International Business
Autor: Sharon • November 3, 2018 • 1,145 Words (5 Pages) • 508 Views
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tire companies. By doing this the emerging company can minimize upfront capital requirements, build a supply-chain management relationship, better brand recognition, and community ties.
What are the four dimensions of culture studied by Geert Hofstede? Identify and describe each. What is the cultural profile of the United States? Of Asian countries? Of Latin American countries? Of Latin European countries? Based on your comparisons of these four profiles, what conclusions can you draw regarding cultural challenges facing managers from one group when they interact with individuals in one of the other groups? Provide examples.
Power Distance- Can be described as a countries belief in corporate and government structure. Hierarchy is well respected in a country with high power distance and less respected in a country with a low power distance
Uncertainty Avoidance- Can be described as perception of the risks involved with change. In the US change in employment is not seen as high risk compared to a country like Japan.
Individualism- Can be described as the need to meet personal goals and security. This is very prominent in democracy-based societies such as The United States and Australia.
Masculinity- is the behavior in which an employee has become accustom to due to their work environment. Higher masculinity generally has more assertiveness, materialism, and lack of concern actions in the workplace. Lower masculinity generally has more women in high-level positions and less workplace conflict.
US
Asia
Latin America
Latin Europe
Power Distance
Medium-low
High to low
(mixed)
High to medium
Medium to high
Uncertainty Avoidance
Medium-low
High to low
(mixed)
High to medium
High
Individualism
High
Medium to low
Medium to low
Medium to high
Masculinity
Medium-high
High to medium
Medium
Medium
Management structures could be a challenge related to Power Distance. It might be in-efficient to have the same structure as Denmark in Mexico. Workers in Mexico workers might have issues of not knowing the exact chain of command.
Lifetime employment is very common in Spain and France which could affect the hiring process. This issue directly relates to uncertainty avoidance. In the United States many employers hire based on current needs and tend to have higher turnover rates. It would wiser in countries like Spain and France to do elongate the hiring process and make sure the candidate is a perfect fit.
Masculinity challenges can arise from expectations of a manager. In countries like Japan it could be considered norm for the employee to be in constant stress and to work strenuous hours. Unlike France, they tend to have a work/life balance with mild stress.
Hofstede’s value dimensions are a great tool for MNC’s to analyze when emerging in a new environment. It can help alleviate challenges more efficiently. When MNC’s decide to invest in new countries the best way for the MNC to succeed is too treat every market asymmetrically. Just because a certain management structure and style works in France does not mean it will translate to success in another country. These dimensions can help a MNC’s stay competitive and relevant.
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