QUESTION 1: Why
do you that it is so important to cultivate guanxi and guanxiwang in China?ANSWER
1: Guanxi literally means relationships, although in business settings in can
better be understood as connections. The concept of guanxi is deeply rooted in
Chinese culture and Confucianism. The Chinese will often cultivate a guanxiwang, or
relationship network, for help. In China, there is a tacit acknowledgement that
if you have the right guanxi, legal rules can be broken or bent. Mintz made
connections with two Chinese men who had access to high ranking government
officials. Through these men, Mintz was able to secure permission to film
commercials in locations that are normally closed to outsiders. QUESTION 2: What
does the experience of DMG tell us about the way things work in China? What would
likely happen to a business that obeyed all of the rules and regulations, rather
than trying to find a way around them as Dan Mintz apparently does?ANSWER 2:
Personal power and relationships or connections (guanxi), rather than the rule of
law, have always been the key to getting things done in China. Most students will
probably agree that companies that play by the rules in China will probably find it
difficult to compete.

QUESTION 3: What are the ethical issues that might arise when drawing upon
guanxiwang to get things done in China? What does this suggest about the limits of
using guanxiwang for a Western business committed to high ethical standards?ANSWER
3: Guanxiwang refers to the relationship network that many Chinese companies rely
on. Because reciprocal obligations are key to the process, some students may
suggest that companies could get into trouble if they are asked to return a favor
to a network partner that involves unethical actions.
Other students may note
that in China, it is not what you know that is important, it is who you know.
These students may point out that since success depends on others, firms doing
business in China are not in complete control of their own destinya situation that
could result in ethical standards being comprised. INTEGRATING iGLOBESThere are
several iGLOBE video clips that can be integrated with the material presented in
this chapter. In particular, you might consider the following:Title: Google In
China Raises Censorship IssuesBackground Video: Google Agrees to Censor Searches in
ChinaThe video posted on iGlobe is the discussion portion of a 2-part video series.
Due to permissions requirements, McGraw-Hill can only post the discussion portion
of this series. To view the background video, use the link below. # HYPERLINK
"http://pbs-newshour. onstreammedia. com/cgi-bin/visearch?user=pbsnewshour&template=template. html&query=google+china&keywords=google+china&category=b
lank" #http://pbs-newshour. onstreammedia. com/cgi-bin/visearch?user=pbsnewshour&template=template. html&query=google+china&keywords=google+china&category=b
lank# Abstract: This video analyzes Googles decision to censor its search engine
in China in exchange for access to the second largest Internet market in the world.
Key Concepts: political economy, foreign direct investment, globalization, global
economy, technological change, human rightsNotes: Google, the company with the
mission to make the worlds information universally accessible has come under
fire with its re-launch of Google-China. It seems that the lure of the second
largest Internet user base in the world proved to be strong enough to get the
worlds biggest media company to comprise its ideals. Google, the Internet search
engine, has been the target of strong criticism after its recent decision to censor
its search engine in China in exchange for access to Chinas 100 million Internet
users. Until now, Google has relied on an objective mathematical formula to
determine the rankings of information results. Now however, the search engine is
voluntarily filtering out information that has not received the stamp of approval
from the Chinese government. Human rights activists see Google actions as a sellout and have been very vocal in their condemnation of the company.

According to Googles critics, by agreeing to self-censorship the company is

effectively perpetuating Chinas repressive regime. They note for example, that
any Google site in the world except for Chinas will bring up 1. 7 million results
when searching for Tiananmen Square, but Google China brings up just 13,000
results, all of which ignore the horrific events of 1989. Further angering critics
is the fact that Googles censorship of its search engine is being conducted inhouse, not by the Chinese.
Those who oppose Googles agreement to self-censor
worry that the company will not be transparent about its actions, and that
furthermore, Googles decision effectively legitimizes censorship.
Google defends
its actions in China arguing that it is only complying with Chinese laws. Indeed,
Google co-founder and co-president Sergey Brinn claims that the company has not
made any trade-offs, rather, the company has simply added some filtering mechanisms
to its Chinese search engine. According to Google, the new filtering mechanisms
will actually facilitate the search process for users by blocking sites that have
already been censored by the government. In addition, Google maintains that it
will alert users to fact that sites have been blocked. According to Google, the
companys mission has not changed, it still strives to be the leader in the
information environment.
Discussion Questions: 1. Why did Google make the
decision to block politically sensitive sites in China? Could the company have
gotten access to the Chinese market without agreeing to self-censorship? How, if
at all, will Googles decision to self-censor affect its position in other markets?
2. Google has been the target of intense criticism regarding the transparency of
its actions and whether users will realize the extent to which information is being
blocked. What is Googles responsibility to the Chinese population? By agreeing
to block politically sensitive information, is the company actually perpetuating
Chinas repressive regime?3. Critics have argued that Googles decision to
capitulate to the Chinese governments request for censorship sets a dangerous
precedent. Do you agree? Why or why not? Could Google, together with other
companies, force the government to change its ways?4. Google claims that it has not
bowed to the Chinese governments request for censorship. Instead, the company
argues that its new filtering mechanisms are simply a means of improving the
experience for users of its search engine. Do you agree with this claim? Why or
why not?

INTEGRATING VIDEOSThere are also several longer video clips that can be integrated
with the material presented in this chapter. In particular, you might consider the
following: Title 12: Dominos Pizza in Mexico Summary: Dominos began its
international expansion in 1983. By 2005, the company had 3,000 stores outside the
U. S. located in more than 50 different countries. Dominos success lies in part to
its product, pizza seems to be universally accepted, and to its commitment to
consistency, the company wants every store to be the same regardless of its
location. Still, Dominos has had to make some adjustments to meet the needs of
each market. Pizza topping and ingredients reflect local tastes and customs for
instance. Delivery methods must also be adapted to individual market conditions.
So, for example, in Japan pizzas are delivered via scooter by people who are very
familiar with the neighborhood. Similarly, promotional materials must fit with the
market. In Belgium, menus are printed in three different languages. Yet, through
all of the adjustments to the marketing mix, the company is committed to its core
principles. To ensure that the companys core principles are emphasized, Dominos
is very particular when selecting franchisees. The company only considers people
who are capable of operating a business within corporate guidelines. To facilitate
this process, Dominos also provides strong support to its franchisees. In Mexico
for example, the company makes a store visit every 45 days, provides all marketing
materials, and provides trainingDiscussion Questions: 1. Dominos has become a
successful international company. Compare and contrast its strategy with that of
another well-known international fast food operation, McDonalds. What
similarities do you see? Are they any significant differences between the two
companies? What has led to the success of Dominos?2. Franchising has played a
major role in Dominos rapid expansion into foreign markets. Consider the
companys franchising strategy. How does Dominos ensure that its corporate values
and strategies are adopted by the franchise operations?
3. Reflect on the fact
that while pizza appears to be universally accepted, Dominos has had to make some
adjustments to its marketing mix. Discuss the different components in the
marketing mix and how the company has responded to local needs. What does your
response indicate about the standardization versus globalization debate?4. Consider
the changes Dominos made to its Mexican operation in the late 1990s. Discuss
Dominos efforts there, the economic risk the company was facing, and the
strategies it used. Is Dominos current strategy viable in the long-term? Why or
why not?

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you should consider collecting information regarding local culture and business
habits prior to your departure. A colleague from Latin America recommends you
visit the Centre for Intercultural Learning and read through the country insights
provided for Brazil. Prepare a short description of the most striking cultural
characteristics that may effect business interactions in this country. Exercise 2
Typically, cultural factors drive the differences in business etiquette encountered
during international business travel. In fact, Asian cultures exhibit significant
differences in business etiquette when compared to Western cultures. For example,
in Thailand it is considered offensive to show the sole of the shoe or foot to
another. Prior to leaving for your first business trip to Asia, a colleague
informed you that a guide called Business Etiquette Around the World may help you
during your tr###############################################################i#p#. #
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"http://globaledge. msu. edu/ibrd/ibrd. asp"##http://globaledge. msu. edu/ResourceDesk/#
}. The Centre for Intercultural Learning is the only source in this search. Go to
the Country Insights link on the left side of this resources webpage. This
resource is found under the globalEDGE category Reference: Culture. Be sure to
check the Resource Desk only checkbox of the search function on the globalEDGE
website. Search Phrase: Centre for Intercultural LearningResource Name: Centre for
Intercultural Learning (Canada Foreign Affairs)Website: {# HYPERLINK
"http://www. dfait-maeci. gc. ca/cfsi-icse/cil-cai/" ##http://www. dfaitmaeci. gc. ca/cfsi-icse/cil-cai/#}globalEDGE Category: Reference: Culture

Exercise 2The data can be accessed by searching for the term Business Etiquette
Around the World at {# HYPERLINK "http://globaledge. msu. edu/ibrd/ibrd. asp"
#http://globaledge. msu. edu/ResourceDesk/#}. The Guide to Business Etiquette in
Asia is a source found near the bottom of this resources website. You
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