Page 62 - DMGT545_INTERNATIONAL_BUSINESS

Unit 3: Cultural and Social Environment

! notes
Caution Though India is all set to welcome and utilise the power of English language since a
longtime. It had not taken a set back in promoting the study of Indian languages abroad.
3.1.11 attitudes and values

Values often have a religious foundation, and attitudes relate to economic activities. It is essential
to ascertain attitudes towards marketing activities which lead to wealth or material gain, for
example, in Buddhist society these may not be relevant.
Also “change” may not be needed, or even wanted, and it may be better to relate products to
traditional values rather than just new ones. Many African societies are risk averse, therefore,
entrepreneurialism may not always be relevant. Attitudes are always precursors of human
behaviour and so it is essential that research is done carefully on these.

self assessment

Fill in the blanks:

8. The word culture, derived from the Latin color, with its root meaning ................... .
9. Material culture refers to tools, artifacts and ................... .
10. ................... refer to the ideas in a culture concerning beauty and good taste as expressed
in the arts – music, art, drama and dancing and the particular appreciation of colour and
form.
11. ................... often have a religious foundation, and attitudes relate to economic activities.
12. The role of religion in India’s foreign policy cannot be ................... .

13. ................... claim to be the most tolerant of all religious groups.
14. ................... has been a great tool and strength of India’s foreign policy right from its
independence in 1947.
15. The domestic language policy of India is geared towards a progressive shrinking of the use
of ................... .

3.1.12 socio-cultural factors and international marketing

Multinational corporations operate in different host countries around the world and, in doing
so, they have to deal with a wide variety of political, economic, geographical, technological
and marketing situations. Moreover, each host country has its own society and culture which is
different in many important ways from almost every other society or culture, although there are
some commonalities. Though society and culture do not appear to be a part of marketing situations,
yet they are actually key elements in showing how marketing activities will be conducted, what
goods will be produced, and through what means they will be sold to establishing industrial and
management patterns and determining the success or failure of a local subsidiary or affiliate.

Society and culture influence every aspect of overseas business of an MNC and successful MNC
operations – whether it is marketing, finance, production, or personnel – have to be acutely aware
of the predominant attitudes, feelings and opinions in the local environment. Differences in
values and attitudes between the management and the parent offices and expatriate managers at
the subsidiary or affiliate level and local managers and employees can lead to serious operational
and functional problems, which arise not because there are individual problems, but because of
the important differences between societies and cultures. Society and culture often mould general

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