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.
The first of Hofstede’s dimensions deals with power distance. Hofstede’s description of power distance is the degree in which less-superior members of an organization within a country tolerate the unequal distribution of power, for instance, between managerial roles in a company and the employees. New Zealand has a score of 22 in this dimension, which is considered very low. A very low score depicts that equality is a predominant cultural value within the
In this section the theoretical arguments on corporate culture by Schein will initiate a discussion on the role of corporate culture in intercultural communication. The discussion will serve as a basis for an assessment of how well the corporate culture is transferred and shared between the Danish headquarter of Flying Tiger to the Japanese partner Sazaby league Ltd. Following the arguments of Schein, it can be concluded that a unified constructive corporate culture is strengthening the performance of firms. When the earlier statement of ‘culture is communication’ (Smith, 1966) is taken into account, it can be deduced that effective and good communication is dependent on a strong and constructive culture. Thus corporate culture and communication
Hofstede’s dimension of culture offers a gauge to measure the similarities and differences that are dominate among people of different cultures. Therefore, the three countries selected for this analysis are China, India and the United Kingdom (UK), as Hofstede’s dimensions of culture, examines individualism, uncertainty avoidance, masculinity, power distance and long-term orientation, associated with the management culture in these nations.
The Netherlands have, like a lot of the rest of the World, a very interesting history, however; I still bet it will be very different than America’s. The first inhabitants, lived their 3,000 B.C. and were thought to be giants called the Huns, but were found to actually be just regular people, kind of like the American Indians. Another cool fact about The Netherlands, is that William Orange, led a revolution of Netherlanders who fought a lot like pirates, against many emperors who wanted control of the area. Also, in WWI the Netherlands were neutral yet in WWII they were occupied by NAZI
Our case study deals with Mass Merger. Since the 90s, together with the globalization of business, Mergers and Acquisitions have developed at an incredible pace. Thus, companies from all over the world can be lead to work together as one single corporation. Moreover, the world has become interdependent not only economically, but also culturally, that is to say one culture may influence another one or different cultures can be mixed. It is then obvious that intercultural issues have to be solved.
Although Eric weiner made it seem like Netherlands is not a place where you can live happy because he believes that how they live their life in Netherlands could get out of hand one day and cause problems that might lead to ciaos in the country. In away this is true but in the other hand I disagree because from my understanding the government provides proper health care system and security for the people just like in Switzerland. The government of this countries has provided an atmosphere for peace
It is crucial for today's business personnel to understand the impact of cross cultural differences on business, trade and internal company organization. The success or failure of a company, venture, merger or acquisition is essentially in the hands of people. If these people are not cross culturally aware then misunderstandings, offence and a breakdown in communication can occur.
Hofstede defined the culture as “the collective programming of the mind which distinguishes the members of one group from that another”. His five types of cultural dimensions are the most popular in many cultural area studies, include: (1) power distance; (2) individualism vs. collectivism; (3) uncertainty avoidance; (4) masculinity vs. femininity; and (5) long-term vs. short-term orientation. These dimensions offer an insight towards behaviors and standards in the cultural context which are useful for many motivators to explore the people in different culture. The text suggested that countries with high uncertainty avoidance will lead to more job security, whereas people with low uncertainty avoidance (for example, U.S.) are motivated by new ideas and innovation. People with high power distance are motivated by relationships between subordinates and their boss, while people with low power distance are motivated by team work and relationships with their peers. On the other hand, individuals from high individualism are motivated by opportunities and autonomy; collectivism (for example, Japan) suggests that motivation should be done with group goals and support. Individuals from high masculine culture are comfortable with the tradition and division of works and roles; in a feminine culture, the motivators help people through flexible roles and work
To visit or not to visit? This is the question many people ask themselves when trying to plan a trip. If you are talking about the Netherlands, then the answer to that question very easily would be to visit. Holland, another name for the Netherlands, is located in northwestern Europe, bordering Germany and Belgium (Netherlands). The Netherlands possesses a rich history, many interesting and famous people, and many great tourist attractions.
North America’s culture certainly affect international business activities, the same happen among all countries and continents in the world. Culture and tradition have a particular role in person’s critical thinking, communication barriers and behavior. In the business environment negotiation is an important skill in where all parties needs to be pleased, at the end you have to give for you to be able to receive, either is entering into a contract or building a
Given this, the main target of this essay is to analyse the main approaches to understanding national culture and how relevant is such an understanding to an internationalising firm.
There are many cultural and ethical differences between countries and it is important for mutual trust and respect that no organization try to strong-arm another into their way of thinking or take a position that their culture is more valuable than the other. According to Pitta, Fung, and Isberg (1999), it is vital for success to have a basic understanding of the culture and the expectations within cultures as they affect all business transactions. Failing to understand and consider the cultural differences will likely result in failure.
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
Dr. Hofstede performed a comprehensive study of how values in the workplace are influenced by culture. In the 1970’s, as a Dutch researcher Dr. Geert Hofstede, collected and analyzed data from 116,000 surveys taken from IBM employees in forty different countries around the world. From those results, Hofstede developed a model that identifies four primary dimensions of differentiate cultures. These include: Uncertainty Avoidance (UA), Masculinity-Femininity (MAS), Individualism-Collectivism (IND), Power and Distance (PD). After a further study of the Asian culture by researcher Michael Bond in 1991, Hofstede added a fifth dimension in his theory, Long- and Short-term time orientation (LTO), also referred to as the Confucian Dynamism. His research has framed how cultural differences can be used in professional business transactions. Geert Hofstede 's dimensions analysis can assist the business person in better understanding the intercultural differences within regions and between countries.