MARKET LEADER
UNIT 1 OVERCOMING CULTURAL BARRIES
THE MAIN POINTS
most companies start dipping their toes into foreign waters long before they reach
domestic saturation.
it’s been known for years that working across cultures poses special problems.
Hofstede showed that a huge variety of beliefs and values were present in the
workspace.
Difficult to mange are the cultural differences that arise.
What is a barrier, however, can actually be a source of competitive advantage for
those companies and mangers; this kind of cross-fertilisation has been taking
place between Japanese and western carmakers for decades, and has led to
powerful innovations on both sides?
DETAILS
Geert Hofstede’s nationality:
o Dutch
When did Hofstede’s carry out his reaches at IBM?
o 1970s and 1980s
Why was IBM a good company to choose for his reaches?
o Because it was a large global company with a very strong corporate
culture, which might override the local cultures where it operated. Hofstede
set out to see if this was true or not.
Why was ‘nova’ a bad name for a car in Spanish speaking markets.
o No va = won’t go
Why was the Lexus luxury car less successful when marketing products
internationally?
o Because in Europe there has been a tradition for luxury car-making, and
customers have strong loyalty to local brands. In the U.S. the Lexus offer
something different to domestic models
Why do western companies have problems operating in China?
o Firstly, because in Chinese workers expect to be managed in a strong,
authoritarian way, and even expect managers to help them with problems
in their private lives.
o Secondly, there are language problems and different attitudes to ethics,
reporting systems and worker’s rights.
What are some of the benefits of working across cultures?
o It can give companies extra advantages because of the exchange of ideas,
which sometimes leads to innovations.
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,VOCABULARY
EXPRESSIONS
Stop expanding its market: share will reach market saturation.
Making the first moves: stats dipping their toes info foreign waters
Where everything becomes similar: leading to cultural convergence.
Be influenced by culture: will usually first feel the effects of culture on
Differences: based on deeper cultural values
Adapt to different ways of doing things: to suit local sensitivities.
Made worse: linguistic confusion is also compounded by.
A chance to be better than competitors: a source of competitive advantage.
Take good ideas from others: to adopt best practices from
WORDS
Englisch Definition Dutch
Overseas Markets located in foreign countries, Overzeese markten
markets beyond one’s own domestic market
to exploit To make full use of something for one’s own Uitbuiten
benefit, often in a way that may be
considered unfair or unethical
Subsidiaries Companies controlled by another company, Filialen
often through owning a majority of its
shares
Poses Presents or creates Stelt
Beliefs Convictions or acceptance that certain thing Overtuigingen
is true or real
Values Principles or standards of behavior; one’s Warden
judgment of what is important in life
Preserve To maintain or keep something in its Behouden
original or existing state
Loyalty Faithfulness or allegiance to a person, Loyaliteit
cause, or country
Barriers Obstacles or impediments that prevent Berrières
movement or access
Repositioning Changing the positioning or perception of a Herpositionering
product, brand, or company in the market
Establish To set op or create something, typically a Oprichten
company, organization, or system
Directive An official or authoritative instruction or Richtlijn
order
To sort out To resolve or deal with a problem our Uitzoeken
difficulty
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,Cross- The exchange or sharing of ideas, Kruisbestuiving
fertilisation technologies or practices between different
entities or disciplines
UNIT 2: COMMUNICATING ACROSS CULTURES
MAIN POINTS
You need to adapt your behaviour and communication
style when working across cultures.
DETAILS
In what ways has the world of work changed in recent years?
o Businesspeople have daily interaction at a distance with clients, business
partners and colleagues from many other countries without the need to
travel or live abroad.
How are some international software development projects run
nowadays?
o They are run globally and around the clock, starting for example in Europe,
then being handed over to the US? Ten to Asia and finally back to Europe
What is the result of increased interaction between colleagues from
different countries?
o There can be a big contrast in communication styles, cultures, and
expectations between people from different cultures.
What do organisations need in order to be effective in different
countries?
o They need to have employees with the right interpersonal and
management skills.
What research did PDI carry out?
o Reacher’s into differences in personality traits between businesspeople
from different countries
How big was PDI’s survey.
o They questioned 7.500 managers and executives in more than 500
organisations across 12 countries.
What are ‘The Big Five’?
o Emotional balance, extroversion, conscientiousness, agreeableness, and
openness to new experiences
Whas was one of the most important findings from the research.
o The fact that agreeableness and emotional balance account for the biggest
differences between managers and executives working across different
countries.
How did managers from the UK score on the research?
o Managers in the UK had among the lowest scores on agreeableness and
received only average scores in emotional balance. They scored high on
extroversion.
How did managers from Saudi Arabia and Japan score
o Managers in Saudi Arabia and Japan are more concerned about maintaining
group harmony and seem more in touch with their emotions and feelings,
but they are less inclined to speak openly.
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, What can happen when British managers come into contact with
managers from Saudi Arabia or Japan?
o Bc UK managers may not put as much emphasis on group harmony, they
may appear abrupt or non-caring to mangers in Japan or Saudi Arabia
What is one potential problem when British people work with the
Chinese?
o Bc Managers in the UK and China score very differently on extroversion,
activities such as brainstorming could be very unsuccessful with chines
colleagues.
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