UCSI University
International Business
Chapter 1 (Culture)
Tutorial 1 Course Code: 304/3023 January 2024
BB304/BBB3023 International Business
Tutorial 2 (Culture and Behavioral Factors in International Business)
Question 1: “To be effective in motivating an international workforce, managers need to
understand the influence of ethnocentrism, and MNC management development and educational
programs should attempt to reduce ethnocentrism.” - Evaluate the above statement based on your
understanding.
Ethnocentricity is the belief that one’s own ethnic group or culture is superior to that of
others. It is an attitude that you think that your culture is better than other cultures. If a
businessman wants to motivate international workforce, the management needs to be honor and
respect other people cultures. Through this, management can develop cultural literacy. Cultural
literacy is a detailed knowledge about a culture that enables a person to work happily and
effectively within it. So that the workers can work in a comfortable working environment and be
respected by the top-level management people.
If we do not respect others’ beliefs, we will hurt them.
How is it affect the company?
Question 2: Define culture. Discuss the elements of Culture.重做 why and how
Culture is a set of values, beliefs, rules, and institutions held by a specific group of
people. It is the way we live. The elements of culture included values, attitudes, manners and
custom, social structure, religion, personal communication, education, physical and material
environment and aesthetics.
Values are the ideas, beliefs, and customs to which people are emotionally attached.
Values include concepts such as honesty, freedom, and responsibility. Attitudes reflect a people’s
underlying values. It is the way we express our belief. Aesthetics is what a culture considers
“good taste” in the arts. Aesthetics: what a culture considers “good taste” in the arts. Manners is
an appropriate way of behaving, speaking, and dressing in a culture are called manners. Customs
are habits or ways of behaving in specific circumstances that are passed down through
generations in a culture. Different races have different customs.
UCSI University
International Business
Chapter 1 (Culture)
Tutorial 1 Course Code: 304/3023 January 2024
Question 3: Malaysia is multiethnic and multicultural, which has a significant effect on its
politics. About half the population is ethnically Malay, with minorities of Chinese, Indians,
and indigenous peoples. The country's official language is Malaysian Malay, a standard form of
the Malay language. English remains an active second language. While recognizing Islam as the
country's established religion, the constitution grants freedom of religion to non-Muslims. The
government is modelled on the Westminster parliamentary system, and the legal system is based
on common law. The head of state is an elected monarch, chosen from among the nine state
sultans every five years. The head of government is the Prime Minister.
After independence, the Malaysian GDP grew at an average rate of 6.5% per annum for almost
50 years. The economy has traditionally been fueled by its natural resources but is expanding in
the sectors of science, tourism, commerce and medical tourism. Malaysia has a newly
industrialized market economy, ranked third-largest in Southeast Asia and 36th-largest in the
world.[15] It is a founding member of ASEAN, EAS, and OIC and a member of APEC,
the Commonwealth, and the Non-Aligned Movement.
You are considering opening a five-star hotel in Malaysia. Determine what cultural elements you
need to consider before investing in Malaysia.
If I am a businessman that want to open a five-star hotel in Malaysia, I will determine
several cultural elements so that I can do business well in Malaysia. As Malaysia is a
multiethnic and multicultural country, I will focus more on the religion of Malaysia. In Malaysia
there are three major races that are Malay, Chinese and Indian. Hence, I will learn more and
understand their culture. So that there will not be any misunderstanding or offence to them.
Integrating into local culture is a very important step if you want to do business in other
countries.
Second, I will also consider what language that use in Malaysia. It is because my
business will focus on all the people in Malaysia, hence I will use three languages when I run my
business so that it will be fair to all the citizens of Malaysia have the chance to visit my hotel.
This represent that I respect the multicultural of Malaysia. When I hire employees to work with
me, I will not exclude any person that is interested in working with me. Hiring local people has
benefits as they will perform well other than foreign employees as they grow up at here.
Lastly, I will investigate about the manner and customs of Malaysia people. Manners is
an appropriate way of behaving, speaking, and dressing in a culture are called manners. Customs
is a habits or ways of behaving in specific circumstances that are passed down through
generations in a culture. After I know the manner and customs of Malaysian people, when I train
my employees, I will tell them about this so that they will not easily offence customers and
behave well when serving them. Respect people culture is the most important things rather than
others.
UCSI University
International Business
Chapter 1 (Culture)
Tutorial 1 Course Code: 304/3023 January 2024
Question 4: Discuss the importance of cultural knowledge in international business. 每一个都要
写
The importance of cultural knowledge is to avoid ethnocentricity. If you want to do
business in other countries, we need to understand the culture of the countries. What is the living
style of local people. For example, when they start working and what major festival that the
country has. As to avoid the concept that you think your culture is better than theirs because you
come from developed country and they just only a developing countries so you generated a
concept that their standard are lower than you. To let your business success in international
markets, you need to respect other people’s cultures. As that is their style. You need to know
more and learn more so that you can collaborate with them easily and successfully.
Question 5: Discuss “Hofstede Framework” to provide deep insight on workplace Culture.
Power distance, the degree to which members of a society accept differences in power
and authority. In societies with high power distance, people are more likely to accept that power
inequality is good and acceptable. People in high power distance societies are more likely to
accept that there are some powerful people who are in charge and that these people are entitled to
special benefits. In contrast, societies with low power distance tend to consider that all members
are equal.
Individualism refers to the degree to which a society focuses on the relationship of the
individual to the group. Collectivism refers to the degree to which a society focuses on the
relationship of the group as a whole. In societies with high individualism (or low collectivism)
scores, individuals are valued for their achievements and are rewarded and recognized for such
achievements. In contrast, people who live in societies with low individualism (high
collectivism) are seen as being part of a wider group, known as the in-group. The in-group
includes the family, team, or social class, and how individuals relate to such wider groups is seen
as important to their success.
Uncertainty avoidance, the degree to which people in a society are comfortable with risk,
uncertainty, and unpredictable situations. People in high uncertainty avoidance societies tend to
want to avoid uncertainty and unpredictability. As a result, work environments in such countries
try to provide stability and certainty through clear rules and instructions. In contrast, societies
with low uncertainty avoidance are comfortable with risk, change, and unpredictability. In these
countries, risky and ambiguous situations are less likely to upset people.
UCSI University
International Business
Chapter 1 (Culture)
Tutorial 1 Course Code: 304/3023 January 2024
Masculinity, the degree to which a society emphasizes traditional masculine qualities
such as advancement and earnings. In addition, masculine societies emphasize earnings and
achievements, and employees tend to work very long hours and take very little vacation time.
Lower masculinity as reflected in the importance of leisure in these societies.
The long-term orientation vs. short-term orientation dimension considers the extent to
which society views its time horizon. Societies that emphasize long-term orientation prioritize
future outcomes, postponing immediate success for achievements over the long term. Short-term
orientation shows focus on the near future, involve delivering short-term success or gratification,
and place a stronger emphasis on the present than the future. Short-term orientation emphasizes
quick results and respect for tradition.
The indulgence vs. restraint dimension considers the extent and tendency for a society to
fulfill its desires. Indulgence indicates that society allows relatively free gratification related to
enjoying life and having fun. Restraint indicates that society suppresses gratification of needs
and regulates it through social norms. In a society characterized by high indulgence, you may see
individuals allocating more funds to luxuries and relishing greater freedom in their leisure
pursuits. Conversely, within a restrained society, the inclination leans towards thrift, savings, and
practical necessities.
Question 5: Demonstrate how firms and culture interact in the global marketplace.
Cultural adaptation in infirm covers both organizational and country cultures and
customs. It helps organizations gain a better grasp of how local companies and the workforce
operate. First, it help the firm entry into new markets. International business entails accessing
new markets. Companies must be sensitive to diverse cultures while working with overseas
clients or developing a marketing strategy for their foreign divisions. Business leaders should
begin by researching the local market's beliefs, values, and habits. Next is able to business
negotiations. Distinct cultures hold distinct perspectives on commercial negotiations. While
some see a negotiation as a contract signed by both sides, others see it as the start of a solid
corporate partnership. As a result, you must grasp how the other party perceives the objective of
the negotiation, whether they want to establish a long-term beneficial relationship or treat it as a
one-time transaction. Then, is team organization. Culture influences how organizations negotiate
transactions. Whether the culture encourages hierarchical positions or social equality, these ideals
influence all parties involved in a commercial transaction. As a result, company executives must
grasp how diverse teams organize and make decisions.
Question 6: “A visual depiction of culture would resemble an iceberg”. Explain the statement.
The iceberg model is a metaphor for defining organizational culture and demonstrating
how behaviors may reveal underlying cultural meaning. An iceberg has less mass above the
UCSI University
International Business
Chapter 1 (Culture)
Tutorial 1 Course Code: 304/3023 January 2024
water's surface (visible) than below the water's surface (typically unseen). The primary premise
behind the iceberg model is that, like a real iceberg, there are apparent things in any culture, such
as observable behaviors, but inside a group or organization, there are numerous things that lay
beneath the surface, and these behaviors.
Question 7: Illustrate Kluckhohn-Strodtbeck Framework of workplace culture.
Kluckhohn-Strodtbeck Framework
Relation to nature
In the workplace, this dimension refers to how people and organisations interact
with the natural environment. Employees at a firm that values environmental
sustainability, for example, may be urged to reduce waste, save resources, and
implement ecologically friendly activities. Alternatively, in organisations with a
more industrial or technological orientation, nature may be viewed as a resource to
be harnessed for economic advantage or innovation.
Time orientation
Cultures influence how employees perceive and prioritize time. Future-focused
cultures prioritize long-term goals and strategic planning, while present-oriented
cultures prioritize immediate results and current needs. Startups prioritize short-
term gains, while traditional companies focus on stability and long-term growth.
Trust and control
The component of trust and control in a corporate culture is critical to employee
morale, autonomy, and creativity. High-trust cultures promote decentralized
decision-making, employee empowerment, and cooperation, whereas control
cultures place an emphasis on hierarchical structures and tight protocols. These
dynamics have a substantial influence on an organization's overall success.
Material or spiritual
The emphasis on financial prosperity and observable outcomes, as opposed to
spiritual happiness and intangible ideals, can have an impact on workplace culture.
Material achievement can be honored with monetary incentives, promotions, and
status symbols, while personal development and meaning can be prioritized. For
UCSI University
International Business
Chapter 1 (Culture)
Tutorial 1 Course Code: 304/3023 January 2024
example, a technological firm may prioritize stock options and financial incentives,
whereas a non-profit may prioritize spiritual fulfilment.
Responsibility to others
The component of responsibility in society relates to how individuals and
organizations are held accountable for the well-being of others. A responsible
workplace culture may prioritize initiatives such as corporate social responsibility,
community involvement, and philanthropy, whereas a self-interested culture may
prioritize personal achievement, influencing corporate values, employee
engagement, and external perception.
Public or private activities
The separation of the public and private realms has an impact on the cultural
dimension of work-life balance. Work-life balance is rigidly defined in certain
cultures, whereas it is more fluid in others, resulting in intimate connections and
shared experiences. This factor influences communication standards, work-life
balance, and employee well-being within an organization.
HOFSTEDE FRAMEWORK
Individualism versus collectivism. This dimension identifies the extent to
which a culture emphasizes the individual versus the group. Individualist
cultures (those scoring high on this dimension) value hard work and
promote entrepreneurial risk-taking, thereby fostering invention and
innovation. Although people are given freedom to focus on personal goals,
they are held responsible for their actions. That is why responsibility for
poor business decisions is placed squarely on the shoulders of the
individual in charge. At the same time, higher individualism might be
responsible for higher rates of employee turnover. You can see how a
sample of nations scored on this and the remaining Hofstede dimensions.
People in collectivist cultures (those scoring low on this dimension) feel a
strong association to groups, including fami ly and work units. The goal of
maintaining group harmony is probably most evident in the family
structure. People in collectivist cultures tend to work toward collective
UCSI University
International Business
Chapter 1 (Culture)
Tutorial 1 Course Code: 304/3023 January 2024
rather than personal goals and are responsible to the group for their actions.
In tum, the group shares responsibility for the well-being of each of its
members. Thus, in collectivist cultures, success or failure tends to be
shared among the people in the work unit, rather than any individual
receiving all the praise or blame. All social, political, economic, and legal
institutions reflect the group's critical role.
2. Power distance. This dimension conveys the degree to which a culture
accepts social inequality among its people. A culture with large power
distance tends to be characterized by much inequality between superiors
and subordinates. Organizations tend also to be more hierarchical, with
power deriving from prestige, force, and inheritance. Executives
and upper management in cultures with large power distance often enjoy
special recognition and privileges. On the other hand, cultures with
small power distance display a greater degree of equality, with prestige
and rewards more equally shared between superiors and subordinates.
Power in these cultures is seen to derive more from hard work and
entrepreneurial drive and is therefore often considered more legitimate.
3. Uncertainty avoidance. This dimension identifies the extent to which
a culture avoids uncertainty and ambiguity. A culture with large
uncertainty avoidance values security and places its faith in strong
systems of rules and procedures in society. Not surprisingly, perhaps,
cultures with large uncertainty avoidance normally have lower employee
turnover, more formal rules for regulating employee behavior, and more
difficulty implementing change. Cultures scoring low on uncertainty
avoidance tend to be more open to change and new ideas. This helps
explain why individuals in this type of culture tend to be entrepreneurial
and organizations tend to welcome the best business practices from other
cultures. Because people tend to be less fearful of change, however,
these cultures can also suffer from higher levels of employee turnover.
UCSI University
International Business
Chapter 1 (Culture)
Tutorial 1 Course Code: 304/3023 January 2024
4. Masculinity versus femininity. This dimension captures the extent to
which a culture emphasizes masculinity versus femininity. According to
Hofstede, cultures scoring high on masculinity tend to be characterized
more by personal confident and the accumulation of wealth, typically
translating into an entrepreneurial drive. Cultures scoring low on this
dimension (greater tendency toward femininity) generally have more
relaxed lifestyles, wherein people are more concerned about caring for
others as opposed to material gain.
5. Long-term orientation. This dimension indicates a society's
perception of time and its attitudes about overcoming obstacles with
time, if not with will and strength. It attempts to capture the differences
between Eastern and Western cultures. A high-scoring culture (strong
long-term orientation) values respect for tradition, thrift, perseverance,
and a sense of personal shame. These cultures tend to have a strong
work ethic because people expect long-term rewards from today's hard
work. A low-scoring culture is characterized by individual stability and
reputation, fulfillment of social obligations, and reciprocation of
greetings and gifts. These cultures can change more rapidly because
tradition and commitment are not insurmountable impediments to
change.
6. Indulgence versus restraint. This dimension captures the extent to
which a society allows free expression. An indulgent society (one
scoring high on this dimension) allows people to rather freely satisfy
human needs related to enjoying life and having fun. By contrast,
a restrained society uses varying degrees of social norms to suppress the
free satisfaction of such needs. Indulgent societies tend to value
individual happiness, leisure, freedom, and personal control. Restrained
societies are less concerned with each of these and tend to believe that
certain aspects of life are predestined. Employees in an indulgent society
might be more forthcoming with frank opinions and more likely to quit
UCSI University
International Business
Chapter 1 (Culture)
Tutorial 1 Course Code: 304/3023 January 2024
an unsatisfying job. And whereas service workers in indulgent societies
are expected to offer customers a genuine smile and friendly attitude,
such overt expressions could appear artificial in a restrained society.