chapter 8.pptx in business environment of social end cultural context
- 1. CHAPTER: Eight Social & Cultural Environment in Global Business
- 2. Social &Cultural environment cont Nature of culture: The people of England take some snacks and a cup of coffee in the morning as their breakfast, They take a sandwich and some fruits at their lunch. Normally they wear trousers and T-shirt. They speak in English to interact with each other. They go to pub or club every weekend holiday at night. They celebrate Christmas, 31st night and
- 3. Nature of culture cont… They accept by the rules and regulations of their country. They choose their life partners and then get married themselves. They buy ticket before boarding on the bus or train. All of those things are learned and shared by the people of that particular country.
- 4. Nature of Culture cont… • Culture: Culture is the sum total of knowledge, norms, beliefs, values, customs, art, morals, laws, rituals (formalities) and any other capabilities and habits learned and shared by the people of a particular society. Culture affects every part of our lives, everyday, from birth to death and everything in between.
- 5. Nature of Culture cont… Culture shapes the business environment of a particular region. It has good impact on the business activities.
- 6. Nature of Culture cont… Culture has two phenomena: Shared values and Passage of time Culture of a society is shared by it’s members. Cultural values passed on from generation to generation. Culture is not confined to one particular period of time.
- 7. Impact of culture on business Impact of culture on business: Culture creates people: Culture is the great significant to the business because it is the culture which generally determines the values of people. Culture is the context in which a company operates it’s business.
- 8. Impact of culture on business It has competitive business environment, the strategy different company uses, structure and system of business and the organisational culture. Culture performs at least four functions:
- 9. Impact of culture on business First, Culture creates distinctions between one organisation and another (management system, structure). Second, It conveys a sense of identity for organisational members (Grooming, attitude). Third, It facilitates the generation of commitment to something moral than one's self interest. For example Panjabi, rice pudding, folk music etc.
- 10. Impact of culture on business cont… Finally, it enhances the social system stability. Culture is the social glue that helps to hold the organisation together by providing appropriate standard for the behaviour of organisational members. For example language, gesture, posture, dress code corporate culture etc.
- 11. Impact of culture on business cont… Culture and globalisation: When you expand your business beyond geographical boundary then you are going to be an international marketer. As an international Marketer it is important to know the cultural differences.
- 12. Impact of culture on business cont… Work motivation, profit motivation, business goals, negotiation systems, attitudes towards the development of business relationships, gift giving customs, greetings, significance of body gesture and meaning of colours and numbers and the like vary from country to country.
- 13. Impact of culture on business cont… Different people from different countries or cultures make work place diversity. Then it requires to manage diversity. In this case manager will shift their philosophy from treating every one alike avoiding discrimination.
- 14. Impact of culture on business cont… Diversity if positively managed can increase creativity, and innovation in organisation as well as improve decision making by providing different perspective on problems. For example Mc Donalds in India is known as Maharaja Mc.
- 15. Impact of culture on business cont… Culture determines goods and services: Culture broadly determines the type of goods and services a business should produce. The type of food people eat, the cloths they wear, the beverage they drink and the festival they celebrate.
- 16. Impact of culture on business cont… and the residence houses vary from culture to culture and from time to time within the same culture. Business should realise these cultural differences and bring out products accordingly.
- 17. Impact of culture on business cont… People’s attitude to business: Attitude of people towards business is largely determined by their culture. Business systems are a product of beliefs, norms, and customs of the society in which they exist. Businessmen must have some basic set of philosophies to guide their actions.
- 18. Impact of culture on business cont… Such as quality product at reasonable price, building relationship with customers, social development. Business people should have ethical responsibility which concerns the sense of right and wrong.
- 19. Impact of culture on business cont… Attitude to work: The attitudes of people toward work depends on it’s culture. Theory X and theory Y, Maslow’s need hierarchy, hygiene factor of the motivation, morale and other related aspects of human resource management are based on workers attitude to work. Different types of reward and penalty systems determine people’s attitude to the work.
- 20. Impact of culture on business cont… Individualism and collectivism: Individualism and collectivism is the diversity of culture. People from some cultures like to work individually. On the other hand some people from different cultures like to work in a group or collectively. Poor country like India, Pakistan, Bangladesh, Indonesia take greater initiative to work individually. Wealthy country like USA, Canada, Australia, Denmark tends to work in
- 21. Impact of culture on business cont… In a group or collectives and look after each other in exchange for loyalty. Ambitious and complacent: An individual’s ambition to grow or remain satisfied depends on his/her culture. An ambitious individual is highly motivated, wealth greedy , has a strong urge to excel which is prepared to change organisations and even take risks.
- 22. Impact of culture on business cont… Education: Education has become a part and parcel of every developed country. All of the business requires technical or strategic knowledge to capture in the competitive business environment. The rate of education determines the socio-economic development of a particular country.
- 23. Impact of culture on business cont… Education benefits business. Such as to conduct research, to develop your product, to take strategic decision and so forth. To be a good consumer you also require proper education.
- 24. Impact of culture on business cont… Family: Family is the most primitive institution on the earth. Family structures have good impact on the business decision. There are two types of family one is traditional joint family and anther is nuclear family. Joint family requires larger household appliances than nuclear family. Such as refrigerator, rice cock, Microwave woven etc.
- 25. Impact of culture on business cont… Normally joint family likes to cock food at home. But Nuclear family very often take their lunch or dinner at restaurant. They are also different in enjoying vacation (Travel & Tourism).
- 26. Impact of culture on business cont… Ethics in business: Ethics is the sense of right and wrong. Ethics refers to the code of conduct that guides an individual in dealing with others. A business people should be fair in recruiting, No discrimination, no unfair pricing and no adulteration in their products will be treated as ethical manner.
- 27. Impact of culture on business cont… Religion: Religion is a very important part of every culture. Every society is nurtured by it’s religion. Religion has considerable influences on business. telling lie to the customers, not to sell the products which is restricted by the religion, money lending against interest.
- 28. Impact of culture on business cont… Marriage: Marriage is legal contract between two parties which results the multiplication of people, settled life and systematized and organised activities. Marriage can form a family and family requires various types of products.
- 29. Impact of culture on business cont… Cultural resources: Cultural resources refer to the heritage which makes the country distinctive. One’s country which is rich in cultural heritage makes an individual feel proud. It certainly makes him/her raise head and look ahead with confidence and hope. We have world heritage, longest sea beach, world largest mangrove forest, hundreds of rivers, world famous tea garden, hill tracts and flora (vegetable) and fauna (animals).
- 30. End of this chapter