Cultural understanding is
key to global success

"And it's only going to increase.   There's no turning back."


"In the places where we do business, Americans have the reputation of being lazy because they don't take the initiative to learn and understand the language and culture," said Kyle Hale, Vice President of Operations at the Lexington, Tenn. plant of MagneTek, Inc.

cultural1.jpg (59710 bytes)Already an international company with plants across the globe, MagneTek recently expanded its international relations through an acquisition by Emerson, Inc.

Emerson purchased MagneTek's generator division in Lexington and is merging with LeRoy-Somer, a French-based generator company. MagneTek will continue to operate the motor division the Lexington plant.

To prepare management for their interactions with LeRoy-Somer, Hale contacted Jean Marie Walls, Associate Professor of French at Union University, about providing a 10-week basic instruction course in French language and culture to MagneTek employees.

"I know it's important for me to learn conversational French and some basics about the culture," says Thorne Barbour, Human Resources Analyst the Lexington operation. "It's essential for me communicate effectively with my French counterparts."

Walls said she is helping bridge the gap during the initial period of contact. "It's my desire to help MagneTek negotiate the new territory," she says. "The initial entry into a new culture is critical because it's the first impression LeRoy-Somer will have of their new American colleagues." Walls says that she's teaching the participants how people in France think as well as how they work.

TO GLOBALIZE OR NOT TO GLOBALIZE

MagneTek is one of hundreds of U.S. companies that are conducting business beyond the national border. Brent Cunningham, Assistant Professor of Marketing, explains that companies can no longer ignore the impact of international business. "Companies that do not broaden their vision to include international business will be left behind," he says.

Walton Padelford, Professor of Economics at Union, explained that the future trajectory is for more international business. "It's the way we do business now," he says. "And it's only going to increase. There's no turning back." More countries are expanding their markets because access to other countries is becoming easier. Padelford explains that the increase in doing business globally has made policy makers more aware of international trade issues such as the exchange rate movement.

International business has advantages and disadvantages, according to Padelford. From the businesses' perspectives, globalization means that some workers may lose jobs as companies internationalize. However, consumers benefit from a wider array of products at lower prices. "Overall, globalization is a good thing," he says. "The gains offset the losses, and it's forcing us to do the things we do best."

cultural2.jpg (53151 bytes)GOING GLOBAL

As businesses expand their markets to other countries, managers are looking for the keys to doing international business successfully. Kina S. Mallard, Associate Professor and Chair of the Department of Communication Arts at Union, explains there is no exhaustive list of dos and don'ts for effective intercultural communication.

The most commonly recognized examples of international business communication occur in marketing and advertising. International business experts regularly cite the miscommunication of product names and advertising messages. For example, Nike recalled 38,000 basketball shoes from an Arab nation after its flame-design logo drew protests from Muslims. The logo was said to resemble the Arabic word for Allah.

Cunningham says that one can tell a lot about a company's approach to international business by looking at its philosophy of marketing. He says two philosophies prevail: standardization and customization. Standardization involves applying the same marketing, production and management techniques that are used in the U.S. to the other country. Customization, which is the preferred philosophy, calls for tailoring each international venture for the country.

While customization is more expensive than standardization, Cunningham emphasizes that companies must analyze their potential return on investment before deciding which philosophy to adopt for their international product lines.

"Too often companies look only at the superficial issues such as language," observes Cynthia Jayne, Professor of Spanish and Director of the Center for International Studies at Union. "There's much more to communicating across cultural boundaries - it involves the entire cultural approach."

Mallard says intercultural communication is more than sending and receiving verbal messages. "It's about creating shared meaning with individuals in another country," she says. "To do this you must be culturally sensitive."

Walls views language and culture as intimately related. "In the study of language, you learn important things about the culture," she says. "When it comes to understanding the impact a message will have, you're not going to understand what happens to the message unless you understand how the people think."

There are many cultural issues that companies must consider. Some basic guidelines will enhance the effectiveness of intercultural communication.

1. Acknowledge the arrogant American idea.

U.S. companies often have a very arrogant attitude regarding their manner for doing business. "Many companies tend to operate like their ideas about business practices are superior to other countries." Walls says. "That's simply not the case."

2. Learn about the new culture.

Like MagneTek, business leaders who expand to global markets should get to know the new culture. Jayne explains that one can research the language and culture by purchasing a book on the country or seeking instruction from an expert in the area. However, she stressed the importance of learning more than the dos and don'ts.

Walls encourages her students - both at Union and in industries - to learn cultural basics such as social graces, perceptions of time and space and dining manners.

Padelford, who is fluent in Spanish and Latin American culture, says, "It's critical to take an interest in other countries." Beyond learning about new cultures, Padelford stressed the importance of being open to cultural differences.

3. Be sensitive to and respect differences.

"Your clients in other countries will understand that you might make cultural mistakes," Mallard says. "However, being sensitive to their culture and language goes a long way." This sensitivity comes by demonstrating an effort to learn and accept the differences.

"The key to conducting international business successfully is being smooth," Mallard says. "You want to enter the new market gently and without making a bang. Once you're there and know the culture, then you can make the bang."