Cultural Differences in Business: South Korea and Uk

Contents

Introduction - Page 1

Key Issues - Page 1

Power Distance - Page 4

Individualism - Page 5

Masculinity / Femininity - Page 7

Uncertainty Avoidance - Page 9

Long Term Orientation - Page 10

Conclusion - Page 11

Bibliography - Page 12

#Introduction

This report will highlight the cultural differences between South Korea and UK, and demonstrate the extent of impact that culture can have upon business practices. When operating in a global business environment its vital to be aware of how foreign countries do business and understand this in order to trade successfully. The question that drives this investigation is to what extent does cultural diversity between Britain and South Korea affect business?

Globalisation and technological advancement has made it possible for us to experience cultures foreign to us, which can open doors to businesses as well as close them. Hofstede (1980) defines culture as “a collective programming of the mind which distinguishes one group from another.” Culture is rooted in a person’s values and beliefs, passed down from generations. It therefore affects how people see the world and influences behaviour.

“The concept of ‘Culture’ is often applied at macro and micro level. ‘Western culture’ or ‘Asian culture’ are an example of the term on a larger scale, but on a smaller scale: ‘Pop culture’ or ‘entrepreneurial culture’. It comprises both material (e.g. buildings and art) and abstract elements (e.g. symbols, and values).” (Britton and Worthington 2006)

Key Issues

In a business context it can determine who, where and how things are sold and purchased, what the business sells and how business is conducted, how customers are #dealt with and which marketing methods are used, etc. There are many restraints upon businesses due to opposing cultures, e.g. something as simple as language barriers causing communication problems; translators may not interpret humour.

“Culture not only influences an individual’s response to products and the nature of buying and selling processes, but also exercises a significant influence on the structure of consumption in society. In Britain, overseas earnings from culture and tourism make significant contributions to the country’s earnings.” (Britton and Worthington 2006)

Korea is heavily influenced by Confucian values, “South Korea is a business culture at a significant crossroads