Culture and Management Styles Quiz

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Questions and Answers

What are cultural imperatives?

Behaviors that outsiders can choose to follow

Customs that must be followed for successful relationships (correct)

Optional behaviors in business interactions

Practices exclusive to local populations

Which statement best describes cultural electives?

They are enforced customs that everyone must follow.

They represent universally accepted practices in business.

They are exclusive to local culture with no room for adaptation.

They are behaviors that outsiders may choose to participate in. (correct)

Cultural exclusives are defined as:

Behaviors outsiders can adopt at their discretion.

Customs exclusive to locals that outsiders cannot participate in. (correct)

Broad marketing strategies that apply to all cultures.

Optional engagements in local traditions for outsiders.

Which of the following would NOT typically be considered a cultural imperative?

The choice of attire for business meetings. Signup and view all the answers

Which management style factor is influenced by cultural perspectives?

The formality of business meetings. Signup and view all the answers

What characterizes high Power Distance Index (PDI) countries in terms of employee behavior?

Employees rarely contradict their bosses. Signup and view all the answers

Which authority pattern is primarily associated with centralized decision-making?

Top-level management decisions. Signup and view all the answers

What is a typical behavior of American business relationships?

Characterized by breezy informality and haste. Signup and view all the answers

In what way do low-context cultures primarily communicate?

They rely heavily on explicit and verbal communication. Signup and view all the answers

What distinguishes monochronic time (M-Time) cultures?

They concentrate on one task at a time and value punctuality. Signup and view all the answers

What does the concept of P-time indicate in relation to cultural attitudes toward time?

It focuses on the simultaneous occurrence of multiple activities. Signup and view all the answers

How does market orientation relate to company profits?

It positively correlates with customer satisfaction. Signup and view all the answers

What mistake do Americans often make when conducting business in Middle and Far East?

They exhibit haste and impatience. Signup and view all the answers

What is the primary challenge firms face in moving to a marketing orientation?

Resistance to change across diverse business units Signup and view all the answers

What does bribery involve in international business?

Voluntarily offered payments for an unlawful advantage Signup and view all the answers

How does extortion differ from bribery?

Bribery occurs without coercion, while extortion is under duress. Signup and view all the answers

What is one key reason that leads to bribery in international business?

Cultural acceptance of gift-giving Signup and view all the answers

What type of bribery involves smaller sums of money to low-ranking officials?

Lubrication Signup and view all the answers

What is the purpose of the Organization for Economic Cooperation and Development (OECD) in relation to international business?

To combat bribery of foreign public officials Signup and view all the answers

Which ethical principle focuses on whether actions respect human rights?

Rights of the Parties Signup and view all the answers

What is an example of a challenge in making ethical decisions in international business?

Consumer protection issues Signup and view all the answers

Subornation in the context of bribery refers to:

Large sums of money offered to commit illegal acts Signup and view all the answers

Why might companies struggle with establishing a marketing orientation?

Diverse business unit practices Signup and view all the answers

Study Notes

Culture, Management Style, and Business Systems

Imperatives, Electives, and Exclusives
- Cultural Imperatives: Business customs and expectations that must be met and followed for successful relationships. A person's demeanor is sometimes more critical than in other cultures. Imperatives vary greatly from culture to culture.
- Cultural Electives: Customs or behaviors that cultural individuals may choose to follow or participate in. An elective in one place may be an imperative in another.
- Cultural Exclusives: Customs or behaviors reserved for locals; culturally exclusive practices

Management Styles around the world

Authority and Decision Making
- High Power Distance Index (PDI) Countries: Employees are less likely to contradict their boss and knowing a business partner's rank is crucial.
- Low PDI Countries: Authority patterns are typically top-level management decisions (centralized), decentralized decisions, or committee or group decisions.
Formality and Tempo
- American business relationships are often characterized by informality and haste.
- Europeans may not always be as informal as Americans or be as concerned with speed.
- Higher PDI differences may cause business misunderstandings.
- Haste and impatience are common mistakes for Americans in some Middle Eastern and Far Eastern countries.
P-Time versus M-Time
- Monochronic (P-Time): Focuses on one task at a time, divides time into small units, values promptness.
- Polychronic (M-Time): Dominant in high-context cultures, characterized by the simultaneous occurrence of many tasks, allows for relationships and context build-up.
- Most cultures use a combination of P-Time and M-Time, though.
- Global markets are causing P cultures to adjust to M-time.
Communication Style
- High Context Culture: Values nonverbal communication. Relies on contextual cues (who said it, when, and how)
- Low Context Culture: Relies heavily on explicit and verbal communication.
Marketing Orientation
- Extent of a company's market orientation is positively related to profits (profits are a byproduct of customer satisfaction).
- Firms in several countries have difficulty making the shift from traditional product and sales-oriented approaches to market-based ones.
- It can be challenging to promote a marketing orientation through diverse global business units.

Business Ethics

Corruption
- Corruption is a difficult concept.
- Criticism of Barbie: Sales declined after global standardization.
- Gifts as part of the culture: the decision to pay a bribe creates a conflict between ethical practice and profitability.
- Organizations working to combat bribery: OECD and Transparency International.
Bribery: Variations on a Theme
- Bribery: a voluntarily offered payment by someone seeking unlawful advantage.
- Extortion: payments extracted under duress.
- Lubrication (greasing the palm): relatively small sum given to lower-ranking officials.
- Subornation: large sums of money to high-ranking officials to commit illegal actions.
- Agent's fees: When uncertainty exists with a country's rules and regulations, an agent is hired to represent the company.
- Transparency International Bribe Payers Index: Ranks countries according to perceived tendencies to engage in bribery.

Ethical and Socially Responsible Decisions

Difficulties in decision-making: employment practices, consumer protection, environmental protection
Ethical principles: Distinguishing between ethical versus unethical practices. Utilitarianism (common good). Rights of parties (human rights). Fairness or justice (fairness to all parties).

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Description

This quiz explores the relationship between culture, management styles, and business systems in different regions. It covers cultural imperatives, electives, and exclusives, as well as authority and decision-making processes across varying power distance indexes. Test your knowledge on how culture influences management.