Uploaded by Saurabh Dixit

FOUNDATION IN INTERNATIONAL STARTEGIC MANAGEMENT HOFSTEDE ASSIGNMENT

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Assignment
on
Hofstede’s Cultural Value Framework
FISM
The Radar Chart
Comparision on Hofstede's Cultural Dimensions
India
China
France
Italy
US
Germany
Power Distance
Indulagence
40
100
90
80
70
60
35
50
40
30
20
10
0
67
Individualism
66
Long Term83
Orientation
Masculanity
65
Uncertainity
Avoidance
Differences in Culture Values: India vis-à-vis Other Five Countries
Criteria
Important Differences in Cultural Values Between India and Other Five
Countries
Power
While China, India and France exhibit higher acceptance towards inequality;
Distance
Italy, US and Germany seem to prefer decentralisation of authority.
Individualism While India represents a mixed culture of collectivism and individualism and
China leans more heavily towards collectivism; the remaining countries exhibit
highly individualistic culture.
Masculinity
In all other countries, competition, achievement and success are revered more
as compared to India barring France which values quality of life more as
compared to success.
Uncertainty
While India exhibits high acceptance for the unexpected and China has even
Avoidance
higher comfort with ambiguity; other countries avoid uncertainty at a much
higher level, though US exhibits a fair degree of acceptance to uncertainty.
Long
Term While India scores midway on this parameter and US stands highly normative,
Orientation
other countries exhibit a highly pragmatic culture.
Indulgence
While India and China exercise restraint almost equally at a very high level,
other countries except US show moderate restraint. US is the only country that
exhibits highly indulgent culture.
Most Similar to and Most Different from India
Hofstede Power Distance Individualism Masculanity Uncertainity Avoidance Long Term Orientation Indulagence
India
China
France
Italy
US
Germany
77
48
80
68
50
40
35
56
20
71
76
91
67
40
66
43
70
62
66
51
30
86
75
46
65
26
87
63
61
26
83
24
48
30
68
40
Euclidean
Distance
from India
47.89
59.35
55.23
75.36
63.80
After comparing these countries on Hofstede’s cultural dimensions qualitatively (as per
inferences drawn by comparison detailed above) and quantitatively (by calculating Euclidian
Distance) as depicted in the table pasted herein above, it can be said that China is most similar
to India while US is most different.
How ABC Company Should Operate in a Country basis the Cultural
Value Comparison Described Herein Above
If China is considered for expansion based on comparatively high similarity of its culture with
India, ABC company may safely consider that not much change in organizational culture is
required as far as parameters of Power Distance and Indulgence are concerned as scores of
China are very similar to those of India in these parameters but a significantly higher
collectivist and pragmatic approach would be needed to be instilled as a cultural shift. Culture
of greater priority to work than to family and leisure in China suggests that ABC company
would be able to fetch more man-hours from their employees but at the same time a higher
tendency to circumventing rules will have to be dealt with cautiously and an enhanced
monitoring might be needed. Similar analytical approach may be considered if any other
country is chosen.
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