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jake_is_not_in_kansas_anymore.doc

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Jake is Not in Kansas Anymore
Jake is recent graduate of UNA and has taken a job with a Kansas City based British Car
parts producer and distributor. Jake’s job is titled International Sales agent and is
responsible for selling replacement car parts to Hong Kong. Jake is very excited, he has
been asked to accompany his boss Angelina Costi on a international trip to China and
Hong Kong to negotiate a new agreement with their Hong Kong distributor. Jake is
excited for two reasons, first, he has never been overseas before and second, his boss is
really hot. Angelina is married with a small child and has never showed any interest in
Jake.
Jake is surprised that when he and Angelina arrive at the airport that they will be in
different parts of the plane, Jake will be in coach and Angelina will be in first class. Jake
is also surprised at how the long the trip will take. It will be 3 hours to San Francisco and
14 hours to Hong Kong. However, Jake decides to really enjoy the trip, he watches the
movies all four to them and has a few drinks and really does not sleep. When the plane
touches down in Hong Kong, Jake is surprised that they go to the hotel and have a
meeting 30 minutes after they check in. The distributor has arranged for them to have
Dim Sum. Jake is surprised that Angelina appears ready for the meeting and that he is so
tired that he could sleep for a week.
Before Dim Sum the distributor Mr. Ricky Chan and his subordinates pass out their
business cards. Jake takes their cards and stacks them on the table. He unfortunately
forgets his cards and writes his name on the back of Angelina’s. He also gets very
uncomfortable from his jet lag and that Ricky Chan does not talk to him during the
meeting. He also has found that he was seated away from Angelina and both of Ricky’s
subordinates did not speak English and spoke the whole time in Cantonese.
During the meeting, he hears Angelina ask Mr. Chan about the contract and he states that
can be discussed later on. When the meeting finishes, Jake is also surprised that they are
not able to return to their rooms and that Ricky Chan has arranged for a site seeing tour of
Hong Kong. Jake is very tired during the tour but enjoys being in such a unique part of
the world. The tour ends in early evening and Jake finally gets to go to his room only to
be called by Ricky’s partner to have dinner. Jake is tired but agrees and showers and
goes to the Hotel Lobby to meet with Eben Shum. Jake does not get to talk to Angelina
about the day and leaves her a message that he will call her later in the evening. The
Lobby is filled with Eben and his friends and they proceed to go to a restaurant and some
questionable night clubs. Jake has a great time, he eats too much and drinks too much
and really does not discuss business at all during the evening. At 2:30am he returns to his
room and decides not to call his boss so late.
He gets a wake up call at 7:00am and is barely able to focus. The call is from Angelina
to have breakfast at 7:30am. She tells Jake about her evening with Ricky. It seems that
he made a pass at her and took her to a sleazy night club. She had hoped that Jake had
made more progress than her with Eben who surprisingly is the Ricky Chan’s lawyer.
Angelina tells Jake that he must focus and try to make some head way with Eben so that
contract negotiation can be closed successfully. The next meeting is planned for lunch at
Hong Kong Country Club. Although extremely tired Jake decides this is the time for him
to show Angelina that he has what it takes. When they arrive at the Country Club they
find that they have dressed incorrectly. Ricky and Eben are wearing casual golf clothes
and both Angelina and Jake are wearing business suits. The meeting scheduled in the
open air so Jake is sweating boorishly. Angelina is very uncomfortable being around
Ricky after her treatment of the previous evening. Ricky starts the meeting asking Jake
when their plane is scheduled to leave, Jake tells him tomorrow at noon. The rest if the
meeting is rather quite with some of the issues being discussed but no real decisions
being made. Ricky then gives Jake and Angelina some boxes that are gift wrapped and to
their surprise the boxes contain golf clothes and golf balls. Ricky insists that Jake and
Angelina play round with Eben and himself. It turns out that Jake was on the UNA golf
team and is a very good golfer and that Angelina has never played.
Jake decides that he is really going really play well after his previous embarrassment the
day before. On the first tee, Angelina tees off first and his a good beginners drive. Ricky
goes second and drives the ball about 230 yards straight down the fairway. Eben drives
just short of Ricky. Eben says that is the best drive he has every seen. Jake drives the
ball 330 yards just in front of the green. Jake expects admiration from Ricky but he gets
very quite for the balance of the round. Eben says hardly anything.
After golf, dinner is planned at Ricky’s headquarters. When Angelina and Jake arrive
they are surprised to find that their competitors from Great Brittan are also at the dinner
and are seated closer to Ricky than they are. Jake and Angelina are seated next to Eben.
Dinner ends with no real discussion. Repeatedly, Jake tries to get Eben to discuss the
contract but he really will not discuss details. They arrive back at the hotel at 1:00am
exhausted. They have a meeting with Eben at 8:00am to discuss the contract.
Jake and Angelina drag themselves out of bed and meet in the hotel restaurant before
Eben arrives. Angelina states that if the contract is not signed the trip will be a total
failure and that they both will be in trouble. Eben arrives at 9:30am for the meeting
apologizes for is tardiness due to a court appearance. Angelina states that they must
leave for the airport at 10:30am. So, Eben hands her the contract.
The contract has been changed to be paid in Euros not American Dollars like the previous
contract. Angelina is really visibly upset by this change due to the falling US dollar.
Also, the Hong Kong company wants a 5 year rather than a 1 year agreement.
The time is now 10:00am. Angelina gets Eben to change the 5year into a 1 year
agreement but cannot get him to move on the currency. Eben also states that to close the
contract that the company must pay him a retainer of $5,000 and for another special fee
he could get the currency changed to US Dollars if her company would agree to a 15%
price cut. Upon hearing this Jake is outraged and excuses himself to regain is composure.
It is now 10:25am and Angelina grabs the pen and ……..
Questions:
1. Please explain the cultural mistakes that Jake has made in the case. Use
Hofstede’s dimensions.
2. What cultural mistakes did Angelina make with the Chinese? Again use
Hofstede’s dimensions?
3. Was it a mistake to send Jake? If so, why?
4. Was it a mistake to send Angelina? If so, why?
International Marketing:
Overview
Introduction of Global Marketing: Cultural
Focus
International Marketing defined
 International marketing – is the performance of
business activities that direct the flow of a
company’s good and services to consumers or
users in more than one nation for a profit.
Foreign Environment
Technology Infrastructure
Domestic
Environment
Technology MicroEnvironment
Company
Cultural
Forces
Competition
Forces
Political
Structure
Of Dist.
Customers 4 Ps
Competitors
Economics
SocialCultural
Channel
Members
Publics
Natural
Economic
Geographic Infrastructure
Legal
The Globalisation of Markets
 “A powerful force drives the world toward a
converging commonality, and that force is
technology. It has proletarianized
communication, transport and travel. It has
made isolated places and impoverished people
eager for modernity’s allurements. Almost
everyone everywhere wants all things they have
heard about, seen or experienced via the new
technologies.” – Theodore Levitt
Levitt’s Statement
 Levitt’s ideas regarding Globalisation were in
part borrowed from Webber (1969).
 In the 1960-70s there were many disagreements
among researchers concerning globalisation’s
impact on cultures.
Converging Cultures
 Some researchers argued that cultures were
converging. According to this view, all cultures
will form one gigantic international work culture
devoid of any obstacles whatever.
Diverging Cultures
 Other researchers argued that the forces of
modernisation are divergent. New technologies
are slowly driving cultures apart.
Webber’s Theory
 Webber (1969) states that three forces cause
cultures to converge or diverge:
1. Technology
Education
Emancipation of workers from poverty.
Divergent Forces
 Divergent forces emanate from the stresses
associated with technology that is introduced too
early.
E.g., The introduction of the Tomcat aircraft by the
Shah of Iran to pilots who were totally unfamiliar to
that level of technology. Iran is a case example of a
nation that diverged to very traditional traditional
norms due to technology influences.
International Marketing
History and Culture
Culture
 Culture – the collective mental programming of
the mind which distinguishes the members of
one human group from another. Hofstede
(1984), “Cultures Consequences,” Sage.
Culture
 Culture is to a human society, what personality is
to an individual.
 Culture is the interactive aggregate of personal
characteristics that influence the individual’s
response to the environment.
 The collective (e.g., societies) level of mental
programming is shared by some but not with all
other people in a tribal group or society.
Culture
 The individual level of human programming is
that no two people are programmed alike.
 Therefore, to measure culture one must view the
culture in question from the perspective of the
society not the individual.
Values
 Value – is a “broad” tendency to prefer certain
stages of affairs over others.
 Values have both intensity and direction. That
is, they act as vectors.
 An example is the value of a democratic
government vs. the value of autocratic
government.
Norms
 Norm – is statistical, it indicates the values held
by the majority.
E.g., Anarchy may be a value but it is not a norm in
Australian culture.
Hofstede’s View
 Hofstede believes that norms change rarely by
direct adoption of outside values, but rather
through a shift of ecological conditions:
technology, economic or hygienic.
E.g.,. The norm of eating fish on Fridays was
developed based on a red meat shortage.
Culture: Language
 Language is not a neutral vehicle.
Our thinking
is affected by the categories and words available
in our language.
E.g., Eskimos have over 100 words describing
snow.
 Whorfian Hypothesis – observers are not led by
the same picture of the universe, unless their
linguistic backgrounds are similar.
The Dimensions of Culture
Methods to Discriminate between
different cultures.
Inkeles and Levinson Three
Dimensions
 1. Relation to authority;
 2. Conception of Self, including the individual’s
concepts of masculinity and femininity;
 Primary dilemmas or conflicts and the ways
societies deal with them.
Hofstede’s Dimensions
 Power Distance
 Uncertainty Avoidance
 Masculinity/Femininity
 Individualism/Collectiveism
Power Distance
 How the basic fact of dominance is worked out in
the human social existence.
 Power distance – is a measure of the
interpersonal power or influence between the
supervisor and subordinate perceived by the
least powerful of the two.
Power Distance and Income
Inequality
 Greater wealth presupposes higher technology;
higher technology calls for higher education but
also better paid lower and middle strata.
 Therefore, power distance will decrease with
greater wealth and higher levels of education.
 Power distance and years of formal education
are negatively correlated.
Power Distance
 Latitude, population size and wealth explain 58%
of the variance of power distance.
 All Latin countries in Europe show higher power
distance, while all Germanic countries (including
English speaking ones) show a lower power
distance.
Uncertainty Avoidance
 Extreme uncertainty creates intolerable anxiety
and human society has developed ways to cope
with inherent uncertainty.
 Strategic planning are normative approaches to
the management of an uncertain environment.
Uncertainty Avoidance
 To reduce uncertainty, human societies use
technology, law and religion, organisations use
technology, rules and rituals.
 Organisational rituals directed at uncertainty are
accounting systems. Accounts have been called
the priests of business. E.g., memos – stop time
Uncertainty Avoidance
 Older democracies
(Austria, Finland) tend to
show higher uncertainty scores then the young
democracies.
 Cultural inheritance of the Roman Empire
coincides with High UA.
 High UA countries tend to have a higher need for
legislation than low UA countries.
Individualism vs. Collectivism
 The human species may be classified with the
gregarious animals, but different human
societies show gregariousness to different
degrees.
 E.g., some people live in nuclear families, others
live in extended families or clans. Other groups
organise in tribal units.
Individualism vs. Collectivism
 In this case, the central concept in mental

programming is our self concept.
 According to Hsu(1971) the western concept of
“personality” does not exist for the Chinese.
 The Chinese (ren) is used to describe the person
plus the intimate societal and cultural
environment.
Individualism vs. Collectivism
 The Chinese majority countries Taiwan, Hong
Kong and Singapore score high on collectivity
and low on individualism.
 In contrast, the Australians rank very high on
individualism. This is deeply linked to concept of
a “battler” and the rugged stockman tradition.
 Mao’s anti-individualistic, pro-collectivist is
deeply rooted in the Chinese tradition.
Individualism vs. Collectivism
Collectivism does not mean a negation of the
individual’s well being or self interest. It is implicitly
assumed that maintaining the group’s well-being is the
best guarantee for the individual (Ho, 1978).
 More collectivist societies call for greater emotional
dependence of members on the organisations. It is also
assumed that the org. will return broad responsibility to
their members. E.g., Japanese employment policy.

Individualism vs. Collectivism
 The level of individualism/collectivism in society
will affect what type of persons will be admitted
into positions of special influence. E.g., team
player vs. entrepreneur.
 Hofstede’s highest individualism scores are
found in the US, Australia and the UK; the lowest
for Venezuela, Columbia and Pakistan.
Individualism vs. Collectivism
 Hofstede found that Power Distance and
Individualism are conceptually different. PD
refers to emotional dependence on more
powerful people and Individualism in
dependence on groups, orgs or other collectives.
However, most high PD countries are low on
individualism.
Masculinity and Femininity
 “All societies have to deal with the basic fact
that one half of humankind is female and the
other male. The only activities that are strictly
determined by the sex of the person is
procreation. Human societies, however, have
also associated other roles for men or women
only. This is called social, rather than biological
sex role division. Hofstede, 1984
Masculinity and Femininity
 Chetwynd and Hartnett (1978) stated that the
sex-role system is at the core of our cultural
norms.
 Male behavior is associated with autonomy,
aggression, exhibition and dominance.
 Female behavior is associated with nurturance,
affiliation, helpfulness and humility.
Masculinity and Femininity
 Gender Differences and work goals:
More important to men: advancement, earnings and
freedom.
More important to women: supervision, social
aspects of the job, working conditions, and clearly
defined responsibilities.
…
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