Facultad de Ciencias Económicas y Empresariales Universidad de León. Grado en Comercio Internacional Curso 2013/ PDF

Facultad de Ciencias Económicas y Empresariales Universidad de León Grado en Comercio Internacional Curso 2013/2014 COMUNICACIÓN Y CULTURA: UN ANÁLISIS EN TRES PAÍSES COMMUNICATION AND CULTURE: AN ANALYSIS

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Facultad de Ciencias Económicas y Empresariales Universidad de León Grado en Comercio Internacional Curso 2013/2014 COMUNICACIÓN Y CULTURA: UN ANÁLISIS EN TRES PAÍSES COMMUNICATION AND CULTURE: AN ANALYSIS IN THREE COUNTRIES Realizado por el alumno Raquel Aguado García Tutelado por el Profesor Dña. Carmen Rodríguez Santos León. Julio, 2014 TABLE OF CONTENTS TABLE OF CONTENTS... 1 GRAPH INDEX... 3 FIGURE INDEX... 4 TABLE INDEX... 6 RESUMEN... 7 ABSTRACT... 7 ABBREVIATIONS... 8 INTRODUCTION... 9 OBJECTIVE OF THIS PROJECT METHODOLOGY INTERNATIONALISATION OF COMPANIES GLOBALIZATION OF MARKETS INTERNATIONALISATION OF COMPANIES AND DEVELOPMENT OF INTERNATIONAL TRADE Development of international trade Internationalisation of companies FOCUS OF INTERNATIONAL MARKETING COMMUNICATION STRATEGIES STANDARDIZATION ADAPTATION GLOCALIZATION HOW CULTURE AFFECTS MARKETING DEFINITION OF CULTURE ELEMENTS OF CULTURE Language Time Space Religion Values and attitudes Behaviour and habits Aesthetics Social institutions DIMENSIONS OF CULTURE Power distance Individualism versus collectivism Masculinity versus femininity 3.3.4 Uncertainty avoidance Pragmatic versus normative Indulgent versus restraint ANALYSIS IN THREE COUNTRIES POWER DISTANCE (GEERT HOFSTEDE, 2014) INDIVIDUALISM (GEERT HOFSTEDE, 2014) MASCULINITY (GEERT HOFSTEDE, 2014) UNCERTAINTY AVOIDANCE (GEERT HOFSTEDE, 2014) PRAGMATISM (GEERT HOFSTEDE, 2014) INDULGENCE (GEERT HOFSTEDE, 2014) ANALYSIS OF THE DIMENSIONS IN COMMUNICATION Example Example Example Example Example Example CONCLUSIONS BIBLIOGRAPHY WEBSITES RESUMEN EN ESPAÑOL GRAPH INDEX Graph 4.1 Power distance Graph 4.2 Individualism Graph 4.3 Masculinity Graph 4.4 Uncertainty avoidance Graph 4.5 Pragmatism Graph 4.6 Indulgence FIGURE INDEX Figure 2.1 IKEA Long Island (NY, USA) Figure 2.2 IKEA Hannover (Germany) Figure 2.3 Diet Coke and Coca-Cola Light Figure 2.4 Chilly Figure 2.5 Jamila and friends. Symba Toys Figure 2.6 McDonald s in Chinatown, New York Figure 2.7 McDonald s in the Theatre District, Chicago Figure 3.1 Manager s office in Moody s New York (2014) Figure 3.2 Managers in Japan share office. Bukert (2014) Figure 3.3 Veet advertisement Figure 3.4 Casa Tarradellas. Advertisement in a collectivist society Figure 3.5 Kraft foods. Advertisement in an individualist culture Figure 3.6 Ligeresa advertisement Figure 3.7 Calvin Klein advertisement Figure 3.8 German advertisement of Bosch Figure 3.9 American advertisement of Bosch Figure 4.1 Pan Bimbo advertisement in Spain Figure 4.2 Cheerios Commercial in USA Figure 4.3 Colon commercial in Spain Figure 4.4 Skip commercial in Spain Figure 4.5 Mutua Madrileña advertisement in Spain Figure 4.6 Geico advertisement in United States Figure 4.7 Fairy advertisement.in Spain Figure 4.8 Apple advertisement in United States Figure 4.9 Sparkasse advertisement in Germany Figure 4.10 Litoral advertisement in Spain Figure 4.11 Colombian advertisement Figure 4.12 Deutschland Bahn. DB in Germany Figure 4.13 Marines advertisement in USA Figure 4.14 Bundeswehr advertisement in Germany Figure 4.15 Fuerzas Armadas Españolas advertisement in Spain Figure 4.16 McDonald s commercial in United States Figure 4.17 McDonald s commercial in Germany Figure 4.18 McDonald s commercial in Spain Figure 4.19 Lumia 920 advertisement in USA Figure 4.20 Lumia 925 advertisement in Germany Figure 4.21 Lumia 630. Commercial in Spain Figure 4.23 Bosch advertisement in USA Figure 4.24 Bosch advertisement in Germany Figure 4.22 Bosch advertisement in Spain Figure 4.26 McDonald s US Figure 4.27 McDonald s Germany Figure 4.25 McDonald s Spain Figure 4.28 Mercedes-Benz commercial in Spain Figure 4.29 Mercedes- Benz commercial in Germany Figure 4.30 Mercedes-Benz commercial in United States TABLE INDEX Table 4.1 Power distance Table 4.2 Individualism Table 4.3 Masculinity Table 4.4 Uncertainty avoidance Table 4.5 Pragmatism Table 4.6 Indulgence RESUMEN En el presente trabajo se aborda el estudio de cómo la cultura afecta a la comunicación en la empresa. Asimismo se definen las estrategias de comunicación que una empresa puede utilizar en el ámbito global. Dichas estrategias son estandarización, adaptación y glocalización. Consecuentemente, se estudian y analizan en profundidad las cuestiones más relevantes que plantean estas estrategias, especialmente las relativas a sus características y los supuestos que se exigen para su adopción. Además se define el término cultura y se analizan sus componentes y dimensiones. Estas dimensiones son estudiadas en tres países: Alemania, España y Estados Unidos. Finalmente se explica cómo afecta la cultura de estos países a la estrategia de comunicación elegida. Palabras clave: comunicación, cultura, estandarización, glocalización y adaptación. ABSTRACT This paper deals with the study of how culture affects communication in companies. It also defines different communication strategies used by companies at a global level. These strategies are standardization, adaptation and glocalization. Thus the key issues raised by these strategies are examined in depth, especially those relating to their characteristics and the events required for their adoption. Furthermore, culture is defined and its elements and dimensions analysed. Those dimensions are studied in three countries: Germany, Spain and the United States. Finally, an explanation is given of how the cultures of these countries affect the communication strategy chosen. Keywords: communication, culture, standardization, glocalization and adaptation. 7 ABBREVIATIONS ASEAN. Association of Southeast Asian Nations. DB. Deutsche Bahn. GATT. General Agreement on Tariffs and Trade. ICEX. Instituto de Comercio Exterior. MERCOSUR. MERcado COmun del SUR. NAFTA. North American Free Trade Agreement. NY/NYC. New York City. R&D. Research and development. RAPEX. Rapid exchange of information between European Member States and the Commission SMEs. Small and Medium Enterprises. USA/US. United States of America. WWII. World War II. 8 INTRODUCTION Nowadays, more companies decide to expand their business across the borders and markets of their normal geographical environment for various reasons. Peter J. Buckley and Pervez N. Ghauri (2006) establish various factors affecting that decision making. An excess of the product on the local market or a shortage thereof on foreign markets are among them. The need to diversify risk together with the existence of a crisis in the local market may involve an increase in the number of exporting firms in a country. Another reason affecting the decision to internationalise is the desire to increase brand prestige or the need to increase competitiveness. Finally, the goal of achieving growth by the company in more profitable foreign markets also has an effect. Once the internationalisation process has started, the next step is to identify which communication strategy the new markets require. There are three basic strategies here: Standardization Adaptation Glocalization The communication strategy chosen will not only have a direct influence on the company s expenses, but also its international image. This will therefore determine its success or failure in foreign markets. With a higher degree of standardization the costs incurred will be lower. However, this marketing strategy does not take into account customer differences as regards tastes or needs. The distribution channels available, competitors and telecommunications operations also have to be considered in order to avoid poor product reception. On the other hand, companies can adapt their communication strategy to satisfy the particular needs of every country. Although that can increase product acceptance, expenses may also rise. Finally glocalization combines both standardization and adaptation. Companies adapt those aspects needing to be adapted and standardize those that do not require any changes. This strategy can save money and time, avoiding cultural confrontations. Despite the existence of many studies related to communication strategy, this project focuses on analysing culture as the main factor determining the success or failure of different approaches. Understanding the influence of culture at different 9 acceptance levels of varying types of communication can make it easier for companies to choose which strategy to implement in every country where they carry out business. 10 OBJECTIVE OF THIS PROJECT The main purpose of this project is to analyse how culture affects communication. The general goals of this project can be summarized as follows: To analyse how international trade has increased over the last few decades and its main role in the economy. An explanation will also be given as to how this development has affected companies as well as pointing out the possible obstacles to internationalisation: culture stands out here. To define different communication strategies: glocalization, standardization and adaptation: identify their characteristics as well as specifying their scenarios and the consequences of their use. To define culture, its elements and dimensions: explain all the cultural elements and their importance within culture; analyse culture dimensions as defined by Geert Hofstede; analyse how culture affects communication and how companies can respond to different cultural environments. To study culture dimensions within three different countries: Germany, Spain and the United States; provide some examples of communication for each particular dimension. Those generic objectives set out at the beginning of this project have been modified during the process. In addition some other objectives have arisen in order to analyze and explain those issues which could have been more difficult to understand or explain. 11 METHODOLOGY Primary sources of information are those that provide first-hand information of the events, practices, or conditions of the research. In general, these are documents that were created by the witnesses or first recorders of these events at about the time they occurred, and include diaries, letters, reports, photographs, creative works, financial records, memos, and newspaper articles. Primary sources also include first-hand accounts that were documented later, such as autobiographies, memoirs, and oral histories. However, the most useful primary sources are usually considered to be those that were created closest to the time period of the research. In contrast, a secondary source of information is one that was created later by someone who did not experience first-hand or participate in the events or conditions you re researching. For the purposes of a historical research project, secondary sources are generally scholarly books and articles. Also included would be reference sources like encyclopaedias. For secondary sources, often the best sources are those that have been published most recently. A secondary source that was published decades ago could not be updated. In order to write this project both primary and secondary sources have been used. Primary sources used are pictures and some information taken about countries and companies studied, as well as personal experience. Secondary sources used are articles in collected works, magazines and books, as well as websites that could further develop and support the arguments and concepts presented here. 12 1 INTERNATIONALISATION OF COMPANIES Over the last few years there have been deep and intense changes on the international front. Many companies representing very diverse industries have had to change their traditional business methods and focus on international business. Furthermore, globalization has taken a major role in the world scenario with greater integration among economies. Immediately after the Second World War the degree of interdependence among national economies rose. At that time multinational companies started their consolidation and the flow of international trade in products and services increased. Thus the volume of trade and international business rose in a historical manner. After WWII many barriers to trade disappeared and many incentives to international trade appeared. A large number of companies took advantage of this situation and started to develop their activity outside their country s borders. In most cases this process of internationalisation obliged them to make important changes in their operating methods and in the structure of the company, due to the greater complexity as new functions were developed in other countries. The concept and need for international marketing appeared within this context. 1.1 GLOBALIZATION OF MARKETS Globalization has different meanings and a general one is: The process by which businesses or other organizations develop international influence or start operating on an international scale (Oxford Dictionaries). It is affected by many elements and impacts not only on countries, but also individuals like companies and people. Globalization is responsible for creating wealth, but is also accused of some negative aspects. Although globalization mainly refers to the great growth in international trade, there are increasing concerns about its social consequences. Frank Bradley (2005) mentions this phenomenon that directly affects international firms in the following ways. New information and communication technologies that allow firms to have an international presence. Communication technology which integrates suppliers in their customers buying process and consumer s lifestyle. Growth of non-profit businesses in international markets. Call for more ethical and social responsibility among international firms. 13 Emergence of a global culture based on music, clothing and entertainment. Influence of global branding incorporating services and products. Until recently the term globalization was related to big companies which operated in many different markets but nowadays small companies have more of a presence in international markets. Firms with an international vocation usually pursue diversification and such companies tend to enter new markets where the resource requirements match their resource capability. 1.2 INTERNATIONALISATION OF COMPANIES AND DEVELOPMENT OF INTERNATIONAL TRADE Both international trade and international business have increased their volume over the last few years, helping each other and affected by the same factors. According to ICEX, the number of companies that export increased 10% during 2013, being the total number of exporter companies This generalized internationalisation of business, together with a homogenization of demand in the global sphere, has meant the globalization of markets. The phenomenon of globalization is helped by great progress in the fields of communication and transport with the latter being more accessible and affordable nowadays, which has allowed customers to find new products and patterns of consumption in markets other than theirs. Furthermore, a greater spread of information makes it possible for new products to reach new markets. All these aspects contribute to expanding integration and interdependence among economies Development of international trade Philip R. Cateora and John L. Graham (1999) analyzed international trade trends over the last decade. International trade has increased exponentially over the last few years. International trade has mainly been affected by three trends. Firstly, the last few decades have seen quick growth in free trade areas like NAFTA, ASEAN or MERCOSUR. Those areas not only help commercial relations between members, but also affect trade flows and non-member investment through rules and standards. Secondly, the free market system has been more widely accepted among developing countries in Latin America, Asia and Eastern Europe. Finally, as a result of the first two trends mentioned, big emergent economies, such as Brazil, China, South Korea or Poland, have undergone considerable development. 14 Rosario García Cruz (2002) considers the following factors, which have helped the development of international trade, the most important: The General Agreement on Tariffs and Trade (GATT) (1986). It came into force on January This agreement and its following Rounds have looked into eliminating tariffs and non-tariff barriers to international trade. Development of technology in communication and reduction of transport costs. New forms of communication allow a larger number of people access to information about new goods and services, which helps to increase demand for these products. Moreover, developments and reductions in transport prices have allowed transactions between faraway places to become possible. Increasing participation of developing countries in international trade, which is due to the following factors: A new group of quickly industrialised countries and an increase in their exports have greatly increased the weight of their participation in international trade. The value of energy resources and their significance have grown which has helped producers of these products to increase the volume of their exports. The export rate of manufactured products from developing countries to developed ones has risen due to their high degree of specialization and cheap labour costs. Developing countries have gradually reduced export tariffs. Increased international trade of similar and complementary goods and services. Also trade between multinational companies within the same industry has grown. More participation of services in international trade. International trade has created global links between different markets, technologies and ways of life. At the same time it has affected politics to a great extent and created new opportunities as well as new threats. It has also meant a new global orientation for processes and business. Although it had never before been so easy to collect information, the need to do so had never been quite so high. The constant technological innovation has direct effects on the effectiveness of all areas of business: products can be made faster and cheaper than ever before. Taking advantage of cheaper 15 sources from all around the world to produce and distribute goods and services, clients around the globe can more easily be satisfied. Levels of global investment have also reached their highest level with changes in financial flow affecting the whole world. The external debt of governments has increased affecting currency values, companies have received financial aid from foreign investors and direct foreign investment has also grown. To prosper in this world of great change, full of new opportunities, threats and influences from overseas, companies must be prepared and develop an active response. New strategies need to be created and business methods changed. Leadership must not only be gained but also maintained Internationalisation of companies Nowadays, due to increasing globalization, companies all around the world do business with foreign clients, competitors or suppliers, even if they only operate within their own borders. They have to face both national and international competitors. Internationalisation, according to Michael R. Czinkota and Ilkka A. Ronkainen (2008), is a key strategy for companies to increase sales volumes. Firms that export experience faster growth, higher production and their employees earn higher wages. When firms develop their activities in international markets, they transfer their products, services, technologies and ideas as intellectual property, tangible and intangible assets, across national borders. Sometimes that transfer is by exporting, but others it is by owning and investing directly in foreign markets or forming alliances with local companies. Firms usually internationalise to diversify as a result of excess resource capability: the more general the resources, the wider the opportunities available. There are companies that, due to their p
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