MGT2IMG Managing Across Borders

MGT2IMG Managing Across Borders

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MGT2IMG Managing Across Borders

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MGT2IMG Managing Across Borders

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Course Code: MGT2IMG
University: La Trobe University

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Country: Australia

Question:

Description of Task
Huawei, based in China, are looking at expanding some aspects of their overseas operations into: Mexico, Australia and Germany. You have been asked by Huawei to provide advice on how best to handle the cultural differences that may arise during this process.
Part A;
Construct a table to present your information to Huawei using Hofstede’s five dimensions of culture. You must use your own words.  Your columns should include:
-Description of cultural dimension
-The cultural profile of the following countries: China, Mexico, Australia and Germany, and
– Similarities and differences review of Mexico, Australia and Germany compared to China– at least three similarities and five differences need to be shown in total for each country. 
Part B:
Present between three to five recommendations to Huawei, on negotiating and implementing their expansion into Germany. You should focus on Hofstede’s cultural dimensions and your analysis from your table above to support your recommendations.
Your assignment:

Prepared and presented as a professional business report addressed directly to Huawei senior management.

Answer:

Introduction 
In the present era of globalization, business organizations are operating in various countries. However, different countries are having different cultural aspects, which is important for the business organizations to adhere with. Huawai is one of the leading electronic device manufacturers from China. However, in the recent time, they are thinking of expanding their operations in Mexico, Australia and Germany. Thus, it is important for them to determine the cultural differences in these countries compared to China (Ferraro and Briody 2017).
This report will discuss about the cultural differences of the above mentioned countries with the help of the Hofstede’s cultural dimensions (Taras, Steel and Kirkman 2012). Accordingly, few recommendations will be provided for the organization in order to effectively adhere to the different cultural in these countries.
Hofstede’s cultural dimensions 

Cultural dimensions

Description of the dimension

Power distance

Power distance refers to the extent to which equality is being maintained in the society (Minkov and Hofstede 2012). It also refers to the extent to which, the inequality in the society is being endorsed by the leaders and followers.

Individualism

Individualism refers to the extent of independence or freedom in the society (Gorodnichenko and Roland 2012). This dimension refers to the degree of self orientation of the people in the society or the collectivist nature of the people in the society.

Masculinity

This dimension refers to the degree of motivation of the people in the society (de Mooij 2013). It determines the drivers of motivation of the people ranging from the competition and achievement or they are more concentrated towards the quality of life.

Uncertainty avoidance

This dimension refers to the extent of anxiety society deals with. It also determines the extent to which, people in the society are having fear regarding the future uncertainties and initiated policies to avoid (Mukherjee et al. 2012).

Long term orientation

This dimension refers to the extent to which, society are adhered and connected to the traditions and past links or they are open to modern approaches to face the future. Thus, this dimension determines the extent to which, society can advance.

Cultural profile of the identified countries .

Cultural dimensions

China

Australia

Mexico

Germany

Power distance

China is having ranking higher ranking of 80 in this dimension. This denotes that, inequalities in the society are more and society is accustomed to hierarchical structure in the organization. Moreover, less powerful members tend to follow the upper hierarchical ranks and authority.

Australia is ranked at 36. This denotes that, inequality is less in the society. Hierarchical structure is very flexible in the society and the higher level managers are accessible to their subordinates. Participative styles are followed.

Mexico is having score of 81. This denotes that, they are having hierarchical society. Centralization is being followed in the society.

Germany is having low score of 35. This denotes that hierarchy is not being maintained. Participative style is being encouraged in the society.

Individualism

China is having the rank of 20 in this dimension. This denotes that, China is having collectivist society, where the social welfare is given more preferences than the individual interest. Personal relationship is more preferred than the organizational affairs.

Australia is having ranking of 90, which denotes that, they are having individualistic society. People are self oriented and they are more interested for their immediate families.

Mexico is having ranking of 30, which denotes collectivistic society. Strong social bonding and relationship are being given more preferences.

Germany is having score of 67, which denotes they are having individualistic society. They are more self oriented.

Masculinity

China is standing at 66, which refers to the masculine society of them. Thus, they are more motivated by success and achievement. Success is given more preferences than leisure.

Australia is having the score of 61, which denotes that, they are having masculine society. They are driven by success and achievement.

They are having the score of 62 that denotes masculine society. They also get motivated with competition and performance rather than the quality of life.

Germany is having the score of 66 and it refers to the masculinity of the society. Performance is being given more valuation in the society than anything.

Uncertainty avoidance

China is having low score of 30. This refers to the fact that, China is open to ambiguity and has less fear of uncertainty.

Australia is having the ranking of 51, which denotes their intermediate standing. It refers to the fact that, people are equally feared about the uncertainties and vice versa.

Mexico scores 82 that denote that, they believe in codes of beliefs and unorthodox behavior is not acceptable in the society.

Germany is having score of 65 that denotes preference for the avoidance of uncertainty.

Long term orientation

In this dimension, China scores 87, which denotes that China is having pragmatic society. People tend to change with time and requirement and having higher degree of adaptation (Borker 2012).

Australia is having ranking of 21, which denotes that they are having normative society. They are having more preference for their traditions and less future orientation.

Mexico is having score of 24 that denotes that, they are having normative culture with rich value for traditions.

Germany is having score of 83 that denotes pragmatic society.

Similarities and differences of the countries with China 

Dimension

China

Australia

Germany

Mexico

Power distance

Similar

Different

Different

Similar

Individualism

Different

Different

Different

Different

Masculinity

Similar

Similar

Similar

Similar

Uncertainty avoidance

Different

Different

Different

Different

Long term orientation

Similar

Different

Similar

Different

Recommendations 

China is having higher degree of hierarchy and thus, in Germany, Huawai have to initiate participative organizational culture to adhere with their society.
Germany is having individualist society opposite to what China is having. Thus, in Germany, Huawai should think about personal achievements and recognition for their employees to get motivated. Initiation of social welfare and holistic achievements will not be fruitful.
German society is having similar approach to get motivated by success and achievement like China. Thus, in this case, Huawai should initiate their existing organizational culture from their parent organization to German subsidiary.

References
Borker, D.R., 2012. Accounting, culture, and emerging economies: IFRS in the BRIC countries. Journal of Business & Economics Research (Online), 10(5), p.313.
de Mooij, M., 2013. On the misuse and misinterpretation of dimensions of national culture. International Marketing Review, 30(3), pp.253-261.
Ferraro, G.P. and Briody, E.K., 2017. The cultural dimension of global business. Taylor & Francis.
Gorodnichenko, Y. and Roland, G., 2012. Understanding the individualism-collectivism cleavage and its effects: Lessons from cultural psychology. In Institutions and comparative economic development (pp. 213-236). Palgrave Macmillan UK.
Minkov, M. and Hofstede, G., 2012. Hofstede’s fifth dimension: New evidence from the World Values Survey. Journal of cross-cultural psychology, 43(1), pp.3-14.
Mukherjee, D., Hanlon, S.C., Kedia, B.L. and Srivastava, P., 2012. Organizational identification among global virtual team members: The role of individualism-collectivism and uncertainty avoidance. Cross Cultural Management: An International Journal, 19(4), pp.526-545.
Taras, V., Steel, P. and Kirkman, B.L., 2012. Improving national cultural indices using a longitudinal meta-analysis of Hofstede’s dimensions. Journal of World Business, 47(3), pp.329-341.

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