Cross Cultural Analysis: Hofstede Cultural Model and Marketing Mix

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Table of Contents
Introduction......................................................................................................................................1
A Cross cultural Analysis................................................................................................................1
Hofstede Cultural Model.............................................................................................................1
Social and cultural factors and the marketing mix...........................................................................5
Market entry strategies.....................................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
Cross culture denotes involving two or more distinct cultures as well as countries. Within
the business world, it implies efforts that are made by organisation for ensuring that individuals
communicate in an effectual manner with professionals who are from distinct background with
respect to their own (Alon and et. al, 2016). Cross culture aids within recognition of regional,
national as well as ethnic differences which prevails within unlike countries and furnish a bridge
in between them. This denotes formulation of understanding related with culture with reference
to individualism, masculinity and qualitative lifestyle. It will bring in improvisation within
services along with products in the marketplace. This report is elaboration of what is being
covered in the course work 1 of the cross cultural analysis. It involves detailed description of
techniques that can be employed by firms while rendering their services. The purpose of this
project is to formulate thorough agreement in context of different cultures that exist in two
separate nations. In addition to this, the influence created by this on marketing operations of
country will be acknowledged.
To acknowledge the perceptions of marketing across cross-culture, Tesco is taken into
account while they are planning to expand their operations within market of Brazil in retail
sector. This was established in 1910 by Jack Cohen in London, UK. Their services involves
superstore, hypermarket, convenience shop and supermarket. This is the third largest retailer
across the world in terms of gross revenue. This report furnish exhaustive information associated
with specified cross cultural investigation for considering differences in context of cultural and
social factors within nation. In addition to this, it will render influence on the ways in which
customers behave in context of products or services that are being rendered by peculiar
organisation. In addition to this, strategic implications will be furnished related with marketing
mix as well as market entry strategies.
A Cross cultural Analysis
Hofstede Cultural Model
The hypothesis or framework which is used for apprehension of differences that prevails
around the countries for recognition of eminent ways by which operations of firm can be carried
out within different culture is referred to as Hofstede cultural analysis (Ang and Van Dyne,
2015). It is responsible for identification of differences in between assorted national cultures,
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dimensions along with influence which will be created on settings of firm. According to CW1,
Hofstede cultural model act as appropriate model that aids firms and individuals to address the
ways through which values, offerings and culture of firm is affected by culture that prevails
within various countries. This is responsible for exploration of variations which exist in different
nations along with their beliefs and norms that will possess relatable impact on products as well
as services of organisation within other country. It is crucial for organisation like Tesco to
understand this aspect in a relevant manner. They are delivering their services in UK and are
about to prosper within market of Brazil. The influence that is rendered on services of Tesco
have been specified below by making use of Hofstede cultural model:
 Power Distance Index: This implies the inequalities which are defined from below.
Basically, it implies extent up to which societies as well as firms obtain power
differentials. Countries with large power distance are characterised by autocracy within
leadership, distinct hierarchy levels, centralised authority and anticipation of inequalities
& power differences (Cleveland and et. al, 2016). On the other hand small power distance
have features such as decision-making responsibilities & decentralised authority,
consultative or participative style of management, inclination towards egalitarianism and
consciousness of rights.
 The PDI ranking of UK is low which implies that society believes that inequalities in
between individuals must be reduced. The PDI score seems in-congruent within
British class system which expose inherent tension within culture that prevails.
 PDI score of Brazil is high that illustrates that hierarchy must be respected as well as
inequalities in between individuals must be acceptable. This implies that within Tesco
the power holders will possess enhanced benefits as compared to other individuals
within the organisation.
 Individualism vs Collectivism: The preference towards loosely knit social framework
where individuals are anticipated to take care of themselves denotes individualism. They
are characterised by laying emphasis on personal pleasures along with social norms,
raising contractual relationship which revolve around exchange fundamentals and value
independence & self-sufficiency (Hofstede Insight, 2019). On the other hand,
collectivism denotes orientation for tightly-knit framework within society, that will
enable them to exchange unquestioning loyalty.
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