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QUESTION

The Practical Application of Culture Theory   

 

 Assessment Information/Brief 1

 

 Assessment Information/Brief 2020-21

To be used for all types of assessment and provided to students at the start of the module.

Information provided should be compatible with the detail contained in the approved module specification although may contain more information for clarity. Module title

International Business in Practice

CRN

53187 and 53190

Level

7

Assessment title

“The Practical Application of Culture Theory”

Weighting within module

This assessment is worth 50% of the overall module mark.

Submission deadline date and time

TurnitIn 26th April, 2021

Module Leader/Assessment set by

Dr Jonathan S. Swift

([email protected])

How to submit

Once completed, your work should be submitted through the usual channels to Turnitin.

You must ensure that the front page of your document contains ALL the following:

1) Your full name, roll number, and Programme

2) The full title of the module to which the assignment relates

 

Assessment task details and instructions

Background

You work for an importer of leather footwear, that supplies consumers in two market segments:

(1) the walking/hiking markets (walking boots), and

(2) riding boots and leather saddles

 

Up until now, your suppliers were in Italy, Portugal, and Spain, but since the UK left the EU, it has been decided that you can longer rely on these suppliers due to complications with Brussels. Consequently, just before the end of last year, the Senior Management undertook a strategic market research study to identify new suppliers. One supplier has been found, based in Bogotá, Colombia, and next month

 

 

 

 

Subject Cultural Integration Pages 9 Style APA

Answer

 

THE PRACTICAL APPLICATION OF CULTURE THEORY

In contemporary society, most companies are successfully entering different markets to gain more profit. However, every country has a different culture and multinational corporations should understand the cultural differences amongst countries to succeed in the market. Reportedly, the United Kingdom (UK) and Colombia have different cultural diversities that have existed for years. As such, managers and leaders should understand these differences, as well as, problems that come along with the variations. Therefore, this paper seeks to compare the cultural differences between Colombia and the United Kingdom using Hofstede’s cultural framework. Using these cultural differences, the paper describes potential problems that are likely to bring challenges when working together, as well as, the possible solutions to such problems.

Section A: Critical Analysis of the Hofstede Cultural Dimensions Model

             Hofstede’s theory of cultural dimensions examines ways through which values displayed in the places of work are connected to one’s culture (Hofstede, 1993). It creates an interrelation between a person’s behavioral practices and his or her cultural background. Hofstede posited that is a culture is a tool that triggers conflicts (Hofstede, 1993). These conflicts differences contribute to differences in the workplace and may lead to stagnation. This theory analyzes the impact of society’s culture in the fostering of people’s values. Moreover, Hofstede’s cultural dimensions examine how these values affect the behaviors of an individual.

            In formulating this theory, Hofstede used the factor analysis technique where he established six dimensions that could be used to determine cultural values. The first dimension he established is the power distance framework that talks about the inequality present in various cultures, particularly between those with power and those without power. The power distance index constitutes the metric used in describing the level of disparity between those in power and the followers (Hofstede, 2011). Hofstede posited that as a cultural dimension, power distance refers to the degree to which powerless members of a certain society accept and expect the power to be distributed unevenly.  The study by Braga et al. (2019) revealed that the power distance is anticipated to be fostered by both the followers and the leaders. The leaders foster the distance by exercising authority while the followers promote the notion by their compliance to the authorities passed to them.  Principally, the power distance dimension appreciates the fact that power inequality is a concept that is present in almost every society.

            Another critical cultural dimension in Hofstede’s theory of cultural dimensions model is uncertainty avoidance. Uncertainty avoidance refers to the extent to which members of a particular culture are willing and ready to incorporate tricky and ambiguous situations ((Ghemawat & Reiche, 2011). This dimension can be structured into strong uncertainty avoidance and weak uncertainty avoidance. In the weak uncertainty avoidance, the followers accept the deviant behaviors. Essentially, such cultures foster innovation and curiosity. In this structure, the uncertainties of life are readily accepted. Contrarily, the strong uncertainty encourages intolerance to undesirable behaviors within the society. In this kind of dimension, the members of the society perceive the uncertainties of life as a risk to their existence (De Mooij and Hofstede, 2011). For this reason, they have the tendency of resisting reality.  This kind of culture also fosters normalcy. Essentially, cultures that have a strong uncertainty avoidance index usually foster values that reduce risk occurrences. This is attained by establishing regulatory frameworks that foster stringent behavioral patterns in the institutions where the followers exist.  On the other hand, in cultures that foster weaker uncertainty avoidance, motivation is obtained from the desire to create while in cultures that foster stronger uncertainty avoidance, the motivation is obtained from fear.

            The individual-collective dimension describes the extent to which individuals in a given society are integrated. Specifically, it examines the closeness that is found among the members of a given community. According to Hofstede, the individual-collective dimension addresses the need to establish whether the members of a given community anticipate a dependent or independent position. In communities that foster individual framework, the individuals are inspired to express their views. Every person must have an opinion that can then be used to formulate the collective decision. In these settings, there is a pervasive and common use of” I”. In this dimension, individuals come first. However, the collective framework fosters the “we” notion. While expressing their views, one should ensure that they foster harmony with other members of the society. Principally, cultures that are aligned towards the concept of collectivism foster collective initiatives as compared to individual initiatives (Galariotis, & Karagiannis, 2020).

            The masculinity-femininity dimension describes the distribution of values between individuals of different genders within the society. Intuitively, the values fostered in a single culture regarding femininity and masculinity may differ significantly from one culture to the other. Some of the values fostered by men across various cultures comprise assertiveness while in women; caring nature and modesty are fostered. In most cultures, it is offensive to foster values of care and modesty in men (Ghemawat & Reiche, 2011). However, the femininity framework promotes the care for the weak in the community. Further, the idea of competition is minimized while the encouragement of women’s participation is highly fostered. Intuitively, it supports the least emotional and social discrepancy between women and men. Hofstede posited that in cultures that promote masculinity, the support is channeled towards the powerful members of the society. Similarly, men are supposed to be driven and ambitious.

            The indulgence vs. restraint framework alludes to the extent to which a society incorporates free gratification of natural and basic human desires that are associated with having fun and enjoying life (Hofstede, 1993). The societies that align their values to indulgence have happier members. Principally, the values propagated in such an environment foster open-mindedness, as well as, opinionating. As contended by Hofstede, such a culture fosters leisure activities more than the demanding elements of life. He also argued that cultures tailored towards restraints have reduced the number of happy people. As opposed to indulgence, restrained societies do not remember positive emotions.

            Lastly, the short-term vs. long-term orientation dimension examines the degree to which a society is ready to acquire virtue (Hofstede, Hofstede, Arrindell, & Hofstede, 1998). The cultures tailored towards short-term orientation tend to foster the current situations. Reportedly, in such cultures, the overall guidelines critically shape individual choices. Those belonging to such societies promote the idea of luck in measuring their success. Similarly, persons who align themselves to long-term orientation are focused on the future.

Section B: Comparing Colombia and UK Using Hofstede Cultural Dimensions

  1. Power Distance Index

            As contended by Hofstede, the power distance describes the fact that everyone in the society is not equal (Miller et al., 2018). This dimension depicts the attitude of the culture towards the mentioned inequalities among people. At 67, Colombia records a high score on the power distance index (PDI) scale (Miller et al., 2018). As such, it is a society that strongly believes that there are inequalities amongst people. These inequalities are accepted in almost all the strands of society. Therefore, a union leader has much of the concentrated power as opposed to his or her union-management team, and consequently, they will have more power as compared to other members of the union. A similar situation will be witnessed among business leaders, as well as, those who hold the highest positions in the government.

            On the contrary, at 35, UK gets the least score on the power distance index.  This implies that society strongly opposes inequalities and believes that it should be minimized (Miller et al., 2018). As a fact, society believes that those disparities between individuals are inappropriate and that individuals should be treated equally. The society believes that it is critical for companies that there should be many people who take full responsibility.

  1. Individualism

             This dimension majorly addresses the level of interdependence a community maintains among its members.  It is concerned with whether people’s self-image is described in terms of “We” or “I”. In individualist societies, individuals are required to take care of themselves and their close families only. Moreover, in collectivist societies, individuals belong to groups that care for them in exchange for loyalty. At a score of 13, Colombia is considered one of the least individualist scores (Shi & Wang, 2011). As a fact, its score is close to those of the most collectivistic cultures across the world. Given that Colombian citizens are highly collectivistic, belonging to a particular group and respecting the views and opinions of that group is critical. Coupled with the high scores in the power distance index, this implies that groups usually have their strong identities connected to class distinctions. Being loyal to such groups is important and it is through corporative groups that individuals get benefits and privileges that cannot be found in other cultures. In the same vein, conflict is avoided in a bid to maintain group harmony and save face. Without any doubt, relationships are critical as opposed to dealing with tasks at hand, and when people have a view over a given concern, everyone who feels that they are part of that group will contribute towards the stated issue.

            Colombians will do everything possible to assist anyone especially when they feel that there is adequate attention to according to developing a rapport, or when they view an in-group relationship of any kind (Shi & Wang, 2011). However, Colombians can equally exclude the persons they view as outsiders or enemies. The preferred style of communication is context-rich and therefore written documents, as well as, public speeches are often detailed and extensive.

            On the contrary, the UK score on individualist stands at 89, a figure considered one of the highest.  British are often individualist and private individuals. From early age, children think of themselves (Shi & Wang, 2011). Similarly, happiness is commensurate to personal fulfillment.

  • Masculinity

             Essentially, a high score on this framework implies that the society will be propelled by achievement, competition, as well as, success and that the success will be defined by the best in the value system that begins at school and continues in the organization’s entire life. Contrarily, a low score on this framework implies that the prevalent values within the society are concerned about others. Sieck, Smith, and Rasmussen (2013) posited that in feminine society, quality of life is a clear indication of success and that being unique among the crowd is unpleasant. Colombia has a masculinity index (MAS) of 64. This indicates that the country is a masculine society or success-driven and oriented country. Although Colombians are very competitive and status-oriented, they are collectivistic as opposed to individualist. This implies that competition is aligned towards social classes as opposed to individuals who are believed to be members of one’s own group. Further, in this society, individuals strive to members in groups that provide them with status and rewards associated with performance. However, they equally sacrifice their resting time against work provided that the action gets support from power holders and members of the group.

            UK has an MAS of 66 and this implies that it is a masculine society where the citizens live to work and are driven by their need to improve performance. Most of the British strives to remain outstanding and talk freely regarding their successes. A good number of those who receive a promotion with good payment would shift to a more organized fancy neighborhood.

  1. Uncertainty Avoidance

             The framework uncertainty avoidance is concerned with the manner in which a society addresses the fact that the future is not known. This ambiguity causes anxiety and various cultures have learned to manage this anxiety in various ways. Colombia has an uncertainty avoidance score of 80 and this implies that as a nation, the country together with its citizens is looking for ways to avoid ambiguity. The members of the society express their emotions openly. Moreover, there are extensive regulations for almost everything and social conservation has many followers (Sieck, Smith, &Rasmussen, 2013). This concept is equally depicted in religion in which is respected, followed by most and conservative. Essentially, regulations are not necessarily followed but this relies on the opinion of the in-group, on whether they believe that the regulation is applicable to the members of the society and it majorly depends on the decision of those in authority who formulate their rules and regulations. In work terms, this leads to comprehensive planning that in a real sense may be difficult to follow or practice. Intuitively, the combination of the high uncertainty avoidance index (UAI) with scores on the past frameworks implies that it is challenging to change the present situation unless those in authority are able to convince many people and lead them towards realizing change.

            On the contrary, the UK has a UAI of 70 implying that as a nation, the country together with its citizens is looking for ways to avoid ambiguity. With the rapid technological advancement, there are myriad ways that can assist with some situations that can be avoided or minimized. Once fear is instilled among the British, society strives to prevent another accident or attack therefore the top leadership creating various programs to safeguard the British, as well as those visiting the country.

  1. Long Term Orientation (LTO)

            This framework addresses how every society strives to maintain some connections with its past while handling the present and future challenges. Normative societies that score the lowest figure in this framework prefer upholding time-honored normal and traditions while perceiving the changes in the society with suspicion (Ting-Toomey, 2010). However, those with high culture scores assume a more pragmatic approach. Precisely, they foster efforts and thrift in contemporary education as a means to be ready for the future. Essentially, with an LTO score of 13, the Colombian culture is categorized as normative. Individuals in such kinds of societies are strongly concerned with determining the absolute truth.  On the contrary, the UK has an LTO score of 51. This implies that it is difficult to determine the dominant preference.

  1. Indulgence

             A major that humanity has grappled with for years is the extent to which small children are socialized. Therefore, indulgence refers to the degree to which individuals attempt to manage their impulses and desires based on the manner in which they were brought up.  With an indulgence score of 83, Colombia is considered an indulgent country. Zheng (2017) posited that individuals in societies with a high indulgence score usually demonstrate a willingness to understand their desires and impulses concerning having fun and enjoying life. Moreover, they have a positive attitude and a tendency towards being optimistic. Moreover, they stress more on leisure time, act on their wish and spend their money as they want. Contrarily, with a relatively high indulgence score of 69, UK culture is categorized as indulgent. The citizens in this county prefer realizing their desires and impulses to have fun and enjoy their life. They also have positive attitudes and are optimistic. These individuals also view leisure time as important and spend their cash as they want.

Section C: Differences and Potential Problems

              A potential problem that can be deduced from the differences between UK and Colombia with regards to Hofstede’s cultural dimensions is business communication. Reports have indicated that Hofstede’s cultural framework influences the manner in which businesses are carried out. The power distance framework affects the nature of communication within the business environment. Precisely, it influences the communication direction. The large power distance differences between UK and Colombia are likely to hinder effective communication. This difference is likely to make communication follow a vertical communication pattern, as opposed to a two-way movement. In fact, the followers will be expected to be informed on things that they should do and those in authority further establish what to say. This comprises a closed communication system and may interfere with the growth of the business setting. To solve this problem, there is a need to champion equality in the business and ensure that everyone is involved in the business communication so that they can feel part and parcel of the organization. The individualism-collectivism framework similarly poses a business communication challenge. Due to these differences, individuals hardly share information since they are more inclined to keep the information for their personal benefits (De Mooij & and Hofstede, 2011). Moreover, the right to privacy in such countries hinders opinionating that consequently interferes with communication. Therefore, to solve this problem, leaders should foster interactions as this will improve the rate of communication between the members.

            Another potential challenge that is likely to be witnessed by the differences between UK and Colombia based on Hofstede’s cultural dimensions relates to business management (Sieck, Smith, & Rasmussen, 2013). Both UK and Colombia align themselves towards the masculine framework and therefore often reinforce an authoritative management style. While this management style fosters assertiveness and competitiveness, there is no expression of ideas as followers are afraid of being victimized. Solving this problem requires the two countries to align to a femininity framework and practice a more relaxed management approach. This management style will foster nurture.  Evidently, there is a significant disparity between uncertainty avoidance between the countries. Precisely, Colombia mirrors weak uncertainty avoidance and therefore engages in a risk-taking management approach that fosters innovation and regular assessment of prevailing strategies. On the contrary, UK practices a conservative management style since it aligns with a string uncertainty avoidance dimension. This management style discourages the adoption of new approaches. Therefore, to solve the challenges posed by these differences, the two countries should align themselves to moderate uncertainty avoidance and adapt management styles that encourage innovation and adoption of new approaches to enable businesses to remain competitive in their respective markets.

            Lack of business team building is a potential problem that is likely to occur due to differences between the UK and Colombia in terms of Hofstede’s cultural dimensions. Shi and Wang (2011) contended that the individualism-collectivism framework clearly addresses the idea of team building in various business organizations. Given that the UK inclines its strategies to the individualistic framework, it discourages teamwork. This framework makes business persons and workers reinforce the idea of privacy that consequently hinders communication and results in numerous altercations that reduce the growth of businesses.  Moreover, UK fosters an individualistic environment in which workers pursue their interests at the expense of the organization’s stakeholders. In fact, the business environment comes second as workers pursue their interests first. To solve this problem, there is a need implementation of a collective dimension to encourage team building. Aligning itself to the collective dimension as contended by (Sieck, Smith, and Rasmussen (2013) will encourage information sharing.

            In conclusion, Hofstede’s cultural framework deals with the essence of culture in establishing the values that the members of the society. These dimensions can be edited to improve the efficiencies and effectiveness of business practices. Moreover, they play a critical role in shaping communication processes, team building, as well as, management of business environments. Frameworks such as long term orientation and femininity provide the personal growth of the individual. As already discussed in the paper, both UK and Colombia have different cultural values. Therefore, there is a need to balance the incorporation of different Hofstede’s frameworks to avoid problems such as lack of teamwork and inappropriate communication from occurring.

 

 

 

 

 

 

 

 

 

References

 

Braga, B.M., de Camargo Oliva, E., de Miranda Kubo, E.K., McKenna, S., Richardson, J. and     Wales, T., 2019. An institutional approach to ethical human resource management     practice: Comparing Brazil, Colombia and the UK. Journal of Business Ethics, pp.1-20.

De Mooij, M. and Hofstede, G., 2011. Cross-cultural consumer behavior: A review of research     findings. Journal of international consumer marketing, 23(3-4), pp.181-192.

Galariotis, E. and Karagiannis, K., 2020. Cultural dimensions, economic policy uncertainty, and   momentum investing: international evidence. The European Journal of Finance, pp.1-18.

Ghemawat, P., & Reiche, S. 2011. National Cultural Differences and Multinational           Business. Globalization Note series, 1-18.

Hofstede, G., 1993. Cultural constraints in management theories. Academy of Management           Perspectives, 7(1), pp.81-94.

Hofstede, G., 2011. Dimensionalizing cultures: The Hofstede model in context. Online readings in psychology and culture, 2(1), pp.2307-0919.

Hofstede, G., Hofstede, G.H., Arrindell, W.A. and Hofstede, G.H., 1998. Masculinity and           femininity: The taboo dimension of national cultures (Vol. 3). Sage.

Miller, J., Snyder, G., Antoniou, D., Bitar, E., Garrett, C., Alcocer-Loredo, F., Qutu, A. and         Norman, G., 2018. Hofstede’s 6 dimension comparison of the United Kingdom, China,           Columbia, Chile, Canada & the UAE. Copyright 2018 by Institute for Global Business         Research, Nashville, TN, USA, p.149.

Shi, X. and Wang, J., 2011. Interpreting Hofstede model and GLOBE model: which way to go   for cross-cultural research?. International journal of business and management, 6(5), p.93.

Sieck, W.R., Smith, J.L. and Rasmussen, L.J., 2013. Metacognitive strategies for making sense     of cross-cultural encounters. Journal of Cross-Cultural Psychology, 44(6), pp.1007-1023.

Ting-Toomey, S., 2010. Applying dimensional values in understanding intercultural           communication. Communication Monographs, 77(2), pp.169-180.

Zheng, L., 2017. Does online perceived risk depend on culture? Individualistic versus       collectivistic culture. Journal of Decision systems, 26(3), pp.256-274.

 

 

 

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