Multicultural Issues of the Global Economy

1. Multicultural Issues of the Global Economy Institute for CIO Excellence Dr. Lizabeth Zack USC Upstate

2. Outline Introduction to Multicultural Issues Case Study: An American in Jordan III. Discussion: The Impact of Culture on Global Business Practices

3. I. Introduction to Multicultural Issues

4. Skill Set For Succeeding in the Global Economy: IT Alignment IT Governance E-Commerce Information Security Communication Sourcing Risk Management Leadership Project Management Marketing *Cultural Competence*

5. Cultural Competence is the ability to… Identify relevant cultural differences Assess the impact of those cultural differences Operate effectively in the context of those cultural differences

6. Culture (def): the shared set of ideas, objects, and rituals associated with a particular group of people Ideas: Intangible, underlying mental framework; “hearts and minds”; includes basic norms, values, beliefs; expressed in language, religion, and group identity Objects: tangible, visible things; Meaningful to group; includes food, clothing, architecture, commodities technology, etc. Rituals: regular, meaningful behaviors; “ways of life”; includes etiquette, celebrations, gift giving, life style, etc.

7. Contexts of Cultural Difference Multi-National: American company locates in a place without a national culture, but rather a multi-national culture Exs: Dubai, Shenzhen/Special Economic Zones Domestic: Foreign company locates in the US Exs: European companies in the Upstate (see Kanter article) Foreign-National: American company expands overseas, into a national culture Exs: Walmart in China, ReMax in Brazil

8. Importance of Cross-Cultural Understanding • “Cross Cultural Communication is paramount in a world full of differences.” Kwintessential Cross-Cultural Training Consultant • “Cultural and political differences also present significant barriers to doing business in China…to be successful, you must also understand China’s long history and culture.” Faculty, School of Business, University of Wisconsin • According to a survey of senior executives, the second largest challenge in building global organizations is “the ability to understand local customs and ways of doing business.” Accenture Institute for High Performance Business • “Business issues vary from country to country and by industry…but underlying all [of them] is adequately understanding the local culture and business customs – knowing how to get things done and whom to trust.” Deloitte.com • “Most of the failures faced by cross-national companies are caused by neglect of cultural differences.” Zhang Zigang, Singapore Management Review

9. Benefits of Cross-Cultural Understanding • Promotes Clearer Communication • Fosters Acceptance and Inclusion • Breaks social barriers • Builds Trust and Relationships • Opens Opportunities • Brings Personal Satisfaction

10. II. Case Study: An American in Jordan

11. Eastern Europe Central Asia Jordan Africa

12. Jordan River Valley War Neighbors: Syria Israel Palestine Saudi Arabia Iraq Resources: Little water No oil Capital City Red Sea

13. A Comparison of Cultures American Jordanian Hierarchical Reserved Outlandish Hospitality Social Control Group-Oriented Fatalistic Likes A Crowd Comfortable With Difference Egalitarian Open Generous Love Freedom Individualistic Self-Empowered/Optimistic Private Space Rightness of the American Way

14. III. Discussion: The Impact of Culture on Global Business Practices

15. Assume you are going to open a branch office of your company in another country. What do you need to know about that society and culture? Identify ten cultural challenges that will impact your new operation and the policies you would adopt to address those challenges.