Hofstede's Cultural Dimensions: A Comparison of Kenya, India, and United Kingdom

International Business
Management

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Contents
INTRODUCTION.................................................................................................................................2
Background of the countries..................................................................................................................2
Kenya................................................................................................................................................2
India...................................................................................................................................................3
United Kingdom................................................................................................................................3
Hofstede’s five dimension of Kenya..................................................................................................3
Hofstede’s five dimension for India..................................................................................................6
Hofstede’s five dimension for United Kingdom................................................................................8
Two International business organisations..............................................................................................9
IKEA entry in India...........................................................................................................................9
Zara entry in India............................................................................................................................10
CONCLUSION...................................................................................................................................12
REFERENCES....................................................................................................................................12

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INTRODUCTION
In the age of globalisation, there are many companies which have expanded in the overseas
nations. In order to improve their position at the international level, it is crucial that a
company manages their operations at the international level in a well-defined manner. In
multinational organisations, several people with different cultural backgrounds work at the
same. This creates or might create problems related to cross-cultural communication which
could be very harmful for the organisation (Hofstede, 2011). There are several theories
suggested by researchers. Hofstede’s cultural dimension is one of the best frameworks that
elaborates the effect of culture of society on the member’s value and way in which it relates
to behaviour. Living in Kenya, I choose Kenya as my home country. The two other countries
that has been selected for this analysis are India, which is a developing nation, and United
Kingdom, a developed nation. This report compares India, Kenya and UK based on
Hofstede’s cultural dimension. It also explains the background of these two companies and
the entry mode that they have selected for themselves..
Background of the countries
In the modern-day business environment, it is essential that companies analyse the business
environment that is present in any country. Along with this it is also crucial that company
understands the culture of the country before entering it. This is essential because of improper
understanding of the other culture might lead to business disruption. Every company must
understand the changes in the culture which is necessary for the growth of the organisation. It
is crucial that a company builds its organisational culture in a manner that aligns with the
culture of the host country. Hofstede’s five dimensions is one of the best tools in this regard.
As it gives the idea of the overall aspects related to cultural dimension.
Kenya
Kenya is a developing nation and has a very distinct culture in the African region. Its capital
is Nairobi. This part of the East-African region has a warm and humid climate. The
population is 48 million and consists of 42 tribes. It was under colonial rule and got
independent in December 1963 and is a member of the Commonwealth. This country has

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been facing political and tribal violence over the years, especially in 2007 and in 2017 during
the campaign of the presidential elections. Still it is largest economy in the eastern and central
Africa (Bwisa & Ndolo, 2011). Agriculture is the major sector in the nation with major
products such as coffee, tea and other traditional cash crops. Kenya is having major part of its
population as youngsters with 73% of residents being below 30 years. It is having a diverse
population with almost all the major linguistic and ethno-racial groups found in Africa. The
42 tribes have their own mother tongues. Kiswahili is the common shared language. In the
midst of the 2017 presidential election, the government declared the Muhindi, Kenyans of
Indian descent, as a tribe of its own, even though they don’t identify themselves as a tribe.
India
India is the second populous and most populous democracy in the world. It is one of the super
powers in the Asian region. India is considered as one of the fastest developing nations in the
world. It is known for its cultural diversity (Zimmer, 2013). A lot of language are spoken in
different regions of India. Hindi and English are the two major languages in the country.
India won its independency in 1947. Traditions have been their cultural identity and are also
reflected in the business environment within the nation. This country has made many changes
in their economic and social orientation so that they can attract more investors into the
country.
United Kingdom
The UK is situated in Western Europe and its capital is London. It has been a major colonial
power over the centuries. This kingdom is a parliamentary democracy. It is a developed
nation with many cities acting as the centre for trade and economics (Wilson & Game, 2011).
It is the fifth largest economy in terms of GDP and in Human Development Index it stands on
the 14th position1. Because of its colonial past, the UK is a melting pot of people with
different racial backgrounds. They all share English as their common language. The UK has
been one of the super powers over the years. But in the recent times it is facing many types of
economic challenges especially after the recession of 2009 and the austerity measures.
Currently it has taken the decision to leave the European Union. This so-called ‘Brexit’
which will not only affect the operations of the UK-based companies but at the same time it
will affect the economy in the whole European Union. It is also facing challenges like
Scotland considering leaving the United Kingdom. Those aspirations have been revived by
the Brexit, since most Scots wish to remain within the EU.
1 http://hdr.undp.org/en/countries/profiles/GBR