Answer to Question #192195 in Management for Rohit

Question

 Premier Automobiles plans to set up a base in various countries across Europe. Can you please explain that how can they analyze the culture using Hofstede’s five dimensions of culture before setting up a base in those countries? 

Answer 1

To lead in the competitive changing competitive landscape, Premier Automobiles focuses on establishing a base in various countries across Europe. Above all, before setting up a base in European countries, they should analyze the culture using Hofstede's dimensions of culture, which is the best approach. It understands how values differences across national cultures can influence human behaviour at work. Hofstede's dimensions of culture consist of the following components;

a)     Power distance- This should aid the premier Automobiles in knowing how a particular culture in either country is willing to accept status and power differences among its members.

b)     Uncertainty Avoidance- this been lack of tolerance for ambiguity and a need for formal rules and policies would help Premier Automobiles analyze the culture. It measures the extent to which people feel threatened by ambiguous situations.

c)     Masculinity vs Feminity- these dimensions work on values that concern the extent of emphasis on masculine work-related goals and assertiveness instead of more humanistic goals. Also, it could be used to analyze different culture in the various countries of Europe.

d)     Individualism vs Collectivism – This would help analyze different cultures of various countries of Europe as the Individualistic cultures people are likely to portray themselves as individuals who pursue to accomplish individual goals and needs while the collectivistic cultures people emphasize the welfare of the entire group.

e)     Long vs short-term orientation- On the analysis of different cultures of various countries in Europe, acceptance of Premier Automobiles' business results and the long-term relationship with the clients based on long-term orientation would aid in analyzing the cultures. On the other hand, short term orientation would help to set results and achievement within a timeframe for the automobile company.