Understanding The Culture Of The Target Market Is Essential For Managing A Subsidiary Efficiently Essay

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3.3.1.4 Cultural Differences Indictors Understanding the culture in the target market is essential for managing a subsidiary efficiently because the client will be part of that culture and will be subject to daily cultural interaction. Thus, the more the client is aware of the other culture, the higher the chances to succeed in managing the subsidiary. One way to understand the differences in a culture is through Hofstede’s country comparison. Even though Hofstede’s model and theory are subject to a lot of criticism, they are widely accepted by academic researchers and professionals as a mean to understand cultural differences (for a better understanding of Hofstede’s cultural dimensions please visit: https://www.geert-hofstede.com/). Figure (6) below shows that the UK and Germany are exactly the same in power distance and masculinity but they are different in all other dimensions. It is worth mentioning here that the client should expect strong cultural bias in Germany toward German firms and language (Business Culture, 2014d) Source: The Hofstede Centre (2016) Figure (7) below shows that Germany, Austria and Czech Republic have a similar culture, and it is worth mentioning here Austria and Czech Republic are culturally biased toward German firms (Santander trade Portal, 2016a). Source: The Hofstede Centre (2016) Figure (8) below shows that Spain and UK are different in all culture dimensions except for the “long-term orientation”. Furthermore, it is difficult to find

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