Cultural Issues Faced by Huawei in International Market: Hofstede's Cultural Dimension Analysis

This report analyzes Hofstede's cultural dimension to understand the cultural issues that Huawei might face while expanding their business in the international market. It also offers recommendations for Huawei to negotiate effectively in South Africa.

Managing Across boarders
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STUDENT NAME:
WORKSHOP (DAY/TIME)

Cultural-based Activity 1
Assessment 1: Part A
Hofstede’s culture dimension
The report is prepared with the motive to understand the cultural issues that might be faced by
the Huawei Company as they are looking to expand their business in the international market.
The company is Chinese based company who is willing to expand the business in the foreign
market. The below given is the analysis of the Hosfeted’s cultural dimension which shows the
way the company should react in handling the cultural issues.
CULTURAL PROFILE Description
China The business culture of China is very much
influence with the heritage culture of the country.
The company follow some set of etiquettes when
they get involved in the deal. The business culture
of the country is strongly influenced by the
Confucianism which majorly focuses on respect
related to the authority, education and age. While
meeting the Chinese people maintain the politeness
with the other parties (Doing business in China,
2018).
The deal gets close when the company will be able
to maintain a strong relationship with the other
party. The culture of the company shows the need
for the maintaining composure at the time of
meetings. Chinese extend the dealing to get the
negotiations in decision making.
Poland Poland is one of the countries that maintain a
diverse business culture. The business etiquettes of
Poland include handshake with the eye contact and
greetings depending on the situation. Poland likes
to call by the prefix pan for acknowledging the
males or Pani for females. The meeting includes

Cultural-based Activity 2
the parties and social gatherings in which they
introduce the women first and then to the men
(Kwintessential, 2018).
The culture of business in Poland said that they
judge the personal virtues and they believe that
honesty is valued in communication. They
maintain the formality in their meetings which
help them to crack the same.
South Africa In South Africa, the business meetings start with
the participants and exchange of the business
cards. The negotiations of the business involve
forming of stable personal relationship because
they want to know and trust the person with whom
they are going to deal. The responsibility related to
decision making is linked with the hierarchy of the
business (Kwintessential, 2018).
This has been found that regardless of their
cultural background, generally most of the South
Africans clearly prefer to communicate face to face
encounter instead of telephone or email.
CULTURAL DIMENSION
DESCRIPTION
The theory of Hofstede's culture
dimension includes communication
through cross-culture which shows
the effective value related to the
social business operations (Yoo,
Donthu and Lenartowicz, 2011.
SIMILARITIES AND DIFFERENCES
POWER DISTANCE;
Power distance deals with the truth
that shows individual exist in the
societies are not equivalent.
CHINA/POLAND
Similarities:
- The people accept the hierarchical order in which
the follow the decision with 68 scores. In the china
80 score is maintained inequalities among the
people are accepted.

Cultural-based Activity 3
Differences:
- The major difference that is available is China
include more formal authority. On the other hand,
there is less formality in Poland.
UNCERTAINTY AVOIDANCE
The uncertainty avoidance dimension
theory shows that society deals with
information about the future that is
uncertain.
Similarities:
-Similarities of China and Poland is to maintain the
history of culture in business (Asialink business,
2018).
Poland
-Poland and China show the individualism and
collectivism society respectively with a score of 60
and 20 (Hofstede’s Insight, 2018b).
INDIVIDUALISM/
COLLECTIVISM
The dimension of the theory measures
the degree which shows the
collectivism and individualism that is
effectively maintained by society.
MASCULINITY/FEMINITY
The dimension shows this theory
which includes masculinity and
feminity that makes the people
motivate which include need best or
liking the way you perform.
Similarities:
- China and Poland maintain the similarity of the
masculine society with a score of 66 and 64. The
similarity that there are people who work lives the
manager in order to expect to decisive and
assertive.
Differences:
-In China, there is the presence of a masculine
society which shows the success and orientation of
the people who sacrifice their family and leisure
priority that are linked with the work. Contrasting
this, Poland is linked with the society that majorly
focuses on the competition, equity and
performance with the conflicts (Hofstede’s Insight,
2018a).

Cultural-based Activity 4
LONG/SHORT TERM
ORIENTATION
The dimension of long and short-term
orientation reflects the light on the
society customs to effectively
maintain the links with past while
managing the deal with the issues that
might be faced by the society in
present and future.
Similarities:
-
Differences:
-
Assessment 1 – Part B
To: Name(s) / Title(s) of senior management of
Huawei
From: Your name and title / role
Date: Day/Month/Year
Introduction
This section offers the recommendation to the Huawei when they try to expand their business
operations in the market of South Africa. It is must to analyse cross-cultural differences in
managing the culture in both countries. Below given are some recommendations that are linked
to negotiation styles.

Cultural-based Activity 5
Recommendation One: Need to follow individualism
The culture of China includes the collectivist culture where the person performs their interest in
the group. Though, on the other hand, South Africa culture shows that they follow individualism
and should support the deal with the realistic figures because these people do not like hanging
over price. In addition to this, Huawei Company should pitch that they are going to take the
individual steps which helps them to negotiate with South Africa effectively.
Recommendation Two: Effective relationship should be formed before the
deal
Huawei should form an effective relationship by winning the trust by establishing the way to
form the long-standing personal relationship before conducting business. This has been found
that the people in South Africa maintain the harmonious working relationships so that they avoid
confrontations. This shows that South Africa believes in the ancestry value. Though, on the other
hand, China encourages and efforts in modern education to form for the future.
Recommendation Three: the Hierarchical structure is promoted
According to Hofstede’s theory in South Africa, people follow the hierarchical structure which is
suggested to be a company in the market (Expatica, 2018). In addition to this, the companies in
the country take the opinion from the subordinates who make the decision making time-
consuming but this shows that the company offer equal opportunities. Though, this has been
found that China can take a decision without equality treating to the employees.
It is recommended to the Huawei to sure expand the business by accepting South Africa culture
while dealing and expanding their business in the country.
Signed by:

Cultural-based Activity 6
References
Asialink business (2018) Chinese business culture and etiquette [Online]. Available from:
https://asialinkbusiness.com.au/china/conducting-business-in-china/chinese-business-culture?
doNothing=1 [Accessed on 8th December 2018]
Doing business in China (2018) Doing business in China [Online]. Available from:
https://www.todaytranslations.com/doing-business-in-china [Accessed on 8th December 2018]
Expatica (2018) Business culture in South Africa [Online]. Available from:
https://www.expatica.com/za/employment/Business-culture-in-South-Africa_105988.html
[Accessed on 11th December 2018]
Hofstede’s Insight (2018) Country Comparison [Online]. Available from: https://www.hofstede-
insights.com/country-comparison/china,south-africa/ [Accessed on 11th December 2018]
Hofstede’s Insight (2018) Country Comparison [Online]. Available from: https://www.hofstede-
insights.com/country-comparison/china,poland/ [Accessed on 11th December 2018]
Kwintessential (2018) Guide To Poland - Etiquette, Customs, Culture & Business [Online].
Available from: https://www.kwintessential.co.uk/resources/guides/guide-to-poland-etiquette-
customs-culture-business/ [Accessed on 8th December 2018]
Kwintessential (2018) Guide To South Africa - Etiquette, Customs, Culture & Business [Online].
Available from: https://www.kwintessential.co.uk/resources/guides/guide-to-south-africa-
etiquette-customs-culture-business/ [Accessed on 8th December 2018]

Cultural-based Activity 7
Yoo, B., Donthu, N. and Lenartowicz, T. (2011) ‘Measuring Hofstede's five dimensions of
cultural values at the individual level: Development and validation of CVSCALE. Journal of
International Consumer Marketing, vol. 20, no. 3-4, pp. 193-210.