Managing Across Borders: Cultural Profile and Hofstede's Cultural Dimensions
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This report discusses the cultural profiles of China, Poland, and South Africa and how they relate to Hofstede's cultural dimensions. It provides recommendations for expanding Huawei in South Africa based on these cultural differences, including focusing on competitive advantage, personal benefit, and leisure.
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Running Head: MANAGING ACROSS BORDERS0 MANAGING ACROSS BORDERS (student name) 12-9-2018
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MANAGING ACROSS BORDERS1 Contents Part A...............................................................................................................................................2 Cultural profile.............................................................................................................................2 China........................................................................................................................................2 Poland......................................................................................................................................2 South Africa.............................................................................................................................2 Hofstede’s cultural dimensions....................................................................................................2 Dimension 1: Power distance index........................................................................................5 Dimension 2: Individualism versus collectivism.....................................................................5 Dimension 3: Masculinity versus femininity...........................................................................6 Part B...............................................................................................................................................7 Introduction..................................................................................................................................7 Recommendation 1......................................................................................................................7 Recommendation 2......................................................................................................................7 Recommendation 3......................................................................................................................8 Conclusion...................................................................................................................................8 References........................................................................................................................................9
MANAGING ACROSS BORDERS2 Part A Cultural profile China Culture plays important role in China because the demographics rapidly change in the country. The age distribution and population growth fluctuate a lot. The county has a collectivistic culture. Literacy rate in the country in more than 90 %, due to the country focus is more on education(pestleanalysis, 2018). Poland Poland culture considers various parameters like human development index, which was 0.813, which tends to be ranked at 39 out of 187 nations. The country is considered an outsourcing hub, but expenditure on research and development is low and this could hamper innovation in the nation(Gugin, 2018) South Africa A nation with more than 49.99 million population, it is a multicultural country, with various religions and cultures, the, however, the maximum population is Christian. Moreover, education is always a priority for the nation to spend. Most importantly, the residents are not attracted towards saving their income and planning future, they are more interested in spending money according to their requirement and desires.(CultureWizard, 2018) Hofstede’s cultural dimensions Culture plays a vital role, while investing in any nation, to study the culture of a nation; one of the most popular theory is Hofstede’s cultural dimension, for which five factors are described in which the cultures of two or more countries are compared
MANAGING ACROSS BORDERS3 1.Power Distance Index – this dimension is helpful in understanding the power distribution in a nation, it explains residents attitude of culture regarding inequalities in society. The acceptance of inequalities are included under this index(Brass, 2017) 2.IndividualismVersusCollectivism–thisdimensionexplainthedegreetowhich interdependence that a society tends to maintain among the members 3.Masculinity Versus Femininity – this dimension of this model indicates that a higher score is signed masculine society driven by achievement, competition, and success. Whereas a low score indicates feminine society, which explains dominant values where care for others and life quality(Bakir & Rose, 2015). 4.Uncertainty avoidance index – this dimension concern about the way society believe about the uncertain future, and if they should let that happen or try to control an uncertain situation. The threaten feel due to uncertainty is indicated through this dimension 5.Long versus short-term orientation – this dimension with low score indicates that time- honored norms and traditions are maintained while considering a change in society with suspicion. Whereas the high score of this index means the pragmatic approach of society 6.Indulgence versus restraint – this last dimension of the cultural model indicates the extent to which an individual tries to handle their impulses and desires. Week control means indulgence and strong control over desires mean restraint(Triandis, 2017).
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MANAGING ACROSS BORDERS4 Figure1: China v/s Poland (Source:(hofstede-insights, 2018) Figure2: China v/s South Africa (source:(Hofstede-insights, 2018)
MANAGING ACROSS BORDERS5 Dimension 1: Power distance index Difference: Considering this dimension, power distance index of China is 80 whereas for Poland it is 68(hofstede-insights, 2018). This index for South Africa is 49, which shows a large difference in China and South Africa,whereinequalitiesandsuperior-subordinaterelationshipsareconsidered (Hofstede-insights, 2018) Similarities: China society considers inequalities amongst individuals are acceptable and Poland is considered to be as hierarchical society. Which are similar in nature Dimension 2: Individualism versus collectivism Difference: China scores 20 whereas South Africa scores 65 considering individualism in society. Therefore, the difference is quite large, where South Africa’s people are more concern towards social framework but are individualism, whereas China is a collectivist culture and work in the interest of the group(Hofstede-insights, 2018) Poland score 60 in this index, which is different than China, which shows the difference in people’s culture(hofstede-insights, 2018) Similarity: there is no such similarity in China and the other two countries when this factor is considered
MANAGING ACROSS BORDERS6 Dimension 3: Masculinity versus femininity Difference: there no large difference, considering this dimension, amongst three nations Similarity China score 66 and Poland score 64, which shows a very similar society, that is a masculine society; considering the assertive and decisive managers, and people wish to live in order to work. The focus is on competition, equity, and performance.(hofstede- insights, 2018) South Africa score 63 considering this index, which is again similar to China(Hofstede- insights, 2018)
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MANAGING ACROSS BORDERS7 Part B Introduction The report will discuss the implementation of the expansion of Huawei in South Africa. Huawei is one of the leading provider of ICT (information and technology) worldwide. The company deals in four major domains that are IT, telecom networks, cloud services, and smart devices. Moreover,thecompanyobjectiveistointroducedigitalizationineveryindividuallife, organization, and home for a more intelligent and connected world(huawei, 2018).Considering Hofstede’s cultural dimension of China, the home country of Huawei to expand in South Africa, the following recommendations are provided. Recommendation 1 For expanding the business into a masculine society, the focus of the company must be over the competitive advantage over other competitors. Since people in this nation are more practical, and towards working more for a better life, the company can have good managers from the country itself, while gaining competitive edge either through quality, product differentiation, or pricing strategy(huawei, 2018). Recommendation 2 Since it was observed that the host country culture included individualist society, it explains that their preference is more towards their individual expectation and care instead of a family as a whole. Therefore, the positioning of the product should not be more towards society or in group benefit, instead, the company should focus on marketing that is more related to individual benefit (huawei, 2018).
MANAGING ACROSS BORDERS8 Recommendation 3 Another recommendation considering that the culture of South Africa is more of Indulgence, which means people are more exhibit and willingness to accept their desires and impulses, moreover having fun and enjoying their life to the fullest. Therefore, due to this reason the company must influence people of that nation through an increase in desire while promoting their products. The leisure through their products should be conveyed while communicating their product and creating customer perception. Innovation is the best way, through innovation and new product development for the country in order to enhance customer value, enrich the people’s home life and full filling the customer need to the maximum can be the best way to target the customers at South Africa(consumer.huawei, 2018) Conclusion To conclude one can say that Huawei is a company focusing on reaching people globally while bringing digitalization in their life through smart devices and other cloud services. For expansion of such country in South Africa, the major recommendation included, creatingcustomer perception for the brand with leisure, because people do not believe much in saving, and like to realize their desire and achieve them. Moreover, while targeting customer, it is recommended to the company to focus over the personal benefit of the individual, as it is considered to be individualistsociety.Anotherrecommendationtothecompanyincludedfocusoverthe competitiveadvantagethroughproductdifferentiationandinnovation,asthesocietyis considered to be masculine, with practical thinking and decision making.
MANAGING ACROSS BORDERS9 References Bakir, A. & Rose, G., 2015. A preliminary investigation of the reliability and validity of Hofstede’s cross cultural dimensions.In Proceedings of the 2000 Academy of Marketing Science (AMS) Annual Conference,p. 226. Brass, D., 2017. Cross‐border acquisitions and the asymmetric effect of power distance value difference on long‐term post‐acquisition performance.Strategic Management Journal,38(4), p. 972. consumer.huawei,2018.Products.[Online] Available at:https://consumer.huawei.com/au/ CultureWizard, 2018.5 Strategies for Working in Cross-Cultural Virtual Teams.[Online] Availableat:https://www.rw-3.com/blog/5-strategies-for-working-in-cross-cultural-virtual- teams Gugin,2018.ChallengesofCross-CulturalManagement.[Online] Available at:https://gugin.com/challenges-of-cross-cultural-management/ hofstede-insights,2018.Countrycomparison.[Online] Available at:https://www.hofstede-insights.com/country-comparison/china,poland/ Hofstede-insights,2018.country-comparisonchina,south-africa.[Online] Available at:https://www.hofstede-insights.com/country-comparison/china,south-africa/ huawei,2018.CorporateIntroduction.[Online] Available at:https://www.huawei.com/au/about-huawei/corporate-information
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MANAGING ACROSS BORDERS10 huawei,2018.digital-transformation.[Online] Available at:https://www.huawei.com/au/industry-insights/technology/digital-transformation huawei,2018.sustainability.[Online] Available at:https://www.huawei.com/au/about-huawei/sustainability pestleanalysis,2018.pest-analysis-of-china.[Online] Available at:https://pestleanalysis.com/pest-analysis-of-china/ Triandis, H., 2017. Generic individualism and collectivism.The Blackwell handbook of cross‐ cultural management,pp. 16-45.