Impact of Hofstede's Cultural Dimensions on Global Business Operations

This essay provides an in-depth analysis of Hofstede's cultural dimensional model and its implications for international business. It begins by outlining the significance of the model in understanding cultural differences across countries, emphasizing its importance in navigating cross-cultural communication barriers and its influence on organizational working styles. The essay then explores the significance of the model for international business, highlighting its role in analyzing cultural variations, values, and ethical standards. It presents suggestions for cultural dimensions, such as improving communication channels and adapting to dynamic environments. The essay critically evaluates these suggestions, acknowledging both positive and negative aspects, and concludes by emphasizing the model's usefulness in understanding cultural differences and boosting organizational performance. The essay also includes references to relevant literature and academic research.

Individual Essay

Table of Contents
INTRODUCTION...........................................................................................................................1
Significance of Hofstede's cultural dimensional model..............................................................1
Importance of Hofstede's cultural dimensional model on international business.......................1
Suggestions for cultural dimensions...........................................................................................2
Critically evaluate the suggestions made in the article on Hofstede’s cultural dimensions.......2
Which do you agree with and which do you disagree with? Justify your position.....................3
Are there any other suggestions you would like to make...........................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Hofstede's cultural dimensional model talks about difference in cultural of various
countries. This also provides knowledge about cross culture communication barrier which affects
working style of organisation. While operating in more than one country, then this factor has to
be considered. In this essay there is discussion about significance of Hofstede's cultural
dimensional model and its significance on international business (Cheng and Wan, 2017). It also
provides some suggestions which helps to get positive outcome as cultural dimensions.
Significance of Hofstede's cultural dimensional model
With the help of this model, it is easy to understand change in culture, values, ethics of
people living in particular geographical region. As per article there are four dimensions of
culture i.e. individualism/ collectivism, uncertainty avoidance, power distance, masculinity/
femininity. So with the help of this it is easy to understand level of risk which people take living
living this particular geographical region. For instance: in countries of Europe people are more
innovative and ready to grab new opportunities, hence in this case it is easy to resistant in culture
of particular region with the help of this model. With the help of this model it is easy to
understand behaviour of employees while they are operating in particular geographical region.
So it is easy to maintain culture of country and motivate them to give best (Cronin, 2014).
Importance of Hofstede's cultural dimensional model on international business
Hofstede's cultural dimensional model is important for organisations who are working at
international level. When organisation is operating at international level, then in this case it is
important and significant to analyse change in culture, values, code of conduct, ethics, etc. of
country. With the help of this culture, it is easy to understand culture which affects growth of
organisation. Hence in order to get positive outcome it is essential to analyse culture, values of
countries. For instance: there is easy opportunities to female and there are equal rights without
any gender inequality in European countries (Dawson and et. al., 2014). Hence organisation at
global level has to give equal opportunities to women as well.
There is difference in eating habits of people as per change in geographical region. For
instance: restaurants such as KFC, McDonald's, etc. are successful because they analyse
difference of culture of region and then set code of conduct. This is beneficial for getting set
format of conducting operations and this makes workforce aware about diversity in working
1

style which is specific and relevant to perform activities in appropriate and relevant manner. At
international market with the help of this model effect on consumer purchasing behaviour can be
analysed and managers can take corrective measures. For instance: there is difference in eating
habits of consumers of European people as compared to Asian people. Hence when McDonald's
is operating in different countries, so with the help of this model, they are able to understand
difference in culture difference accordingly, they offer products and services to consumers
(Duque, 2014).
When organisations proper analyse external market, then they are able to take actions
which is specific ad relevant for their growth and development. These days people give equal
weight-age to their culture, ethical values while availing services and purchasing products.
Hence in this case managers of global organisation are able to analyse it with the help of this
model assist in outshining at global level.
Suggestions for cultural dimensions
There are some suggestions for Hofstede's cultural dimensional model, which helps to get
positive outcome to countries. There are some suggestions which helps to get positive impact on
business operations with implementing this model.
 There must be proper communication channel which is relevant and significant to get
positive impact on operations of association. While implementing Hofstede's model it is
easy to understand changes in culture but it is suggested to make employees innovative
about performing operations under dynamic environment (Green, 2017).
 In order to make changes in operations, there must be knowledge about changes which
are taking place in external environment. For instance: there is change in demand of
consumers on the basis of geographical region, then in this case it must be easy and
reliable to get positive outcome.
Critically evaluate the suggestions made in the article on Hofstede’s cultural dimensions
Above mentioned suggestions are relevant for organisations to outshine at international
market but at the same time, there are some negative aspects as well. There is discussion about
negative and positive concept of these suggestions which are discussed as under-
With the help of proper communication channel, it is easy to communicate with workers
in effective and relevant manner. It is easy to make them aware bout changes which are taking
2

place in external environment. This helps organisation to get growth. While negative impact is
that employees may misuse new and latest communication techniques.
With regular analysis of market, it is easy to make changes in operations which is
relevant for making changes in effective and relevant order. In order to make policies and regular
analysis of market is time and cost consuming process (Kalelioğlu and Gülbahar, 2014).
Which do you agree with and which do you disagree with? Justify your position
Individuals agrees with better communication skill because this helps to perform business
activities in effective manner and communicate with external people as well. While individuals
disagrees with making regular meetings with workforce to understand their views because this
creates confusion and dissatisfaction among workforce.
Are there any other suggestions you would like to make
At last there is one more suggestion that employees must be motivated to work under
dynamic environment which helps them to perform activities in effective and relevant manner.
As in organisation, when employees are satisfied then this leads to organisational growth and
development (Qian and Clark, 2016).
CONCLUSION
From the above discussion, it is clear that with the help of Hofestede's Dimensional
Culture Model it is easy to understand difference in culture of country and its impact on business
operations. There are some suggestions which helps to provide suggestions such as regular
market analysis, improved communication technique, etc. which helps to boost performance of
organisation.
3

REFERENCES
Books and Journals
Cheng, M. H. M. and Wan, Z. H., 2017. Exploring the effects of classroom learning environment
on critical thinking skills and disposition: A study of Hong Kong 12th graders in Liberal
Studies. Thinking skills and creativity. 24. pp.152-163.
Cronin, C., 2014. Using case study research as a rigorous form of inquiry. Nurse researcher.
21(5).
Dawson, P. and et. al., 2014. On the effectiveness of supplemental instruction: A systematic
review of supplemental instruction and peer-assisted study sessions literature between
2001 and 2010. Review of Educational Research. 84(4). pp.609-639.
Duque, L. C., 2014. A framework for analysing higher education performance: students'
satisfaction, perceived learning outcomes, and dropout intentions. Total Quality
Management & Business Excellence. 25(1-2). pp.1-21.
Green, L., 2017. How popular musicians learn: A way ahead for music education. Routledge.
Kalelioğlu, F. and Gülbahar, Y., 2014. The Effects of Teaching Programming via Scratch on
Problem Solving Skills: A Discussion from Learners' Perspective. Informatics in
Education. 13(1).
Miller, J., 2014. Building academic literacy and research skills by contributing to Wikipedia: A
case study at an Australian university. Journal of Academic Language and Learning.
8(2),. pp.A72-A86.
Qian, M. and Clark, K. R., 2016. Game-based Learning and 21st century skills: A review of
recent research. Computers in Human Behavior. 63. pp.50-58.
Thaiposri, P. and Wannapiroon, P., 2015. Enhancing students’ critical thinking skills through
teaching and learning by inquiry-based learning activities using social network and
cloud computing. Procedia-Social and Behavioral Sciences. 174. pp.2137-2144.
Thompson, P., 2017. Communication technology use and study skills. Active Learning in Higher
Education. 18(3). pp.257-270.
4