Cross Cultural Management Midterm Study Guide

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  • Topic: Culture, Motivation, Cross-cultural communication
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REVIEW FOR ADM 3319 Final Exam (<= 50 questions; TIME: 2 hours) 1. Globalization: The good, the bad, & the ugly:
a. What are the provocative views of the +/- antecedents and consequences of globalization (different perspectives)? Three Perspectives on Relationship between Culture and Globalization 1. Cultural Homogenization

* resulting from increased communication, technical convergence * transformation of other regions, cultures, nations, societies by the culture of the economically dominant west - McDonaldization * contributing factors …

A) global transformation of local culture
* mass marketing on international level displaces strategies built around national, regional, cultural differences * but products that are outwardly uniform may be seen differently by consumers B) emergence of consumer mentality

* shopping and spending as ends themselves
* consumers are bombarded by merchandising and messaging that promotes the consumption of a good that frequently is a ‘homogenized’ version of an internationally fashionable product C) impact of elite culture

* homogenization and globalization as the realm of the elite – those capable of buying the products (BMW, Rolex) * the elite interact within a westernized cultural paradigm, the western culture symbolizing affluence and power – unity among the elite D) influence of internet

* facilitates communication between diverse people
* much faster speed of cultural diffusion, potentially increasing the level of cultural homogeneity 2. Polarization
* cultural, regional, national distinctiveness that flues in the face of homogeneity * a people’s defense of their traditions and way of life * technology can facilitate polarization
* when social change is broad, sweeping, and rapid, people sometimes retreat to the familiar and local, occasionally with resentment at the globalized businesses around them 3. Hybridization

* a state of being
* globalization has not created a world represented by mutually exclusive precepts of homogeneity or polarization, but rather some mixture of the two * dialectics: process that achieves a hybridized equilibrium; the ongoing interaction of thesis with the anti-thesis (new cultural traditions introduced) that results in the reconciliation of the two extremes that, in turn, result in a new “thesis” that then interacts with an antithesis, etc. * many cultures oppose being subsumed by western culture but people can be part of a local society and simultaneously part of national/international community

2. Culture & Ethics
b. How would we describe managers’ different approaches to dealing with globalization? Going Global: Phases of Development
(1) Domestic Phase – initial product oriented phase
* little alteration to foreign consumption preferences, one good way to manage * uniqueness of product/services and lack of international competition negates the firm’s need to demonstrate cultural sensitivity * ethnocentric perspective

* global HR management and cross-cultural management seen as irrelevant (2) Multi-Domestic Phase
* because of domestic competition, there’s a need to compete in markets abroad * cultural sensitivity somewhat important for the design and marketing of culturally appropriate products/services to clients and critical to worldwide production * management has to learn many good ways to manage each dependant on particular country (3) Multinational Phase – some decentralization

* cultural sensitivity toward consumers less important because focus is on selling price-sensitive commodities * cultural sensitivity toward employees still somewhat important * ‘one least cost way to manage’

(4) Global Phase
* out learning competitors brings competitive advantage, so draw product/service ideas from worldwide sources, then tailor to local niches * global HRM crucial, cultural...
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