LSUS MBA 776 Darrat Exam 2: Questions With Expert
Solutions
Culture and Business Systems Correct Answer - • Culture impacts
business mgmt style
• Business culture, mgmt values, business methods, & behavior
• Est criteria for day-to-day business behavior
• Forms general patterns of values & motivations
• Cultural analysis & understanding give competitive edge
• Business etiquette CRUCIAL
10 criteria to do business in a foreign country: Correct Answer - 1. Open
tolerance
2. Flexibility
3. Humility
4. Justice/fairness
5. Ability to adjust to varying tempos
6. Curiosity/interest
7. Knowledge of the country
8. Liking for others
9. Ability to command respect
10. Ability to integrate oneself into the environment
Adaptation, or at least accommodation, is a crucial concept in international
marketing. This includes open tolerance and affirmative acceptance.
3 Types of Business Customs: Correct Answer - Cultural Imperatives
Cultural Electives
Cultural Exclusives
Cultural Imperatives Correct Answer - Business customs and
expectations that must be met and conformed to or avoided. "must do" things
in another culture, such as meeting and greeting, or exchange of business
cards in Asian cultures (e.g., China, Japan, and Korea).
Cultural electives: Correct Answer - Behavior or customs that cultural
aliens may wish to conform to or participate in, but not required. optional
activities that a foreigner may or may not want to engage in, such as drinking
aperitifs (strong alcoholic drinks) before lunch in the Czech Republic or coffee
,in Saudi Arabia. No offense is taken if one refuses to participate in these
cultural customs.
Cultural exclusives Correct Answer - • Customs or behaviors that
foreigners are barred from and must not participate in. In general, politics and
religion are taboo in conversations in many cultures, particularly for
foreigners. In Mexico, McDonald's used the national symbol of the Mexican
flag on paper placemats and insulted the people (as you treat anything with
the national symbol with the utmost respect). These are cultural exclusives,
things you never engage in or do when in another culture. (EX: handshakes,
kisses, hugs, bows)
American management style/values (business culture, management values, &
business methods & behaviors):
Why focus on American Culture? Correct Answer - • Important for
Americans to be aware of the elements of culture influencing decisions and
behaviors.
• For those new to American culture, it is useful to better understand business
associates from the U.S., as the U.S. market is the biggest export market in the
world.
• Since the late 1990s, American business culture has been exported around
the world.
• For Americans, self-awareness will help adapt to working with associates in
other cultures. This knowledge will help everyone be more patient while
conducting business across borders. American business culture has been
exported around the world, just as in the 1980s Japanese management
practices were imitated almost everywhere.
Impact of U.S. culture on management style: Correct Answer - • "Master
of destiny" viewpoint.
• Independent enterprise as instrument of social action.
• Personnel selection and reward based on merit.
• Decisions based on objective analysis.
• Wide sharing in decision making.
• Never-ending quest for improvement.
• Competition produces efficiency.
American culture is based on a few basic premises, such as rewards based on
merit and not group performance. Decisions are made objectively not
,subjectively. Also, it is a competitive business environment where continuous
improvement is the goal.
Management Styles Around the World: Correct Answer - • Authority &
Decision-Making:
~ Power Distance Index (PDI): influences approach to authority
~ High-PDI countries: subordinates less likely to contradict boss
~ Low-PDI countries: subordinates often challenge boss
Because of the diverse structures, management values, and behaviors
encountered in international business
3 Authority Patterns in Decision-Making: Correct Answer - 1. Top-level
mgmt decisions
2. Decentralized decisions
3. Committee or group decisions
• Management Objectives & Aspirations: Correct Answer - Personal
security and job mobility relate directly to basic human motivation and
therefore have widespread economic and social implications. The word
security is somewhat ambiguous, and this very ambiguity provides some clues
to managerial variation. To some, security means a big paycheck and the
training and ability required for moving from company to company within the
business hierarchy; for others, it means the security of lifetime positions with
their companies; to still others, it means adequate retirement plans and other
welfare benefits.
To Japanese, personal life=company life; affiliation & social acceptance; power
& achievement. Japanese work ethic—maintenance of a sense of purpose—
derives from company loyalty and frequently results in the Japanese employee
maintaining identity with the corporation. Group identification is strong in
Japan. Mitsubishi has a corporate mausoleum, where employees' ashes may
rest with those of colleagues, extending company loyalty from cradle to grave.
power seems to be a more important motivating force in South American
countries. business leaders are not only profit oriented but also use their
business positions to become social and political leaders
Communication Styles Correct Answer - • language is the basic
communication tool of marketers trading in foreign lands
, ~ Edward T. Hall's "Silent Languages"; time, place, things, friendships,
agreements. They are non-spoken and symbolic meanings of time, space,
things, friendships, agreements, and how they vary across cultures; from
Hall's seminal article "The Silent Language of Business."
Face to face communication: Meanings of words differ widely among
languages
o (Halls) High-context continuum: Correct Answer - heavy dependence
on nonverbal communication. contextual (who says it, when it is said, how it is
said)
(Halls) Low-context: continuum Correct Answer - o heavy dependence
on explicit, verbal communication
Studies note a strong relationship between Hall's high-/low-context and
Hofstede's Individualism/Collective and Power Distance indices. EX: low-
context American culture scores relatively low on power distance and high on
individualism, whereas high-context Arab cultures score high on power
distance and low on individualism.
Internet Communications Correct Answer - ~ Once message is posted,
can be read anywhere at any time.
o High opportunity for miscommunication
o Loss of contextual information
• Formality & Tempo: Correct Answer - Common mistakes North
Americans make in business.
~ too relaxed in formality; addressing clients and co-workers by first name.
~ Too hasty and impatient in "getting down to business".
Tempo impacted by cultural view of time. Correct Answer -
Monochromatic and Polychronic
Monochromatic Correct Answer - linear view, time is important,
promptness. most North Americans, Swiss, Germans, and Scandinavians.
These Western cultures tend to concentrate on one thing at a time. Most low-
context cultures operate on M-time.
Solutions
Culture and Business Systems Correct Answer - • Culture impacts
business mgmt style
• Business culture, mgmt values, business methods, & behavior
• Est criteria for day-to-day business behavior
• Forms general patterns of values & motivations
• Cultural analysis & understanding give competitive edge
• Business etiquette CRUCIAL
10 criteria to do business in a foreign country: Correct Answer - 1. Open
tolerance
2. Flexibility
3. Humility
4. Justice/fairness
5. Ability to adjust to varying tempos
6. Curiosity/interest
7. Knowledge of the country
8. Liking for others
9. Ability to command respect
10. Ability to integrate oneself into the environment
Adaptation, or at least accommodation, is a crucial concept in international
marketing. This includes open tolerance and affirmative acceptance.
3 Types of Business Customs: Correct Answer - Cultural Imperatives
Cultural Electives
Cultural Exclusives
Cultural Imperatives Correct Answer - Business customs and
expectations that must be met and conformed to or avoided. "must do" things
in another culture, such as meeting and greeting, or exchange of business
cards in Asian cultures (e.g., China, Japan, and Korea).
Cultural electives: Correct Answer - Behavior or customs that cultural
aliens may wish to conform to or participate in, but not required. optional
activities that a foreigner may or may not want to engage in, such as drinking
aperitifs (strong alcoholic drinks) before lunch in the Czech Republic or coffee
,in Saudi Arabia. No offense is taken if one refuses to participate in these
cultural customs.
Cultural exclusives Correct Answer - • Customs or behaviors that
foreigners are barred from and must not participate in. In general, politics and
religion are taboo in conversations in many cultures, particularly for
foreigners. In Mexico, McDonald's used the national symbol of the Mexican
flag on paper placemats and insulted the people (as you treat anything with
the national symbol with the utmost respect). These are cultural exclusives,
things you never engage in or do when in another culture. (EX: handshakes,
kisses, hugs, bows)
American management style/values (business culture, management values, &
business methods & behaviors):
Why focus on American Culture? Correct Answer - • Important for
Americans to be aware of the elements of culture influencing decisions and
behaviors.
• For those new to American culture, it is useful to better understand business
associates from the U.S., as the U.S. market is the biggest export market in the
world.
• Since the late 1990s, American business culture has been exported around
the world.
• For Americans, self-awareness will help adapt to working with associates in
other cultures. This knowledge will help everyone be more patient while
conducting business across borders. American business culture has been
exported around the world, just as in the 1980s Japanese management
practices were imitated almost everywhere.
Impact of U.S. culture on management style: Correct Answer - • "Master
of destiny" viewpoint.
• Independent enterprise as instrument of social action.
• Personnel selection and reward based on merit.
• Decisions based on objective analysis.
• Wide sharing in decision making.
• Never-ending quest for improvement.
• Competition produces efficiency.
American culture is based on a few basic premises, such as rewards based on
merit and not group performance. Decisions are made objectively not
,subjectively. Also, it is a competitive business environment where continuous
improvement is the goal.
Management Styles Around the World: Correct Answer - • Authority &
Decision-Making:
~ Power Distance Index (PDI): influences approach to authority
~ High-PDI countries: subordinates less likely to contradict boss
~ Low-PDI countries: subordinates often challenge boss
Because of the diverse structures, management values, and behaviors
encountered in international business
3 Authority Patterns in Decision-Making: Correct Answer - 1. Top-level
mgmt decisions
2. Decentralized decisions
3. Committee or group decisions
• Management Objectives & Aspirations: Correct Answer - Personal
security and job mobility relate directly to basic human motivation and
therefore have widespread economic and social implications. The word
security is somewhat ambiguous, and this very ambiguity provides some clues
to managerial variation. To some, security means a big paycheck and the
training and ability required for moving from company to company within the
business hierarchy; for others, it means the security of lifetime positions with
their companies; to still others, it means adequate retirement plans and other
welfare benefits.
To Japanese, personal life=company life; affiliation & social acceptance; power
& achievement. Japanese work ethic—maintenance of a sense of purpose—
derives from company loyalty and frequently results in the Japanese employee
maintaining identity with the corporation. Group identification is strong in
Japan. Mitsubishi has a corporate mausoleum, where employees' ashes may
rest with those of colleagues, extending company loyalty from cradle to grave.
power seems to be a more important motivating force in South American
countries. business leaders are not only profit oriented but also use their
business positions to become social and political leaders
Communication Styles Correct Answer - • language is the basic
communication tool of marketers trading in foreign lands
, ~ Edward T. Hall's "Silent Languages"; time, place, things, friendships,
agreements. They are non-spoken and symbolic meanings of time, space,
things, friendships, agreements, and how they vary across cultures; from
Hall's seminal article "The Silent Language of Business."
Face to face communication: Meanings of words differ widely among
languages
o (Halls) High-context continuum: Correct Answer - heavy dependence
on nonverbal communication. contextual (who says it, when it is said, how it is
said)
(Halls) Low-context: continuum Correct Answer - o heavy dependence
on explicit, verbal communication
Studies note a strong relationship between Hall's high-/low-context and
Hofstede's Individualism/Collective and Power Distance indices. EX: low-
context American culture scores relatively low on power distance and high on
individualism, whereas high-context Arab cultures score high on power
distance and low on individualism.
Internet Communications Correct Answer - ~ Once message is posted,
can be read anywhere at any time.
o High opportunity for miscommunication
o Loss of contextual information
• Formality & Tempo: Correct Answer - Common mistakes North
Americans make in business.
~ too relaxed in formality; addressing clients and co-workers by first name.
~ Too hasty and impatient in "getting down to business".
Tempo impacted by cultural view of time. Correct Answer -
Monochromatic and Polychronic
Monochromatic Correct Answer - linear view, time is important,
promptness. most North Americans, Swiss, Germans, and Scandinavians.
These Western cultures tend to concentrate on one thing at a time. Most low-
context cultures operate on M-time.
