Question

2. 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

Answer:

Studying the culture of any particular country and delivering accordingly is very crucial for any organisation as it is something which is stable and difficult to change and it provides the overall holistic view of the society which helps organisation to deliver accordingly. It does happen that different countries perceives the things differently because of the Generational, ethnic, religion, Education and gender differences. The organisation cannot conduct the business same as in India and Russia, as one of the trait Russian people have that they generally don’t want to take risk and guided by more rules and regulations compared to India also the fact Russia is a male dominate nation and focus more on power, achievement instead of friendship, life quality and compromise.

Europe consists of almost 44 countries each having their own culture and tradition which definitely affect their behaviour, thinking, Values ideas and perception of people living in that particular country. A lot of things we have to consider before planning to set up business or base in any country, as here we are talking particularly about the Automobile sector in Europe countries, we have to look at the various factors before deciding to proceed further.  

To measure the different aspects of culture within the country Hofstede has proposed a model know as Hofstede’s cultural dimensions which is widely recognised and accepted by every global organisation. It today time it is imperative to understand as the world is moving towards the more global approach in the business and it is essential for the organisation to succeed in every country wherever they are present.  

Concepts and applications

Hofstede’s five dimension of culture.

• Power Distance

• Individualism vs collectivism

• Masculinity or femineity

• Uncertainty Avoidance

• Long term orientation

Explanation:

Answer 2

Explanation:

Geert Hofstede was a Dutch social psychologist who did a lot research on dimensions of culture. According to him there are five important aspects

Power Distance

Individualism vs collectivism

Masculinity or femininity

Uncertainty Avoidance

Long term orientation

Now if we consider Europe, it has a lot of countries with several cultures so it is important for the Automobile company to look after all the cultural aspects, needs of the people by surveying people, studying historical trends and future expectations of the people