General Business Environment (2)

8/18/2019 General Business Environment (2)

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GENERAL BUSINESS ENVIRONMENT:CULTURAL ENVIRONMENT AND BUSINESS

Prof. Dr. Djo


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• One of the prominent social theories on the relation betw

and modern economic s$stem was the theor$ of the orig

%odern& 'estern Capitalism forwarded b$ %a( 'eber .• #n his wor) on The Protestant Ethic and the Spirit of C

'eber argued that the rise of modern capitalism was sup

worldl$ asceticism+ of ,uritanism as focused through the

the calling+.

• According to him that the Calvinist ,rotestant/ ethic intractivism into the believer0s approach to worldl$ affairs a

master$ in a 1uest for the virtue in the e$es of 2od.


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• 3obert 4ellah in effort to appl$ %a( 'eber0s sociolog$ o

theor$ e(amined the origin of the !apanese capitalism &

!apanese entrepreneurship as showed in his wor) on ToReligion, The Cultural roots of the Modern Japan pu

5678/.• 4ellah argued that one of the essential cultural roots of th

!apan in the To)ugawa period was the values and ethic o

the 'a$ of the 'arrior the bushi or samurai embodied !apanese values or the national ethic/.• Bushido means the determined will to die+. #t was a )ind

religious dimension of To)ugawa period and the econom

merchant class.


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• 3obert 9. :ernberger in his article Capitalism and the E

%iracle+ attempt to call the genus of East Asian capitalis

as Confucian capitalism+.• According to 3obert 9. :ernberger each of these econom

cultural heritage related to Confucian values such as a g

of communit$ or group identit$ and interdependence a m

active role of the government in initiating and directing ac

econom$.


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• S. 2ordon 3edding in his wor) The Spirit of Chinese C

566;/ argued that the East Asian value s$stem the Sp

Chinese Capitalism+ can be held to be significant in e(psuccess of what ma$ be called pett capitalism+ that

enterprise/.• #n similar effort Cliffort 2eertz e(amined the cultural root

#ndonesia entrepreneurship in the %uslim merchants or t

groups and aristocratic groups as shown in his wor) on Tand the Peddlers and The Social istor! of an "ndone


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Culture Matters: in the Contempora

• Why culture is of great signicance?• Almost all diferences coming from c

• How Values shae Human Progress?

• !awrence ". Harrison # Samuel P.Huntington $eds.%& Culture Matters: Values shape Human Progress $'((


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• Culture is a s$stem of )nowledge and ideas cultural )no

which consciousl$ or unconsciousl$ belongs to a unit of s

ac1uired in accumulative manner that functions as the dguidance for attitude and behavior of the societ$ that bea

s$stem 2oodenough 5685 Spradle$ 568 the essential core of culture co

traditional ideas and especiall$ their attached values "lu

5675? @7.7/.

II. DEFINITION AND CONCEPT OF CULTURE !ALUE"


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"#"TEM OF $NO%LED&E

CULTURE

&ui'an(e)or attitu'e

an' *eha+ior so(iety

"#"TEM OF$NO%LED&E

IDEA" OF CULTURAL$NO%LED&E

• "o(• Ma• Dir


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"#"TEM OF $NO%LED&E

CULTURE"#"TEM OF

$NO%LED&E

/luepr

in thei

• !alue• Thou,ht

• Per(eption• Feelin,

The )un(tion o) Dire(ti+eAn' &ui'an(eAttitu'e

• Pattern ay o) Thin0in,

• Pattern ay o) Feelin,• Pattern ay o) Rea(tin,• Pattern ay o) A(1uire' T• Pattern ay o) Constitutin,• Pattern ay o) Tra'itional I


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CULTURE !ALUE" ORIENTATION

!ALUE "#"TEMCULTURE !ALUEORIENTATION

CONCEPTION OFIDEA"

• 2uman Nature Orientation• Man Nature Orientation• Time Orientation• A(ti+ity Orientation• Relational Orientation

"#"TEM OF !ALUEORIENTATION

IN


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CULTURE AND ECONOMIC DE!ELOPMENT

Culture on relation or tr

various decision unit (wbusiness transaction wi

)eha*ior +onduct

,nstitution for gi*en tye -ransaction +ost /inim

Behavior individuals( e preerence over work & present & uture).

,nterersonal -ransaction

CULTURE EDE


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T2E "E!EN C2AN&E FACTOR"

CI Demo,r

C6 Te(hnoloInno+ationC7 "o(ial InC8 Culture C9 E(olo,i(C In)orma"hi)tC; Cultural

+'+1

+2

+3

+4+5

+6


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T2E "PECTRUM OF C2AN&E

Demo,raphi(

• Invention of new • Political Structur• Educational Syste• Social Movements• Leadership Styles

• Etc.

Te(hnolo,i(al

"o(ial Inno+ation

Cultural Di


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• Culture as transmitted and created contents and patterns

ideas and other s$mbolic meaningful s$stems as factors

of human behavior and artifacts produced through behavand ,arson 7@=/.• Culture as the collective programming of the mind which

distinguishes the members of human group from another

ofstede 56@;


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• Balues is a conception e(plicit or implicit distinctive of an

characteristic of a group of the desirable which influence

selection from available modes means and end of action"luc)hohn 5675a? =67/.• Balues are distinguished into values as the desired and v

desirable.


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!i"e cate#o$ies of cultu$al "alues o$ientation of a societ

to &luc'(o(n an% St$o%t)ec' 565/?

•uman nature orientation orientation toward relationship bhuman and life evil-mi(ed-good/.•%an-nature orientation orientation toward the relationship

man and environment subDugation-harmon$-master$/.•The orientation in time orientation toward past-present-futu•The orientation toward activit$ orientation between human•3elational orientation orientation toward human and others

relationship/.

III* CULTURAL VALUES ORIENTATION


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• ,eople Ought to 3espect the Others with 'hom The$ Se

3each.

• Agreement as 'illing and #nterested ,ersons.• ,eople Ought to "eep Their ,romises.• ,eople Ought to %a)e Their Communications onest an

:eceptive.• ,eople Ought to onor Their 3eciprocal Obligations.

IV* MORAL UNIVERSAL AS CULTURAL REALITIES AND BUSINE


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!i"e Gene$al +$inciples a$e as follo,s:•#ndividuals Ought to Choose as Spouses and Se(ual ,artn

,ersons outside Their atural 9amilies with whom it is 9ittinto %ar$ have Se(ual 3elations.•,arents Ought to Care for protect and educate Their Child•,eople Should ot E(ercise ,h$sical Biolence to the #nDur$

E(cept as means to :efend Themselves against and to dis

'ho Threaten or E(ercise ,h$sical Biolence against them.•Social 2oods and 4urden Ought to 4e Allocated in "eeping

,ublicl$ 3ecognized 3ules and ,rocedures the accord to ,e

is their :ue.•,eople Should ot Steal.

V* MORAL +RINCI+LES T-AT MA&E MORALIT. CRIDIBLE

!I C2ARACTERI"TIC OF A"IAN CULTURAL TRAIT" AND &ROU


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• The religious and civic traditions of Confucianism 4uddh

induism and #slam in Asian Societies have transmitted a

behavior attitudes and beliefs which have deep and consevolving impact on Asian Entrepreneurial culture.• Culture affects government policies social norms consu

patterns business transactions management practices a

relations.• Cultural traits var$ according to ethnic religious and natio• owever it is possible to identif$ certain enduring charac

Asian social organization and group behavior which are

across the region.

!I. C2ARACTERI"TIC OF A"IAN CULTURAL TRAIT" AND &ROU/E2A!IOUR AND /U"INE""

G R f G I %i i% l I% tit


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• 2roup belonging is asserted before individual instinct>• Compliance with group norms is e(pected>

• #ndividualistic behavior is condemned>• #ndividual transaction are based on intra-group affiliation

networ)ing.

G$oup Refe$ence : G$oup "e$sus In%i"i%ual I%entit*

E t % % ! il % N ti


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• 9amil$ support is considered the norm• Organization are seen as e(tension of the famil$ support

and hence as providers of social welfare• #t is considered proper behavior to give preference to fam

in business dealing

E/ten%e% !amil an% Nepotism

V,, -H" +AS" 78 97:"A ;APA


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0* &o$ean Confucian Et(ical Co%es?• ,oliteness• armon$

• Fo$alt$• Educational-based social status s$stem1* Confucian Et(ical Co%es %efine t(e fi"e ca$%inal (uman $e

• 4etween the )ing and his subDect• 4etween father and son• 4etween husband and wife• 4etween $oung and old• 4etween friends

2* Base% on t(e concept of t(e Confucian et(ical co%es3 empattitu%es an% )e(a"io$s to,a$% t(e t(ei$ senio$s an% supe$%efine% as t(e follo,in# fi"e items:• Treating seniors as elders• 3especting seniors• Compliance with seniors opinions• Obedience to superiors directions

• Accepting superiors informal directions.

V,,. -H" +AS" 78 97:"A& ;APA


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• The term chaebol means 4financial cli5ue+ it is used to

large business group originall$ created b$ a talented ent

and still largel$ famil$ controlled and spread over man$ area.• The chaebol are the offspring of "orea0s forced industria

The $orean C!"#B$% = The $orean Mo'ern/usiness Players

-he -en !argest 9orean Chaebol


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-he -en !argest 9orean Chaebol3roup' Business sectors4 3=4

• "AM"UN&= "lectronic& aerosacechemicals& semiconductors& food& te>ser*ice

• 2#UNDAI= /otor *ehicles& electronicshea*y industries& engineering& machin

construction materials.• LUC$# = "lectronics& chemicals& oil• &OLD"TAR= insurance& telecommunic

engineering& instruments.

+haeol $'%


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+haeol $'%

• DAE%OO= /otor *ehicles& machinery&electronics& distriution& shiuilding&construction& nance.

• "UN$#ON&= "nergy& chemicals& distrishiing.

• ""ANON&= /otor *ehicles& cement• 2AN>IN= Airline& shiing& machineryconstruction.

• $IA = /otor *ehicles& machinery& stee

+haeol $4%


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+haeol $4%

• LOTTE= Distriution& food ane*erage& chemicals.• 2AN%2A= "nergy& etrochemi

distriution.

;APA


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;APAapanese +"I!"6. The >apanese +#I#-

;APA


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;APA


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$+ontinued%

• ;aan0s industrial landscae isdominated y si> *ery large kei/,-S),SH,& /,-S,& S/,-7/787& DA,,+H,C9A


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The O+erseas Chinese Con,lomeThe Thir' Distin(ti+e Type o) Re,Lo(al Asian /usiness Players2istori(al Ori,in:

• -heir trading networks grew and at cestages succeeded in ro*iding an alterarallel framework to colonial "uroeamultinationals and trading comanies.

• -he +ommunist :e*olution in +hina tri

another wa*e of the ethnic +hinese Diawith many estalished +hinese caitalFeeing to Hong 9ong and -aiwan.

• -his grou has een more inclined towindustry and manufacturing and has gr

$continued%


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$continued%

•Feeing to Hong 9ong and -aiwa• -his grou has een more inclintowards industry and manufactand has gradually linked u wit

e>isting 7*erseas +hinese netw

Ma?or O+erseas Chinese &roup in


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Ma?or O+erseas Chinese &roup inPa(i-( Countries• INDONE"IA

G "alim $!iem Sioe !iong %

G "inar Mas $"ka -jita Wijaya%

G Astra $8ounder W. Soerajaya%

• MALA#"IA G 9uoak Erou $:oert 9uok%

G Hong !eong $Guek !eng +han%

G Eenting Erou $!im Eoh -ong%

• T2AILAND G +haeroen Pokhand $Dhanin +heara*anon%

G )angkok )ank $+hatri Sohonanich%

G Siam /otors $9hunying Phornthi%.

$continued%


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$continued%

• P2IPIPPINE" G 8ortune -oacco $lucio -an%

G ;.E. Summit Holdings $;ohn Eongkonwei%

G S/ Prime Holding $Heny Sy%• "IN&APORE

G Hong !eong $9wek !eng;oo%

G nited 7*erseas )ank $Wee +ho Woo%

G 7*erseas +hinese )ankning +ororation $!ee Seng Wee%.

• TAI%AN G 8ormosa Plastic $ung +hing Wang% G President "nterrises $

V,,, ,


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V,,,. ,


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$ %

G


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$ %

G 8riends

G 8aceC and losing it

G Humor G 8ate and curiosity

G -he works lace

G Paternalism and sharing

G Village inFuences

G +hanging attitudes aIected y raid sochange.

General Business Environment (2)

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