Part A – Hofstede’s Cultural Dimensions Analysis
The report is prepared with the motive to understand the cultural issues that might be faced by the Huawei Company as they are looking to expand their business in the international market. The company is Chinese based company who is willing to expand the business in the foreign market. The below given is the analysis of the Hosfeted’s cultural dimension which shows the way the company should react in handling the cultural issues.
CULTURAL PROFILE |
Description |
China |
The business culture of China is very much influence with the heritage culture of the country. The company follow some set of etiquettes when they get involved in the deal. The business culture of the country is strongly influenced by the Confucianism which majorly focuses on respect related to the authority, education and age. While meeting the Chinese people maintain the politeness with the other parties (Doing business in China, 2018). The deal gets close when the company will be able to maintain a strong relationship with the other party. The culture of the company shows the need for the maintaining composure at the time of meetings. Chinese extend the dealing to get the negotiations in decision making. |
Poland |
Poland is one of the countries that maintain a diverse business culture. The business etiquettes of Poland include handshake with the eye contact and greetings depending on the situation. Poland likes to call by the prefix pan for acknowledging the males or Pani for females. The meeting includes the parties and social gatherings in which they introduce the women first and then to the men (Kwintessential, 2018). The culture of business in Poland said that they judge the personal virtues and they believe that honesty is valued in communication. They maintain the formality in their meetings which help them to crack the same. |
South Africa |
In South Africa, the business meetings start with the participants and exchange of the business cards. The negotiations of the business involve forming of stable personal relationship because they want to know and trust the person with whom they are going to deal. The responsibility related to decision making is linked with the hierarchy of the business (Kwintessential, 2018). This has been found that regardless of their cultural background, generally most of the South Africans clearly prefer to communicate face to face encounter instead of telephone or email. |
CULTURAL DIMENSION DESCRIPTION The theory of Hofstede’s culture dimension includes communication through cross-culture which shows the effective value related to the social business operations (Yoo, Donthu and Lenartowicz, 2011. |
SIMILARITIES AND DIFFERENCES |
POWER DISTANCE; Power distance deals with the truth that shows individual exist in the societies are not equivalent. |
CHINA/POLAND |
Similarities: – The people accept the hierarchical order in which the follow the decision with 68 scores. In the china 80 score is maintained inequalities among the people are accepted. Differences: – The major difference that is available is China include more formal authority. On the other hand, there is less formality in Poland. |
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UNCERTAINTY AVOIDANCE The uncertainty avoidance dimension theory shows that society deals with information about the future that is uncertain. |
Similarities: -Similarities of China and Poland is to maintain the history of culture in business (Asialink business, 2018). Poland -Poland and China show the individualism and collectivism society respectively with a score of 60 and 20 (Hofstede’s Insight, 2018b). |
INDIVIDUALISM/COLLECTIVISM The dimension of the theory measures the degree which shows the collectivism and individualism that is effectively maintained by society. |
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MASCULINITY/FEMINITY The dimension shows this theory which includes masculinity and feminity that makes the people motivate which include need best or liking the way you perform. |
Similarities: – China and Poland maintain the similarity of the masculine society with a score of 66 and 64. The similarity that there are people who work lives the manager in order to expect to decisive and assertive. Differences: -In China, there is the presence of a masculine society which shows the success and orientation of the people who sacrifice their family and leisure priority that are linked with the work. Contrasting this, Poland is linked with the society that majorly focuses on the competition, equity and performance with the conflicts (Hofstede’s Insight, 2018a). |
LONG/SHORT TERM ORIENTATION The dimension of long and short-term orientation reflects the light on the society customs to effectively maintain the links with past while managing the deal with the issues that might be faced by the society in present and future. |
Similarities: – Differences: – |
This section offers the recommendation to the Huawei when they try to expand their business operations in the market of South Africa. It is must to analyse cross-cultural differences in managing the culture in both countries. Below given are some recommendations that are linked to negotiation styles.
The culture of China includes the collectivist culture where the person performs their interest in the group. Though, on the other hand, South Africa culture shows that they follow individualism and should support the deal with the realistic figures because these people do not like hanging over price. In addition to this, Huawei Company should pitch that they are going to take the individual steps which helps them to negotiate with South Africa effectively.
Huawei should form an effective relationship by winning the trust by establishing the way to form the long-standing personal relationship before conducting business. This has been found that the people in South Africa maintain the harmonious working relationships so that they avoid confrontations. This shows that South Africa believes in the ancestry value. Though, on the other hand, China encourages and efforts in modern education to form for the future.
According to Hofstede’s theory in South Africa, people follow the hierarchical structure which is suggested to be a company in the market (Expatica, 2018). In addition to this, the companies in the country take the opinion from the subordinates who make the decision making time-consuming but this shows that the company offer equal opportunities. Though, this has been found that China can take a decision without equality treating to the employees.
It is recommended to the Huawei to sure expand the business by accepting South Africa culture while dealing and expanding their business in the country.
Signed by:
References
Asialink business (2018) Chinese business culture and etiquette [Online]. Available from: https://asialinkbusiness.com.au/china/conducting-business-in-china/chinese-business-culture?doNothing=1 [Accessed on 8th December 2018]
Doing business in China (2018) Doing business in China [Online]. Available from: https://www.todaytranslations.com/doing-business-in-china [Accessed on 8th December 2018]
Expatica (2018) Business culture in South Africa [Online]. Available from: https://www.expatica.com/za/employment/Business-culture-in-South-Africa_105988.html [Accessed on 11th December 2018]
Hofstede’s Insight (2018) Country Comparison [Online]. Available from: https://www.hofstede-insights.com/country-comparison/china,south-africa/ [Accessed on 11th December 2018]
Hofstede’s Insight (2018) Country Comparison [Online]. Available from: https://www.hofstede-insights.com/country-comparison/china,poland/ [Accessed on 11th December 2018]
Kwintessential (2018) Guide To Poland – Etiquette, Customs, Culture & Business [Online]. Available from: https://www.kwintessential.co.uk/resources/guides/guide-to-poland-etiquette-customs-culture-business/ [Accessed on 8th December 2018]
Kwintessential (2018) Guide To South Africa – Etiquette, Customs, Culture & Business [Online]. Available from: https://www.kwintessential.co.uk/resources/guides/guide-to-south-africa-etiquette-customs-culture-business/ [Accessed on 8th December 2018]
Yoo, B., Donthu, N. and Lenartowicz, T. (2011) ‘Measuring Hofstede’s five dimensions of cultural values at the individual level: Development and validation of CVSCALE. Journal of International Consumer Marketing, vol. 20, no. 3-4, pp. 193-210.