Need a RESPONSE that either CHALLENGES or SUPPORTS text below AND answers any questions asked.
250 word minimum, APA format (no title page needed though), MULTIPLE sources.
For multinational companies and even national companies, culture is very important and must be taken into consideration. Especially with the steady increase of globalization, it is very important for companies to be cognizant of the various cultures they want to do business in; not only from the perspective of employing people from these cultures, but also with respect to marketing products and services in such cultures.
In 1980 when Hofstede released Culture’s Consequences, it was one of most groundbreaking books ever written. There was never such an exhaustive study analyzing culture; his findings were based on over 115,000 surveys across 50 countries (Bing, 2004). However, since the 1980’s, the international marketplace has changed considerably and it is not fragmented and isolated as it once was.
Hofstede’s analysis looks at a country’s culture from a very broad or macro perspective, but culture can be rather nuanced. In large countries, there could be numerous sub-cultures. This is the case even in America; for instance, a company’s strategy in how it addresses culture in a big metropolitan city such as New York City would probably be different from its strategy in a rural city or region. For example, something that may seem as inconsequential as color may have cultural implications. Years ago Pepsi lost it dominant market share in South East Asia when it decided to change its color from a deep blue to a very light blue, which has a strong association with death and morning in that region (Fromowitz, 2013). Pepsi’s main competitor, Coke picked up the market share they lost.
If I were the CEO of a multinational company, I would not solely rely on Hofstede’s value dimensions to make quick decisions. I would take then into consideration, but I think they are too broad and have a macro perspective. While his findings are mostly accurate, I would probably do a more detailed analysis focusing on the facts and circumstance affecting my company and the cultures affecting it. There are many consulting firms that specialize in culture analysis that could be utilized. It should also be noted that Hofstede’s findings on culture have had some criticism (Hafiz, et al., 2011). Critics have noted that surveys may not be the best method to analyze culture. Also, culture can transcend borders and regions, therefore, strictly limiting it to a country may not be the most accurate analysis. Another criticism of Hofstede is that his research is solely based on one company, IBM. Large companies such as IBM have a strong corporate culture and it may be intertwined with the country culture; therefore, findings based on one company may not be the more accurate reflection of the entire country’s culture.
|Due By (Pacific Time)
||04/16/2016 11:59 pm