CH 2

Teaching Note by Salam Al Khateeb
Chapter 2
Culture and Business Systems in Asia
Carlos Noronha
Harukiyo Hasegawa
_____________________________________________________________________
CHAPTER OUTLINE
1. The importance of cultural understanding in business
2. Culture as the foundation of the business system
3. Asian cultures and business practices
4. Asian cultures, ethics and social responsibility
CHAPTER OBJECTIVES
After reading this chapter, you should be able to:
1. Understand the importance of cultural influence on business management
2. Identify the major theories of values and culture
3. Identify the salient Asian cultural traits
4. Identify the major Asian business practices
5. Understand the prevalent Asian views on ethics and social responsibility

Introduction
According to the World Bank, East Asia is expected to be the strongest performing region
during the coming period.
- Sketch a general overview of the region’s recent economic progress and potential by
presenting students with facts and figures regarding FDI, international trade, GDP and
other macroeconomic indicators in various Asian countries.
Follow with a discussion on the importance of understanding the cultural context in each
country in the region.
1. The importance of cultural understanding in business

- Assign two teams – in advance – to present a short case (4–5 slides) on real life examples
demonstrating the importance of culture in a business context.
- Present the Tata Daewoo case and show the students how Tata astutely managed the
acquisition of Daewoo.
2. Culture as the foundation of the business system

- Present Figure 1.1 and highlight culture as a foundation layer in the framework. Discuss
how culture underlines the business system.
- Ask students to define ‘culture’ from their perspective. Have them identify and define the
three main characteristics of culture: collective, relative and learned.
- Present and briefly explain:
A. The six dimensions of culture:
1. PDI
2. IDV
3. MAS
4. UAI
5. LTO/STO
6. IVR
B. The three elements of culture:
1. Rationale
2. Identity
3. Authority
- Make three groups and assign each one of the following topics. Allow three minutes for
discussion and summary.
Q1. Explain the term Rationale using LTO/STO and IVR. Indicate how their
application impacts business in Japan and China.
Q2. Explain the term Identity using IDV and MAS. Indicate how their application
impacts business in Japan and China.
Q3. Explain the term Authority using PDI and UAI. Indicate how their application
impacts business in Japan and China.
- Present the portfolio of Cultural Dimensions (Table 2.3) and invite students to share their
views and opinions on it.
3. Asian cultures and business practices
Keep the table above in view, and engage the class in a discussion on cultural details. To
facilitate discussion pose the following questions:
- As future business leaders, do you think such information will help you to:
a. understand Japanese-style management (or Chinese-style, etc.)?
b. adjust your Human Resource Management practices?
c. develop a customized strategy for these markets/countries?
4. Asian cultures, ethics and social responsibility
- Insist that the students distinguish between these concepts: Meta Ethics, Normative Ethics
and Applied Ethics.
- Lead a class discussion around these important points:
a. Are ethics and CSR connected, or not? Why? How? Compare this relationship in
different Asian countries.
Is there a relationship between transparency and CSR? How does it function? Is the
degree of transparency indicative of the maturity of a company’s CSR? Ask students to
search for examples in their countries and let them comment on the relationship.
- At the end of the chapter, have the students write an essay (approx. 1500 words) that
addresses the following:
Explain your country’s Cultural Portfolio (the 6 dimensions and the 3 elements) and
demonstrate practical business lessons for companies operating in that market.

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Teaching Note by Salam Al Khateeb

1. The importance of cultural understanding in business

2. Culture as the foundation of the business system

3. Asian cultures and business practices

4. Asian cultures, ethics and social responsibility

After reading this chapter, you should be able to:

1. Understand the importance of cultural influence on business management

2. Identify the major theories of values and culture

3. Identify the salient Asian cultural traits

4. Identify the major Asian business practices

5. Understand the prevalent Asian views on ethics and social responsibility

1. The importance of cultural understanding in business

2. Culture as the foundation of the business system

4. Asian cultures, ethics and social responsibility

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