Deck 6: Social and Cultural Environment

Question 1

How should a company like Ford adapt to the color preferences of foreign markets?

Answer 1

Ford's ability to understand color preferences has helped the company align with customers' preferences and stock the right vehicles in their showrooms. Ford's observations from its surveys provide practical knowledge about sales trends in specific countries so that managers can better plan for production and manage their inventory. Other auto companies can learn from Ford's study and implement the same practices to get a better understanding of their consumer base and how to best serve certain demographics.
Although these surveys provided Ford with useful information, companies should however still be cautious about applying findings from the study. In the Ford example, average color preferences did not necessarily correspond to individual color choices for different car models. Car color trends changed over time, directly correlating to the latest technologies and trends in different countries. If a company were to adopt a color trend too early, consumers may be unresponsive. However, if a company adopts a color trend too late, the popularity may have peaked, losing sales opportunities. It is still necessary for Ford to offer a variety of unique colors for different car models and for different customer groups.

Question 2

Compare the vehicle color preferences of Europe with those of your country. Do you see any differences? Please explain why.

Answer 2

Answers will vary.
Buyers in the Czech Republic favor blue because of its relationship to the country's flag. They purchased the highest percentage of blue and red Ford vehicles among all European nations. The Netherlands did not show any preference for orange vehicles. Green is one of the least liked colors in Ireland. White is the most popular color in the U.S., as it is in Europe, Asia, and South America. While the popularity of white cars in Turkey is attributed to its hot climate, recent technological innovations including Apple's iPhone has made white particularly popular in recent years.

Question 3

Other than color, what other cultural differences do you see in the global auto markets?

Answer 3

Answers will vary.
Size of cars (SUV, sedan, sport, etc.), fuel efficiency, need vs. luxury, automatic vs. manual transmission, enhanced features, horsepower, safety features, comfort, price, handling, environmental impact, etc.

Question 4

How did you get to know the song Gangnam Style? Was it popular among your peers? Explain why.

Question 5

Name several other cultural phenomena that have gained global popularity.

Question 6

What business implications can we draw from the global acceptance of popular culture?

Question 7

What religious and cultural factors have affected the business operations of Kia in Saudi Arabia?

Question 8

How should an MNC like Kia adapt to a different business culture?

Question 9

Identify and discuss other products or services that require local adaptation due to the unique Saudi Arabian culture.

Question 10

What business opportunities and challenges have been brought about by Islamic principles?

Question 11

Explain the main characteristics of the Islamic banking system.

Question 12

Discuss the influence of other religious doctrines on business practices in different parts of the world.

Question 13

What cultural factors drove Groupon's entry into China?

Question 14

What cultural challenges did Groupon face in China?

Question 15

In order to succeed in China, what should Groupon have done differently?

Question 16

How would you define national culture and what factors drive cultural changes?

Question 17

What are the main aspects of national culture?

Question 18

What are the main dimensions of Hofstede's culture model?

Question 19

What are the main arguments of Hall's, Schwartz's, and the GLOBE culture models?

Question 20

How can MNCs utilize these culture models?

Question 21

According to Geert Hofstede's Onion Model, which layer represents highly prized characteristics within the society?

A) Outer layer
B) Heroes
C) Common rituals and traditions
D) Center

Question 22

Which of the following best characterizes a cultural symbol?

A) Languages
B) Colors
C) Flags
D) All of the above

Question 23

Which of the following aspects of culture sets certain principles in various aspects of life, such as work, saving, material goods, and planning for the future?

A) Artifacts and symbols
B) Values and basic assumptions
C) Religions, rituals, and traditions
D) None of the above

Question 24

Which of the following often concern the core issues in our lives such as personal and social relationships, morality, gender and social roles, race, social classes, and societal organizations?

A) Cultural norms
B) Cultural values
C) Cultural beliefs
D) None of the above

Question 25

Which of the following is true about cultural assumptions?

A) They are unquestioned standards about the way things are
B) People in the same community tend to share assumptions about ethics
C) People in the same community tend to share assumptions about social relationships
D) All of the above

Question 26

Which of the following is not one of Hofstede's four cultural value dimensions?

A) Individualism vs. collectivism
B) Masculinity vs. femininity
C) Wealth vs. poverty
D) Uncertainty avoidance

Question 27

In __________ cultures, people tend to value personal achievement and privacy.

A) Socialistic
B) Individualistic
C) Collectivist
D) Feminine

Question 28

In __________ cultures, people place higher value on quality of life and relationships with work colleagues.

A) Socialistic
B) Individualistic
C) Performance oriented
D) Feminine

Question 29

People in __________ power distance cultures tend to conform to the power structure, as they are more likely to accept the imbalance of power.

A) High
B) Low
C) Imbalanced
D) Concentrated

Question 30

In a __________ culture, people tend to focus on time-honored traditions and view societal change with suspicion.

A) Power distance
B) Long-term oriented
C) Short-term oriented
D) Masculine

Question 31

Which of the following refers to a cultural value that allows societal constituents to freely undertake activities that result in human gratification, such as leisure activities?

A) Long-term oriented
B) Collectivism
C) Indulgence
D) Restraint

Question 32

In a ___________ culture, many things are left unsaid as signals or information can be fully understood only within that specific culture.

A) Indulgence
B) Restraint
C) High-context
D) Low-context

Question 33

In a __________ cultural approach toward time, people are expected to do one thing at a time.

A) Semichronic
B) Monochronic
C) Multichronic
D) Polychronic

Question 34

Which of the following is not one of the ten universal values according to the Schwartz Model?

A) Power
B) Stimulation
C) Universalism
D) Perseverance

Question 35

According to the Schwartz Model, which of the following is not a pattern of conflict between two values?

A) Self-direction vs. security
B) Benevolence vs. achievement
C) Achievement vs. power
D) None of the above

Question 36

According to the Schwartz Model, ____________ refers to the extent people seek changes to advance personal and group interests.

A) Embeddedness/autonomy
B) Mastery/harmony
C) Intellectual autonomy/affective autonomy
D) Self-direction/stimulation

Question 37

Which of the following is not one of the nine cultural dimensions according to the GLOBE model?

A) Performance orientation
B) Institutional collectivism
C) Assertiveness
D) Achievement

Question 38

According to the GLOBE model, ____________ is defined as the degree to which individuals express pride, loyalty, and cohesiveness in their families or organization

A) In-group collectivism
B) Institutional collectivism
C) Uncertainty avoidance
D) Performance orientation

Question 39

Which of the following should MNCs develop to succeed in foreign markets?

A) Value systems
B) Performance orientation
C) Cross-cultural literacy
D) Culturally loaded practices

Question 40

What are the differences between cultural norms, cultural beliefs, and cultural values?

Question 41

Name a country that has a high power-distance score on Hofstede's model of National Cultural Dimensions. How can a manager use the high power distance to their advantage in this country?

Question 42

Compare and contrast monochronic and polychronic approaches to time according to the Hall model to long-term and short-term oriented cultures according to the Hofstede model.

Question 43

How can cultural differences become barriers in communication? In what ways have MNCs affected or benefited from cultural changes?

Question 44

Compare and contrast individualistic, collectivist, masculine, and feminine cultures according to Hofstede's model of National Cultural Dimensions.

Question 45

Identify the cultural dimensions of the GLOBE model.