Accenture's International Management: Expansion & Expatriate Success

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Added on Ā 2023/06/14

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This report analyzes the challenges faced by Accenture, a multinational consultancy, during its international expansion into Germany, Brazil, and Japan. It explores the impact of cultural differences on organizational culture, comparing the UK headquarters with its international outlets using Hofstede's cultural dimensions theory. The report discusses how differences in power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence affect Accenture's business practices and human resource management. Furthermore, it critically examines the reasons for expatriate failure, emphasizing the importance of proper candidate selection, cultural adaptability, and effective HRM strategies in diverse cultural environments. The report concludes by highlighting the need for Accenture to adapt its business model and workplace environment to align with the unique cultural requirements of each country to ensure successful global expansion. Desklib provides access to similar past papers and solved assignments for students.
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International
Management
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Contents
INTRODUCTION...........................................................................................................................3
Part 1................................................................................................................................................3
Task 1a.............................................................................................................................................3
Task 1b...........................................................................................................................................13
Reflection.............................................................................................................................13
Part 2..............................................................................................................................................14
Critical discussion of expatriate failure and success factors................................................14
Factors which contribute to globalized economy.................................................................18
CON CLUSION.............................................................................................................................19
ļ‚· REFRENCES.......................................................................................................................20
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INTRODUCTION
International expansion of businesses is repentant on the ability to effectively handle cultural
differences and utilize company resources to adapt to changing cultural environments across
international boundaries. The company on which this report is based is the United Kingdom
multinational consultancy business Accenture which has operations in various countries across
the globe. The company was founded in 1989 and primarily offers consultancy and information
technology services to consumers. This report looks at the challenge is related to international
expansion in Germany Brazil and Japan. In addition to this, expatriate failure is critically
discussed in this report along with success factors for expatriates and the concept of culture
shock for expatriates.
Part 1
Task 1a
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The issues due to differences in organizational culture of headquarter go outlet and international
outlet is described in this present along with its implication.
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One of the primary factors which affects and influences organization culture of a specific
organization is the national culture of the region where the organization is located. In addition to
this the culture of headquarter region also affects organizational culture of international outlets as
the focus of the company is on cultivating the same corporate environment in different
international regions. The workplace culture of Accenture outlets in Germany is affected by
company culture of UK and regional cultural aspects of different countries where the company is
located such as Germany, Brazil and Japan.
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Power Distance Index
This element of the cultural dimension theory looks level of tolerance of a society towards
imbalances in power and presence of strict hierarchies. Cultures with high power our distance
index respect institutions and tolerate differences in power and inequality in the society
while cultures with low power distance index value egalitarian environment.
Individualism vs Collectivism
United Kingdom and Germany favor individualism as the focus is on growth of individual
citizen without affiliation to a larger cultural element or subset of the society.
The focus of our culture towards individual freedom on developing a collective consciousness in
this society is determined in this part of the cultural dimensions theory. In Individualistic cultures
and societies, primary focus is on the individual and individual success while collectivist cultures
and societies art pendant on social interactions and a part of a cohesive collective group.
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Masculinity vs Femininity
The difference between masculine and feminine cultures is that masculine cultures thrive to
become more successful and successes related to gaining the best life and winning position in
different scenarios while feminine cultures focus on caring and nurturing.
Uncertainty Avoidance Index
Germany has high uncertainty avoidance index which is comparatively lower to that of Brazil
and Japan which is compensated for by strongly relying on expertise and deductive approaches.
UK the lowest uncertainty avoidance index out of all the countries mention which means that
there are not too many rules and detailed planning is not preferred.
This part of the cultural dimensions theory looks at response of a culture towards ambiguity and
unknown elements of the future. If a culture is centered around controlling the future the
uncertainty avoidance index is high while cultures with low in certainty index accept the
ambiguous and unknown aspects of life.
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Long-term Orientation vs Short Term Orientation
UK and Brazil have intermediate scores on orientation which shows that there is space for both
pragmatic and normative cultures in these countries.
The way in which a culture in society deals with history and barriers of the future can be
identified with the help of long term or short term orientation.
Indulgence vs Restraint
It can be determined that Japanese and Brazilian cultures involve rules which restrained actions
on individual desires and disapprove gratification. Germany as intermediate score and space for
both some level of indulgence and some level of restraint towards acting on personal desires. UK
as high level of intelligence which means that do you focus on leisure activities and gratification
of desires in the society.
The ability to act on desires of individuals can we determined with the help of this part of the
culture is dimensional theory.
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Power Distance Index
On the other hand, the company needs to create a more structured and hierarchical foot place
attitude and accommodate a high power distance index of these societies.
Individualism vs Collectivism
This means that Accenture needs to create a since off integration and interdependence in regional
outlets of Brazil and Japan so that employees feel connection towards a cohesive structure of the
company. Similarly there is a difference between high individualism of United Kingdom and
comparatively lower individualism in Germany which means that there is a requirement for
cohesive community to offer collectivist identity in the German outlets of Accenture when
compared to United Kingdom outlets.
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Masculinity vs Femininity
The similar level of masculinity in Germany when compared to United Kingdom will provide
advantage in terms of incidence of United Kingdom corporate culture of a century on German
corporate culture of the company. Brazil has some more feminine culture in society when
compared to United Kingdom and the company needs to ensure that expatriate employees in
Brazil understand the nurturing environment of the country so that they are able to make
effective decisions to appeal to the workforce of Brazil.
Uncertainty Avoidance Index
The difference in UK and Japanese UAI means that the it is respective consulting company
needs to change the influence of United Kingdom corporate culture on Japan and focus on
creating more rules and regulations which are similar to the high uncertainty avoidance index of
Japanese culture and support long term planning. In Case of Germany and Brazil which also
have higher uncertainty avoidance index when compared to United Kingdom Accenture needs to
ensure that rules and regulations are in place to handle ambiguity of the future and expert advice
is taken to handle unknowable situations faced by the corporate.
Long-term Orientation vs Short Term Orientation Index
In I'm Patty into a knighted Kingdom both Germany and Japan have more preference towards
long term orientation while United Kingdom has more short-term orientation in its culture.
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Accenture needs to understand the implications of the opposite levels of long-term orientation in
United Kingdom and Germany and Japan. Accenture needs to increase investment in research
and development and prioritize growth in market share as it matches with the long-term
orientation of Japanese and German cultures. In Brazil Accenture needs to adopt similar
practices as in United Kingdom headquarters because the long-term orientation of United
Kingdom and Brazil is closer then compared to Germany or Japan.
Indulgence vs Restraint
As the level of intelligence is similar between United Kingdom and Brazil, I think it does not
need to change business practices and reward structures in Brazil outlets as the level of
intelligence and gratification is similar to United Kingdom culture. On the other hand, Germany
and Japan have more restrained cultures and Accenture needs to change reward and recognition
policies in order to accommodate the restraint culture of Japanese and German societies which
river restraining on actions through social norms over ratification and leisure time.
This theory can be used to determine the implication of cultural differences between countries
and businesses can take effective action towards changing cultural practices according to the
requirements of specific national culture entry where they are operating.
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