Marketing has taken a completely new approach from what it was some time ago. Immediately after the Second World War, The world was turned into a global village. Communication was made easy with the invention of telephone. Movement was also made easy with the invention of air transport. The world market became easily accessible to many multi-national corporations. This large market would easily purchase the products of Multi-national Corporation, and as such, the biggest issue was to make production in mass.We will write a custom essay specifically for you for only $16.05 $11/page 308 certified writers online Learn More
Things started changing when countries like Japan started coming up as major world manufacturers. The American firms that for a long time had dominated the world market with manufactured goods started facing the challenge posed by the Japanese firms. Competition was setting in and the tact had to be changed. After a short while, China started coming up as another major manufacturer.
This was a further blow to the firms from developed countries that for a long time had been operational without any major challenge from other firms. What made the market environment even more competitive was the fact that most of the firms that were emerging in the emerging economies were producing goods that would serve similar purpose as those of American firms, but at a cheaper price. Tanke (2000, p. 78) says that many of the new firms were known to mimic the products of other major companies, a fact that made competition very rife.
The world market was characterized with varieties of products from which customers would choose. The attention of the multinational firms was shifting from production to marketing. There was a need to acquire and retain a given market share within a particular market in order to remain competitive in that particular region. Manufacturers realized that it was necessary to give preference to the customers’ expectations and needs in the market. The focus of marketing therefore changed from an inward-out approach to an outward-in approach. Companies started factoring in the needs of the customers in their production.
Social marketing became the only way that these firms could manage the stiff competition that was in the international market. It is upon this realization that firms came to appreciate the fact that culture was an important factor to consider when doing international marketing. Cross-cultural analysis became very relevant as firms strove to be relevant in various cultural settings in different regions of the world. The scholars gave emphasis to culture and many models for cross-cultural analysis were developed. One of the most prominent models that were developed during this time was Hofstede’s model of cross-cultural analysis.
In this study, the researcher intends to critically examine the effect of culture on and the importance of cross-cultural analysis on international marketing, with focus on Hofstede’s model of cross-cultural analysis.
Culture and Marketing
Hollensen (2011, p. 32) defines culture as a set of beliefs, ideas or a given pattern of behavior of a particular group of people. Culture varies in various fronts. As Anderson (2004, p. 56) states, culture is defined by various factors. Religion as one of the major factors that influence culture, is shaped by the very culture. A given market will behave in a given manner depending on the religious beliefs. An international marketer would need to understand the needs of a given religious grouping if success is to be achieved. Caves (2007, p. 35) states that religion is the major factor that influence culture and hence buyer behavior.Get your 100% original paper on any topic done in as little as 3 hours Learn More
A given customer would purchase a given product in mass but completely avoid the other because of cultural beliefs. A Muslim cannot take pork because of the religious beliefs. As such, their culture bars them from buying this product because in the first place they are not allowed to lay a hand on it. A marketer in this product would therefore be advised to look for markets outside an Islamic religion. If such a firm exists in a country that is majorly Islamic like Saudi Arabia, it would be advisable for such firms to select the market segment that are not Islamic in this country.
Marketing cannot assume culture as one of the most important factors to consider when conducting business in new regions. Culture has a heavy influence on the buyer behavior towards certain products. As Doole and Lowe (2008, p. 54) say, it would be dangerous for a firm to generalize markets on cultural terms. Inasmuch as there are various characteristics that cut across cultures (like abhorrence of adult content to children below the age of majority), some of the characteristics are so unique to given cultures. As such, a firm that operates in various countries around the globe would need to have a detailed cross-cultural analysis of these regions in order to remain relevant in all of them.
Meaning of Cross-Cultural Analysis
Hakim (2000, p. 12) defines cross-cultural as a combination of or involving many cultures. According to Hofstede (2005, p. 90) cross cultural analysis refers to the study of different cultures and how they relate to one another. It is the study of the way of life of different people in different regions of the world. In relation to commerce, cross-cultural analysis would be defined as the detailed study of how different cultures from different regions of the world affect the way people conduct trade. It is the study of the effect of culture on trade and how these cultures vary from one region to another.
Relevance of Cross-Cultural Analysis
Cross-cultural analysis has become very relevant in the current world market. For some time in the past, trade was limited to certain specific regions that were limited in distance. When such dynasties like the Roman Empire and other world powers like Britain conquered the world, trade was broadened. With the emerging technologies, communications and movement of people from one region to another has been made easier. This in effect, has turned the world into a global village. The world market is now easily accessible to many of the firms that have the capacity to produce goods internationally.
At first, only a few firms could manage to produce goods and sell them in the international market. Most of these firms were American or British companies. However, when countries like China, India and Brazil started coming up as major manufacturers and exporters of similar goods as those of the American and British firms, stiff competition started to arise (Hollensen 2011, p. 26). The world market, which was till then was vast and non-choosy, became very selective because of the variety that was now available.
The new firms that sprung up came with new and better strategies of doing business because they were well aware that they would meet competition from the already established firms. Although they did not have enough money to make them more competitive, their strategies towards the new markets was better than those of the established firms in the world market.
On the other hand, firms that were established in this world market had gathered huge financial base that could make them compete properly, but were a little slower to change as compared to other firms that were relatively new in the market. Competition became very strong, and the firms came to realize that in order to stay within a given market, a firm had to remain competitive in its market strategies. A firm had to look for a way to appeal to the market and convince it that it was determined to provide it with products that best satisfies its needs.We will write a custom essays specifically for you! Get your first paper with 15% OFF Learn More
Culture came out as one of the strongest factors that affect buyer behavior. It became evident, through market research, that the market, as a unit, and a customer as an individual, is highly affected by the culture. Culture would determine what a person would buy. Again it was realized that culture is not universal (Kotler, Keller, Brady, Goodman, & Hansen 2009, p. 57). The cultural practices of the Americans sharply differ from that of Saudi Arabia.
An American firm, trading in both the American and Saudi markets, would have to understand both the American Culture and the Saudi Culture. As such, cross-cultural analysis became very relevant. Currently, cross-cultural analysis has become very important as firms strive to remain competitive in different markets in the world exhibiting different characteristics. Cross-cultural analysis has come out as the tool that can help in remaining competitive in these markets because it would help the firms understand each market culture.
Importance of Cross-Cultural Analysis
Cross-cultural analysis is very important in the current market. As stated above, the world is characterized by numerous cultures. Although most of these cultures have highly been infiltrated by the western culture, most of them still hold some uniqueness that make them vary from one another in different fronts (Luthans, & Doh 2009, p. 43). International firms have had to understand different cultures in different regions. Cross-cultural analysis has been a very important tool in understanding different cultures.
Hofstede’s Model of Cross Cultural Analysis
Hofstede’s model of cross-cultural analysis is one of the models that have been very popular in analyzing different cultures and how they affect multinational organization. Developed when Hofstede was working for IBM Corporation, This analysis gives five dimensions of culture. The five approaches given by this model vary from one religion to another. According to Hofstede, cultural practices have some similarities depending on their closeness. The five dimensions are as discussed below.
Some cultures lay more emphasis on individualism, while others lay emphasis on group ties. In every society, there exists some form of groupings. This can be in form of families, church or any other such social groupings. There are those societies that behavior of the market would highly be affected by the social groupings. For instance, some groupings may be influenced by religious beliefs.
Because an individual belongs to a certain religious grouping, he or she is expected and/or will behaving in a manner that this religion states. To an international marketer, it would be important to understand the doctrines of that group in order to be competitive in that market. On the other hand, some societies have given their people more independence from one another. In such societies, although one may belong to a given social grouping like a family or a religious group, actions of a person is not rigidly defined by the social grouping (Luthans & Doh 2009, p. 61). In such cases, it would be very difficult to generalize the behavior pattern of a given society. United States is one such country that has embraced individualism, while Saudi Arabia strongly holds to collectivism.
Power and Distance
In every society, there is some form of leadership. According to Hofstede (2005, p. 67), there is always a distance between the governed and the governors. In some societies, this gap is bigger than what it is in other societies. To a marketer, of interest would be how the authority influences the behavior of the rest of the population. For instance, in the western democracies, the governments do not have powers to dictate the lifestyle of an individual, as long as this behavior do not, in any way affect another individual or the state.
As such, people here are free to behave in a way that pleases them, only ensuring that they do not affect others in the process of enjoying their freedom. In other societies however, the state rigidly defines the way one should live (Marczyk, DeMatteo & Festinger 2010, p. 73). Any deviation from the expectation of the leadership of the state would result in severe punishments, some of which may result to execution. A marketer would therefore need to confront each market with the desirable approach that would make it relevant.Need a 100% original paper written from scratch by professional specifically for you?308 certified writers onlineLearn More
Some societies do not tolerate situations where people work with guesses. The western societies highly value specifity. They prefer situations where any action taken would lead to a specific result. Such societies would prefer situations where a certain behavior would lead to a specific result so that such result would be manipulated to fit into their requirements. Such societies would avoid uncertainties at all costs. On the other hand, some societies do not value certainties. The Chinese do not give much importance to certainties. A marketer would need to be elaborate and specific to such societies that value certainties like the western countries.
Some societies tend to be more masculine than others. In a society that is masculine, people would tend to be very assertive. Even the women in that society would have the assertive character in most of their undertakings. Such societies value a competitive environment and this competition would always be on the basis of win-lose. Every individual would want to be in the first position and they give lesser attention to how others would feel by them gaining what they feel should be gained by them.
On the other hand, some societies behave in a feminist manner. The members of the society are not pushy. All the members of the society are concerned by what others would feel. As such, they would avoid behaving in a manner that would upset others. They are very considerate and value consultative actions. To a marketer, it is important to understand the environment. The societies sharply contrast each other, and as such, they should be given different approaches.
Long term/short term Orientation or Confucian Dynamism
Some societies highly value planning. They look at what the actions of today will result into tomorrow. In such societies, planning and industriousness are highly valued. The long term orientation is always associated with Confucian value. These are values that insist on perfectionism in every action taken by its members. On the other hand, some societies are more concerned with what is to be achieved within a short term. These societies value short term achievements and give less concern to long term achievements. To a marketer, Quality of the products such as durability would be provided in a society that exhibits Confucian dynamism, while physical attractiveness of products would be prioritized in societies that value short term benefits.
Advantages of Hofstede’s model
Hofstede’s model of cross cultural analysis is one of the most popular models for the analysis of different cultures. This model, unlike some of the previous models, is multi-dimensional. Analysis using this model can take many fronts and as such, it would give many facets of the culture. As Hollensen (2011, p. 90) says, Hofstede’s model gives a complete analysis of culture from all the important fronts. Moreover, this model may help one predict characteristics of a new market by using the generalization approach.
Disadvantages of Hofstede’s Model
It is important to note that inasmuch as this model is very useful in the analysis of culture, it has some shortcomings that its users must take note of. When using this model to analyze the culture of a country, it may be difficult to understand the culture of specific sub-cultures within the society. It would be dangerous to generalize the culture of a country because in most of the cases, this generalization would be based on the dominant group of that country. A company trying to use such a generalized assumption may incur losses if it happens that it operates in regions where the generalization does not apply.
Another challenge of this model is that it does not reflect on the cultural changes that are bound to take place at regular intervals. The data used for the generalization may not be up to date and s such, the application of such model may be very misleading, especially in a dynamic society. This model is also not self-supportive. For a firm to be in a position to master the culture of different societies, it would need to use other models, besides this model
Application of Hofstede’s Model: Samba Financial Group Case Study
Samba Financial Group, originally known as the Saudi American Bank, is one of the leading financial institutions in Saudi Arabia and the entire Middle East region. The bank operates in many cities within Saudi Arabia and the neighboring countries. In its quest to increase its market share, the bank opened branches in the United Kingdom. Saudi Arabia is cradle land for the Muslim communities around the world.
It is one of the few countries that still hold on to the teachings of the Shariah law very strictly. On the contrary, the United Kingdom is one of the leading democracies in the world, with the leading religion being Christianity. These two regions sharply contrast each other in various cultural aspects. Hofstede’s model of cultural analysis can be the best tool that this firm can use to operate in the two regions successfully.
Taking the first dimension of individualism versus collectivism, Samba Financial Group appreciates that in Saudi Arabia, the society highly values collectivism. The society is highly influenced the Islamic teachings that demands that all the members of the society act as a unit.
As such, this firm knows that to succeed in this market, it must act as per the expectation of the entire society. This was seen when it introduced the Shariah Committee in its top management to help guide the bank in upholding the Islamic principles. Conversely, United Kingdom, just like many other western countries, gives lesser attachment to communism. Consequently, the bank has formulated marketing policies that would attract specific market segments.
In power and power and distance, the two societies also vary. While in Saudi Arabia, the firm has to operate having in mind that the government has absolute powers. The government has total control of many of the activities of the country and deviations from the expected norm would result in instant punishment (Swanson & Holton 1997, p. 43). This institution must understand the principles of the state to avoid any confrontation with the government. To satisfy this requirement, the government has established a Shariah Committee in its Riyadh branch, a committee that does not exist in its overseas branches like in United Kingdom.
The bank also takes the principles of Masculinity in most Islamic countries, especially in Saudi Arabia. According to the principles of Shariah law, a woman is considered as subordinate to a man. The society has accepted and highly values this principle. Men are given more priority in almost all the facilities and in social gatherings. Understanding the importance of sticking to this culture, the bank opened a female branch, different from the male branch in Riyadh.
The facilities at the male branch are conspicuously better than those at the female branch, a fact that many scholars have attributed to the pressure by the societal culture of the country. In United Kingdom, this bank has both male and female sharing the banking halls because of the clarion call for equality between the two genders.
Culture is one of the important factors that have to be considered in international marketing. Emerging technologies are transforming the world. The world has been turned into a global village. An American firm can manufacture its products in India where there is cheap labor, and sell these products in Saudi Arabia where there is a ready market. These three regions are very different culturally.
Whereas America, which is the leading democracy in the world, has the majority of its populace practicing Christianity, India is predominantly Hindu while Saudi Arabia is majorly Islamic. Culture and religion are closely knit together. Buyer behavior is closely related to cultural values and beliefs. For this reason therefore, international marketing must give emphasis to culture. Cross cultural analysis has gained a lot of relevance in international marketing for this matter. Hofstede’s model is the best model that explains cross-cultural analysis. Using five dimensions of culture, it gives an in-depth analysis of culture and how it relates to the individual’s behavior, which would help explain buyer behavior.
List of References
Anderson, P 2004, Research Methods in Human Resource Management, Chattered institute of Personell Management Publishing, London.business, 2nd edn, Irwin, Chicago.
Caves, RE 2007, Multinational enterprise and economic analysis, Cambridge University Press, London.
Doole, I & Lowe, R 2008, International marketing strategy: Analysis, development and implementation, 5th edn, Cengage Learning EMEA, London.
Hakim, C 2000, Research Design: Sucessful Designs for Social and Economic Research, Routledge, New York.
Hofstede, G 2005, Culture’s consequences: International differences in work-related values. 2nd edn, Sage, London.
Hollensen, S 2011, Global marketing – A decision-oriented approach, 5th edn, Prentice Hall, New York.
Kotler, P, Keller, K, Brady, M, Goodman, M & Hansen, T 2009, Marketing management, Pearson Prentice Hall, New York.
Luthans, RM & Doh, J P 2009, International management: Culture, strategy, and behavior, 7th edn, McGraw-Hill, New York.
Marczyk, GR, DeMatteo, D & Festinger, D 2010, Essentials of Research Design and Methodology, John Wiley and Sons, New York.
Swanson, RA & Holton, E 1997, Human Resource Developement Research Handbook: Linking Research and practice, Berrett- Kohler Publishers, San Fransisco.
Tanke, M L 2000, Human Resources Management for the Hospitality Industry, Cengage Learning, Albany.
Trompenaars, F 1997, Riding the waves of culture – understanding diversity in global.
Werner, JM & DeSimone, R. L 2008, Human Resource Development, Cengage Learning, Mason OH.
Management researchers have been quick to point out the impact that organizational culture may have on the effectiveness of the organization and have called for an increase in the attention paid to organizational culture.. Management researchers have been quick to point out the impact that organizational culture may have on the effectiveness of the organization and have called for an increase in the attention paid to organizational culture (Siehl & Martin 1998).. While most noted for his groundbreaking work on dimensions of national culture, Hofstede also identified six dimensions of organizational culture which can be used in defining the style of management in an organization.. Hofstede’s ground breaking work on culture has indeed provided valuable insights into the management styles and dynamics of cross cultural relationships.. Hofstede’s analysis supposed that a single IBM organizational culture could be used to make inferences about the entire world wide organizational cultures (Jones 2007).. After years of publication of his analysis on organizational culture based on the IBM survey data, Hofstede begun to acknowledge the presence of cultural diversity within and between units in the same organization.. The six dimensions that define organizational culture put forth by Hofstede made it easier for managers and researchers to understand corporate culture without the need of expert knowledge.. Although Hofstede’s work on culture has been heavily criticized on grounds of his one company approach, survey methodological approach, and for fewer dimensions and his assumption of a single organizational culture; majority of his findings have had remarkable effect on practitioners and researchers and continue to guide multi-national practitioners into the “global” future.
Given below are the following reasons to our agreement/disagreement with Hofstede’s model. The last reason is, Hofstede’s research was based in surveys between 1967 and 1973.. Globalization, advance technology, changing education system, new generation, smaller household structure, different roles of women and period of conducting research seem to be the crucial answers why Hofstede’s dimension is dated and inappropriate for international business application since many cultures become more similar and people independently choose to behave in the way they want.. Although these employees were from different countries, the effect of organization culture is the same on them (McSweeney, 2002).. What is a culture?. The first one is each country has different style of answering questions, due to this survey covered 66 countries.. McSweeney (2002) critiqued that his research covered 66 countries, but the final data and result were from only 40 countries.. It would be more accurate to refer to Hofstede’s research as an IBM study of that period.
He suggests that the cultures of different nations can be compared in terms of five dimensions, which is power distance, individualism, masculinity, uncertainty avoidance, and long term orientation.. Essay Writing Service Cross-cultural management is the management of people and things that involve a different culture background.. Cross cultural management is a knowledge management perspective that breaks the concept of culture that has affect management thinking, education, and research for several decades.. According to Hofstede (1980), power distance as a cultural characteristic defines the extent to which inequality in power is accepted and considered as normal by less powerful people in a society.. On the other hand, low context cultures rely on direct culture such as clear and stated in word, with emphasis on the time management, punctuality and deadlines.. According to Hofstede (1980), long term orientation indicates that culture values are future- looking, including thrift, perseverance, humility/shame, and observe hierarchical relationships, whereas short-term orientation values look to the past, such as respecting tradition.. According to Zapletalová (2003), different cultures mix together working and private worlds, whereas in specific cultures these two areas are clearly and distinctly separated.. Besides, some cultures ascribe an individual’s status according to people social activity and success that is achieved apart from its origin, source, social, or personal associations.. Furthermore, this dimension recognized status perceives an individual only in connection to people age, social status, education, job, or social group.. This is due to when the employees are become knowledgeable about cross-cultural communication in term of their own cultural values and behaviors with those other cultures can promote people to work effectively in the multicultural business environment (Martin & Chaney, 2006).. When people aware of the cultural differences of others, they can adapt to various ways that the decision are made, the reason why the decisions are made and party involve in decision making process should be based in the form of group, individual or team in order to increase efficiency and avoid misunderstanding of the decision making process.. Through the cross cultural training, employees can develop great ‘people skills’ that can be applied in all walks of life by learning about the influence of culture, belief, and values (Cardon & Bartlett, 2006).. The seven value dimensions were universalism versus particularism, individualism versus communitarianism, neutral versus emotional, difuse versus specific cultures, achievement versus ascription, human-time relationship, and human-nature relationship.. According to Hall (1990, p179), time is one of the fundamental bases on which all cultures rest and around which all activities revolve.” The monochromic culture emphasize at doing one thing at a time, while polychromic culture do many things at the same time (Dahl, 2004).
As the business world becomes more global, employees will likely face someone from another country at some point in their careers, companies will negotiate with companies from other countries, and even employees of domestic companies will likely encounter someone from another country.. Implications of Power DistanceType of Work ActivityHigh Power DistanceLow Power DistanceAdapted from Geert Hofstede, “ Culture’s consequences: Comparing values, behaviors and institutions across nations ,” 2nd edition, 2001, page 107-108, Thousand Oaks, CA: Sage Publications.Organizational structures Very centralized Tall hierarchies with clear levels of managers and subordinates. Management Implications of Power Distance What are the implications of power distance for international management?. Implications of IndividualismType of Work ActivityLow Individualism/High CollectivismHigh Individualism/Low CollectivismAdapted from Geert Hofstede, “ Culture’s consequences: Comparing values, behaviors and institutions across nations ,” 2nd edition, 2001, page 169-170, Thousand Oaks, CA: Sage Publications.Relationship with companies Employees act in the interest of in-group (members of the family or same university) Employee commitment to company relatively low Employee-employer relationships is almost like a family link. Implications of Uncertainty AvoidanceType of Work ActivityLow Uncertainty AvoidanceHigh Uncertainty AvoidanceBased on Geert Hofstede, “ Culture’s consequences: Comparing values, behaviors and institutions across nations ,” 2nd edition, 2001, page 169-170, Thousand Oaks, CA: Sage Publications.Relationship with companies Weak loyalty to companies Average duration of employment shorter Preference for smaller organizations. Implications of MasculinityType of Work ActivityHigh MasculinityLow MasculinityBased on Geert Hofstede, “ Culture’s consequences: Comparing values, behaviors and institutions across nations ,” 2nd edition, 2001, page 318, Thousand Oaks, CA: Sage Publications.Relationship with work Live in order to work Preference for high pay Workers look for security, pay and interesting work. Managers’ characteristics Managers seen as cultural heroes Successful managers primarily exhibit male characteristics Managers need to be competitive, firm, aggressive, and decisive Managers are very ambitious Fewer women in management Managers prepared to move family for career reasons. Managers are employees like others Successful managers are seen as possessing both male and female characteristics Managers hold fairly modest career ambition More women in management Managers less prepared to uproot family because of career move. For instance, we saw how Anglo cultures, Latin American cultures, and Scandinavian cultures countries tend to share similar cultural characteristics.
Hofstede (2001) described collectivism as “societies in which people from birth onwards are integrated into strong, cohesive in-groups, which throughout people’s lifetimes continue to protect them in exchange for unquestioning loyalty.” India has an IDV score of 48, which shows that the society has both collectivistic and individualistic traits.. Power Distance: Power distance is defined as the extent to which the less powerful members of the family accept the power of other members of the family.. Products targeted at males will do well because males have more social and economic power.. A report in the Indian Express speaks about rural attitudes as follows, “A young man in rural Haryana is entitled to the best things of life—from the extra glass of milk to the education that won’t be ‘wasted’ on a girl.” Women continue to be shown in domestic roles in advertisements for better acceptability.. i. India leads in terms of under-weight adolescent girls – 47 percent of adolescent girls aged 15-19 in India are underweight.. This implies that while companies can cater to male egos by providing ‘macho’ products, products aimed at young girls are unlikely to find a mass market.. The way to market feminine products in rural areas, perhaps, is to appeal to the male ego—by projecting how it will raise the status of men.. The marketing messages used in urban areas showing empowered women are thus likely to be rejected by the rural consumer.. Thus, men do not like the empowered women shown in urban ads, nor can ads made for urban markets be used in rural markets.. Since rural incomes depend a large part on agriculture, which is marked by uncertainty, consumers are unlikely to splurge on luxury products, but adhere to perseverance and thrift, respect of tradition and family values, honouring parents and ancestors and providing them financial support.. Luxury products, thus, do not do well in rural areas where people continue to look for products that last long and deliver value.
Hofstede’s Model of National CultureCountriesPower DistanceIndividualismUncertainty AvoidanceMasculinityAdapted from Geert Hofstede, “ Culture’s consequences: Comparing values, behaviors and institutions across nations ,” 2nd edition, 2001, Thousand Oaks, CA: Sage Publications.AustraliaLowHighLowHighCanadaLowHighLowHighChinaHighLowMediumMediumGermanyLowHighMediumHighMexicoHighMediumHighHighFranceHighHighHighLowSpainMediumMediumHighLowGreeceMediumMediumHighMediumDenmarkLowHighLowLowFinlandLowHighMediumLowBrazilHighMediumMediumMediumIndiaHighMediumLowMediumJapanLowMediumHighHighU.K.LowHighLowHighU.S.A.LowHighLowHighAlthough there are several frameworks to understand cultural differences, one of the most powerful is Hofstede’s model.. Implications of Power DistanceType of Work ActivityHigh Power DistanceLow Power DistanceAdapted from Geert Hofstede, “ Culture’s consequences: Comparing values, behaviors and institutions across nations ,” 2nd edition, 2001, page 107-108, Thousand Oaks, CA: Sage Publications.Organizational structures Very centralized Tall hierarchies with clear levels of managers and subordinates. Implications of IndividualismType of Work ActivityLow Individualism/High CollectivismHigh Individualism/Low CollectivismAdapted from Geert Hofstede, “ Culture’s consequences: Comparing values, behaviors and institutions across nations ,” 2nd edition, 2001, page 169-170, Thousand Oaks, CA: Sage Publications.Relationship with companies Employees act in the interest of in-group (members of the family or same university) Employee commitment to company relatively low Employee-employer relationships is almost like a family link. Implications of Uncertainty AvoidanceType of Work ActivityLow Uncertainty AvoidanceHigh Uncertainty AvoidanceBased on Geert Hofstede, “ Culture’s consequences: Comparing values, behaviors and institutions across nations ,” 2nd edition, 2001, page 169-170, Thousand Oaks, CA: Sage Publications.Relationship with companies Weak loyalty to companies Average duration of employment shorter Preference for smaller organizations. Implications of MasculinityType of Work ActivityHigh MasculinityLow MasculinityBased on Geert Hofstede, “ Culture’s consequences: Comparing values, behaviors and institutions across nations ,” 2nd edition, 2001, page 318, Thousand Oaks, CA: Sage Publications.Relationship with work Live in order to work Preference for high pay Workers look for security, pay and interesting work. Managers’ characteristics Managers seen as cultural heroes Successful managers primarily exhibit male characteristics Managers need to be competitive, firm, aggressive, and decisive Managers are very ambitious Fewer women in management Managers prepared to move family for career reasons. Managers are employees like others Successful managers are seen as possessing both male and female characteristics Managers hold fairly modest career ambition More women in management Managers less prepared to uproot family because of career move. For instance, we saw how Anglo cultures, Latin American cultures, and Scandinavian cultures countries tend to share similar cultural characteristics.. This effort resulted in four main dimensions: power distance (the degree to which societies accept power differences and authority in society), individualism (the degree to which a society focuses on the relationship of the individual to the group), uncertainty avoidance (the degree to which people in a society are comfortable with uncertainty and unpredictable situations), and masculinity (degree to which a society emphasizes traditional masculine qualities such as advancement and earnings).
National culture has a strong effect on employee behaviours; for example, cultures emphasising individualism typically promote employee creativity and performance-based pay (Smith, 2004).. To address this, Geert Hofstede conducted a survey of 117,000 employees of IBM and created a unique model of six cultural dimensions, namely power distance, uncertainty avoidance, long-term orientation, individualism, masculinity, and indulgence.. This article focuses on the key elements of the 6-D theory, how to use this model in academic works as well as the benefits and limitations of Hofstede’s cultural dimensions.. The masculinity-femininity continuum reflects the need for personal achievement.. Uncertainty avoidance indicates how a specific culture approaches managing risk.. In cultures with a high uncertainty avoidance rating companies prefer to establish rigid employee codes of conduct and minimise deviations from desired employee behaviours (HofstedeInsights, 2020a).. This does not mean that company goals are sacrificed in favour of employee’s indulgences, however.. In the example above, Japan has a power distance rating of 54 while the corresponding index for the UK is 35.. Typically, a Hofstede’s 6-D analysis is conducted when your assignment explicitly focuses on organisational culture and related issues, namely the choice of leadership styles, financial rewards and other measures of improving employee motivation, and increasing participation in employee voice initiatives (e.g. online surveys gathering employee feedback).. The above table shows that it is possible for a country to attain an index of 100 for a specific cultural dimension.. The framework can be applied to studies of organisational culture, national culture, consumer behaviour or organisational performance (Huang and Crotts, 2019).. If you are required to critically evaluate the model, you should mention that Hofstede’s framework informs companies on how to implement different behaviour controls (e.g. codes of conduct for cultures focused on uncertainty avoidance) in different national subsidiaries.. Our professional essay and report writing services can conduct a full analysis of Hofstede’s dimensions for the countries of your choosing.. When relevant, we will use figures and tables to highlight similarities and differences between various cultures.. For strategic reports, we will use Hofstede’s model to argue whether a company should expand to a particular country, what entry modes are the most beneficial for a firm or what challenges expect international firms based on the observed cultural dimensions.
Culture could relate to a country (national culture), a distinct section of the community (sub-culture), or an organization (corporate culture).. The level and nature of education in each international market will vary.. This aspect of Terpstra and Sarathy’s Cultural Framework relates to how a national society is organized.. Is everything relating to branding aesthetically pleasing?. Therefore international marketing needs to take into account the local culture of the country in which you wish to market.. The Terpstra and Sarathy Cultural Framework helps marketing managers to assess the cultural nature of an international market.. The Eight categories are Language, Religion, Values and Attitudes, Education, Social Organizations, Technology and Material Culture, Law and Politics and Aesthetics.. With language one should consider whether or not the national culture is predominantly a high context culture or a low context culture (Hall and Hall 1986).. The ban included pictures of sausages that contained pork, and even advertising that included an animated (cartoon) pig.. Posted on May 8, 2014June 30, 2015 Author Tim Friesner Categories International Marketing
For example, Hofstede's. Cultural Model of LEADING IN THE CLEVER ECONOMY consists of six dimensions, i.e.,. Power Distance, Individualism & Collectivism, Muscularity & Femininity,. Uncertainty Avoidance, Long Term vs. Short Term Orientation, and Indulgence vs.. Hofstede's Cultural Model mainly describes the effects of a. society's culture on the values of its members and how these values relate to. behavior.. In order to understand how organizational values are impacted by national culture, Professor Greet Hofstede, along with other notable researchers such as Gert Jan Hofstede, Michael Minkov, introduced the six dimensions of national culture.. The six dimensions mentioned in this model are: power distance, masculinity versus femininity, individualism vs. collectivism, long-term orientation versus short-term orientation, uncertainty avoidance index, and indulgence versus restraint (Hofstede Insights, 2021a).. In countries with a large power distance culture, each individual has their rightful place within the social hierarchy (Mooij & Hofstede, 2010).. This means that societies with a low power distance do not accept hierarchal structures; rather they prefer an equal distribution of power and do not consider their superiors to be more powerful in any way (Hofstede Insights, 2021a).. Power Distance at LEADING IN THE CLEVER ECONOMY LEADING IN THE CLEVER ECONOMY is headquartered in the United States; hence its cultural dimensions will be analyzed through this model in order to understand the cultural values and norms of LEADING IN THE CLEVER ECONOMY.. Masculinity Values at LEADING IN THE CLEVER ECONOMY Similarly, LEADING IN THE CLEVER ECONOMY also exhibits masculinity values in its organizational culture.. Countries having a low score on the uncertainty avoidance scale include Nordic and Chinese culture countries, and English-speaking nations (Hofstede, 2011).. Uncertainty Avoidance at LEADING IN THE CLEVER ECONOMY Therefore, the culture of LEADING IN THE CLEVER ECONOMY displays openness towards new ideas and opinions.. Indulgent Culture at LEADING IN THE CLEVER ECONOMY Similarly, the culture at LEADING IN THE CLEVER ECONOMY is also an indulgent one.. Hofstede’s cultural model is a powerful tool to analyze the cultural dimensions prevalent in different nations.. LEADING IN THE CLEVER ECONOMY’s culture is aligned with the cultural norms of the nation it is headquartered in.. Hofstede's dimensions of culture in international marketing studies.
This article describes the concept of Patterns of Cross Cultural Business Behavior by Richard Gesteland in a practical way.. In order to properly and effectively help different cultures, the American business guru and consultant Richard Gesteland analysed a unique set of expectations and assumptions from different countries and cultures.. Patterns of Cross Cultural Business Behavior are about interpreting human behavior, that varies from culture to culture.. Patterns of Cross Cultural Business Behavior contribute to bridging the cultural gap between countries, taking each other’s preferences into account and understanding where differences come from.. By taking these cultural differences between countries into account, companies can more successfully do business with organisations abroad.. With the information he obtained through research in different countries, Richard Gesteland created a manual about how best to approach different cultures and how one can best understand other cultures.. People from relationship-focused culture often think negotiating partners from deal-focused cultures are harsh, pushy and aggressive.. People from the deal-focused culture, think that the other culture is often vague and therefore unreliable and not decisive enough.. These opposites can also experience conflict, for instance when a person from an informal culture gets too friendly and pats the CEO of a multinational from a formal culture on the back.. To distinguish between cultures, Gesteland has divided the most important countries in eight groups that have the characteristics of the dimensions mentioned earlier:. The cultural dimensions provide insight into the diversity and similarities between the different cultures.. A company should be mindful of the characteristics and similarities a particular country has when it wants to do business with an organisation from that culture.. Patterns of cross-cultural business behavior: Marketing, negotiating and managing across cultures .. When Cultures Collide: leading across cultures .
In this article, we discuss the topic of Hofstede cultural dimensions by exploring 1) an introduction ; 2) the six cultural dimensions of Hofstede framework, and using those dimensions to better understand cultures and people based on 3) a case study of cultural differences ; 4) the urgency of managing cultural difference as part of human resources management ; and 5) conclusion .. The original theory that Hofstede proposed talked of four dimensions, namely power distance, uncertainty avoidance, individualism vs. collectivism and masculinity vs. femininity.. After conducting independent studies in Hong Kong, Hofstede included a fifth dimension, known as long-term vs. short-term orientation, to describe value aspects that were not a part of his original theory.. Power Distance : This dimension explains the extent to which members who are less powerful in a society accept and also expect that the distribution of power takes place unequally.. Strong uncertainty avoidance is represented by the following aspects:. Emphasis on personal enjoyment, fun, and pleasure, over duties and social norms.. Behavior as per social norms that are established for maintenance of social harmony among in-group members; Considering the wider collective with regards to implications of their actions; Sharing of resources and readiness to give up personal interest keeping in mind the collective interest; Favoring some in-groups (such as friends and family); Being a part of a few in-groups that have an influence on their lives.. The dimension of indulgence vs. restraint focuses on happiness.. Hofstede’s four cultural dimensions have been considered here, namely, masculinity vs. femininity, power distance index, uncertainty avoidance index and individualism vs. collectivism.. The engineer expected the community to express their opinions regarding the sanitation and water project, including the procedure of the project, the design or any other facet that the community wanted to discuss.. The community is more collectively oriented, whereas the engineer belonged to a culture that is more individualistic.. Therefore, the community gave preference to the group’s opinion instead of personal opinion.. Therefore, when the lady with the walking problem was asked to voice her opinion, she was reluctant to express her personal opinion, as the majority of the community members did not possess her problem.. Since low uncertainty avoidance and high power distance existed within the community, the members were more inclined toward organizing themselves as an extended family, with the chief being the grandfather of that family.. In contrast, the engineer’s culture was one with low power distance and low uncertainty avoidance.