Keeping to tradition

Incorporating the importance of our environment in today's MBA and business studies.  By Jay Bryant

In the last few years businesses around the world have started to implement more and more "Green Business" concepts in their organizations.  Without a doubt, we should all be concerned with the physical world around us and make certain that our actions leave the world as a livable and enjoyable place for our future generations.

However, going beyond the need to maintain a sustainable physical environment around the world, businesses – and thus business schools – should be concerned with the preservation of the cultural environments that they are working in as well.  Globalization has brought fantastic advances in improving the lives of people from all corners of the globe, but often times at a cost.  As regions develop they often leave behind a great deal of their culture and way of life. 

Take for example the world's largest country and fastest growing economy – China.  China's 1.3 billion in population by far dwarfs the US 300 million population mark.  In fact, the most populated region of China, Henan, boasts approximately 97 million inhabitants.  This is approximately equal to the population of California, Texas, New York, and Florida combined.   

With such a large population, why is it then that the ancient Chinese culture is becoming more like the West?  Walking in the central area of Shanghai lends you more than a few opportunities to grab a latte at Starbucks, a Big Mac at McDonald's, and a Coca Cola from any number of vendors.  It is said that currently more people in China are studying English than there are inhabitants in the United States.  Will walking the streets in Shanghai one day feel the exact same as walking the streets of Manhattan? 

This is where global companies can play a role to ensure that local cultures continue to thrive, albeit in a new and modernized way.  In fact, those companies that have adapted their business practices to mirror the local cultures tend to be more successful in their ventures.

As our businesses expand around the globe we must learn the lessons that the pioneers in globalization have learned and what they are able to pass on to us.  The "think globally, act locally" attitude is what has proven time and time again to be the most successful model for businesses to follow. 

Take for example a bank known throughout the world -  HSBC.  HSBC is a London based bank officially named Hong Kong and Shanghai Banking Corporation, whose slogan since 2002 is "The world's local bank". 

Perhaps Disney could have avoided considerable losses the first few years after the opening of Euro Disney had they initially taken local customs more into consideration.

Another of the most recognized global companies, McDonald's, has modified itself in each country to appeal to the local consumers and maintain a sense of the local culture.  For example, in Argentina, a country known for its culture of drinking coffee, McDonald's introduced the "McCafe" concept to attract consumers to enjoy a freshly made cappuccino, mocha, or latte while the children enjoy their happy meal.

Upon entrance into India, McDonald's faced one of its biggest challenges.  The flagship sandwhich – the Big Mac – was not suitable in a country in which the cow, and thus beef, are considered sacred.  Alternatives such as the Paneer Salsa Wrap, McAloo Tiki, Veg McCurry Pan, and the Chicken Maharaja Mac were adopted in its place. 

What, then, are business schools doing to prepare students for these sorts of issues?

MBA programs worldwide are coming to understand the value of cross-cultural understanding and making it a more of a focus in their curriculum.  Prospective students are asking more and more each year what opportunities they will have to study abroad and the variety of locations to choose from.  Studying abroad offers more than just a great vacation in another country.  By staying for several months in another country they begin to learn the cultural nuances, tastes, and linguistic challenges.  They can bring these back to their organizations in their home countries and offer a great deal more insight into those regions than those who have only studied them from afar.

Whereas several decades ago, study abroad was going above and beyond in an MBA program, it is starting to become more the norm.  At my workplace, for example, we require that each MBA candidate take courses in International Politics and Cross Cultural Communications; they must also prove a proficiency in a language other than English in order to meet graduation requirements.  Furthermore, each student is required to have an educational experience during their MBA outside of their home country. 

One of our students, Richard Franklin, recently had the opportunity to join a course in Jordan in which he and his classmates worked with local companies in a consulting role.  "We had to apply the tools that we learned in our 'lab' here at the school, while navigating the issues of distance, language, cultures and perceptions."  Opportunities like this teach students how to merge cultural differences into creating business models. 

As globalization occurs, business schools must keep up in the education that they provide for their students.  It will take more than the traditional finance, accounting, and marketing courses for students to be prepared to do global business. In the coming years, business schools must be ready to provide their students with opportunities to study language, culture, and the nuances between business environments worldwide.

Jay Bryant is Senior Director of Global Recruitment at Thunderbird School of Global Management