Nature of culture

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Hodgetts−Luthans−Doh: International Management, Sixth Edition

II. The Role of Culture

4. The Meanings and Dimensions of Culture

© The McGraw−Hill Companies, 2005

PART TWO
THE ROLE OF CULTURE

Hodgetts−Luthans−Doh: International Management, Sixth Edition

II. The Role of Culture

4. The Meanings and Dimensions of Culture

© The McGraw−Hill Companies, 2005

Chapter 4

THEMEANINGS AND DIMENSIONS OF CULTURE
A major challenge of doing business internationally is to adapt effectively to different cultures. Such adaptation requires an understanding of cultural diversity, perceptions, stereotypes, and values. In recent years, a great deal of research has been conducted on cultural dimensions and attitudes, and the findings have proved useful in providing integrativeprofiles of international cultures. However, a word of caution must be given when discussing these country profiles. It must be remembered that stereotypes and overgeneralizations should be avoided; there are always individual differences and even subcultures within every country. This chapter examines the meaning of culture as it applies to international management, reviews some of the valuedifferences and similarities of various national groups, studies important dimensions of culture and their impact on behavior, and examines attitudinal dimensions and country clusters. The specific objectives of this chapter are: 1. DEFINE the term culture, and discuss some of the comparative ways of differentiating cultures. 2. DESCRIBE the concept of cultural values, and relate some of theinternational differences, similarities, and changes occurring in terms of both work and managerial values. 3. IDENTIFY the major dimensions of culture relevant to work settings, and discuss their effect on behavior in an international environment. 4. DISCUSS the value of country cluster analysis and relational orientations in developing effective international management practices.

The World ofBusinessWeek

OBJECTIVES OF THE CHAPTER

Will Coke’s Water Meet Its Waterloo?
Dasani’s European Invasion Faces Resistance from Nestlé and Danone Brands
alk about carrying coals to Newcastle. Coca-Cola Co. is heading into Europe, where finicky consumers choose from the world’s best-known spring waters, with Dasani, the bottled water Coke successfully launched in its home market five years ago. WhileDasani now ranks No. 2 in the U.S. behind PepsiCo Inc.’s Aquafina, challenging honored brands on their home turf could prove a far tougher battle. Dasani hit the British market in February and promptly suffered a major public-relations disaster. And Continental rivals are gearing up to fight Coke off when Dasani arrives on their side of the Channel later this spring. You can’t blame Coke fortrying. Bottled water is a growing part of the company’s product mix, and the British market is exploding as health-conscious consumers shift away from carbonated beverages. Water sales in Britain have nearly tripled since 1998, to an estimated $1.9 billion last year, according to Mintel International Group Ltd., a London market research firm. But Dasani has had a rocky start among Britons. Days afterCoke introduced it, the company was forced to defend Dasani’s source: It’s purified tap water. Pricing Dasani near the top of the market made matters worse: Only Perrier and Vittel cost more. Critics had a field day. “Tap water,” ran one headline in The Guardian, “it’s the real thing.” So far, Coke executives are taking the negative publicity in stride. Vinay Kapoor, Coke’s director of newbeverages

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Hodgetts−Luthans−Doh: International Management, Sixth Edition

II. The Role of Culture

4. The Meanings and Dimensions of Culture

© The McGraw−Hill Companies, 2005

Water Wars Coke’s Dasani costs more than bottled mineral water Highland Spring $5.07* Mineral water from Scotland Evian $5.79* French mineral water Dasani $6.25* Purified tap water

*Price of a pack of six...
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