INDIVIDUALISM There are 4 countries that have collectivistic societies. This is manifest in a close long-term commitment to the member “group”. India has both collectivistic and individualistic societies. In Indian society, the Individualist aspect is seen as a result of Hinduism. MASCULINITY Korea and Vietnam have Feminine societies. The focus is on “working in order to live”, managers strive for consensus, people value equality, solidarity and quality in their working lives. Conflicts are resolved by compromise and negotiation. Incentives such as free time and flexibility are favored. Focus is on well-being, status is not shown. In Masculine countries, the focus is on success and achievements, validated by material gains. Work is the center of one’s life and visible symbols of success in the workplace are very important. India is actually very Masculine. Indonesia is considered low Masculine. In Indonesia status and visible symbols of success are important but it is not always material gain that brings motivation. And Brazil
[SLIDE 1] Good morning teacher and all the students in our class My name is … Today, on behalf of group 1, I’m the first one to start our presentation Our group has members [SLIDE 2] Our presentation is divided into parts as you can see on the slide [SLIDE 3] PART I SUMMARIZE WHAT WE’VE LEARNED FROM CHAPTER [SLIDE 4] About culture - Culture is a system of values and norms that are shared among a group of people and that when taken together constitute a design for living - Differences in cultural values may result in varying management practices - Cultural characteristics: Learned, shared, trans-generational, symbolic, patterned, adaptive [SLIDE 5] About How cultural affects managerial approaches - Centralized vs Decentralized Decision Making - Safety vs Risk - Individual vs Group Rewards - Informal vs Formal Procedures - High vs Low Organizational Loyalty - Cooperation vs Competition - Short-term vs Long-term Horizons - Stability vs Innovation [SLIDE 6] About Culture Dimensions: The first is Hofstede’s six cultural dimensions: They are: - Power distance - Uncertainty avoidance - Individualism vs Collectivism - Masculinity vs Femininity - Long-term vs Short-term orientation - Indulgence vs Restraint [SLIDE 7] The second is Trompenaars’ cultural dimensions: They are: - Universalism vs Particularism - Individualism vs Communitarianism - Neutral vs Emotional - Specific vs Diffuse - Achievement vs Ascription - Sequential vs Synchronous - Inner-directed vs Outer-directed - Present vs Future [SLIDE 8] PART II INTERNET EXERCISE: SAMSUNG [SLIDE 9] Samsung is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul It comprises numerous affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean chaebol With a system of subsidiaries, Samsung reaches out to many different fields and industries from electronics, industrial electricity, construction, defense to advertising, marketing, or entertainment,… [SLIDE 10] We are going to compare countries that Samsung’s factories reside Source: Hofstede Insights Power Distance Individual Masculinit Uncertaint Long-term Indulgenc ism vs y vs y vs Shorte vs Collectivis Femininit avoidance term Restraint m y orientatio n South Korea High Collectivist ic Feminine High Pragmatic Restrainted Vietnam High Collectivist ic Feminine Low Pragmatic Restrainted Indonesia High Collectivist ic Low Masculine Low Pragmatic Restrainted India High Collectivist ic and Individuali stic Masculine Low Undetermi Restrainted ned Brazil High Collectivist ic Masculine and Feminine High Pragmatic and Normative Indulgent As we can see on the chart and the table: POWER DISTANCE All of the countries have hierarchical societies but Korea is more slightly than the others Indonesia and India have the highest hierarchical societies INDIVIDUALISM There are countries that have collectivistic societies This is manifest in a close long-term commitment to the member “group” India has both collectivistic and individualistic societies In Indian society, the Individualist aspect is seen as a result of Hinduism MASCULINITY Korea and Vietnam have Feminine societies The focus is on “working in order to live”, managers strive for consensus, people value equality, solidarity and quality in their working lives Conflicts are resolved by compromise and negotiation Incentives such as free time and flexibility are favored Focus is on well-being, status is not shown In Masculine countries, the focus is on success and achievements, validated by material gains Work is the center of one’s life and visible symbols of success in the workplace are very important India is actually very Masculine Indonesia is considered low Masculine In Indonesia status and visible symbols of success are important but it is not always material gain that brings motivation And Brazil places importance on Masculine and Feminine aspects of life UNCERTAINTY AVOIDANCE Korea is one of the most uncertainty-avoiding countries in the world Countries like Korea maintain rigid codes of belief and behavior and are intolerant of unorthodox behavior and ideas Brazil also has a high UAI, showing a strong need for rules and elaborate legal systems to structure life The individuals need to obey these laws but are weak If rules cannot be kept, additional rules are dictated Vietnam, Indonesia and India have low preferences for avoiding uncertainty Low UAI societies maintain a more relaxed attitude in which practice counts more than principles and deviance from the norm is more easily tolerated LONG-TERM ORIENTATION In societies with a pragmatic orientation, people believe that truth depends very much on the situation, context and time Korea is one of the most pragmatic, longterm-oriented societies People live their lives guided by virtues and practical good examples Vietnam and Indonesia also have pragmatic cultures Brazil goes with both pragmatic and normative culture In India, a dominant preference in culture cannot be determined In India, there is an acceptance that there are many truths and often depends on the seeker INDULGENCE Cultures of Korea, Vietnam, Indonesia and India are characterized as Restrained These societies have a tendency to cynicism and pessimism Restrained societies not put much emphasis on leisure time and control the gratification of their desires Brazil, an indulgent society, generally exhibits a willingness to realize their impulses and desires with regard to enjoying life and having fun They possess a positive attitude and have a tendency towards optimism They place a higher degree of importance on leisure time, act as they please and spend money as they wish [SLIDE 11] Question 1: How you think cultural differences affect the way the firm operates in Vietnam and in South Korea? [SLIDE 12] First, let’s take a look at the table that compares Vietnam and Korea cultures in detail Đoạn dừng khoảng 5-7s [SLIDE 13] During the operation, most of Samsung Korea’s culture is still applied to Samsung Vietnam However, because the cultures of the two countries are different, the operation method between Samsung Vietnam and Samsung Korea has different points Uncertainty avoidance: Korean culture has a high uncertainty avoidance It is from these cultural influences that Samsung always strives to minimize the influence of the external environment and stabilize the organization In order to create high stability in the enterprise, the company focuses on the management of the organizational apparatus, the authority of the leaders and the behavioral culture in the enterprise Even in a Korean article, it is also said that Samsung has a "patriarchal" corporate culture, especially in company behaviors such as rules, regulations and procedures, and dress must be neat, the plan set out must be really detailed Meanwhile, Vietnam's uncertainty avoidance score is only 30 points One of the bad qualities of Vietnamese workers is that they are still stubborn, rubbery, not disciplined enough, and have limited knowledge Therefore, when operating in Vietnam, Samsung must supervise employees working daily, constantly checking for product errors Enhance more stages of goods inspection Long-term orientation As the largest corporation in Korea, Samsung always has long-term orientations, clearly defined goals to maintain its position When making strategic planning decisions, Samsung always looks to corporate traditions from which to create evolving business plans When operating in Vietnam, Samsung requires workers to timekeeping, update information daily, continuously recruit and train new employees Follow up, supervise all departments to ensure that products are delivered on time and in line with quality expectations, production costs as well as time costs Plan, target actions for the team and for each employee by month, by day based on assigned results [SLIDE 14] Question 2: In what way is culture a factor in mobile phones sales? [SLIDE 15] Culture can influence an individual’s interaction with a product and ultimately the purchase Cultural differences across countries affect mobile phone sales The Power distance and Individualism dimensions are identified as the interest variable Consumers from cultures with high power distance tend to believe in large market-share mobile phone brands since the dominant brand has achieved what it has because it is the best and one should not question it The power distance dimension is related to uncertainty avoidance, meaning that it is more difficult for new entrants to compete in a market that belongs to a large power distance culture because their members are not willing to risk switching to an unknown brand Collectivistic cultures also tend to form brand loyal consumers since collective orientation has implications for consumer attitude formation and brand loyalty and ensures the survival of the dominant brand Conformity to the group plays a role: when an individual chooses another brand than the group members or switches brands, it distinguishes this person from the group So, it is preferable to choose the popular or perceived popular brands [SLIDE 16] For example, in Korea, a country with high power distance and has collectivistic culture, consumers have a tendency of national bias due to collectivistic culture That's why Samsung always controls more than 50% of the smartphone market share in South Korea Is it possible for a mobilephones company to transcend national culture and produce a global mobilephone that is accepted by people in every culture Samsung is a corporation that knows how to take advantage of the factors and competitive advantages of its company compared to its competitors to bring its products to the global market They tend to standardize their products by creating unique designs along with the constant upgrading of technology and technology for their products to make the Samsung brand widely known Samsung Electronics developed a global strategy +) the Korean company develops experience curve economies using its experience from its different activities it learns from the difficulties in some markets to apply the solutions found to the next challenge Regarding its activities, it is capable of selling its products in every market without modification For example, chips and memory are standard for all of its enterprise customers Products intended for end customers must have minimal local variation With a few investments, SS ensures its presence everywhere Differences in consumer tastes and preferences are crucial if a company wants to reach customers However, it is expensive and unnecessary in industries such as tech-electronics +) Samsung does massive economies of scale with standardized products standardize most end customer products to fit most countries In fact, one of the main challenges is approaching the needs of local customers with minimal modifications and minimal costs When the market has special needs, SS will adapt its products quickly It only has to adapt a few parts +) The cultural differences appear reflected especially in the product’s characteristics, such as accessories, network, and camera, with users expressing different concerns For Instance, Indians are more concerned with the screen, Australians with the accessories,while South Africans have mentioned both network capabilities and accessories.However, the fact that smartphones are currently globalized products combined with their continuous size evolution (first shrinking, then flattening) leads users in the three countries to show concerns with size This shows that some features are already globalized concerns for users worldwide → Conclusion: Therefore, It is possible for Samsung to transcend national culture and produce a global mobilephone that is accepted by people in every culture Partly because it is a technology product, it is almost not culturally impeded And it is also a new trend, especially in the current global integration context, the demand for smart products by people of all cultures is also increasing On the other hand, As can be seen, standardization may be the most feasible option, but in reality it may not be possible In as much as MNCs are increasingly viewing the world as one market place, adaptation is still somewhat inevitable to some extent Samsung phones it has a high number of standardized components such as chip and memory related parts but it certainly cannot be 100% standardized so it has a few slight variations in different markets, For example, only a small change in size When the Galaxy S III was released, for some people in some markets, the phone was too big So Samsung was able to make the same phone with a 4-inch screen Galaxy S III mini Or change a bit about the sound function when taking photos and recording videos Another good example of Samsung's localization strategy is the shift in smartphone photography in South Korea and Japan These countries used to face serious privacy problems The governments of these two countries have put in place strict regulatory requirements for the protection of individual privacy Filming or taking pictures must make a sound when performing Therefore, to comply with the Government's direction, Samsung phones in the two countries will always make a noise when taking pictures and recording videos, and cannot be turned off like products for other markets LỜI KẾT ... higher degree of importance on leisure time, act as they please and spend money as they wish [SLIDE 11] Question 1: How you think cultural differences affect the way the firm operates in Vietnam and