BUSINESS CULTURE AND BUSINESS ENVIRONMENT

INTERNATIONAL BUSINESS ENVIRONMENT

International business environment – the external context in which organizations operate across the world. It is characterized by increased complexity and by expanding and deepening ties between the different stakeholder groups within it. To gain an understanding of the contemporary international business environment, some knowledge of global political economy is necessary. Environment means surrounding means the factors/activities those surround / encircle the international business. In other words , business environment means the factors that affect or influence that MNC’ s

INTERNATIONAL CULTURAL ENVIRONMENT

• Culture is The sum total of beliefs, rules, techniques, institutions, and artifacts that characterize human populations.
• Consists of learned patterns of behavior common to the members of a given society.
• The unique lifestyle of a particular group of people.
• Culture is a thought and behavior patterns that member of a society learns through language and other forms of symbolic interaction.
• Acquired knowledge that people use to interpret experience& generate social behavior. This knowledge forms values,creates attitudes & influence behavior

example

Consumption of Alcoholic drinks is acceptable in the society. It alcoholic drinks is acceptable in the West however, it is not socially acceptable in India & it’s socially & legally unacceptable in Saudi Arabia.

Life time employment policy in most of the companies in Japan.

Masala Dosa & Hyderabadi Briyani have become popular in Europe & the USA whereas Pizza shave become popular in India

Components of Culture

• Aesthetics
• Attitudes and beliefs
• Religion
• Material Culture
• Education
• Language
• Societal organization
• Legal characteristics
• Political structures

1.Aesthetics

• Art
• Colors, symbols, numbers convey meaning
• Architectural styles different
• Music and Folklore
• Musical tastes vary
• Folklore discloses way of life

2.Attitudes and Beliefs

• Attitude Toward Time
• Directness and drive
• Perceived to be rudeness
• Deadlines
• Attitudes toward Achievement and Work
• Demonstration effect
• Job prestige
• Attitude Toward Change
  The American firm is accustomed to the rapid acceptance by Americans of something new.
  Europeans are fond of reminding Americans that they are a young nation lacking traditions.
  The more consistent a new idea is with a society’s attitudes and experiences, the more quickly it will be adopted.

3.Religion

• Responsible for many of the attitudes and beliefs affecting human behavior.
• Work Ethic
• Protestant work ethic
  Europeans and Americans generally view work as a moral virtue and look unfavorably on the idle.
• Confucian work ethic
  In Asian countries, this is the same as Protestant ethic.

4. Education

Equips a person to take his or her place in adult society

Yardsticks

• Literacy rate
• Must verify definition used
• Kinds, quality and enrollment of schools
• Amount per capita spent on education
• Vocationally trained groups
• Study trends

5.Language

• Must speak the local language
• Still need translators
• Use back translations to avoid errors
• Technical words do not exist in all languages
• Usually resort to English
• Many cultures avoid saying anything disagreeable