Huawei's Expansion: Cultural Analysis of Mexico, Australia, Germany

This report examines Huawei's potential business expansion into Mexico, Australia, and Germany, focusing on the cultural dimensions of each country as compared to China. It utilizes Hofstede's cultural dimensions model, analyzing power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance, and long-term orientation. The analysis compares and contrasts the cultural profiles of the four countries, highlighting similarities and differences to provide insights for Huawei's international strategy. The report offers specific recommendations for Huawei, especially if expanding into Germany, emphasizing the importance of understanding local business practices and cultural norms. The conclusion summarizes the key findings and reinforces the importance of cultural awareness in international business ventures.

Managing Across Borders

Managing Across Borders 1
Contents
Introduction......................................................................................................................................2
Hofstede’s cultural dimension.........................................................................................................3
Cultural profile of China, Mexico, Australia, and Germany...........................................................4
Differences and similarities review of Australia, Mexico, and Germany as compared to China....6
Recommendations............................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
An expansion is the phase of the business cycle when the economy moves from a bottom to a
peak. In this competitive world, many companies like to expand their business within the borders
or across the borders. Huawei has decided to expand the business in the overseas markets and the
potential markets are Mexico, Australia, and Germany. Huawei technologies co. ltd is a Chinese
multinational networking and telecommunications equipment and service company who is
having the headquartered in Shenzhen, Guangdong. The company has to face the cultural
differences so an advisor is asked to provide the advice to guide a way for handling the best
cultural differences that may arise. The report discusses the Hofstede’s cultural dimension of the
culture.

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Hofstede’s cultural dimension
Psychologist Dr. Greet Hofstede introduced the cultural dimensions model at the completion of
the year 1970s. This theory is a tool to analyze the values and beliefs of members and social
culture of the country.
Power distance index (PDI)
This dimension defines the level of inequality that exists and is accepted by the member of the
country. A high PDI shows that the people accept the unequal hierarchical distributions of power
and a low PDI shows that the power is distributed or shared among the members.
Individualism versus Collectivism
This dimension shows the togetherness that the individuals have with others in the same
community. A high IDV score reflects that there is the presence of the weak interpersonal
connection among persons of community. In a collectivist society, the members are supposed to
be trustworthy with members of their groups (Viberg & Grönlund 2013, p. 169).
Masculinity versus Femininity (MAS)
This dimension includes the spreading of the roles among men and women. The roles of the men
and women overlap less in masculine society but in feminine society, there is the possibility of
the overlap among roles of the males and female.
Uncertainty Avoidance Index (UAI)

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This dimension shows how the people of the society can deal with the anxiety. The high score of
the uncertainty avoidance reflects the effort to make life predictable and controllable as possible.
The people having the low uncertainty avoidance are more open, inclusive and relaxed.
Long-Term Orientation
This dimension reflects that the people of the society are strongly related to the nationalism and
religiosity. The countries having the high Long-Term Orientation are pragmatic and the countries
with low Long-Term Orientation are normative where the people likely to be more nationalistic.
Cultural profile of China, Mexico, Australia, and Germany
(Source: Hofstede Insights 2017)
Hofstede’s
cultural
China Mexico Australia Germany

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dimension
Power distance
index
China has the
high score than
Australia and
Germany.
Mexico is a
hierarchical
society with high
score.
Australia scores
less which shows
that country has
an unequal
distribution of
power.
With the low
score, the society
is highly
decentralized.
Individualism
versus
Collectivism
The score of
China is low
which shows that
there is
collectivist
culture.
The low score in
this dimension
shows the society
of Mexico is
Collectivistic
society.
The culture of
Australia is
highly
individualist.
The society of
Germany is an
individualist.
Masculinity
versus
Femininity
China has the
masculine
society same as
other countries
(Hofstede
Insights 2017).
The society of
Mexico is
masculine.
The society of
Australia is
masculine.
The society of
country is
masculine.
Uncertainty
Avoidance
Index
China has low
score of UAI
The score of this
dimension is
high which
Australia scores
a very
intermediate 51
The country is
having the slight
preference for

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shows that the
country has a
high preference
for avoiding
uncertainty.
on this
dimension.
UAI.
Long-Term
Orientation
China scores
high which
shows that the
china has
pragmatic
culture.
With the low
score, the culture
of Mexico is
normative.
Australia is
having a low
score which
shows normative
culture.
The high score in
this dimension
shows the
pragmatic culture
of Germany
(Hofstede
Insights 2017).
Differences and similarities review of Australia, Mexico, and Germany as
compared to China
China- Mexico Similarities
 Both the countries have a hierarchical society with the high
score in PDI which is shown in above graph.
 China and Mexico have a masculine society with the almost

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equal score.
Differences
 China scoreless in uncertainty avoidance than Mexico which
shows that the country has a high preference for avoiding
uncertainty (Dockery 2010, p. 315).
 The culture of China is pragmatic but Mexico's culture is
Normative.
China- Australia Similarities
 Both the countries have a masculine society which shows that
the culture will be driven by success, competition and
achievement.
 China has a low level of uncertainty avoidance which shows
that the truth may be relative though in the immediate social
circles. Similarly, Australia has the very intermediate score.
Differences
 The culture of China is collectivism but Mexico's culture is
highly individualist.
 The culture of China is pragmatic with the high score in
Long-Term orientation; on the other hand, the culture of
Australia is normative (Promsri 2013, p. 35).
China- Germany Similarities

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 China and Germany have a masculine society that reflects
that the society of the countries will be driven by
achievement and success.
 Both the countries follow the pragmatic culture which shows
that the people believe that truth depends on situation, time
and context.
Differences
 China has collectivist culture; on the other hand, Germany
has the high individualist culture.
 China has the hierarchical society where people wait for the
orders of the leader; on the other hand, Germany has the
decentralized society where the company gives the
opportunities to their workers to enhance the skills of the
people (Yoo, Donthu & Lenartowicz 2011, p. 193).

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Recommendations
The company selected Germany for the expansion of the business then below given are some of
the recommendations.
 It is recommended to the Huawei to prepare the in-depth data and statistics before the
negotiations to gain the concessions as a society of Germany take a long time because
they believe in analyzing the information and statistics in great depth. If the people get all
the details then they can make quick decisions (Kissinger & Hormann 2011).
 Huawei should understand the difference between the corporate culture and values of the
companies based in Germany as it is essential for the expansion into Germany.
 Society of Germany strongly follows their social and cultural norms so it is
recommended to the company while implementing the expansion or negotiations they
should avoiding performing such activities that can create impact the negotiations among
the countries (Tu 2015, p. 457).