(a)Cultural
Accommodation:
Cultural accommodation means making a special adjustments & arrangements to
the needs involving one's culture. That is while doing IB, adjusting oneself by
coping with the various culture of host country's is known as cultural
accommodation.
ex-Saudi Arabian girls wear jeans while doing business across their boarder.
(b)Cultural Distance: It is the degree to which group members differ on dimensions of language,social status, religion, politics, economic conditions and basic assumption about reality. Actually the excessive amount of variation in culture is known as cultural distance. In this circumstances to do business the manager will choose those places where the cultural distance is lower.
ex-Trade between Mexico & USA
(c)Cultural Shock: Cultural shock is the cultural disorientation a person may feel when visit to a new country, a move between social environments, or simply travel to another type of life.
In short, cultural shock is one kind of panic which arises by entering to a new culture and at the same time being failure to cope with the new culture. In this circumstances the international manager will decide whether to do or not to do the business.
(d)Companies & Management orientation: This refers to those activities & strategies an organization does & follows in order to achieve their desired goals. It includes:
(i)Policentrism strategy: A policentric organization tends to believe, business units in different countries should act like local companies. That is following the culture of host countries while doing international business. ex-Fiza & Co. follows policentrism strategy.
(ii)Ethnocentrism strategy: Ethnocentrism is the belief that one's own culture seemed to be superior than other. That is the culture of one's will be more valued than others culture.
ex-KFC , Pizza Hut follows ethnocentrism strategy.
(iii)Geocentrism strategy: Geocentrism strategy refers to following a worldwide single culture while doing business. It is usually done by global approach.
ex-Toyota business
(e)Strategies for instituting change: It is another process of dealing with cultural difference by setting up the changes in a convenient manner at its fullest extent for dealing up with the cultural differences. While doing IB the common motive of each organizations is to gain competitive advantage. For this reason various changes occurs in the institution which is actually the change in institution.
(i)Value system: Value can be regarded as a set of moral, behavioural principles. Those changes shouldn't be done which hampers the basic value of the people.
(ii)Cost-based analysis of change: While doing organizational change, the cost & profit should be analyzed. Institutional change should be done by keeping the overall cost & profit in the mind.
(iii)Resistance to too much change: All the institutional changes shouldn't be done at a time. Many observer suggests that, the institutional changes should be done slowly. So, the institutional change should be done in gradual process.
(iv)Participation: Organizational change must be done with the participation of stakeholders & stockholders.
(v)Reward sharing: Personal & group reward system must be brought from the organizational changes.
(vi)Opinion leadership: Institutional change can be done by those person who has leadership quality and has the ultimate influencing power over people.
(vii)Timing: Timing means triggering the exact thing which will be considered favourable in the particular situation. That can done based on labor or capital
(viii)Learning abroad: While doing business in foreign country we can learn many lesson. We can use those lesson in changing the institutions.
ex-Saudi Arabian girls wear jeans while doing business across their boarder.
(b)Cultural Distance: It is the degree to which group members differ on dimensions of language,social status, religion, politics, economic conditions and basic assumption about reality. Actually the excessive amount of variation in culture is known as cultural distance. In this circumstances to do business the manager will choose those places where the cultural distance is lower.
ex-Trade between Mexico & USA
(c)Cultural Shock: Cultural shock is the cultural disorientation a person may feel when visit to a new country, a move between social environments, or simply travel to another type of life.
In short, cultural shock is one kind of panic which arises by entering to a new culture and at the same time being failure to cope with the new culture. In this circumstances the international manager will decide whether to do or not to do the business.
(d)Companies & Management orientation: This refers to those activities & strategies an organization does & follows in order to achieve their desired goals. It includes:
(i)Policentrism strategy: A policentric organization tends to believe, business units in different countries should act like local companies. That is following the culture of host countries while doing international business. ex-Fiza & Co. follows policentrism strategy.
(ii)Ethnocentrism strategy: Ethnocentrism is the belief that one's own culture seemed to be superior than other. That is the culture of one's will be more valued than others culture.
ex-KFC , Pizza Hut follows ethnocentrism strategy.
(iii)Geocentrism strategy: Geocentrism strategy refers to following a worldwide single culture while doing business. It is usually done by global approach.
ex-Toyota business
(e)Strategies for instituting change: It is another process of dealing with cultural difference by setting up the changes in a convenient manner at its fullest extent for dealing up with the cultural differences. While doing IB the common motive of each organizations is to gain competitive advantage. For this reason various changes occurs in the institution which is actually the change in institution.
(i)Value system: Value can be regarded as a set of moral, behavioural principles. Those changes shouldn't be done which hampers the basic value of the people.
(ii)Cost-based analysis of change: While doing organizational change, the cost & profit should be analyzed. Institutional change should be done by keeping the overall cost & profit in the mind.
(iii)Resistance to too much change: All the institutional changes shouldn't be done at a time. Many observer suggests that, the institutional changes should be done slowly. So, the institutional change should be done in gradual process.
(iv)Participation: Organizational change must be done with the participation of stakeholders & stockholders.
(v)Reward sharing: Personal & group reward system must be brought from the organizational changes.
(vi)Opinion leadership: Institutional change can be done by those person who has leadership quality and has the ultimate influencing power over people.
(vii)Timing: Timing means triggering the exact thing which will be considered favourable in the particular situation. That can done based on labor or capital
(viii)Learning abroad: While doing business in foreign country we can learn many lesson. We can use those lesson in changing the institutions.
