CULTURAL SPHERES OF INFLUENCE
Means the influence of culture on business. According to
Scheneider and Barsoux there are 5 cultural spheres.
REGIONAL
PROFESSIONAL
CULTURAL
SPHERES
OF
INFLUENCE
CORPORATE
INDUSTRY
FUNCTIONAL
HISTOR
Y
GEOGR
APHY
RELIGIO
N
REGIONAL
CULTURE
1. Means your society’s culture that differs from other societies.
2.Certain
factors cause it to evolve.
LANGU
AGE
POLITIC
S
ECONO
MY
REGIONAL CULTURE IS DIVIDED
INTO TWO CATEGORIES
WITHIN NATIONAL BORDERS
1.means doing business with different cultural regions in the same country.
2. these cultural differences can result in doing business in different ways.
BEYOND NATIONAL BORDERS
1. Ronan & Shankar state that the world is divided into clusters of countries/independents based on cultural similarities.
2. Clustering assists in understanding similarities and differences (geography, language, wealth and religion).
3. This provides the basis for expatriate placement, regional units, predict results of policies and practices (Ronan
& Kraut)
INDUSTRY CULTURE
It evolves from various factors:
a. industry environment
b. customer requirement
c. competitive environment
d. societal expectation
e. ‘right thing to do
f. outcome of a demand for performance g. survival in the industry
Different industries have different cultures due to different task environments: a. nature of decision making;
b. nature of products/ services;
c. rate of technology change;
d. state intervention;
e. market characteristics
PROFESSIONAL CULTURE
1. Is related to the principles of workers
2. Is a combination of values, attitudes, symbols, rules, practices 3. it also includes proper behaviour and distinctive image
a. A professional is an expert with certain skills b. workers must follow professional principles
How do professionals acquire judgment? 3 ways: i. Intensive training ii. Supervision; and iii. Socialisation
FUNCTIONAL CULTURE
Ie. How different departments in a company function Different divisions have different cultures as a result of their different tasks. Compare finance vs production The importance of the functions depends on the nature of the industry. Different countries value the business division at different levels and this is reflected in the salary scale CORPORATE CULTURE: Is the blend of values, beliefs, taboos, symbols, rituals, myths in companies
Came about in 1980s.
Copying the secret weapon of success, ie.
Japanese corporate culture Corporate culture is derived from :a. Founding figures and Turnaround
Leaders – the founder of company influences and shapes the companys culture thru their personal values and beliefs
b. Unique Company History and stage of developmentAdministrative heritage also influences the culture.
INTERACTING SPHERES
The cultural spheres of business cannot help but interact with one or more spheres. The nature of business is such that functions of divisions will overlap with each other. For eg.
Professional with corporate Combination of spheres can be good and bad.
Doing business with different regional cultures can result in a competitive edge. But it takes recognition and acceptance of different cultures to create a success story.
Failure to recognise and address the differences can lead to failures of joint ventures as each sphere plays a role in either strengthening or weakening a company’s competitive advantage.
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