Covers the study of Cross cultural business and Ecological factors

1. CROSS- CULTURAL BUSINESS ENVIRONMENT
AND ECOLOGICAL ENVIRONMENT
Name: Dharmender
Class: MBA
Subject: Business
Environment

2. INTRODUCTION
 Cross Cultural business environment relates to operation in the other
countries with consideration of cultural values of the host nation and doing
business with proper understanding of the opportunities, environment and
their culture, its impact on business.
 Generally the cross cultural business environment is considering the
general beliefs and values that are shared by nation beliefs and values by
factors such as history, language, religion, geographical location,
government and education.

3. DETERMINANTS OF CROSS CULTURAL
BUSINESS ENVIRONMENT
 Social structure: the basic social organization like a unit of society
which is individual as opposed to group. Like US
The degree to which society is stratified into classes. Like India.
 Religion and Ethical Systems: shared beliefs and ethical system
refers to set moral principles or values that are used to guide and
shape behavior.
 Public policy and legal framework: government policies and legal
framework reflects the cultural values of the country. It determines
the broad framework for doing business in the country. This
influence and circumscribe business practices in the country.

4.  Education: it supplements the family’s role in socialising the young into
values and norms of the society. From an international perspective, the
success of country depends upon the availability of skilled and educated
workforce.
 Language: the most obvious cultural distinction is probably that of
language and communication. There are more than 3000 languages spoken
in the world and each language is key to its culture.
 Work Motivation: employees are motivated to work long and hard are
generally more productive than those who are not.
For example rewards for like job differs with country. Ranking of personal
needs also directs the ability of people to work it defines there reward
preferences in different countries. Like US and India.

5. CROSS CULTURAL INFLUENCES ON
BUSINESS ENVIRONMENT
 Cross cultural business resulted into world appears smaller and is
much more connected in accordance with increased communication
b/w countries worldwide with cultural awareness in general.
 Influence on Consumption: changes the consumption behavior in different
countries.
 Influence on Thinking: when travelling overseas it is virtually impossible
for a person to observe foreign cultures without making reference. It should
be done by isolating self criterion. It means a person should think in term of
host country’s culture. The manager should think in international terms and
not in terms of his/her native culture.
 Influence on communication: It reflects the importance of what is to be
said not how it is said. It involve elimination of such context in which
meaning and words are not related to each other where communication can
be in form of words with proper use of words.
Ethics in communication based upon culture.

6. IMPACT OF CROSS CULTURE ON BUSINESS
ENVIRONMENT
 Cultures determines the production: the type of good and services
needed that a business unit should produce. For example some food
items may not be in demand in other markets. Certain type of
dressing style is popular in western countries but not accepted in
conservative nations.
 Attitude to work: people of some culture are hard working as they
are more committed to work. ex Japanese. Within the country also
people’s attitude to work differ because of different cultural values
in region for ex people of Punjab are more hard working than other
region therefore not having too many industries, state is in among
the highest earning states of the country.
 Global Business: MNC’s operates in different countries and
interact with different countries culture. MNC’s have to adjust it’s
production as per the requirement of local market, similarly it has to
design different advertisement programs for different countries.

7.  Culture and Strategy: When there is a balance b/w culture and strategy it
becomes easy for MNC’s to operate in different cultures with differences
there do exist some similarities in society of different nations which reduces
the needs to customize business practices to meet the demand of local
culture. Under this startegy the standardized products are sold and sell all
over the world

8. CROSS CULTURAL CHALLENGES IN
BUSINESS ENVIRONMENT
 Insufficient awareness of existence of differences
 Insufficient understanding
 Insufficient willingness: lack of confidence
Fear of unknown
Insufficient level of abilities and skills
 Challenges for workers: Success depends upon ability of workers
Different cultural environment
Misunderstand or conflicts
Different perception

9. ECOLOGICAL ENVIRONMENT PROTECTION
 Ecological Environment: It refers to all living and non living thing
around us within which we live and work. it constitutes of all kinds
ecological system containing human living and non living creature.
 Due to growing involving intensive use of energy, release of harmful
substances that damage our environment business activities and
leading to phenomenon like global warming.

10. FACTORS AFFECTING ECOLOGICAL
ENVIRONMENT
 Environmental Regulations: It is a way government agencies
protect environment. Standards are set to help to remove any adverse
effect a company’s activity have on environment.
 Permit Requirement: Companies have to file for operating permits
through a local, state or federal government. It enables government
agencies to regulate and keep track of business activities. It fulfill
the purposes for setting minimal standard for any air
emission, dictating procedures for handling waste and hazardous
materials and determine the type of operation company can engage
within particular region.
 Compliance Requirement: At all the stages of business companies
must comply with regulation. Business expansions must also meet
regulations. Companies leading to non compliance may lead to its
shut down.

11. ECOLOGICAL ENVIRONMENT PROTECTION
 Ecological environment protection is a practice of protecting the
natural environment on individuals, organization or government
level, for the benefit of the natural environment and humans.
 It is lead by activities of environment movements that has created
awareness of various environment issues. It is needed due to various
human activities. Waste production , air pollution are some of the
issues related to environmental protection.
 Ecological environment protection is influenced by three factors:
environment legislation, ethics and education.

12. WAYS AND ISSUES OF ECOLOGICAL
ENVIRONMENT PROTECTION
 Green Management: Business with use of green technology.
 Global Warming: Increase in temperature of earth when
greenhouse gases trap heat and light from sun in earth’s atmosphere.
 Carbon Foot Printing: It is technique to describe level of Green
house gas emission due to specific activity. It is the impact that
company has on environment in terms of green house gases
emission, these gases trap heat into the earth atmosphere result into
the change of temperature.
 Environment Protection Act, 1986: It is the act that emphasis on
specific type of pollution, matters related to industrial and
environmental safety. The central Government has the wide power
under the act to take all measure to improve the quality of the
environment and preventing and the environment pollution