MGMT1101 Lecture Notes - Lecture 4: Mergers And Acquisitions, International Business, World Values Survey
19 May 2018
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Chapter 4 – Socio-cultural Environment
Culture: A system of values and norms that are shared among a group of people and that when
taken together, constitute a design for living
- Low- otet ouiatio: A ulture i hih speakers essage is oeed explicitly by
the spoken words (direct)
➢ E.g. Western countries like U.S, AUS, NZ – expressive, direct.
- High-context communication: A culture in which the context of a discussion is as important
as the actual words spoken (indirect)
➢ E.g. Middle East, Asia, Latin America – refrain from explicit expressions of feelings and
thoughts
Problems:
- Relationship to nature
- Beliefs about human nature
- Relationship among people
- Nature of human activity
- Concept of space
- Time orientation
How does socio-cultural factors matter in International business?
- Expanding to other markets
- International mergers & acquisitions
- Global supply chain
- Global customers/ clients
- Expatriation, overseas work assignments
- Global branches
- Multicultural workplaces and teams
Values and Norms: Include soiets attitude ad soial rules, iested ith osiderale eotioal
significance (2 main categories)
- Routine conventions of everyday life: concerning things such as appropriate dress code,
social manners, neighbourly behaviours. (Those who violate = portrayed as eccentric or ill-
mannered)
- Attitude towards time: conscious about time = less elastic character (vice versa)
Cultural context
Classic Study: Hofstedes Value Diesios
- Power Distance: Extent to how much a society allows inequalities of physical and intellectual
capabilities between people to grow into inequalities of power and wealth
➢ HIGH: societies that let inequalities grow over time into power and wealth
➢ LOW: societies that tried to play down inequalities
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