Cultural Sensitivity Task 4 BY Renee Johnson Country I have chosen South Korea because business growth and opportunities have opened up in recent years. Cultural Challenges: Managers are encouraged to learn the language; however, learning the language itself is only half the battle. Interpreting what the client is saying between the lines or understanding local terms and customs are very important and not to be overlooked. It is recommended that the manager uses an interpreter so that there are not miscommunications and therefore missed opportunities.
(Ball, Geringer, Minor, McNett, 2009) A hand shake is of major importance.When first greeting, it is custom to bow first then shake hands, the younger executive bowing first. (Rigden, 2012) When passing a business card or to shake hands it is important to use either the right hand only or both hands to shake and/or present business cards. (BusinessCulture. com, 2012) Korean’s body language and mood during a meeting is slight but important to interpret.
A positive and upbeat character means that things are going good and the client is pleased as opposed to agitated and quiet or fidgety might mean that the meeting is not going in your favor.In order to avoid being discourteous Koreans avoid giving an outright answer of yes or no. Preferring to use statements such as “we will see” or “that might be difficult” if the answer is likely to be no and phrases such as “I have heard you” or “I recognize your point” (Business Culture in South Korea, 2012). This can make communications difficult. Managers are encouraged to have many meeting with Korean clients in order to build trust and friendship. This will help managers to better interpret the clients intentions remembering to always remain calm and patient.
Business Culture in South Korea, 2012). The importance of family and friendship that is an integral part of Asian society should be fostered by managers, remembering family members’ names and social functions helps to build a stronger relationship. Gift giving is vital to senior members in Korean firms and should not be overlooked. (Rigden, 2012) Korean society functions differently when compared to the American culture. They are collective in their thinking, meaning that the group must keep harmony and united thinking as a group and not an individual.This is challenging for the American business person who has learned in a competitive and individual thinking community.
Keeping good posture and a professional appearance in formal and informal situations can impress the client where as slouching or expressive body language is viewed negatively. “Remember that communication is seen as a means to developing good relationships. Therefore, the way in which you deliver the message could, in fact, be more important than the message itself. ” As stated in Business Culture in South Korea.Never be late to a meeting as this would be a sign of disrespect or disregard and never speak of business matters on the first meeting. Trust must be built first to establish a relationship.
( King, 2012) Cross-Cultural Marketing Knowing what to sell and how to sell it to the Korean populace it is suggested to use a mixture of decisive strategies known as the 4 P’s. The 4 P’s include: product, price, place, and promotion. Products looking to branch onto the Korean market usually go through a product adaptation phase.We must first take into account language barriers and the importance of what certain words mean (using exact wording translation can possibly cause derision, insult religious sensitivities, the brand recognition, the total product (which includes: physical product, brand name, warranty, instructions, accessories, company image, packaging, and after sales services), local market preferences, and the products packaging (it is easier and more cost efficient to make small cosmetic changes to a product than to make larger more expensive physical changes).International Business: The Challenge of Global Competition states “A perfectly good brand name may have to be scrapped because of its unfavorable connotations in another language. ” (2009, p.
504) Product adaptations due to cultural, lingual, financial, environmental, economic, socio-cultural differences can make or break an international company. Wines, 2011) For example domestic products with differing voltage from international markets must be adapted to fit their voltage requirements or cosmetic packaging, such as adding a local celebrity or characters, might need a little tweaking to better fit Korean tastes or possibly religious symbolism. (Ball, Geringer, Minor, McNett, 2009) Packaging will almost always require a change in labeling, possibly into Korean and English, many times the required content or nutritional information is different in different markets.Pricing Needs to reflect the local economy, Korea’s average median annual income for 2011 was $35,406 as opposed to the US’s $54,450. (Wikipedia, 2012) The income discrepancies need to be compensated for in order to be competitive in the Korean market.
Tariffs or taxes imposed on international products as well as pricing levels need to be taken into account and adjusted for. Place: of distribution requirements for the local regions are important. Products need to be customized to fit the local Korean market due to national consumer habits, biological differences, government regulations, or climate differences. Ergin, G. 2009) For example the Korean labeling for textile products and garments must have labels sewn on their products; these include the products name, its fiber content, when it was manufactured, manufacturers name, the import company name, the manufacturers address and telephone number, where it came from, and their contact information. (www.
seekglasses. com, 2005) Promotion is the “communication that secures understanding between a firm and its publics to bring about a favorable buying action and achieve long-lasting confidence in the firm and the product or service it provides. (Ball, Geringer, Minor, McNett, 2009) The promotion of a product can be looked at in three different ways: all markets receive the same physical product, changes are made to the physical product to fit the foreign market, or creating a new physical product for a particular market. Firms utilize a promotional mixture for communicating with consumers and retailers, these are: sales promotions, publicity, advertising, public relations, and personal selling. How they use these resources depends on the product, the desired amount of the market share they want, and environmental issues.
In the American market many times firms use fluff or gratuitous imagery whereas many parts of Europe find it unappealing. Sexuality in advertising is viewed in the Indian, Asian, and African market as too overt for public viewing when compared to the American standard. Many countries view women in a traditional manor and might not be offended by what Americans might find sexist. Ethical Differences Korean business executives use a high level of centralization and vertical hierarchy.
What this means is a top executive in a firm has total control and final say on all decisions made in contrast to a more western view of decentralization where authority may be delegated by lower status executives. Female executives in Korea many times come across situations where their views might be ignored or treated with indifference in comparison to their male counterparts. Korean women are expected to become homemakers after marriage and children not taking lead positions in a firm. By contrast western women have branched out, many times balancing both positions, family and business. (© BusinessCulture.
om. 2012) When invited to formal or informal gatherings guest executives are expected to attends as well as dress professionally and conservatively, business suits and dresses. Due to their religious preferences, Confucian ethics are pervasive in Korean business and it results into a great respect for authority, age and seniority. Nepotism is still a high, 60%, in the Korean workforce and it is recommended that managers be aware that the person you are dealing with might be a direct family relation to the owner or top executive of the firm they’re dealing with.
(englishnews@chosun. com[->0], 2011)References 1. Ball, Geringer, D. , Minor, M. , McNett, M. J.
(2009-02-01). International Business: The Challenge of Global Competition w/ CESIM access card [12] (VitalSource Bookshelf), Retrieved from http://online. vitalsource. com/books/0077771753/S4/0 2. ©CDA Media, (2012).
World Business Culture. “Business Culture in South Korea” Retrieved from: http://www. worldbusinessculture. com/Business-in-South-Korea. html 3. © BusinessCulture.
com. (2012) “Business Culture in Korea” Retrieved from: http://businessculture. com/korea. html 4.
Rigden, J. (2012) “Business Culture & Etiquette in Korea”.Retrieved from: http://www. ehow.
com/about_6313145_business-culture-etiquette-korea. html 5. King, T. (2012) “Korean Business Etiquette”. Retrieved from: http://www. ehow.
com/about_6702174_korean-business-etiquette. html 6. Wines, M. (2011) New York Times “Picking Brand Names in China Is a Business Itself” Retrieved from: http://www. nytimes.
com/2011/11/12/world/asia/picking-brand-names-in-china-is-a-business-itself. html? pagewanted=all 7. Wikipedia, (2012) “List of Countries by Average Wage ”Retrieved from: http://en. wikipedia. org/wiki/List_of_countries_by_average_wage 8.
www. eekglasses. com (2005) “Korean textile labeling requirements Amendment. ” Retrieved from: http://www. seekglasses.
com/news_2011-2-3/67899. html 9. Ergin, G. (2009) Brand Mana(G)ment, “Standardization Vs Customization” Retrieved from: http://gulfizer. wordpress. com/2009/01/22/standardization-vs-customization/ 10.
englishnews@chosun. com[->1], (2011) The Chosunilbo. “Nepotism Still Rife in Korean Employment”, Retrieved from: http://english. chosun.
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