Overcoming cultural Es) This unit Considers the cultural Issues which can arise when a company Starts working internationally, Lay Discuss these questions, What ae the main reasons fora company to stat looking outside its domestic market? 1 2 What are some of the problems that might arise when marketing and advertising products in different countries? 3 What kindof cultural problems can arse when a ‘Company starts working internationally? CU Understanding the main points Understanding details Read the article again and answer these questions, 1 Whatis Geert Hofstede nationality? 2. When did Hofstede carry out his research at IBM? 3. Why was IBM a good company to choose forhis research? Why was ‘Nova'abad name fora crin Spanish-speaking markets? 5 Why was the Lexis xu caress successful in Europe than in the US? 6 Whatcan ‘companies do to be more Successful when, /marketing products internationally? 7” Wi do Wester companies have problems operating in China? & ‘What are some of the benefits of working across cultures?UNITS + OVERCOMING cULTURAL BARRIERS by Morgan Witzel ‘ Sooner oF ltr the growing company Nill reach market saturation 7) its domestic market, and there will belie choice but to move into over seas markets, Most companies, in fact, start dipe ping thei toes into fore before they reach domestic saturations to exploit other profitable markets 1m and give themselves experience of Working abroad. __Wretherthe company stading abroad ‘ot establishing foreign subsidiaries, the issue of national culture assumes great 'S importance. It had been know for Zen th, worn ars cues » special problems, ut the work Goat Heber, heey eet ‘tent theorist inthe 1970s and 1980s 2 showed just how diverse and various cultura influences can be. D Working across a single global com- pany — IBM. a business noted for the i its corporate culture = % Hofstede showed that a huge variety of beliefs and values were present in the Workplace, not just between the US, Europe and Asia. but within regions aswell, © Globalisation is sia be leading to cultural convergence but, as Hofstede «and many ater studies have shown, fall ‘oavergence i stil some way aay F Companies moving into international 6 markets will usually first fel the effec of culture on their marketing and vertising, Every international mar- ter has their collection of mistakes, Where the values of one culture fail ~ translate into another, Sales of the Yaushall Nova in Hispanic-speaking Countries, for example, suffered because in Spanish, no va meane ‘won't go", G | Other failures are more complex and ‘on deeper cultural divides. Toy- ola’s luxury car, the Lexus, was an immediate hit in the US, where the luxury-car market had been the pre- serve of a few domestic companies, Lexus offered something appreciably different. The Lovos hee been much less successful in Eurone, Where there is a stronger taditon * of luxury car-making and strong {oyalty to local brands.on the part of their buyers. AL Cultural bariersin marketing can be overcome by repositioning brands, ‘© changing advertising and product fea, tures to suit local sensitivities and so ‘on. Much more difficult to manage are the cultural differences that arise when Companies establish multinational “ Subsidiaries and then expect members of different national cultures to work together. This is especially the case With Wester companies establishing subsidiaries in China, 1 Chinese workers fen prefer strong, directive leadership tothe more deme: {ralie model now common inthe West. They also rely much more on senior Managers 10 sort out problems, % including problems in the worker! Private lives. Linguistic confusion is also compounded by quite different attitudes to issues such as ethics, reporting and control, and workers’ % rights and responsibilities, What appears to be a bari, how- ever, can actually be a source of competitive advantage for those corms Panies and managers that learn to & Work with cultural differences and benefit fom them, Interns of managing local subsdiar. ics, some global companies have eas {0 adopt best practices from foreign % companies and transfer these into ke home market, This kind of eross-feri, isation bas been taking place between Japanese and Westem car-makers for decades, and has led to powerful ‘® innovations on both sides,UNIT» OVERCOMING CULTURAL BARRIERS. HY Understanding expressions Choose the best explanation for each Phrase from the article. 1‘. will reach market saturation ...’ (line 2) a) start to lose market share 'b) stop expanding its market share 2... start dipping their toes into foreign waters ..." (lines 6-7) ‘@)_ making the first moves. +) carrying out test marketing 3 *.. leading to cultural convergence... (lines 30-31) a) where everything becomes similar b) where everything ‘changes 4‘... will usually first feel the ‘effects of culture on... (lines 35-36) a) have cultural problems ») be influenced by culture 5‘. based on deeper cultural divides.* line 46) a) differences ») values 6 ‘v= to suit local sensitivities..." (ine 61) a) adapt to different ways of doing things b) try to change the local customs 8 ‘..a source of competitive advantage. 2) a reason for problems with competitors ') a chance to be better than competitors 9 ‘to adopt best practices from... (line 89) )_ improve by constant practice 1) take good ideas from others EA Word search Find words or phrases in the article which fit these meanings. ‘markets in foreign countties (paragraph A) to.use fully so you get as much advantage as possible from it (paragraph 8) companies that are at least half owned and controlled by another company (paragraph C) causes (a problem) (paragraph C) Ideas that you feel to be true (paragraph D) the principles that influence the way of life of a particular group or ‘community (paragraph D) place reserved for one special group (paragraph G) being faithful to a set of beliefs ora /country (paragraph G)ee ee eee things that prevent or Kimit what you can do (paragraph 10 angie the way of marketing and adveting a producto brand sat peagle ink abet 2 ina different way (paragraph W) ‘11 set up, create (paragraph 4) 2 2 syle of management that shows you ae clearly change (paragraph 13 tosoive (aragraph ) Ne memiing othe eas of ieret pous fpople which en pradces a beter st prapagh Sentence completion Use words and phrases from Exercise Bin the crectform to complete these sentences. 1 Multinational companies usually have im many parts of the world. 2 Some companies are more sucesstulin.. mates than in thei domessc market 3 Having a presence ina markets the best way to ally 4 Sometioes tis necessary to... ~-& Product or brand in 2 foreign market in onder to zi offending (oF confusing people. 5 Te sellproducts successfully in foreign markets, tis usualy necessary to. —beal sais companies SL 1 What are the positive aspects of wocking across cultures? ‘What are the challenges or difficulties of working across cultures? Te wort the box areal ssoited wth cite. How wou you ep or dene ech af hen? artefacts assumptions attitudes behaviour beie& Gress food language norms traditions values 4 Acommon image of clture is that of an iceberg. Look 2t the phate. hry do you think that is? ‘Which of the words in question 3 associated with cuttere te above the surface ofthe iceberg of culture and are cleaty visible, and which are below the surface and invisible? For thase below the surface, how far below the surface do you think they are? Say wiry. ‘What are some of the core values in your culture? ‘Some examples are given inthe article about brands and products that have not transfered well to overseas markets. Can you think of others? The icaberg of cattare