Chapter 2-The Cultural Environments Facing Business
49
Strategies for instituting change:
- Resistance to too much change: change so much may lead to failure.
- Participation: discuss proposed changed with people in advance.
- Reward sharing: people won’t do it unless they see some benefit for themselves.
- Value systems: the more something contradicts our value system, the harder it is to accept.
- Cost-benefit analysis of change: companies’ introduction of desired practices may be costly or inexpensive
Opinion leadership: a firm may be able to facilitate the acceptance of change.
Timing: many well-conceived changed fail because they’re ill-timed.
Learning abroad: they may learn as well as impart valuable knowledge.
How do culture form and change?
Introduction
Form by: parent to child, teacher to student, social leader to follower, peer to peer.
Change by:
-choice: a reaction to social and economic situation that present people with new views.
-imposition: such as forced changhe in laws by an occupying country.
What's culture?
Culture: based on Values. Attitudes, and beliefs of group of people.
Family –Based groups
In some countries, the most important group is the family.
Content
Dealing with cultural differences
1.Introduction-What’s culture?
2.Behavioral Affect Business
3.Company and Management Orientations
4.Deal with cultural differences
Age-Based groups
Ethnic and Racial groups
Gender-Based groups
Strategies for instituting change:
- Value systems
- Cost-benefit analysis of change
- Resistance to too much change
- Participation
- Reward sharing
- Opinion leadership
- Timing
- Learning abroad
Each country expressed its attitudes toward age in different ways- employment, driving, alcohol, cigarettes...
Country –specific differences in attitudes toward gender are sometimes quite different.
Laws may be designed to reinforce or undermine rigid stratification.
-ex. nationalities diverse in U.S.-more than 1hundred million people(out of 3.1 hundred million)
Behavioral practices Affecting business
Individual qualification and their limitations:
- Ethnic and Racial groups
- Gender –Based groups
- Age -Based groups
- Family- Based groups
Company and Management Orientations
Products
Promotions
McDonald’s 4P strategy in India
- Products localization: no beef and pork.mostly chicken and Vegetables.
- (Chapter review-behavioral affect business-Racial group)
- Breakfast Club Card :order for 50 or more to get card, Get it stamped every time to get free products.
- studied the population of prospective:online ordering and delivery services/ (review: behavioral affect business-age group: market target)
Chicken Wrap
(Rupee:TWD- 1: 0.49)
Poly centric orientation:
-Each country is unique, develops its own unique business and marketing strategies
Ethnocentric orientation:
-Home country is superior to others, leads to a standardized or extension approach.
Geocentric orientation:
- Entire world is a potential market,from a single country or sources globally to focus on select country markets. ex. McDonalds
Chapter review:Geocentric
Case study:Embracing Cultural Needs in a Global Market-
McDonald's in India
Promotions-Drive Thru VIP Car Pass
Introduction of McDonald’s VS. India
Drive Thru VIP Car Pass :order for 150 or more at any Drive Thru Counter and get a Small Coke free .
(review: behavioral affect business:age group)dad
Content
Social media -facebook
Social media :entail a marketing campaign to build up strong customers relationship via facebook.(chapter review:age group)
http://www.mcdonaldsindia.net/home.aspx
- Introduction-McDonald's VS India
- Marketing Strategies -4P
- McDonald's adjustments of facing cultural environment
- Q&A
- Conclusion
- a fast-food chain founded in 1927 by Richard Maurice McDonald.
- Number of stores: 35,000+ worldwide
- Slogan:I'm lovin' it
- First store : 1940 in California
- Second largest population (12 hundred millions ) in the world, >50% of its population is younger than 25
- Religion:Hinduism( 80.5%), Islalm
- No pork,beef, alcohol, gambling, women have to wear veils
- First store :1996 in New Delhi.
- stores in India: 300
Conclusion
Q&A
McDonald's Dealt with
cultural differences
Promotions-Toys of the Month
Toys: change new toys every month.
(chapter review: behavioral affect business-age group.kids)
McDonald’s wouldn’t have lasted a day in the country .In order to be successful , focus on cultural needs in a global market is an essential element.McDonald not only built a brand imagine but also further connecting a global trend within a localized market.
- Chapter review-
- Cost-benefit analysis of change:customized menu
- Participation:allowing Indian to create a new menu
- Timing:food restriction
- Learning abroad:send employees abroad to learn /do investigation
- Opinion leadership:team work
1.Why did McDonald’s enter India’s market so late?
-due to food restriction. However, they customized food in order to enter the market successfully.
2.What strategies did McDonald’s use in India?
-Product localization and Geographical Targeting are two strategies that can be implemented .