International Business Report: Air Pie's Cultural Adaptation Strategy

This report evaluates the organizational culture of Air Pie as it expands into the Japanese and USA markets, analyzing the impact on consumer and staff behavior. Utilizing Hofstede's cultural model, the report assesses cultural dimensions such as power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence, to understand cultural differences between Britain, Japan, and the USA. The analysis includes implications for management, organizational strategy, and operations, followed by recommendations to overcome cultural differences. The report emphasizes the importance of self-awareness and sensitivity to cultural diversity for successful international business operations. The conclusion summarizes the key findings, highlighting the need for cultural adaptation in Air Pie's expansion strategy. The report also includes a list of references to support the analysis and recommendations.

Running head: INTERNATIONAL NUSINESS
International Business
Name of the Student:
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Table of Contents
1) Evaluate how the organizational culture for Air Pie might be affected by entering the Japanese
and USA markets in terms of consumer and staff behaviour. Your evaluation should demonstrate
the role of culture in shaping international business.......................................................................3
1.1)Hofstede Model.........................................................................................................................3
2) Individually produce a report to the company summarizing the key conclusions of your
evaluation clearly showing the implications to management, organisational strategy, and
operations.........................................................................................................................................7
3) Recommend strategies to overcome the cultural differences identified in your evaluation........7
4) In your report, discuss the importance of self-awareness and sensitivity to diversity in culture 8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
Cultures vary from place to place and from person to person. The cultural backgrounds of
people play a major role in determining the taste and the preference pattern. It is for this reason
that while expanding a business it is of utmost importance to make sure that all these cultural
aspects have been taken into consideration1.
1) Evaluate how the organizational culture for Air Pie might be affected by entering the
Japanese and USA markets in terms of consumer and staff behaviour. Your evaluation
should demonstrate the role of culture in shaping international business.
1.1)Hofstede Model
Hofstede Model will be used by Air Pie Restaurant to analyze and understand the effects of the
Varying cultures of Japan and USA.
1 Cavusgil, S. Tamer, et al. International business. Pearson Australia, 2014.

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Figure1: Hofstede’s Cultural Model
Power Distance
Air pie is predominantly a Britain based Company and it does not really believe in
maintaining a hierarchy. This is because as or the British culture is concerned, they are always
concerned about minimizing the power struggle and want to establish equality. The relationship
between the customer and the staff is actually like that of master and slave. However the Britain
customers do not really like this and always speak in a very mild, apologetic and requesting tone.
However while they set up their business in Japan, they must be ready for the extreme cold and
formal behavior. They have a score of 54 that means they are hierarchical in nature and they
believe in maintaining the accepted norms and the social settings. So, In Japan, Air Pie

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customers will not find the customers to be very bossy and rude but they will surely be extremely
formal. However in USA, the consumers will be very friendly and will talk in a proper friendly
manner2.
Individualism
Air Pie has to make sure that when they are expanding in Japan, they have a very
welcoming approach and they have to make the restaurant ambience very family friendly. They
will also have to include in their menu many family dishes as Japan score 46 in this and is a
collectivistic society. The Air Pie staffs and the owners will also have to cooperate and
collaborate with each other for every decision as there is always collective decisions that are to
be taken. However in USA, the consumers and the newly recruited staffs both will behave in a
very friendly and informal manner3.
Masculinity
Japan is a highly masculine country. In other words, they believe in brilliance and
excellence. They demand perfection in each and everything. So, Air Pie has to make sure that
they have the ultimate perfect ion in all their goods and services. The Japanese people demand
perfection in the material services like the hotels and restaurants. The USA people however are
feminine in this aspect and like going by a majority vote. They like that what is liked by all.
2 "Eating Out: 10 Differences Between Britain and America | BBC America". BBC America, 2018. Online. Internet. 22
Mar. 2018. . Available: http://www.bbcamerica.com/anglophenia/2013/12/eating-10-differences-britain-america.
3 Martinez-Fiestas, Myriam, et al. "Analysis of perceived risk among construction workers: a cross-cultural study and
reflection on the Hofstede model." International journal of occupational safety and ergonomics 23.3 (2017): 307-317.

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Uncertainty Avoidance
The restaurant can try many new kinds of dishes and the US customers will like it. They
are open to experimentations. However as far as Japan is concerned, they do not really like any
kinds of uncertainty or any kinds of huge experimentations. They like predictability. So, Air pie
must be offering some similar and regular Japanese products and services4.
Long term orientation
The US people will always check what is true and what is false. They are really very practical.
The Japanese on the other hand will not really criticize if there are any such errors in the services
provided to them.
Indulgence
Japanese people will actually restrain themselves from too much indulgence. They are
often very formal and also very pessimistic. They may not really express their gratitude or
involve themselves in a friendly conversation. The Americans on the other hand is deeply
indulged in any particular matter. Hence Air Pie will have to be very detailed in all their
information and their detailing about their services while serving the USA customers. The
Japanese on the other hand will have strict professional relation and will not really show much
indulgence5.
4 Zeghal, Daniel, and Zouhour Lahmar. "The effect of culture on accounting conservatism during adoption of IFRS in
the EU." International Journal of Accounting & Information Management just-accepted (2018): 00-00.
5 Sadiq, Aminath. "A study of the impact of national culture on transformational leadership practices in the
Maldives." AU Journal of Management 9.2 (2018): 1-11.

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2) Individually produce a report to the company summarizing the key conclusions of your
evaluation clearly showing the implications to management, organisational strategy, and
operations.
The management must make sure they are taking into account all the ethnic and cultural
values of the Japanese and the USA customers. The organizational strategy has to take in account
all those aspects that would provide ease and comfort to the customers belonging from other
countries. While carrying on the operations, the Air Pie staffs have to keep in mind that they are
to maintain a proper distance with the Japanese customers as they do not like physical touch.
Similarly, they can appear very friendly and free with the American customers6. The ambience
while welcoming the American customers can be a groovy and a very modern friendly one
However it must be very organized, cam and family oriented while welcoming the Japanese
customers.
3) Recommend strategies to overcome the cultural differences identified in your evaluation.
The best strategy would be to learn in details about the culture and the beliefs of the
people of USA and Japan. Air Pie must also take help from some already existing restaurants in
those places in order to get some very valuable tips.
6 Valaei, Naser, et al. "The effect of culture on attitude towards online advertising and online brands: applying
Hofstede's cultural factors to internet marketing." International Journal of Internet Marketing and Advertising 10.4
(2016): 270-301.

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4) In your report, discuss the importance of self-awareness and sensitivity to diversity in
culture
It is of utmost importance for the Air Pie restaurant to be aware about the cultural belief
and ethnicity of Japan and USA. This will help them to grow a particular kind of sensitivity and
tolerance towards people of other counties. They will not only be tolerant but also respectful
about the culture and belief of the Japanese and the USA people. This will help them to develop
and expand their business in a proper way.
Conclusion
Thereby it can be concluded that both Japan and USA will have differences in their
attitude, thinking pattern and behavior as well. So, Air Pie needs to take I nto account all these
factors and then expand their business.

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References
"Eating Out: 10 Differences Between Britain and America | BBC America". BBC America, 2018.
Online. Internet. 22 Mar. 2018. . Available:
http://www.bbcamerica.com/anglophenia/2013/12/eating-10-differences-britain-america.
Cavusgil, S. Tamer, et al. International business. Pearson Australia, 2014.
Helmreich, Robert L., and Ashleigh C. Merritt. Culture at work in aviation and medicine:
National, organizational and professional influences. Routledge, 2017.
Martinez-Fiestas, Myriam, et al. "Analysis of perceived risk among construction workers: a
cross-cultural study and reflection on the Hofstede model." International journal of occupational
safety and ergonomics 23.3 (2017): 307-317.
Sadiq, Aminath. "A study of the impact of national culture on transformational leadership
practices in the Maldives." AU Journal of Management 9.2 (2018): 1-11.
Valaei, Naser, et al. "The effect of culture on attitude towards online advertising and online
brands: applying Hofstede's cultural factors to internet marketing." International Journal of
Internet Marketing and Advertising 10.4 (2016): 270-301.
Zeghal, Daniel, and Zouhour Lahmar. "The effect of culture on accounting conservatism during
adoption of IFRS in the EU." International Journal of Accounting & Information
Management just-accepted (2018): 00-00.