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The Human Knot: Builds Trust

The document discusses cultural differences between the United States and United Kingdom that are important for international businesses to consider. It notes some key differences such as driving side, pace of life, social interactions, and preferred drinks. The scenario describes Kraft Foods' acquisition of Cadbury and expansion into the UK market. For Kraft to be successful, they will need to understand and adapt to British culture and business practices.

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87 views27 pages

The Human Knot: Builds Trust

The document discusses cultural differences between the United States and United Kingdom that are important for international businesses to consider. It notes some key differences such as driving side, pace of life, social interactions, and preferred drinks. The scenario describes Kraft Foods' acquisition of Cadbury and expansion into the UK market. For Kraft to be successful, they will need to understand and adapt to British culture and business practices.

Uploaded by

api-464007183
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The Human Knot

Get to know each other.

Build as a Team

Focuses communication
skills

Teaches problem solving

Builds trust
Welcome

Javin DaCosta
Intercultural Relations in Business

Aim
Gain an understanding of intercultural relations in the global
economy.

Share and learn differences in American and English cultural and


business practices, and relate these to business activities in a
global environment
Scenario

• Kraft Foods bought Cadbury in 2010.


• Kraft Foods then split into 2 companies, Mondelez International
(confectionary) and Kraft food Group Inc. (groceries)
• Kraft Food Group Inc, then merged with Heinz in 2015 to create Kraft Heinz
Company.
• Kraft (Mondelez) are now considering adding a manufacturing plant in the
Birmingham area for Capri-Sun , the soft drink, to serve the European market
better.
• Changes made since the takeover of Cadbury by Kraft have not been without
controversy.
• Kraft therefore need to carefully consider how they will have to adapt business
practices to consider the culture and ethics in the UK and therefore have a
successful enterprise. https://www.youtube.com/watch?v=1w2hWzDKoYc
Learning Outcomes

By the end of the session you will be able to;

1.Define Culture.

2.Identify cultural dimensions as an aid to comparing 2 national


cultures

3.Analyse the impact of cultural factors on the international business


environment.
What is culture?

“A system of values and norms that are shared among


a group of people and that when taken together
constitute a design for living.”

Hofstede, Namenwirth and Weber.


Aspects of culture to consider
Language Values & Beliefs
Written, Moral values
Customs spoken
Festivals,
national

Culture
celebration Social characteristics
Family roles, attitude to
Geographic education
homeland

National Music, art,


symbols & Norms & Behaviour dance
Myths Dress, etiquette
Group Activity

In groups, you will have 5 minutes to consider how British culture differs from
American culture. Allocate the different culture aspects in the correct boxes.

Be prepared to share your experience.


USA UK
More hectic, appear to be in a hurry. Laid back.

People are more likely to start conversation with People do not like to converse with strangers and tend
strangers in public places to stick to their old and close group of friends
Straight forward or self-deprecating
Sarcastic or satirical
Too many channels and programming Channels are limited, and too few as compared to
America
Coffee, Beer, and Wine
Tea, Beer, and Sherry. Wine is usually on occasions.
Fast Food is preferred
Pub Food is preferred
Baseball, American Football, Basketball, Hockey, and
Car Racing. Cricket, Football (Soccer), Rugby, and Tennis.
Left Hand Side driving. Cars tend to have an
automatic transmission. Right Hand Side Driving. Cars tend to have a manual
transmission.
The old English Imperial system (yards, miles, The metric system (metres, grammes, litres, Celsius,
pounds, Fahrenheit, etc.) for everyday life. etc.)
Hofstede cultural dimension
Kraft VS Cadbury culture characteristics
Culture and its relevance to business

For international business an understanding of local culture is


required. Not just in the context of doing business, but in general
social relations with hosts.

For example, in Asian cultures it is thought that doing business is


not just confined to working hours, but blends into social
occasions. Bonds of trust is important.
Why cultural factors matter

Once a business has opted to operate internationally then it has to decide what
it wants to do and how it wants to do it.

• Production
• Marketing
• Distribution
• Human resources technical factors and legal issues

All above needa to be considered.

A company such as Cadbury provides interesting material. It builds plants


overseas but also acquired existing businesses as this might offer easier
access to an established market as well as providing new brands.
Cultural Research task
Religion Education Racial identity
80.5% Hindu State Indian ethnic groups
13.4% Islam Private
2.3% Christianity

Economic structure Political structure Cultural history


Fast growing Multi-party system Spans 4500 years
Free market system Coalitions Architecture
Elections Literature, clothing

Past times Family structure Food dishes


Film industry Caste system Lentils, rice, Chickpeas, Chapati roti,
Cricket Arranged marriage (with samosa (State, e.g. California)
consent)
Salary Difference
Work Hours
Life styles
Sick leave
Holiday
Maternity Leave
Punctuality
Communication and Language
Communication and Language

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