Cultural dimension & Business environment of USA

Intern at Sears Holdings Global Sourcing Limited à Sears Holdings Global Sourcing Limited
30 Jan 2016

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Cultural dimension & Business environment of USA

  1. The Deliberation of Cultural Issues for Inflowing in USA Market in favor of Business from Bangladesh
  2. Introduction When a Company moves to foreign market , it must learn how to deal with that market’s particular culture. When selecting markets for entry or as a source of supply, an international manager must become familiar with the specific cultural factors, business etiquette and issues involved in conducting business abroad. Market research and contacts with foreign partners, buyers, customers, and others should give your company an idea of what products can be sold and where.
  3. IntroductionHowever, before the sell can occur, your company may need to modify a particular product to satisfy buyer tastes, needs in foreign markets, or legal requirements for the foreign destination. You must consider several issues when you are thinking of selling overseas, including the following: – What foreign needs does your product satisfy? – What products should your company offer abroad? – Should your company modify its domestic-market product for sell abroad? Should it develop a new product for the foreign market? – What specific features, such as design, color, size, packaging, brand, labels, and warranty, should your product have? How important are languages or cultural differences?
  4. Introduction Whatever sector you are operating in, cultural differences will have a direct impact on your profitability. For establishing trade Overseas, We Select Ready –made- Garments (RMG) Product for exporting USA market from Bangladesh through our Company .For that we have to consider several cultural determinants of USA Markets. Therefore, you should be aware of the key factors that have a direct impact on business.
  5. Definition of CultureCulture illustrates the accepted norms and values and traditional behavior of a group. Culture guides the selection of appropriate responses in social situations. In other words culture can be defined as an evolving set of collective beliefs, values and attitudes. For example :The importance of cultural understanding in successful international companies is reflected from their marketing strategies which are grounded in the cultures of the target industries. Alternatively, a company with weak understanding of the target company’s local culture can commit disastrous mistakes in developing the marketing strategy through designing advertisements which offend people because of culturally unacceptable content.
  6. Importance of Culture • Culture affects market demand. • Managerial behavior is driven by his/her cultural knowledge. • Knowledge of Native culture is useful when dealing with home markets but it has little value when dealing in foreign markets. • Culture affects the nature of business negotiations. • Culture acts as a hidden entry barrier, but it can be overcome with cultural sensitivity, hard work & quality.
  7. Culture: International Business • Understanding culture and its effect on international business provides a foundation for working in the global community • Understanding culture is the foundation, or basis, of understanding every other aspect of conducting international business.
  8. Understanding Culture
  9. Cultural Issues Affecting International Trade Gender Roles: in some cultures, gender roles are still very clear-cut. This could mean you could be aiming for the wrong gender in your marketing or branding which could alienate you from your target audience. Economic Conditions: your success, and not to mention your image, can suffer greatly if you don’t take the economic limitations of the targeted market into account. If people cannot buy on credit or are going through tough financial times, marketing high-end products might scare of customers. Religious Dominance: if you market a product that is not accepted by the dominant religious group, you might harm your company considerably. Cultural mores: if a certain product or action is ‘not done’ in a certain country, there is there any use in trying to launch it there? Think skimpy bikini’s in Islamic countries.
  10. Cultural Issues Affecting International Trade Communication is the key to success for any business, whether you are operating nationally or internationally, but when operating internationally it becomes even more important due to language barriers. Customer Needs: Being aware of basic customer needs is an important aspect as this will give the advantage of conveying your message. In simple terms, if you are aware of the customer’s cultural background, then you will be able to adopt better and more suitable advertising methods. Customs: When doing business with an affiliate from another country, consider the cultural differences that may be presented. This includes basic customs, mannerisms and gestures. For example, If a salesperson approaches a meeting with knowledge of a customer’s cultural background, then his words, body language and actions can all be adapted to better suit those of the customers. This in turn may lead to being better liked by the customer, ultimately increasing the salesperson's opportunity to close the deal.
  11. Cultures Differences Between Bangladesh Vs. USA As a Bangladesh is our home country instead of USA then the cultural differences are given Below-  Life expectancy: The life expectancy at birth in Bangladesh is 70.65 ( 8.91 years soon) while in The United States it is 79.56.  Unemployed: Bangladesh has an unemployment rate of 5.00% while The United States has 7.30%.  GDP: The GDP per capita in Bangladesh is $2,100 while in The United States it is $52,800.  Heath Care: Per capita public and private health expenditures combined in Bangladesh are $26.00 USD while The United States spends $8,895.10 USD.  Class division: The GINI index measures the degree of inequality in the distribution of family income. In Bangladesh it is 32.10 while in The United States it is 45.00.
  12. Requiredto conduct business Successfullyin Foreign culture •A sensitive, experienced understanding of interaction in different cultures is often a fundamental prerequisite in marketing product. •The two major aspects manager needs to address- i. Make sure that To gain a more than superficial understanding of people & their behavior. ii. their massage is getting across to the foreign Citizens.
  13. Overview About the Host Country Name of the Country : The United state of America (U.S.A) Population: 317.6 million (UN, 2010) Capital: Washington DC Largest city: New York City Area: 9.8 million sq km (3.8 million sq miles) Major language: English Major religion: Christianity Life expectancy: 76 years (men), 81 years (women) (UN)
  14. Overview about the USA CultureThe United States is the third largest country in the word with a population of more than 320 million, according to the U.S. Census Bureau. Because of this, the United States is one of the most culturally diverse countries in the world. Nearly every region of the world has influenced American culture, as it is a country of immigrants, most notably the English who colonized the country beginning in the early 1600s. U.S. culture has also been shaped by the cultures of Native Americans, Latin Americans, Africans and Asians. The United States is sometimes described as a "melting pot" in which different cultures have contributed their own distinct "flavors" to American culture. Just as cultures from around the world have influenced American culture, today American culture influences the world. The term Western culture often refers broadly to the cultures of the United States and Europe.
  15. Why USA Suitable For Business ? While the U.S. has enjoyed decades of domestic economic prosperity, recent economic challenges remind us that our future economic success revolves around succeeding in the global economy. It’s not about who’s bigger, better, brighter, or faster; it’s about who is empowered to leverage the power of culture to optimize an organization’s bottom line. Cross-cultural differences have time and time again been identified as the most significant impediment to successful international ventures and projects. These obstacles can be transformed into opportunities with a framework for tackling them head-on.
  16. Have in Mind Before Business  Americans who work virtually across borders but who live in the United States are not always aware of the huge differences in the way other countries do business.  loud voices can disturb all coworkers in the locality.  Accept responsibility for your errors.  Americans are well known for their positive thinking. A positive approach and attitude is key in business. Negative thinking or complaints are not received very well. • Do not complain. •Use the word challenge instead of problem.  The Unites States citizens are law abiding and used to many rules and regulations. People hardly question public authority. This reflects on organizations. Each organization has a strong organizational culture with strict rules to live by.
  17. Basic Expectation by Americans from Others Are you from any nationality your American team leader expects from you-  Good work ethics. Extra hours should not cause problems.  A positive, Constructive and Energetic attitude.  Openness, transparency, assertiveness and pro-activeness.  Sharing of information within the team.  To be comfortable with receiving instructions of the team leader.  To understand that your team leader will try to energize you through his up-beat communication style.
  18. First Impression Manners of USA  First impressions are important. Americans know how to sell themselves and expect others to do the same. Be very present and express your will to work hard. Appearance should be healthy and energetic. Dress and good manners are less important than the above-mentioned qualities.  Show that you will invest time and effort to reach your goal.
  19. Dress/Appearance Decorum of USA Don’t forget about the dress code to make a good first impression! For an initial meeting, dressing conservatively is always in good taste. Women can wear business suits, dresses or pantsuits. Men should wear a business suit unless you know the firm to be quite casual.  What is considered appropriate business attire varies by geographic region, day of the week and industry.  In general, people in the East dress more formally, while people in the West are known for being a bit more casual.  Executives usually dress formally regardless of which part of the country they are in.  Casual Friday is common in many companies.
  20. Greetings Etiquette of USA Offer a firm handshake, lasting 3-5 seconds, upon greeting and leaving.  Good eye contact during business and social conversations shows interest, sincerity and confidence. If you are meeting several people at once, maintain eye contact with the person you are shaking hands with, until you are moving on the next person.  The lack of formality is also noticeable when it comes to names and titles .  Business cards are generally exchanged during introductions. However, they may be exchanged when one party is leaving.  A smile is a sign of friendliness, and in rural areas you may be greeted with a "hello" rather than a handshake.  Make clear distinct pace between other personal.
  21. Communicational Etiquette of USAo In case you need to introduce other people (e.g. during a meeting or business trip), note that a less important person is introduced to the more senior or higher-ranking one first, not the other way round. Don’t forget to add a few details about whomever you’re introducing, like job title, area of responsibility, or some personal information, like where they are from. o you need to avoid being considered as overly negative or rude in your conversations. Too much directness appears unprofessional, and so do big emotional displays in a public setting, especially if you voice negative feelings like disappointment or anger. o Most Americans are friendly, open and direct in their communication. In emails they communicate in bullet points, convinced that if you do not understand you will ask.
  22. Conversational Protocol of USA• Once you start making small talk, you should come across as personable, social, and positive. In the United States, it is considered good manners to "put on your happy face". If someone asks you, "how are you?", the expected answer is "fine, and how about you?" It’s mostly a rhetorical question, and definitely not an invitation to discuss your digestive problems or marital crisis in public. • Politics and religion should be kept out of the workplace, especially controversial issues, In general, social pleasantries keep things smooth among those working together, but they aren’t necessarily a sign of close friendship.
  23. Body Language Etiquette of USA  Keep your distance when conversing. If an American feels you are standing too close, he or she may step back without even thinking about it.  You will need to watch your colleagues for clues on what they are comfortable with.  Americans are generally uncomfortable with same-sex touching, especially between males.  Americans smile a great deal, even at strangers. They like to have their smiles returned.
  24. Business Meeting Etiquette of USA• Arrive on time for meetings since time and punctuality are so important to Americans. • The Northeast and Midwest, people are extremely punctual and view it as a sign of disrespect for someone to be late for a meeting or appointment. In the Southern and Western states, people may be a little more relaxed, but to be safe, always arrive on time, although you may have to wait a little before your meeting begins. • Business conversation may take place during meals. • Meetings may appear relaxed, but they are taken quite seriously. If there is an agenda, it will be followed. At the conclusion of the meeting, there will be a summary of what was decided, a list of who will implement which facets and a list of the next steps to be taken and by whom • If you make a presentation, it should be direct and to the point. Visual aids should further enhance your case. Use statistics to back up your claims, since Americans are impressed by hard data and evidence.
  25. Clint Service Civility of USA The Americans are champions in customer service and customer friendliness. The customer is consider ding and everything is done to please the customer. Americans do not understand the laid-back attitude many cultures have towards clients . During Customer service we have to in mind –  Be Cheerful: Maintain a cheerful demeanor throughout the Customer service.  Be Professional: Refer to customers as sir and madam. Ask if it is OK to put the customer on hold/wait and apologize if the customer was on hold/wait for more than certain periods. These help to set a professional tone to your Service.  Use Honesty: Tell the truth to the customer at all times. Let her know what you are authorized to do to help in a situation, and if the situation gets beyond your authority then let the customer know that you need to transfer to a manager for service.  Be responsible: . Be responsible for the things you do on a Service, and feel as though you need to see that call through to a solution.  Be Complete: Make sure you are following the correct procedure for each service & complete it until customer is satisfied.
  26. Corporate Culture Courtesy of USA • In the United States, business relationships are formed between companies rather than between people. Americans do business where they get the best deal and the best service. It is not important to develop a personal relationship in order to establish a long and successful business relationship. • It is always proper to ask questions if you do not understand something. Americans ask questions -- lots of them. They are not ashamed to admit what they do know. Americans will assume you understand something if you do not tell them otherwise. • Americans are often uncomfortable with silence. Silence is avoided in social or business meetings. • It is rude to interrupt someone who is talking. Say, "Excuse me" during a pause and wait to be recognized. Interruptions, however, are common. Do not be surprised if someone finishes your sentence if you hesitate when you are speaking. • Women are leaders in all aspects of American life from business to education to government. Never assume that a working woman is in a subordinate position.
  27. Corporate Culture Courtesy of USA • Do not enter into any contract without hiring a lawyer. No savvy American businessperson would dream of signing a contract before consulting a lawyer. • It is very important in written communication to spell names correctly and have correct titles. If you are unsure of these, call the person's assistant to get the correct spelling and title • Keep appointments once they are made. You may not get a second chance if you do not. • Being "on time" in business situations generally means being about five minutes early. Five minutes late is acceptable with a brief apology. Ten to fifteen minutes late requires a phone call to warn of the delay and to apologize. • Meetings are generally informal and relaxed in manner, but serious in content. • Participation is expected in meetings. A quiet person may be viewed as not prepared or as having nothing important to contribute. • Generally, there is one negotiation leader who has the authority to make decisions. Team negotiations are rare. Americans may begin negotiations with unacceptable conditions or demands. They are usually taking a starting position that gives them room to bargain • Americans are very comfortable picking up the telephone and immediately conducting business with someone they have never met and perhaps never will meet.
  28. Gift Giving Etiquette of USA  Business gifts are often presented after the deal is closed. In most situations, gifts are usually unwrapped immediately and shown to all assembled.  In many cases, the best gifts are those that come from your country.  In general, Americans give gifts for birthdays, anniversaries and major holidays, such as Christmas.  A gift can be as simple as a card and personal note to something more elaborate for a person with whom you are close.  Gift giving is not an elaborate event, except at Christmas.  When invited to someone's home for dinner, it is polite to bring a small box of good chocolates, a bottle of wine, a potted plant or flowers for the hostess.  Gifts are normally opened when received.
  29. Dining Etiquette of USA• In a business setting the person extending the invitation to a meal pays for it. • The fork is held in the left hand, tines facing down. The knife is held in the right hand. After cutting the food, the knife is laid down and the fork is switched to the right hand to eat the cut food. Continental style (where the fork stays in the left hand to eat the cut food) is perfectly acceptable • Your napkin should be placed on your lap shortly after you are seated and kept on your lap at all times during the meal. Do not tuck your napkin under your chin. • Raise your hand or index finger and make eye contact to signal a server. • Do not be late for a dinner party. Arrive within 5 to 15 minutes after the time on the invitation. Never arrive before the time you were invited. If you are going to be more than 15 minutes late, phone your hosts and apologize. • Never begin eating until everyone is served and your hosts have begun. • Do not be afraid of hurting someone's feelings by responding "no" to an invitation. People will be offended if you say you will attend and then do not come. • Americans tend to eat more quickly than people from other countries. Dining in the United States is seldom the long, lingering event it is in much of the world. The point is more often to eat rather than socialize and savor the meal.
  30. Closing Thoughts • Organizations/Company must understand cultural differences. • Organizations must be culturally literate in order to avoid misunderstanding. • In simple terms, if you are aware of the customer’s cultural background, then you will be able to adopt better and more suitable advertising methods and beneficial market. • Before launching a marketing campaign, always conduct research to become aware of your target audience since customer demand, decision making, gender views and ideologies greatly vary in cultures.
  31. Closing Thoughts • The U.S. market is diverse in consumer tastes and has a range of income levels, thus permitting success for a wide variety of goods and services. How we look upon and judge the lifestyle and workplace of other cultures depends on how we view the world from our own cultural background. • So, if you are going to start any business or negotiation with a different culture, be sure to investigate and learn how one does business in that country, and, even more important, what one should never do. What for your culture might be something of good taste, might be considered an offense by other cultures.
  32. Thank you for your Patience
  33. Any Questions?