The Hofstede Model Of Cultural Business Operations, And Marketing

Geert Hofstede is an influential Dutch researcher in the fields of organizational studies and more concretely organizational culture, also cultural economics and management. He is a well-known pioneer in his research of cross-cultural groups and organizations and played a major role in developing a systematic framework for assessing and differentiating national cultures and organizational cultures. His studies demonstrated that there are national and regional cultural groups that influence behavior of societies and organizations.

Many organisational managers claimed that Hofstefe model is successfully comparative different culture in different countries. However, some scholars argued that it is risk to apply Hofstede model due to validity and reliably to differentiate culture such as perception of culture, methodology, and his dimensions.

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.

Doing business in such different countries ask you to be flexible and need to be able to adapt quickly to the local demand and cultural differences. Your strategy has to be adapted to the ethical standards, cultural norms, but also the way the business is going locally. In others world, the company has to localize its distribution and marketing strategy to the requirements of the local market.

It is this gap in cultural understanding and increase in globalization that makes cultural models, such as Hofstede’s, that much more important to learn and apply during business relations. Many companies that try to expand beyond their current borders end up failing due to refusing to recognize the differences between cultures. An American company that expands into foreign markets, yet tries to run their operations and marketing as they would in America, is going to have a difficult time. Products and well as company practices need to be adapted to suit the country’s business culture, current market climate, taste/preferences of the citizens, etc.

Making business abroad can be risky, but it can also be profitable for a company as well; thus the necessity to study in deep the country where the company will bring the business to. International companies are faced with many cultural challenges, when doing business across and inside of different borders. Identifying the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business can be crucial for a business. Aspects to consider when studying culture in a new place

     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

A helpful tool to consider when discussing the possibilities of a culture for a particular company is the Hofstede 's Cultural Dimension. Hofstede’s Cultural Dimension studies different aspects of a nation 's culture in comparison to other cultures around the world. Each part of the Hofstede’s Cultural Dimensions deals with how specific cultures react to different scenarios. The Hofstede 's Cultural Dimension is subdivided into six specific categories. These categories, also called indexes include the following: Power Distance (PDI), Individualism versus Collectivism (IDV), Masculinity versus Femininity (MAS), Uncertainty avoidance index (UAI), Long Term Orientation

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 man who put corporate culture on the map—almost literally—Geert Hofstede (born 1928) defined culture along five different dimensions. He measured each of these dimensions in numerous countries and then made cross-country comparisons. In the age of globalization, managers trying to understand the differences between workforces in different environments have used this model extensively. Early in his career he worked for IBM, during which he carried out the research on which his career and reputation successively rests. Now known as the Hofstede Cultural Orientation Model is based on his study between 1967 and 1973 of IBM employees in 40 different countries.

As it were, this hypothesis contemplates noteworthy parts of society and gives them a rating on a comparison scale. So far as worldwide business is concerned, the measurements of society frame a vital feature. Information of the way in which distinctive components of a business are seen in various societies, can help an administrator in comprehension and cruising effectively over the global business market. This research assignment will discuss about the theme of Hofstede’s cultural dimensions by investigating; introducing the five dimension frameworks, and utilising the measurements to comprehend societies and individuals in view of a contextual analysis of social contrasts, the importance of overseeing social distinction as a major aspect of diverse workforce, conclusion, and recommendations.

In the business world today, borders are blending and multi-national mergers are causing many company nationalities to become indistinct. As the globalization of markets rapidly increases, many companies are finding international expansion a necessity of competition. The world is greatly affected by this movement towards a global market, and many companies are finding it extremely important to adapt to other cultures. The most considerable obstructions to successful international marketing involve misinterpretations and contrary views resulting from cultural differences. Being both aware of some of these issues and prepared to make the necessary accommodations can save companies time, effort, and a considerable amount of

Professor G • Hofstede culture more than fifty countries around the world conducted the investigation , analysis and comparison . In the field of international academic Professor G • Hofstede study is considered the cultural differences and cultural differences affect the authority of the management strategy. In the global economy , and the world are focused on the development of the company 's strategy on how to meet the largest market , the largest customer of products and services and the study of different cultures and values is the key to the success of such a strategy .

According to the works of Chaney & Martin (2011) and Harris & Moran (2000), they agree that international management skills are in need for the increasing scope of international trades and investments. A large number of multinational companies have expanded their businesses through both developed and developing countries. Some of the business invest directly and others are partnership arrangements and strategic alliances with domestic operations. Their studies show that independent entrepreneurs and small businesses have started investing and competing in the world marketplace. Thus, to acquire corporations’ objectives, there is exceedingly a necessity for the development of strategic framework for cross-cultural management and communication in the current competitive global market. Chaney & Martin (2011) also noted that, cultural awareness and cultural differences are strongly important to the multinational corporations’ success. A good understanding of the culture where business is implemented can make international managers productive and effective.

Businesses that wish to operate on a global scale must consider national cultures because of the four Ps of marketing. If a company wants to be successful on a global scale they must know how much it will cost to operate, what product they will be selling, how they will promote it, and where they will be operating in different areas. They will need to know if they will adapt to the market or keep the same business strategy they already have depending on different cultures.