Practical Application of Culture Theory

This article explores the practical application of culture theory in business decision making. It discusses the Hofstede Theory and its six categories for defining culture. It compares the cultures of Colombia and the UK based on these categories. It also highlights the differences and potential problems that businesses may face when operating in different cultural contexts. The article emphasizes the importance of understanding and adapting to the culture of a country to achieve business goals effectively.

The Practical
Application of Culture
Theory

Table of Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
The Hofstede Theory...................................................................................................................3
Comparison of Colombia and the UK..........................................................................................4
Differences and Potential Problems.............................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Introduction
Cultural theory basically helps in analysing the cultural conflicts it helps in analysing the
culture of the society so that effective functioning of the business can take place. In the market
there are different needs and requirement of the customers depending on which organisation has
to develop there product and services. If the business wants to achieve its goals effectively in the
market then it is very important for the business to analyze the culture of the market so that better
services can be provided to the customers and demand of the business can also be increased in
the market. In different countries different cultures is followed due to which people have
different taste and requirement according to which business has to perform their activities so that
they satisfy the needs and requirement of the customers effectively if organisation will not follow
the culture of the new market where they are operating then it can affect the profitability of the
business in the marketplace. if the organisation wants to expand its business in different
countries then they have first have to analyse the culture of the country so that chances of loss
can be avoided because different countries have different culture and if the organisation will not
develop their services as per the culture of the country then it can affect the profit and demand of
the business in the market. in this report it various theories and concept will be discussed which
will helps in the business in effective decision making (Alić, 2017).
Main body
The Hofstede Theory
Hofstede theory is basically a framework which was developed by Greert hofstede it is
used by the businesses to understand the differences in culture across the country. This theory
helps the business in identifying the culture of the different country so that business can plan
their strategies accordingly. In hofstede theory there are six categories which helps in defining
the culture of the business.
 Power distance index:.There are two types of power distance index one is high power
index another is low power index in high power index cultures accepts power differences
which encourages bureaucracy and inequity. Whereas low power distance index
encourages structures of the organisation which involves participative style of
management, decentralized decision making and emphasase on power distribution.
 Individualism vs collectivelism: Individualism explores the "extent in which people of
the society are integrated into groups". Its basically relate to the family of the person.
Collectivism indicates a society in which integrated relationships tie families and others
people into into groups.
 Uncertainty avoidance:uncertainty avoidance index is classified as a tolerance done by
the society for the ambuiguity. in which people of the society avert an event of something
unknown, or which is away from the status of the people. In this index Societies that

score a high degree opt for guidelines, laws, stiff codes. Whereas lower degree shows
more acceptance of ideas or thoughts.
 Masculinity v/s femunity; In masculine society people still sees a gap between the values
of the male and female they appraise the productivity of the men more as compared to
women. In feminine society womens are given the equal rights as given to the men to
increase their value in the society. Differences between the men and women can affect
the growth of the society due to which society should treat men and womens equally so
that growth in the economy can take place. In today’s world womens are equally talented
as mens due to which equal rights should be provided to them.
 Long-term orientation vs. short-term orientation: These concepts signifies the connection
of the past with the future and current challenges. high degree societies in this index view
circumstantial and adaption and consider pragmatic problem-solving as nessesity long-
term oriented countries continue to develop to a level of prosperity while a short-term
oriented country has no economic development.
 Indulgence vs. restraint: In this degree of freedom is signified which helps in satisfying
the desires of the human so that they can live a healthy lifestyle indulgences is basically a
society which allows the basic gratification of human desired related to the enjoyment in
life. Whereas in restraint society provides control and strictness on the human desires
(Benson, 2019).
With the help of hofstede theory managers can identify the culture of the country and can
plan their strategies accordingly so that growth chances of the business can get developed
and more profit can be earned by fulfilling the requirement of the customers because
different countries have different culture according to which company has to plan their
strategies. Before entering a new market identifying the culture of the market is very
important for example what is the demand of the customers, which culture they are following
so that products and services can be developed accordingly so to analsye the culture of the
country this theory has been developed it helps in business in achieving its goals effectively.
Comparison of Colombia and the UK
On the basis of hofstede theory comparison of Colombia and uk is done on six dimensions which
are given below which will helps in indentifying the cross of the country.
 Power distance index: On the scale of power distance index comlumbia is scored at high
which indicates that in every layer of society inequality is more accepted government and
leaders have lot of power which is been entertain by the society. whereas Britain scored
low on the power distance index which indicates that society believes in the inequalities
and it should be maximized according to them. They think that equal treatment should be
given to the people in some ways.
 Individualism v/s collectivism: In this dimension Colombia is scored as 13 which is
considered as the lowest score on individualist it indicates that Columbia culture of
collectivistic in the world. In Colombia people who are belonging to the groups have to

agree with the opinion of the group so that conflicts cannot place in the group and
harmony can be maintained in the group. Whereas UK scored highest on the individualist
that is 89 more individualist people are there in UK early age children’s in Uk thinks for
themselves first.
 Masculinity v/s femunity: Columbia is considered as the masculine society which
signifies that people of Columbia are more competitive they think that members of
different groups gives them rewards and status on the basis of their performance.
Whereas people in uk live and perform for their ambition due is which it is also comes
under the masculine society.
 Uncertainty avoidance:. Columbia is considered as the high scorer on the uncertainity
avoidance which is 80 which signifies that the nation is developing mechanisms to avoid
the chances of uncertainty. In Columbia emotions are openly expressed whereas uk is
considered as the low scorer on the uncertainty avoidance which is 35 which indicated
that people of uk are happy which the current situation they don’t take stree for the future
they wants to live in the present without taking the stress of the future. They does not
makes many rule in the society to avoid the uncertainity (Fouarge, 2019).
 Long-term orientation vs. short-term orientation: Normative culture is followed by the
Columbia due to which it is scored as 13 in this dimension people of Columbia are
basically normative by their thinking they respect their traditions whereas culture of
british score 51 which indicates that preferences which are dominant will not be
determined.
 Indulgence vs. restraint: Columbia is considered as the indulgent country due to which its
score is 83 which is very high on this dimension whereas british has scored 69 which
indicates that culture of british is indulgent which further indicates that people wants to
enjoy their life by fulfilling their desires. They basically have positive attitude about the
life. People think is time is more important they spend money on their lifestyle more.
As per the above theory it has been identified culture of both Columbia and Uk is different as
compared to each other they requirement is different due to which organisation has to plan their
activities accordingly people of Columbia are different as compared to people of Uk. There
lifestyle is very different from eachother because expanding business in the other country its is
very important to analyse the culture of the country so that chances of loss can be avoided.
Differences and Potential Problems
With the helps of hofstede theory various difference in the culture of Columbia and Uk
has been identified like people of Columbia are more power distance as compared to uk which
indicates that inequality is more accepted in Columbia as compared to uk. Because british
society disagrees which the inequality. Society of Columbia is more collectivism whereas
bristish follows individualist society they live for theselves. Masculine society is followed by the
both the countries because they perform for their self ambition. People of Columbia are very

consicious related to the uncertainity they tries to avoid the chances of uncertainity so that they
can live healthy lifestyle where people of uk does not think about the uncertainity they live in the
present and work for the present. If company wants to work with both the country then they to
plan their strategies as per the culture of both the countries if the organisation will plan their
activities according to the culture of the both the countries then it can affect the functioning of
the business in the market. to avoid this situation it is very important for the business so conduct
a deep research regarding the actual requirement of the people of different countries so that
effective planning can take place. In low-power distance countries, employees can ask
questions to their supervisors whenever something is getting wrong in the business. the main aim
of hofstede culture dimension theory is to provide the various difference in the culture of the
countries so that business can opertate effective in the another country if organisation will
expand its business without knowing the culture of the country then it can affect the long term
survival of the business in the market and company can also face loss in the market. in order to
promote the culture of the country company can develop and innovate its services so that deand
of the business can be increased in the market company can innovate its services as per the
culture of the country which helps developing the goodwill of the business in the market. if
organisation will promote the culture of the country it will the company in getting competitive
advantage in the market. company should guide their employees as per the needs and
requirement of the customers with the effective communication in the business so that they can
perform accordingly and provide the best services to the customers. Organisation should also
communicate with their clients so that they can better understand their needs and requirement
which will further helps in increasing the productivity of the business in the marketplace
(Tsalikis, 2019).
Conclusion
As per the above research it has been concluded that identifying the culture of the country
is very important it helps in developing the services of the company in the market. as company
wants to expand its business in another countries due to which cultures analysis of both the
selected countries has been done so that business can plan their activities accordingly. With the
help of hofstede theory various difference in the culture has been identified which will helps the
business in planning their strategies accordingly. If organisation will develop its services as per
the culture of the countries then it will helps the business to achieve its goals effectively by
increasing the demand and profit of the business because if organisation will provide innovative
services to the business then it will help in attracting the new customers in the market which will
automatically increase the demand of the business.

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