Business Practices

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We've learned about how culture can influence language and understanding, but there is also a distinct difference in how different countries conduct business. One major difference is how companies in different parts of the world make decisions. The Psychology Department at the University of Texas at Austin has conducted a study to determine how distinct these differences are. They found that Western cultures are highly individualistic, meaning there is more focus on the individual and personal achievement; in contrast, decision making in Eastern cultures is collectivist - they tend to make decisions based upon what is best for the group. Also, Western cultures, like the United States, seek one solution to a problem whereas Eastern cultures, like many Asian countries, tend to seek understanding of the problem and thus create more than one solution. Lastly, companies in Western cultures tend to be more risk averse, meaning they do not like uncertainty; however, Eastern cultures will tend to take more risks, and thus frequently receive a larger return on their investments.

Knowing all of this information will be helpful to anyone in business because it will allow people to determine which kind of company they want to work for. While people choose companies based on their business practices, culture, and ethics, companies also choose candidates based on how well their beliefs and morals fit into the company.


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Target is a company with headquarters in the United States of America (Western culture) and the Bank of China is headquartered in China (Eastern culture).

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After studying both business practices and psychology, I see a rather valid argument to be made here for the nurture side of development and decision-making. I completely agree that there is a mixture of nature and nurture involved, but this is one shining example of nurture. Nature would suggest that humans think in behave relatively similar overall. However, do to different cultural and perhaps even religious influences. People grow to think very differently across cultures.

First semester while taking a management class we learned a little bit about this subject as well. Companies make sure that their employees are well versed in the cultural norms of anywhere that they may send them. In such a way they know how to handle themselves in what may seem like odd situations, and sometimes even impress the potential clients. Most of this does seem to go back to the nurture side of things, the things people are raised around influence them even if they are in the same types of business.

I do agree with the nurture aspect of it, but there's also something to be said about the nature aspect as well. I feel like these two always seem to go hand in hand, but, as we've seen, it's very difficult to separate the variables. For example, similar to what Professor Simpson was saying in lecture regarding why we like to eat cake, it's in our genetics. We're brought up craving fatty foods, and we're brought up (in Western culture) to be individualistic, while those in Eastern cultures are collectivist.

WOW,see your blog, I got alot of knowledge! It is real nice!!I am so interesting in business, I agree because of different language and understanding, different parts of the world make different decisions. Because of different cultural People have different think.

WOW,see your blog, I got alot of knowledge! It is real nice!!I am so interesting in business, I agree because of different language and understanding, different parts of the world make different decisions. Because of different cultural People have different think.

WOW,see your blog, I got alot of knowledge! It is real nice!!I am so interesting in business, I agree because of different language and understanding, different parts of the world make different decisions. Because of different cultural People have different think.

This is an incredibly interesting blog you have. It's a little bit of common knowledge that different cultures have different ideals, but I never really put it into a business context. I'm curious, now, how different companies sell their products. You mentioned that Western cultures tend to be more focused on there own self. So when it comes to the department stores, how do they differ in their advertising? Do advertisements vary in the different cultures? I would assume they do, but is it based on cultural differences or just something else?

I can connect to the ideas of the western culture as I am surrounded by those kind of things. I notice that businesses take an individualistic approach, but I was unaware that things were so much different in eastern cultures. Personal achievement is something that I find very common as well in even more areas than just business. Good post stating the differences between eastern and western cultures.

I find this aspect of psychology and business to be quite interesting. I intend of being part of the business world one day, and from my basic experiences and observations I would say that you raise a valid point. I have seen several pieces on 60 Minutes, and other programs that cover domestic and overseas businesses and how they operate. I have caught on to the different styles of the operations of both Eastern and Western companies, and the point can be made that the greater the risk, the greater the reward!

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This page contains a single entry by biwer011 published on March 26, 2012 5:48 PM.

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