Comparative Environmental Frameworks Chapter Two The Cultural Environments Facing Business Understand methods for learning about cultural environments • Grasp the major causes of cultural difference and change • Discuss behavioral factors influencing countries’ business practices • Recognize the complexities of cross cultural information differences, especially communications Analyze guidelines for cultural adjustment • Grasp the diverse ways that national cultures may evolve Chapter Overview When companies source, manufacture, and/or market products in foreign countries, they encounter fascinating and often challenging cultural environments. Chapter Two examines the dynamics of culture and its effect upon international business operations and strategy. Culture and business practices are ever changing and these shifting trends are incorporated in the cases and examples. While exploring the causes of cultural differences, rigidities, and changes, it focuses upon the impact of cultural traditions on business activities, as well as the mutually satisfactory reconciliation of cultural differences. The chapter concludes with a discussion of the ways in which firms can potentially maximize their effectiveness while operating in a world of complex and dynamic cultural diversities. Chapter Outline OPENING CASE: SAUDI ARABIA’S DYNAMIC CULTURE: The Java to Saudi Arabian Culture [See Map 2.1.] This case provides a striking example of the challenges presented to foreign firms by a pervasive, theocratic, national culture. It shows why companies have had mixed success in Saudi Arabia, a modern yet ancient society grounded in Islamic law, religious convictions, and behavioral traditions. In particular, the case highlights the example of the Java Lounge, a new, up-scale Jeddah restaurant that serves an affluent niche of Saudi consumers. Further, it describes ways in which a variety of foreign firms have adjusted their products, facilities, and operating strategies in order to meet government requirements and yet satisfy the Saudi consumer. It points out numerous paradoxes one may encounter regarding Saudi legal sanctions, purchasing patterns,
Comparative Environmental Frameworks Chapter Two The Cultural Environments Facing Business • Understand methods for learning about cultural environments • Grasp the major causes of cultural difference and change • Discuss behavioral factors influencing countries’ business practices Recognize the complexities of cross cultural information differences, especially communications • Analyze guidelines for cultural adjustment Grasp the diverse ways that national cultures may evolve Chapter Overview When companies source, manufacture, and/or market products in foreign countries, they encounter fascinating and often challenging cultural environments. Chapter Two examines the dynamics of culture and its effect upon international business operations and strategy. Culture and business practices are ever changing and these shifting trends are incorporated in the cases and examples. While exploring the causes of cultural differences, rigidities, and changes, it focuses upon the impact of cultural traditions on business activities, as well as the mutually satisfactory reconciliation of cultural differences. The chapter concludes with a discussion of the ways in which firms can potentially maximize their effectiveness while operating in a world of complex and dynamic cultural diversities. Chapter Outline OPENING CASE: SAUDI ARABIA’S DYNAMIC CULTURE: The Java to Saudi Arabian Culture [See Map 2.1.] This case provides a striking example of the challenges presented to foreign firms by a pervasive, theocratic, national culture. It shows why companies have had mixed success in Saudi Arabia, a modern yet ancient society grounded in Islamic law, religious convictions, and behavioral traditions. In particular, the case highlights the example of the Java Lounge, a new, up-scale Jeddah restaurant that serves an affluent niche of Saudi consumers. Further, it describes ways in which a variety of foreign firms have adjusted their products, facilities, and operating strategies in order to meet government requirements and yet satisfy the Saudi consumer. It points out numerous paradoxes one may encounter regarding Saudi legal sanctions, purchasing patterns,