Answer to Question #197697 in Management for annu

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

For Premier Automobiles to lead in an ever-increasing competitive environment, the company usually focuses on creating a strong foundation in different countries in Europe. However, before setting the foundation across the European nations, the company is supposed to analyze various aspects through the application of Hofstede's dimensions of culture as the best strategy. The approach usually indicates how different aspects in various cultures influence human are working behavior. Therefore, the analysis of Premier Automobiles based on Hofstede’s Five dimensions is are indicated below.

Power Distance: This aspect can enable the company to understand how different cultures in a country can accept power and status differences among their people.

Uncertainty Avoidance: This aspect determines the degree to which individuals feel being threatened by ambiguous conditions, and therefore can assist Premier Automobiles to develop policies and formal rules.

Masculinity versus Feminity: These aspects focus on the values associated with masculine work-related assertiveness and goals rather than more humanistic goals, and therefore, they are critical in understanding various cultures on such bases.

Individualism versus Collectivism: These dimensions can enable Premier Automobiles to understand the condition of culture as to whether they engage in various practices on an individual or group basis.

Long-Term versus Short-Term Orientations: The analysis of Premier Automobiles will determine whether the company will work with the people for a short or long period.