Table of Contents INTRODUCTION...........................................................................................................................3 TOPIC: “Cross-Cultural Analysis – are traditional techniques such as Hofstede, Wills et al, Hall and Hall, Trompenaars still relevant in the 21st Century?”.............................................................3 TASK 1 Critical evaluation....................................................................................................3 TASK 2 Comparison..............................................................................................................5 TASK 3 Relevance and conclusions......................................................................................5 REFERENCES................................................................................................................................7
INTRODUCTION Cross culture can be referred to as the business environment which facilitates interaction of people belonging to various nations and having diverse set of ideologies, views, opinions and practices. This can be applied in corporate context by looking upon the initiatives undertaken by an organisation to determine the differences lying between the host and foreign country. While understanding this in business context, it is seen as the efforts of a company so that they can easily communicate with one another professionally with different cultural background. To facilitate this, businesses require extensive training and employee support through which they can easily expand into a new country. The present project (Course Work 1) is focussed upon literature review conducted to gain knowledge of the different frameworks pertaining to cross cultural analysis(Ordóñez and et.al 2019). TOPIC: “Cross-Cultural Analysis – are traditional techniques such as Hofstede, Wills et al, Hall and Hall, Trompenaars still relevant in the 21stCentury?” TASK 1 Critical evaluation Cross cultural analysis is essential to be conducted by all the business organisations who intend to expand their business in new countries by marketing over cultures. In this regard, it can be analysed that there are a number of cross cultural analysis models that are taken into consideration before gaining access into a foreign nation. Specialists who have expertise within the area of business as well as management have developed a number of detailed literatures on cultural theories and models. Such theories are scattered and only some of these are actually applied to global corporate context(Marsh, 2016). These models tend to serve as fundamental as well as stepping stone to gaining comprehensibility of the culture of a nation in relation to global business and management. Some of these models are reviewed as well as analysed underneath. Also, their perspectives along with approach towards the issue of culture and marketing are presented as follows:- Hofstede Cultural Model:The psychologist Dr Geert Hofstede devised this cultural dimensions model on the basis of conduction of research for around a decade(Feskens and Hox, 2018). Since that time, this framework became a globally renowned standard for gaining in depth comprehensibility of cultural differences lying between 2 or more nations. This model was devised by the respective psychologist post the comprehensive study of people who operated as a
part of IBM across a total of 50 nations. In the start, he determined 4 dimensions on the basis of which one national culture could be differentiated from another. However, it was later that two more dimensions were added to the series in addition to the 4 dimensions by cooperating with Drs Michael H. Bond and Michael Minkov. These dimensions tend to define how the people, culture and business practices of one nation differ from other. To give it a better clarity, Hofstede, Bond and Minkov gave scores to each nation on a scale of 0 to 100 for each dimension. By gaining knowledge of these dimensions for a country, a business entity can successfully apply it to resolve the issues of cultural differences. Also, this provides aid in carrying out marketing within the confines of a country by adhering to the culture, views and perceptions held by people of that country(Mar Miras‐Rodrígue and et.al 2015). Hall's Iceberg Concept of Culture:This model was devised by Edward Twitchell Hall when heobservedthatanumberof issuesaroseasa result ofineffective intercultural communication. With this, the psychologist believed that the differences between participants coming from diverse set of cultures were responsible for miscommunication. The icerberg model describes culture to be a composite of 2 diverse parts. These are: parts visible over the surface such as manner of carrying living, law, custom etc. and secondly, the components that are not visible at first such as specific values, norms or attitudes( Mooij, 2015). The basic perception held within this model is that the only manner in which an individual can learn the internal culture of others is to take active participation in their culture. It is only through this that a person or a business can gain comprehensibility of the underlying values, customs, beliefs and ideologies of the new culture. The same perception is applied to corporate context that an entity can gain knowledge about another country's culture is by gaining access into it and conducting marketing operations there in an effective manner(Vijver,Van Hemert and Poortinga, 2015). Trompenaars Cross Cultural Analysis:Companies all across the globe are working with a number of culture whereby the basic perception is to conduct marketing activities after gaining knowledgeofits7elements,UniversalismversusParticularism,Individualismversus Communitarianism, Neutral versus Emotional, Specific versus Diffuse, Achievement versus Ascription,SequentialversusSynchronoustimeandInternaldirectionversusExternal direction(Dawkins and et.al, 2016). The perception held within this model is to gain knowledge of the cultural differences underlying between host and foreign country to come up with effective marketing practices that can enhance a company's reach in market place.
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TASK 2 Comparison The 3 approaches to Cross Cultural Analysis, namely,Hofstede Cultural Model, Hall's Iceberg Concept of Culture and Trompenaars Cross Cultural Analysisare discussed above. All of the models have certain elements or factors pertaining to them which provide assistance to an individual or business to get some idea of the culture of foreign country. Hofstede Cultural Dimensions Model consists of 7 factors namely Power Distance Index (high versus low), Individualism Versus Collectivism, Masculinity Versus Femininity, Uncertainty Avoidance Index (high versus low), Long Versus Short Term Orientation and Indulgence Versus Restraint. The factors which constitute Trompenaars Cross Cultural Analysis are Universalism versus Particularism, Individualism versus Communitarianism, Neutral versus Emotional, Specific versus Diffuse, Achievement versus Ascription, Sequential versus Synchronous time and Internal direction versus External direction(Davidov and et.al 2018). Lastly,Hall's Iceberg Concept of Culture comprise the visibly seen part and the elements that are not noticed in the first time. Thus, the basic differences lies in the elements of all the 3 models which focus upon different things. The first model focuses upon gaining knowledge of the approach which the citizens of a country have towards corporate as well as personal life. Besides this, the second model is focussed more upon the emotional and mental state of individuals belonging to foreign country. Lastly,Trompenaars Cross Cultural Analysis tends to provide an overview of the culture of a country by providing knowledge of the apparent and the invisible parts pertaining to the culture(Maignan, 2001). TASK 3 Relevance and conclusions Cross cultural analysis is an important as well as relevant concept that needs to be applied by business corporations with a view to gain knowledge of the various aspects pertaining to a nation. In today's modern era, the world is leading towards becoming a one “big village” by making use of the smart technological advancements. Owing to the extensive rivalry prevailing within the confines of the globe, a large number of business owners as well as operators have realised the requirement to carry out business across the national confines by making use of effective marketing practices(Davidov and et.al, 2018). Hereby, the major task that needs to be performed by a nation is to gain knowledge about the various aspects of a country's culture and then devising and deciding upon the marketing and market entry strategies to gain access into a foreign location. Although the world is leading towards becoming globalized, there is yet to
emerge a “global” culture or in other words, a common business culture. Everyone knows that the culture of a nation significantly impacts upon the way in which business carries out its operations. Also it influences the way in which an organisation makes profits, relations, managementstrategiccourseofaction,communication,marketing,consumerbehavioural conduct, advertising, global investment and commerce etc. In this regard, in the 21stcentury, the traditional models such as Hofstede, Wills et al, Hall and Hall, Trompenaars still seem to be relevant because they tend to provide an overall overview of the cultural aspects of a country. Although there is a scope to make use of more recently devised cultural models, the traditional CCA techniques still seek to solve the purpose of a company to design and devise effective marketing strategies for gaining access into a foreign country, based upon this. From the above observations, it can be argued that in order to survive or succeed in this globalised, competitive international environment, multinationals and international business managers need to have a practicalandsoundunderstandingofcross–borderculturesbycriticallyapplyingCCA techniques into practicality. The inability to be culturally sensitive and culturally competent may lead to business failure and avoidable wastage of funds. Thus, it is recommended that entities should make sound use of CCA techniques in 21stcentury which has become hyper competitive (Ang and Van Dyne, 2015).
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