Here is a systematic four-step framework for . .. Cultural Analysis in Overseas Operations . . to eliminate the root cause of many business problems. By James A. Lee buffer for the differences between his operation The purpose of this article is to expose the and corporate headquarters in the United States. natural self-reference criterion - the uncon- And even though his profits are up to expecta scious reference to one's own cultural values tions, his New York superiors are afraid that he as the root cause of most international business has "gone native" from the way he defends his problems overseas and to offer an analytical ap- position on controversial matters. proach designed to reduce its influence when it In this case while the manager, his organiza- comes to solving such matters. tion, and his products seem to have succeeded The resident general manager of an American in adapting to the forcign environment, his com- company in Italy recently characterized the pany headquarters has not. In other cases, the three major difficulties which he, as a U.S. busi- situation is even less healthy. Products have failed to find predicted markets; factory opera- nessman overseas, faces tions have bogged down; and resident managers 1. Communicating with U.S. headquarters. have returned to the United States without fin- 2. Adapting to local cultural differences. ishing their normal tours of duty. 3. Keeping up with rapid changes in the inter- Business literature is not without advice for national political and economic situations the U.S. manager overseas who needs to know which affect his company's operations. something of the customs of other peoples. Ed- ward T. Hall, in his article, "The Silent Lan- The first two problems (the third is beyond guage in Overseas Business," provided a number the scope of this article 1) are of course different of examples of how the behavior of certain for- aspects of the same problem - that of business cign businessmen must be considered by the adaptation. This general manager, like many American who would do business with them. another, cannot operate the same way he could Although the mapping of the customs of vari- back home. Not only must his products be al- ous cultures is a necessary beginning to the cul- tered to fit local overseas market needs, but the tural adaptation process, there is a limit to the organization and the policies by which it is run are different. Furthermore, he must behave But see Robert E. McGarrah, "Logistics for the Inter- national Manufacturer," p. 154. - The Editors differently as a resident manager, and act as a ? HBR May-June 1960, p. 87. 106