WRITTEN RESPONSE #Differences in Culture and the impact on international business; the dynamics of culture
Instructions: Refer to the key concepts covered in Chapter 4 of the text and the power points about culture, the dynamics of culture and how cultural differences can affect international business. Utilize this information to answer the questions 1- 2 and 5 indicated below. Read the Opening Case: “Why did Walmart Fail in Germany?” on pages 89-90 (10th edition) and answer question 3. Read the Closing Case: “Culture and Business in Saudi Arabia” on pages 118-120 of the textbook (10th edition) [pages 98-99 9th edition] and answer question 4. Use the Internet to research and answer question 6. Your answers must be typed, double-spaced, size 12 font, in question-answer format with complete answers and approximately 2-3 pages in length.
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1) Outline why the culture of a country might influence the costs of doing business in that country. Illustrate your answer with examples. (2 points)
2) What is ethnocentric behavior? What is needed to overcome ethnocentric behavior? (1 point)
3) Read the Opening Case: “Why did Walmart Fail in Germany? “Apply and utilize (cite) the facts of the case to answer the following questions about the challenges which companies faced to manage cultural differences in the global marketplace (2 points):
a) Reflect on the cultural traditions in Germany and how they shape the country’s business environment. What should the Walmart executives have done differently when it came to acknowledging (and embracing) the German shopping culture?
b) How did Walmart’s inability to recognize typical German business practices (such as guidelines for business trips and transferring managers after one or two years) contribute to managers leaving the company?
c) After almost 10 years out of the German retail market, suppose Walmart decided to give it another go and open retail operations in Germany. What advice would you give the company on setting up a retail organization in Germany?
4) Read the Opening Case: “Culture and Business in Saudi Arabia.” Apply and utilize (cite) the facts of the case to answer the following questions about the challenges of managing the dynamics of culture (2 points).
a) What forces shaped modern Saudi culture? How similar or different are these forces than those that shaped the culture of western nations?
b) Saudi Arabia has a long held aversion to manual labor and any behavior that might be considered menial or servile. What are the implications of this value SEE NEXT PAGE Page 1/2
system? How does it impact companies doing business in the country? How is this basic cultural tradition beginning to change? What are the long term implications of this?
c) If you were in a position to advise a Western company that was considering doing business in Saudi Arabia for the first time, what would your advice be?
d) What kinds of misunderstanding are likely to arise between an American company and a Saudi enterprise, if neither of which has experience dealing with others? Be specific in your answer.
5) Does culture change? To what extent is it possible for a company like Wal-Mart or McDonald’s to change the culture of the country in which it is doing business? What is the relationship between the culture of a country and its competitive advantage? (1 point)
6) Cultural differences influence business etiquette practices (folkways). Use the Internet to research differences in business etiquette in a country of your choice. Select two (2) countries other than the U.S. and describe two (2) rules of etiquette that are different in each of the two countries you chose compared to the U.S. (in other words, a total of four different rules of etiquette which you must compare to U.S. standards.) Be sure to identify the source. There are many websites available, such as the one indicated below. (2 points) (e.g.www.globaledge.msu.edu,http://www.executiveplanet.com/index.php?title=Main_Page ).