Cultural Dimensions in Decision-Making Euro DisneylandIn the Euro Disneyland case study (p. 257 in the textbook), many of the issues Disney had from the st

 Euro DisneylandIn the Euro Disneyland case study (p. 257 in the textbook), many of the issues Disney had from the start related to cultural challenges expanding into France. Using Hofstede’s four cultural dimensions as a point of reference, how would you make the following decisions using the Business Problem Solving Model in the course content?

  1. Discover-Identify the problem: What were two of the three main issues described in the case that were problematic? 
  2. Investigate-Gather information to define the problem: What were the cultural challenges posed by Disney’s expansion into France? 
  3. Brainstorm-Produce Alternatives: In your opinion, how could Disney have resolved these issues? 
  4. Implement-Put the best solution into effect: Of your alternatives, which one do you think would work out best? Why? 
  5. Review-Assess the effects of the solution: Based on Disney’s experience, what are the lessons the company should have learned about how to deal with cultural issues when expanding? Describe each.

Your well-written paper should meet the following requirements:

  • Be 5-6 pages in length, which does not include the title page, abstract, or required reference page, which is never a part of the content minimum requirements.
  • Use  APA (7th ed) style guidelines.
  • Support your submission with course material concepts, principles, and theories from the textbook and at least two scholarly, peer-reviewed journal articles. 

 

Required:

Chapters 4 & 5 in International Management: Culture, Strategy, and Behavior

Chapter 4 PowerPoint slides Chapter 4 PowerPoint slides – Alternative Formats in International Management: Culture, Strategy, and Behavior

“In-Depth Integrative Case Study 2.1a: Euro Disneyland” (p. 257) in International Management: Culture, Strategy, and Behavior

Kotler, P., Manrai, L., Lascu, D., & Manrai, A. (2019). Influence of country and company characteristics on international business decisions: A review, conceptual model, and propositions. International Business Review, 28(3), 482-498. 

Sobol, K., Cleveland, M., & Laroche, M. (2018). Globalization, national identity, biculturalism and consumer behavior: A longitudinal study of Dutch consumers. Journal of Business Research, 82, 340-353. 

Botone, D., & Grama, B. (2018). Cultural dimensions of openness as a personality factor. Cross-Cultural Management Journal, XX(2), 139-145.

International Management

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Chapter 4

The Meanings and Dimensions
of Culture

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Learning Objectives

Define the term culture, and discuss some of the comparative ways of differentiating cultures

Describe the concept of cultural values, and relate some of the international differences, similarities, and changes occurring in terms of both work and managerial values

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Learning Objectives (continued)

Identify the major dimensions of culture relevant to work settings, and discuss their effects on behavior in an international environment

Discuss the value of country cluster analysis and relational orientations in developing effective international management practices

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Culture

Acquired knowledge that people use to interpret experience and generate social behavior

Forms values

Creates attitudes

Influences behavior

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Characteristics of Culture

Learned

Shared

Transgenerational

Symbolic

Patterned

Adaptive

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Areas Affected by Culture

Technology transfer

Managerial attitudes

Managerial ideology

Business-government relations

Human thinking and behavior

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Priorities of Cultural Values

United StatesJapanArab Countries
FreedomBelongingFamily security
IndependenceGroup harmonyFamily harmony
Self-relianceCollectivenessParental guidance
EqualityAge/seniorityAge
IndividualityGroup consensusAuthority
CompetitionCooperationCompromise
EfficiencyQualityDevotion
TimePatiencePatience
DirectnessIndirectnessIndirectness
OpennessGo-betweenHospitality

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Cultural Impact on International Management: Centralized versus Decentralized Decision Making

Centralized – Top managers make all important organizational decisions

Decentralized – Decisions are diffused throughout the enterprise

Middle- and lower-level managers actively participate in and make key decisions

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Cultural Impact on International Management: Safety versus Risk

Organizational decision makers are risk-averse and have great difficulty with conditions of uncertainty in some societies

Some societies encourage risk taking and decision making under uncertainty is common

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Cultural Impact on International Management: Individual versus Group Rewards

Individual rewards – Given to personnel who do outstanding work in the form of bonuses and commissions

Group rewards – Required by cultural norms, and individual rewards are frowned upon

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Cultural Impact on International Management: Informal versus Formal Procedures

Informal societies – Much is accomplished through informal means

Formal societies – Formal procedures are set forth and followed rigidly

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Cultural Impact on International Management: High versus Low Organizational Loyalty

High loyalty – People identify very strongly with their organization or employer

Low loyalty – People identify with their occupational group

Such as engineer or mechanic

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Cultural Impact on International Management: Cooperation versus Competition

Some societies encourage cooperation between their people

Others societies encourage competition between their people

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Cultural Impact on International Management: Short-term versus Long-term Horizons

Some cultures focus most heavily on short-term horizons

Such as short-range goals of profit and efficiency

Some cultures are more interested in long-range goals

Such as market share and technological developments

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Cultural Impact on International Management: Stability versus Innovation

Culture of some countries encourages stability and resistance to change

Culture of others puts high value on innovation and change

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Figure 4.1 – Model of Culture

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17

Figure 4.2 – Comparing Cultures as Overlapping Normal Distributions

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18

Figure 4.3 – Stereotyping from Cultural Extremes

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19

Values

Basic convictions that people have about:

Right and wrong

Good and bad

Important and unimportant

Learned from the culture in which an individual is reared

Differences in cultural values may result in varying management practices

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Hofstede’s Cultural Dimensions

Power distance

Uncertainty avoidance

Individualism and collectivism

Masculinity and femininity

Time orientation

Indulgence versus restraint

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Power Distance

Extent to which less powerful members accept that power is distributed unequally

High-power-distance countries

People blindly obey superiors

Centralized with tall organizational structures

Examples – Mexico, South Korea, and India

Low-power-distance countries

Decentralized with flatter organizational structures

Have smaller ratio of supervisor to employee

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Uncertainty Avoidance

Extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these

High-uncertainty-avoidance countries

High need for security and strong belief in experts and their knowledge

Highly structured organizational activities, more written rules, and less managerial risk taking

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Uncertainty Avoidance (continued)

Low-uncertainty-avoidance countries

Less structured organizational activities, fewer written rules, more managerial risk taking, higher labor turnover, and more ambitious employees

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Individualism and Collectivism

Individualism: Tendency of people to look after themselves and immediate family only

Highly individualistic countries – Wealthier, support the Protestant work ethic, have greater individual initiative, and promote based on market value

Collectivism: Tendency of people to belong to groups and to look after each other in exchange for loyalty

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Masculinity and Femininity

Masculinity: Dominant social values are success, money, and things

Femininity: Dominant social values are caring for others and quality of life

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Time Orientation

Defined as dealing with society’s search for virtue

Long-term-oriented societies – Focus on the future and on achieving long-term results, are able to adapt traditions when conditions change, and tend to save and invest

Short-term-oriented societies – Focus on quick results, do not tend to save, believe in absolutes, and value stability and leisure

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Indulgence versus Restraint

Indulgent societies encourage instant gratification of natural human needs

Perceived happiness, life in control, positive emotions, and satisfaction of basic needs

Restrained cultures regulate and control behavior based on social norms

Less happiness, sense of helplessness, less likely to remember positive emotions, and unmet basic needs

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Trompenaars’s Cultural Dimensions

Universalism versus particularism

Individualism versus communitarianism

Neutral versus emotional

Specific versus diffuse

Achievement versus ascription

Time

Environment

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Universalism versus Particularism

Universalism: Belief that ideas and practices can be applied everywhere without modification

Countries with high universalism – Formal rules and close adherence to business contracts

U.S., UK, Germany, Sweden, and Australia

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Universalism versus Particularism (continued)

Particularism: Belief that circumstances dictate how ideas and practices should be applied

Countries with high particularism – Legal contracts are modified and the way deals are executed change as people get to know each other

China, Indonesia, and Venezuela

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Individualism versus Communitarianism

Individualism – People regard themselves as individuals

Stress personal and individual matters and assume personal responsibility

Communitarianism: People regard themselves as part of a group

Value group-related issues, achieve in groups, and assume joint responsibility

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Neutral Culture versus Emotional Culture

Neutral: Emotions are held in check

High-neutral cultures – People act stoically and maintain composure

Emotional: Emotions are expressed openly and naturally

High-emotional cultures – People smile a lot, talk loudly, and greet each other with enthusiasm

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Specific versus Diffuse

Specific culture

Large public space is shared with others and small private space is guarded closely and shared with only close friends

People are open and extroverted and have a strong separation of work and personal life

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Specific versus Diffuse (continued)

Diffuse culture

Public and private spaces are similar in size

Public space is guarded because entry into public space affords entry into private space

People are indirect and introverted and work and private life are closely linked

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Achievement versus Ascription

Achievement culture: People are accorded status based on how well they perform their functions

High status is given to high achievers

Ascription culture: Status is attributed based on who or what a person is

Status is based on age, gender, or social connections

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Time Orientation

Sequential – Only one activity at a time, appointments are kept strictly, and plans are followed as laid out

Synchronous – Multitasking, appointments are approximate and easily changed, and schedules are subordinate to relationships

Cultures can be past- or present-oriented or future-oriented

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Dealing with Environment

Inner-directed – People believe in controlling outcomes

Dominant attitude toward environment

Outer-directed – People believe in letting things take their own course

Flexible attitude, characterized by a willingness to compromise and maintain harmony with nature

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GLOBE Project

GLOBE – Global Leadership and Organizational Behavior Effectiveness

Extends and integrates previous analyses of cultural attributes and variables

Evaluates nine different cultural attributes using middle managers from different organizations in many countries

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Phases of GLOBE Project

First two phases – Evaluate nine different cultural attributes using middle managers from different organizations in many countries

Scholars surveyed managers in financial services, food processing, and telecommunications industries

Third phase – Examines the interactions of culture and leadership in upper-level management positions

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GLOBE’s Cultural Dimensions

Uncertainty avoidance

Power distance

Collectivism I: Societal collectivism

Collectivism II: In-group collectivism

Gender egalitarianism

Assertiveness

Future, performance, and humane orientations

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GLOBE Country Analysis

Corresponds with those of Hofstede and Trompenaars

Variations – Variable definitions and methodology

GLOBE provides a current comprehensive overview of general stereotypes that can be analyzed for greater insight

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Be the Management Consultant

As a consultant looking for opportunities in Africa, how would you gauge the prospects of moving a business into South Africa?

What are your immediate concerns about this move? What are the pros and cons of opportunities in South Africa?

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Be the Management Consultant (continued)

How does the fact that traditional South African companies are increasing their presence in other African countries factor into your decision?

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Review and Discuss

What is meant by the term culture?

In what way can measuring attitudes about the following help differentiate between cultures: centralized or decentralized decision making, safety or risk, individual or group rewards, high or low organizational loyalty, cooperation or competition?

Use these attitudes to compare the United States, Germany, and Japan, and based on your comparisons, what conclusions can you draw regarding the impact of culture on behavior?

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Review and Discuss (continued 1)

What is meant by the term value?

Are cultural values the same worldwide, or are there marked differences?

Are these values changing over time, or are they fairly constant?

How does your answer relate to the role of values in a culture?

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Review and Discuss (continued 2)

What are the four major dimensions of culture studied by Geert Hofstede?

Identify and describe each

What is the cultural profile of the United States? Of Asian countries? Of Latin American countries? Of Latin European countries?

Based on your comparisons of these four profiles, what conclusions can you draw regarding cultural challenges facing individuals in one group when they interact with individuals in one of the other groups?

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Review and Discuss (continued 3)

Why do you think Hofstede added the fifth dimension of time orientation and the sixth dimension related to indulgence versus restraint?

As people engage in more international travel and become more familiar with other countries, will cultural differences decline as a roadblock to international understanding, or will they continue to be a major barrier?

Defend your answer

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