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Cultural (Hoftede cultural dimensions (Individualism vs collectivism: the…
Cultural
Hoftede cultural dimensions
Power distance : The power distance dimension measures the degree of equality between people in a society and how far a society tolerates such a distance.
Individualism vs collectivism: the degree to which society reinforces individual or collective achievement and recognises interpersonal differences.
Ex - Low Individualism indicates society is group - oriented and people have close ties.
USA is high individualism, european are also high individualism (UK, Netherland). Low individualism (Turkey, Greece, Spain in the middle)
Masculinity vs Femininity: Masculine traits include being competitive, assertive, decisive, seeking a strong leader, judging on merit, linking power.
Ex: High ms scores are received by: Hungary, Austria, Italy and Switzerland.
Uncertainty avoidance (UA): This measure the degree to which society reinforces tolerance for uncertainty and ambiguity
People with high UA score like the certainty of rules and are uncomfortable with differences of opinion. They also tend to resist change.
Ex: Hungary and protestants have highest UA, low scores are in the North
Long term vs short term: This measures the extent to which society takes a long term view consequently European scores are all low.
The advantage of taking the short view is that you can and will change quicker. In an unstable environment, the short view can be quite useful.
Culture is important to European business for a variety os reasons:
. In production it affects activities such as:
Fiding resource - banks, employment, new invesment
Making business links 0 Finding and working with partners and subsidiaries.
Work itself - Byuing, making, moving, selling
Training staff and monitoring them
Deal with state officials and politicans
Paying tax.
In marketing and sales, culture is also important is a number of ways:
Tailoring products for market demand.
Customer service management and customer relations management.
Returns (reverse logistics) and waste disposal
Aspect of culture.
Language, training, religion, material and technological culture, Education, values and attitudes.