Read in detail the discussion of Hofstede’s Cultural Dimensions on pages 65-68 and Exhibits 3.1 and 3.2 of the Johansson text.
Pick a U.S. company with a well known product or service such as Ford, Microsoft, or Starbucks. Also pick three countries with one each from Europe, Latin America, and Asia. Do not use the same company as has been assigned for your team project.
For each of the three countries, identify the Hofstede score for the four dimensions:
- Power Distance
- Uncertainty Avoidance
To find the score, visit: www.geert-hofstede.com/hofstede_dimensions.php
Question 1: For each country and for each of the four dimensions, discuss specific examples of how a particular country’s score in a specific dimension would impact how your company would operate. As best as possible, relate it to issues specific to your selected company.
For example, if your selected company was Rolex watches (retail store) and one country was the Netherlands, you would first identify the Individualism score as 80 (which is quite high). For Rolex, this would mean:
- Sales people should be individually rewarded, not as a team
- Advertising should focus on individual achievement – perhaps showing a Rolex as a reward for someone in the workplace as opposed to a family birthday
Question 2: Based on the discussion from Question 1, select one of the three countries that based ONLY on cultural considerations, seems to be the best choice for international expansion. In other words, regardless of what you think the potential demand in each market, select which country’s culture would be the best fit with the company you selected. Explain your decision.