Business report
Introduction
Due to different countries have different cultures. When the company wants to co-operate with international companies, one important point is, the company must understand the characteristics of the cultural differences. Cultural issues are key factors of company success and failure. Culture differences can have important effects on companies operating in another country. (Deresky, 2006) from this report will choice China, U.S. and Britain. Hofstede’s culture dimensions are basic framework to analyse the culture differences between China and U.S. and Britain. It the most popular theories and used by many national culture. Hofstede (1980) developed five cultural dimensions: (1) power distance; (2)
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One is high power distance; within high power distance organizations have more levels of hierarchy, autocratic leadership, and the expectation of inequality and power differences. High power distance emphasis trust and conformity leaders, personal Status is an important issue in a high power-distance culture. Such as, ‘Boss is boss’ it represent the status. Employees at the lower levels often tend to rely on their superior leaders. They admit their subordinate status and respect formal hierarchical authority. (Chang, 2003) In this case, managers often adopt centralized to make any decision; managers make decisions at first, and then low employees need accept and implement. Conversely, in low power distance, employees in low power distance be likely relatively equal. In low hierarchy societies, managers are more willing to share their authority to subordinates when their making decisions (Chang, 2003).
U.S. and Britain rank on the low, which is a low power distance. American has low score (40), while Britain score lower than U.S. (35). The power distance refers to the dependence relationship in a country. (Hofetede, 1991) Low power distance explains low dependence among subordinates and the leaders. The low power distances tend to be egalitarian, they believe that no power differences between individuals and classes of people. For example, the United States is relatively low power distance country, people, who works in the U.S. companies. They do not tend to
Power distance describes the distance between power and the members of a particular culture. France has a higher power distance than the United States. Gudykunst describes countries with a high power distance as, “Individuals who accept power as part of society. As such superiors consider their subordinates to be different from themselves and vice
Refers to how society accept or does not accept the differences between people, as per hierarchies at workplace, also in politics and so on. Culture with high power distance accept that a boss is “higher” so deserve more authority and respect. Countries like Mexico, Philippines, and Japan are high power distance countries.
On the contrary, in small power distance countries there is limited dependence of subordinates on bosses, and a preference for consultation. The emotional distance between hierarchies will tend to be relatively small:
Every country differs in culture which has been there for centuries. The international market is growing rapidly, with more and more multinational organisations entering new markets each day. In this assignment I will evaluate how the difference in cultures affects the performance of international businesses.
I feel that we have a low power distance, because though we all have our specific roles, some holding more power than others, we all collectively voice our options and have a collective decision making process. We all work together and we all trust each other to do well.
There are significant cultural differences between Japan and the United Kingdom that need to be taken into account when doing international business. There are also a number of methods and systems by which these differences have been described. These include the Geert Hofstede cultural dimensions, Trompenaars seven dimensions of culture and the Globe Project's cultural dimensions. This paper will discuss these differences and similarities, and shed light as to the best approach to international business in these countries.
Question 1. How might the troubles with the tourism company be explained by Hofstede’s dimension of culture. Make sure to look at both Japanese and American cultures.
Cultures are varying among different parts of the globe. People with different cultures have different characteristics and viewpoints on the subjects due to diverse understanding and method of learning. During the past few decades, the international trade grows in a very rapid rate due to the advantages that it provides; “increased sales, operational efficiencies, exposure to new technologies and broader consumer choices” (Heslin). Therefore, when considering the culture aspect to current business world, it is crucial for business to understand the culture aspect because of the tremendous growth of international business as well as utilize the international market to its maximum
Using Hofstede’s four cultural dimensions as a point of reference, what are some of the main cultural differences between the United States and France?
Power/Distance (PD), “refers to the degree of inequality that exists- and is accepted- among people with and without power. A high PD score indicates that society accepts an unequal distribution of power, and that people understand “their place” in the system. Low PD means that power is shared and well dispersed.” (www.mindtools.com) As an example from the article, Myers goes on to say, “there were basically four levels: VP, director, manager, and worker bee. You only talked to people at your level.” SK Telecom boasted that
This essay aimed to evaluate and critique the paper written by Geoffrey Williams and John Zinkin. It was divided into seven parts. First of all, I would brief introduce what the essay is about, followed by giving the description of the paper being evaluated. Then, theory and literature would be evaluated, with highlighting the theoretical frameworks used by the authors in developing the paper. Research design and approach would come to the fourth part, in which I would explore the research design and methods and discuss the benefits and limitations. Afterwards, benefits and limitations of the research design and approach would be given, and finally comes the suggestions of alternative research strategies/method and the
When the hierarchy in a country is really strict, there will be a lot of power distance between the top and bottom of the hierarchy. This will be accepted but is also expected, as every part of the hierarchy reports to the part above it, so it makes sense to them to do so and this will eventually result in a very big power distance between the very top and the very bottom of the hierarchy. This is shown in the PDI of China, it is very high, around 78. This is because of the social emphasis on the importance of family, families in China are build around a certain hierarchy, the oldest members are the most important and have the most power, and this has been taken over by companies as well. A country that shows the opposite of this are the United States, they emphasize equality and try to reinforce cooperative interaction across power levels, this resulted in a low score of 40.
| * India scores high on this dimension, 77, indicating an appreciation for hierarchy and a Top – Down Structure in society and Organizations. dependent on the boss or the powerholder for direction, acceptance of un-equal rights between the power-priviledged and those who are lesser down in the pecking order, immediate superiors accessible but one layer above less so, paternalistic leader, management directs, gives reason / meaning to ones work life and rewards in exchange for loyalty from employees. * Real Power is centralized even though it may not appear to be and managers count on the obedience of their team members. * Employees expect to be directed clearly as to their functions and what is expected of them. * Communication is top down and directive in its style and often feedback which is negative is never offered up the ladder
When a business decides to venture internationally into different countries with its products, services, and operations, it is very important that the company gains an understanding of how the culture of the different societies affects the values found in those societies. Geert Hofstede conducted one of the most famous and most used studies on how culture relates to values. Hofstede study enabled him to compare dimensions of culture across 40 countries. He originally isolated four dimensions of what he claimed summarized different cultures — power distance, uncertainty avoidance, individualism versus collectivism, and masculinity versus femininity (Hill, 2013, p.110). To cover aspects of values not discussed in the original paradigm Hofstede has since added two more dimensions — Confucianism or long-term orientation and indulgence versus self-restraint (Hofstede, n.d.). Because of the way Hofstede’s cultural dimensions are given an index score from 0-100, it is easy for a company to get a general comparison between the cultures they are expanding into and the culture they are already in.
The United States and China boast the two largest economies in the world but, despite this fact, these two countries have very little in common. At first glance, this may seem very obvious to most people but, what exactly is it that makes these two countries so different? How is it that such different perspectives and approaches can both lead to great success? Hofstede’s six dimensions of culture are an attempt to answer these questions and more. Dr. Geert Hofstede, studied employees of the computer firm IBM in over fifty different countries. When he examined his findings he found “clear patterns of similarity and difference along the four dimensions” (Manktelow, Jackson Edwards, Eyre, Cook and Khan, n.d.). The fact that he focused his research on solely IBM employees allowed him to eliminate company culture as a differentiating factor and “attribute those patterns to national and social differences” (n.d.). He used his findings to originally identify four dimensions, later expanded to six, that could “distinguish one culture from another” (n.d.). The six dimensions all on a scale from 0 to 100 are: