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    Hofstede's Five Cultural Dimensions

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    The CEO has asked you to identify three target market countries and present your choices to senior management. Earlier (phase
    1) you had done some preliminary investigation and chosen three countries; now you will work with other members of the sales team to research and confirm the three target countries to present to the CEO.

    I wrote about the UK, Canada, and Morocco.

    QUESTIONS:

    1. Conduct research and locate background and cultural information on these countries.
    2. What specifics did you learn about doing business in each of the three targeted countries?
    3. How will this knowledge help PM Company do business there?
    4. Using Hofstede's five cultural dimensions, what did you learn about the culture(s) in each country that will help you make better management decisions when planning to do business there as well as actually doing business there?
    5. Finally, analyze how the cultures of these countries are similar and how they differ, and how this information will impact your management decisions.

    SCENARIO

    You have achieved great success at Physical Movement Company (PM Co.) as their Sales Manager. PM Company is a three year old, US$25 million home healthcare company, headquartered in the northeastern part of the United States. The firm creates and sells wheelchairs, walkers or other types of "mobility products" that give a person some level of mobility when they can no longer completely ambulate on their own. Recently due to an influx of inquiries about your mobility products and some very large, direct sales to customers outside your home country, you have been promoted to the position of Vice-President of International Sales, responsible for all sales outside the United States. The job sounds simple enough - just sell your great mobility products around the world! Benefits of the job include traveling globally, eating great food and shopping for bargains in your free time. Life is good!

    However, after a few days in your new position you begin to realize there is more to this job than what you were previously accustomed to as a Sales Manager who sold only in your own country. Your previous job responsibilities included finding a need for your mobility products, overcoming any objections and closing the sale. You were very comfortable in this role. As you begin to call on companies around the world by phone and e-mail, you realize that the global business environment is far more complex, involves many more details, and requires much more knowledge than you ever realized! Because of the time zone differences, you are finding yourself working all the time as business is conducted 24 hours a day, 7 days a week around the world, so there is always someone you need to contact or follow-up with. No one in the company has ever sold internationally before. There are a few employees in the company who were not born in this country. They can provide some language skills and can share their cultural knowledge, but they do not have international business experience. However, you are now the global business leader for your company.

    Late one night between calls to Singapore and China, you realize you need to quickly learn as much as you can about global business issues and their implications and to communicate these issues and their solutions to senior management so that together you and the company can achieve your new worldwide revenue objectives.

    QUESTION:

    Specifically, I need more information on #4 and #5 on these countries I wrote about and how to apply Hofstede's five cultural dimensions. Thank you.

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    https://brainmass.com/business/european-union/hofstede-s-five-cultural-dimensions-111415

    Solution Preview

    Please see response attached for best formatting, which is also presented below. I attached a relevant article as well. I hope this helps and take care.

    RESPONSE:

    QUESTION: Specifically, I need more information on #4 and #5 on these countries (UK, Canada, and Morocco). I wrote about and how to apply Hofstede's five cultural dimensions:

    Let's look at # 4 and #5 below.

    4. Using Hofstede's five cultural dimensions, what did you learn about the culture(s) in each country that will help you make better management decisions when planning to do business there as well as actually doing business there?

    Hofstede's five dimensions and what they mean:

    Geert Hofstede Analysis is discussed on each Country's page in this Website with the following format:

    (1) Power Distance Index (PDI) focuses on the degree of equality, or inequality, between people in the country's society. A High Power Distance ranking indicates that inequalities of power and wealth have been allowed to grow within the society. These societies are more likely to follow a caste system that does not allow significant upward mobility of its citizens. A Low Power Distance ranking indicates the society de-emphasizes the differences between citizen's power and wealth. In these societies equality and opportunity for everyone is stressed.

    (2) Individualism (IDV) focuses on the degree the society reinforces individual or collective, achievement and interpersonal relationships. A High Individualism ranking indicates that individuality and individual rights are paramount within the society. Individuals in these societies may tend to form a larger number of looser relationships. A Low Individualism ranking typifies societies of a more collectivist nature with close ties between individuals. These cultures reinforce extended families and collectives where everyone takes responsibility for fellow members of their group.

    (3) Masculinity (MAS) focuses on the degree the society reinforces, or does not reinforce, the traditional masculine work role model of male achievement, control, and power. A High Masculinity ranking indicates the country experiences a high degree of gender differentiation. In these cultures, males dominate a significant portion of the society and power structure, with females being controlled by male domination. A Low Masculinity ranking indicates the country has a low level of differentiation and discrimination between genders. In these cultures, females are treated equally to males in all aspects of the society.

    (4) Uncertainty Avoidance Index (UAI) focuses on the level of tolerance for uncertainty and ambiguity within the society - i.e. unstructured situations. A High Uncertainty Avoidance ranking indicates the country has a low tolerance for uncertainty and ambiguity. This creates a rule-oriented society that institutes laws, rules, regulations, and controls in order to reduce the amount of uncertainty. A Low Uncertainty Avoidance ranking indicates the country has less concern about ambiguity and uncertainty and has more tolerance for a variety of opinions. This is reflected in a society that is less rule-oriented, more readily accepts change, and takes more and greater risks.

    Geert Hofstede added the following fifth (5th) dimension after conducting an additional international study using a survey instrument developed with Chinese employees and managers. That survey resulted in addition of the Confucian dynamism. Subsequently, Hofstede described that dimension as a culture's long-term Orientation.

    (5) Long-Term Orientation (LTO) focuses on the degree the society embraces, or does not embrace, long-term devotion to traditional, forward thinking values. High Long-Term Orientation ranking indicates the country prescribes to the values of long-term commitments and respect for tradition. This is thought to support a strong work ethic where long-term rewards are expected as a result of today's hard work. However, business may take longer to develop in this society, particularly for an "outsider". A Low Long-Term Orientation ranking indicates the country does not reinforce the concept of long-term, traditional orientation. In this culture, change can occur more rapidly as long-term traditions and commitments do not become impediments to change http://www.cyborlink.com/besite/hofstede.htm

    CANADA

    Geert Hofstede's Analysis of Canada:

    The majority of Canadians, as well as citizens of other English speaking countries, (see Great Britain, Australia, New Zealand, and the United States) have individualism ranked highest. Success is measure by personal achievement. Canadians tend to be self-confident and open to discussions on general topics; however, they hold their personal privacy off limits to all but the closest friends. It should be noted there is tension between the French province of Quebec and other Canadian provinces. Citizens of Quebec tend to be more private and reserved. Ethnocentrism is high throughout Canada, but particularly in Quebec.
    Canada has Individualism (IDV) as the highest-ranking (80) Hofstede Dimension, and is indicative of a society with a more individualistic attitude and relatively loose bonds with others. The populace is more self-reliant and looks out for themselves and their close family members. Privacy is considered the cultural norm and attempts at personal ingratiating may meet with rebuff. The majority of Canadians, as well as citizens of other English speaking countries, (see United Kingdom, Australia, New Zealand, and the United States) have Individualism as their highest-ranking Dimension. Among high IDV countries, success is measured by personal achievement. Canadians tend to be self-confident and open to discussions on general topics; however, they hold their personal privacy off limits to all but the closest friends. Canadian's lowest ranking Dimension is Long Term Orientation at 23, compared to the average of 45 among the 23 countries surveyed for which scores have been calculated. This low LTO ranking is indicative of societies' belief in meeting its obligations and tends to reflect an appreciation for cultural ...

    Solution Summary

    This solution provides information on three countries (United Kingdom, Canada, and Morocco) and applies Hofstede's five cultural dimensions in the analysis of UK, Canada, and Morocco.

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