Mnc Entering India (Vodafone)

1798 Words Dec 6th, 2007 8 Pages
When Cross Border Mergers or Acquisitions happen the participating organizations need to understand the issue of differences in national cultural issues very well in order to set up a successful Joint Venture (JV). Each country has a different national culture and this needs to be recognized and addressed because it will ultimately impact upon the work culture of the fusion organization they are newly going to form. Geert Hofstede developed a model which seeks to understand how values in the work place are influenced by culture. He started this study by looking at IBM operations between 1967 and 1973. Data was culled out from 50 different countries which were then extrapolated to 74 nations (the original 50 plus an additional 24). …show more content…
Firstly it is bad if manufacturing would happen in India. No doubt Indians are known for group orientation and not for individualism. Theoretically this should give us an advantage in labour intensive industries. However experience shows that despite team power which group outlook can provide we are known for poor productivity and not so much for cost saving compared to China and other emerging Asian countries. Secondly our IDV scores do not matter if we are looking at a sales team made of Indians. Naturally the Vodafone sales team in India should have Indian salesmen since they understand the market better. Indians rather than foreign nationals would also mean lower HR costs. And in the present situation the telecom market is buoyant and demand in any case exceeds supply. Not much of concept selling needs to be done. An Indian sales team would work fine. Thirdly if it is R&D probably foreign nationals would serve better with their individualism and drive. With low IDV score an Indian based in India while one may be very intelligent may not show much drive or willingness to rock the boat since he respects tradition and traditional values too much.

Masculinity (MAS):- India 's score is 56 versus (Global 51 and UK 61). Male chauvinism is lower in India compared to UK. In overall terms this is good news for recruiters in Vodafone but it needs to be taken with reference to the social context in India. However certain social issues like sex ratio and

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