Quacking Up a Storm of Business. Case Studies in Export Management

Table of Contents

Table of Figures

List of Tables

1. Introduction

2. Culture
2.1. Characteristics of Culture
2.1.1. Business Culture
2.2. Elements of Culture
2.2.1. Social Structure
2.2.2. Individuals, Families, and Groups
2.2.3. Social Stratification
2.2.4. Social mobility
2.2.5. Language
2.2.6. Communication
2.2.7. Nonverbal Communication
2.2.8. Religion
2.2.9. Values and Attitudes
2.2.10. Time
2.2.11. Age
2.2.12. Education
2.2.13. Status

3. The impact of Japanese Culture on Business
3.1 Hierarchical structure of Japanese society
3.2 Groupism
3.3 Wa
3.4 Obligation

4. Case Study
4.1. What is AFLAC?
4.2. Quacking Up a Storm of Business
4.3 AFLAC Duck in Japan

5. Group Work

Bibliography

Table of Figures

Figure 2.1 Elements of Culture

Figure 4.2.1 Former AFLAC logo

Figure 4.2.2 Current AFLAC logo

Figure 4.3 Maneki Neko Duck

List of Tables

Table 2.1 Forms of Nonverbal Communication

1. Introduction

In the following elaboration we are introducing the role of culture in business. Culture is more than just language or religion. It is about communication, social structure, age, education and many more attitudes.

Culture is distinguished from different characteristics and elements which are listed in chapter no. 2 “Culture”. In that chapter you can also read about the different elements of culture like social structure, time, age or social mobility and what it effects on businesses. Especially in East Asia you have to mind many different rules how to behave while you are carry on business.

In chapter no. 3 “The impact of Japanese Culture on Business” we amplify on four different core elements which play a huge role in Japanese culture.

The Case Study is about AFLAC, it is an insurance company which was founded in Columbus, Georgia, USA. It is one of the few foreign firms that could establish in the Japanese market because of minding cultural differences between western and eastern businesses.

In chapter no. 5 “Group Work” we describe and analyze the results of the Group Works during our presentation.

2. Culture

2.1. Characteristics of Culture

The word Culture has different meanings. For some it is related to a sense of good literature, music or art. “For a biologist, it is likely to be a colony of bacteria or other microorganisms growing in a nutrient medium in a laboratory Petri dish.”¹ For anthropologists or behavioral scientists, Culture is the collection of shared beliefs, values, behaviors and attitudes that the members of society use to cope with their world and with one another, and that are passed down from one generation to another.

Culture is a learned behavior that may be transmitted intergenerationally or intragenerationally. Culture’s elements are interrelated and may change to adapt to external forces. Culture is important to companies because it determines the rules within which business operate.

2.1.1. Business Culture

Thanks to globalization you are likely to work with all sorts of nationalities. But dealing with people from different countries can be difficult. Besides culture, the standards and traditions are altogether different.² Regardless the business sector, global cultural differences will directly impact on the profitability of the business. Therefore the knowledge of the impact of cultural differences is one of the key skills for the international business success.³

2.2. Elements of Culture

The basic elements of culture are social structure, language, communication, religion and values and attitudes. The way in which the elements interact, affects the local environment in which international businesses operate.

Abbildung in dieser Leseprobe nicht enthalten.

Figure 2.1 Elements of Culture

2.2.1. Social Structure

The social structure determines the roles of individuals within a society, the stratification of a society and individuals’ mobility.

2.2.2. Individuals, Families, and Groups

Societies differ in terms of how family is defined. In the United States, the term is usually used to describe the nuclear family (father, mother, and offspring), while in other societies the term refers to an extended family. In others, the term takes an even broader definition. The importance of family to business is determined in part by a culture’s social attitudes.

2.2.3. Social Stratification

The importance of social stratification (the categorizing of people on the basis of their birth, occupation, educational achievements, and/or other attributes) differs by society. Multinational corporations must be aware of the level of social stratification in a particular country when making personnel decisions and also when developing advertising campaigns.

2.2.4. Social mobility

The ability of individuals to move from one stratum of society to another is higher in less stratified societies. Individuals’ attitudes and behaviors toward labor relations, capital formation, risk taking, and entrepreneurship may be determined in part by social mobility.

2.2.5. Language

Language is a primary means by which members of a society communicate with each other. It filters observations and perceptions and thus affects the messages that are sent. In fact, it has been shown by researchers that language itself alters the nature of the information that is being conveyed.

2.2.6. Communication

Communication, whether verbal or nonverbal, can go awry between people who share a culture. The chance for miscommunication increases substantially, however, when people are from different cultural backgrounds.

In cross-cultural communication, the sender encodes a message using his/her cultural filters and the receiver decodes the same message using his/her cultural filters. This frequently creates misunderstandings.

2.2.7. Nonverbal Communication

Between 80 and 90 percent of all information is transmitted among members of a culture via nonverbal communication such as facial expressions and hand gestures. Outsiders may find it difficult to understand nonverbal communication.

Abbildung in dieser Leseprobe nicht enthalten.

Table 2.1 Forms of Nonverbal Communication

2.2.8. Religion

Religion affects the ways in which members of a society relate to each other and to outsiders. 70 percent of the world’s population follows Christianity, Islam, Hinduism, or Buddhism.

Religion shapes the attitudes its followers have towards work, consumption, individual responsibility and planning for the future. The Protestant ethic for example, stresses individual hard work, frugality, and achievement as a means of glorifying God. On the other hand, the goal of a Hindu is to achieve nirvana, a state of spiritual perfection, by leading a progressively ascetic and pure life as one’s reincarnated soul goes through the cycles of death and rebirth. Islam emphasizes the individual’s responsibility to society.

Religion may constrain business activities and the types of products consumers may purchase. The impact of religion on international business varies from country to country, depending on a country’s legal system, its homogeneity of religious beliefs, and its tolerance of other religious viewpoints.

2.2.9. Values and Attitudes

Values are the principles and standards accepted by members of a society; attitudes encompass the actions, feelings, and thoughts that result from those values. Attitudes about time, authority, education and rewards reflect an individual’s deep-seated values and shape the behavior of and opportunities available to, companies operating in a given culture.

2.2.10. Time

In Anglo-Saxon cultures, the prevailing attitude towards time is that it is valuable and should not be wasted. Conversely, Latin Americans and Arabs do not share this attitude and think nothing of starting a business meeting late, or being interrupted during a meeting. In low-context cultures, business meetings follow a precise, well-planned agenda, while in high-context cultures, time is initially spent deciding whether there is trust between the participants before focusing on the business at hand.

2.2.11. Age

Attitudes toward age differ by culture. In the United States, youthfulness is considered a virtue and young “fast-trackers” are nurtured, while in Asian and Arab cultures, age is respected and reflects a manager’s stature.

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¹ o.V., 2006, http://anthro.palomar.edu/culture/culture_1.htm ; 04.12.2011, 17:47

² o.V., ohne Jahr, http://aglobalworld.com/international-culture/world-culture.php ; 04.12.2011, 18:44

³ o.V., ohne Jahr, http://www.worldbusinessculture.com/ , 04.12.2011, 18:48