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marketing across national borders and the influence of culture. One aspect of understanding culture is learning about their heroes. How could this learning assist marketers in communicating effectively with customers in different countries? Use specific example(s) to illustrate.

7/8/2022
COMM5010
Week 7
Managing Globally
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Today’s Agenda
• Managing globally
• What and Why?
• Managing globally – How?
• Before next week
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Management problem:
How to operate globally, successfully?
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Why do we care about IB or IM?
• Connected world
• Mobile populations
• Multicultural societies
• Market potential
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Over the last 40 years, we’ve seen decreasing:
• Trade Barriers (World Trade Organization).
• International communication costs (email, skype, mobiles, IM; English
emerged as language of business).
• Coordination costs (e-commerce, workflow software).
• Transportation costs (standardised shipping containers).
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This has led to increasing…
• International Trade
• Foreign Direct Investment (FDI)
• Greenfield investments
• International joint ventures
• Use of globally dispersed teams
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Megatrends shaping the future
of international production
Technology/ New
Industrial Revolution
Trends
Advanced robotics and AI
Digitalization in the supply chain
Additive manufacturing (3D printing)
Policy and economic
governance
More interventionism in national policies
More protectionism in trade and investment
More regional, bilateral and ad hoc economic
cooperation
Sustainability
Sustainability policies and regulations
Market-driven changes in products and processes
Physical supply chain impacts
Key elements
Industrial automation, AI-enabled systems (“white collar”
robots)
Platforms, cloud, IoT, blockchain
Distributed manufacturing, mass customization,
commodification of production
Industrial policies, competition policy, fiscal policy
Tariffs and non-tariff measures, shielding of strategic/sensitive
industries
Trade deals among select groups and on common-ground
issues
Major green plans (and varying implementation timelines),
carbon border adjustments
Increased reputational risks and demand for sustainably
produced goods and services
Supply chain resilience measures, changing sources of
agricultural inputs
UNCTAD
World Investment Report 2020
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N11: Bangladesh, Egypt, Indonesia, Iran, Mexico,
Nigeria, Pakistan, Philippines, South Korea, Turkey and
Vietnam
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Emerging markets and cryptocurrency
What is fuelling
the growth?
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How do we manage successfully across borders?
Skills
Knowledge
Business
Strategy
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International strategy failures
Failure of international expansion occurs because:
• Fail to plan = plan to fail
• Be systematic, objective
• Don’t make assumptions – ethnocentrism, cultural lenses
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Knowledge
What do we need to know about the world
around us?
How do we find it out?
Many of the same tools as discussed Week 2
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Competitors, Customers, Corporation
Ohmae, K. (1982)
• Strategic triangle
• Local, regional, global
• Integration is Key to
Competitive Advantage
Aspects
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P
E
S
T
L
E
Political
Economic
Social
Technological
Legal
Environmental
– Government policy
– Political (in)stability
– Foreign trade policy
(e.g., trade restrictions)
– Military
-Level of corruption
– Economic growth
– Interest rates
– Exchange rates
– Inflation
– Consumer income
– Wage rates
– Taxation
– Availability of financial
capital
– Population growth
– Demographics (e.g.,
age & gender)
– Health consciousness
– Customer preferences
– Consumer confidence
– Cultural trends/values
– Laws (e.g., labour);
– Emerging and maturing – Product & service
technologies can affect standards;
goods’ & services’ a)
– Consumer protection;
– Regulatory change;
supply, b) design, c)
production techniques, d) – Copyright & patent;
offerings to customers, – Discrimination laws.
and e) marketing
– Physical/ geographic
location
– Infrastructure
– Raw material availability
– Weather / climate
– Environmental policies
– Pressure from NGOs
Investigate specific markets (countries)
and/or
Regional/Global trends
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Market Audit
• The product
• Evaluate the product as an innovation as it is perceived by the intended
market
• Major problems and resistances to product acceptance based on the
preceding evaluation
• The market
• Describe the market(s) in which the product is to be sold
• Compare and contrast your product and the competition’s product(s)
• Market size & growth
• Government participation in the marketplace
Cateora et al 2019
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Knowledge
When do we obtain this information?
• Project-based
• Continuous environmental scanning
• MIS
The moment we believe we know all we need to know,
is the moment we begin to obsolesce
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Skills and Abilities
• Adaptability
• Empathy
• Tolerance of uncertainty
• Relational skills
• Perceptual acuity
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What is Culture?
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Introduction
• Culture often transcends national boundaries.
• Nations and subcultures differ on various cultural
dimensions.
• Globalisation will not necessarily result in a common culture
worldwide.
• Knowledge of culture is essential for effective decision
making in international business.
• Sophisticated communications technology is altering
traditional notions of culture.
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Aspects of culture
Culture encompasses a number of broad dimensions.
Culture is:
•
•
•
•
•
Prescriptive
Learned
Dynamic
Subjective
Shared
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Core of Culture
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Australian Culture
Symbols: AFL, slang, Uggs, Stubbies
Heroes: Australian of the Year
Rituals: BBQ, sundowner, shouts, Australia Day
Values: Honesty, loyalty, mateship, equality
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Levels at which culture operates
• Global level
• National level
• Industry level
• Organisational level
• Individual level
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Subcultures
• A subculture is a segment of a larger culture that has distinct
values and cultural norms.
• Within society and business
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Corporate Culture
Defines the proper way to behave within the organisation
At the heart of organisations’ cultures are commonly shared values.
These common values include:
• Outcome orientation. Emphasising achievements and results.
• People orientation. Insisting on fairness, tolerance and respect for the
individual.
• Team orientation. Emphasising and rewarding collaboration.
• Attention to detail. Valuing precision and approaching situations and
problems analytically.
• Stability. Providing security and following a predictable course.
• Innovation. Encouraging experimentation and risk-taking.
• Aggressiveness. Stimulating a fiercely competitive spirit.
www.shrm.org
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Corporate Culture
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Learning about cultures
Geert Hofstede
www.hofstede-insights.com
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Learning about cultures
• Schwartz Value Survey
Shalom Schwartz
• As a guiding principle in your life, how important is:
power
universalism
achievement
benevolence
hedonism
tradition
stimulation
conformity
self-direction
security
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Power
Achievement
Hedonism
Stimulation
Self-direction
Universalism
Benevolence
Tradition
Conformity
Security
Social status and prestige, control or dominance over people and
resources.
Personal success through demonstrating competence according to social
standards.
Pleasure and sensuous gratification for oneself.
Excitement, novelty, and challenge in life.
Independent thought and action – choosing, creating, exploring.
Understanding, appreciation, tolerance, and protection for the welfare of all
people and for nature.
Preservation and enhancement of the welfare of people with whom one is
in frequent personal contact.
Respect for, commitment to, and acceptance of the customs and ideas
that traditional culture or religion impose on the self.
Restraint of actions, inclinations, impulses likely to upset or harm others
and to violate social expectations or norms.
Safety, harmony, and stability of society, of relationships, and of self.
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What are basic values?
Basic values are beliefs about desirable goals in life.
• Values are intrinsically positive (unlike goals)
• Values apply across situations–all (e.g., honesty, security, freedom)
apply at work, in the family, and with friends
• People’s values form a fairly stable hierarchy of relative importance
(success>hedonism>security)
• Relative importance of values is crucial to decisions
Take a new job and move family?
(achievement & stimulation vs. security & benevolence)
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High and Low Context Culture
Low context
People usually speak very directly and express what they mean
e.g. US, Canada, Israel, Northern Europe
High context
People usually speak in a less direct manner, maintaining
harmony and avoiding offending people e.g. many South-East
Asian countries, native Americans
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High vs Low Context
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Models examine averages
Individuals are not average!
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Different ≠ Wrong
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Marketing and Culture
How does culture affect marketing?
• Needs, wants, desires
• Product forms, uses, applications
• Communication of messages, persuasion measures used
• Distribution through proper channels
• Pricing according to local economic situation
Does culture affect marketing, or marketing affect culture?
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Marketing and Culture
How does culture affect marketing?
• Needs, wants, desires
• Product forms, uses, applications
• Communication of messages, persuasion measures used
• Distribution through proper channels
• Pricing according to local economic situation
Does culture affect marketing, or marketing affect culture?
Interaction between culture, markets & economic condition
•
Markets respond to changes in culture
•
Markets act as agents to change culture
•
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Cultural intelligence
CQ
EQ
IQ

Home

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The Four Factor Model of
Cultural Intelligence
Cultural
Intelligence
Motivational CQ
Intrinsic
Extrinsic
Self-Efficacy
Cognitive CQ
Cultural Systems
Cultural Norms &
Values
Metacognitive CQ
Awareness
Planning
Checking
Behavioral CQ
Verbal
Non-Verbal
Speech Acts
CQ = Cultural quotient
Livermore (2009)
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Home

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Why develop cultural intelligence?
For individuals:
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•
•
•
•
Working more effectively with others from different
cultural backgrounds.
Workplace is increasingly diverse.
Virtual teams across countries / cultures.
Connected world – global supply chains
Cultural intelligence critical for expats.
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oecd.org
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Why develop cultural intelligence?
For organisations:
More effective decision making about all elements of organising
(e.g. strategy, structure, staffing) when working across borders
(e.g. C-suite decisions about acquiring & managing foreign
subsidiaries / alliances).
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Skills and Abilities
• Adaptability
• Empathy
• Tolerance of uncertainty
CQ
• Relational skills
• Perceptual acuity
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Managing Globally
With Knowledge and Skills we can develop our strategy around
international or global business options.
Knowledge
Skills
Strategy
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Next Week
Lecture
• Marketing & Analysis
Workshop
• How analysis informs action, what and when to use data
• Draft of infographic due in seminar/workshop
Organisational Challenge case study report
• due by Friday 22 July, 1:00pm via Turnitin
• Draft of infographic in tutorial
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