Ritically evaluate the five dimensions that constitute Hofstedeas (1980) model of culture.

The questions is :

Critically evaluate the five dimensions that constitute Hofstedeas (1980) model of culture.


The essay length is 2500 words

The module of this essay is multinational business and the question is Critically evaluate the five dimensions that constitute Hofstedeas (1980) model of culture. So you have to evaluate the five dimensions that constitute Hosfstedes model of cultural AND LINKED IT TO THE BUSINESS AND MULTINATIONAL BUSINESSES COMPANIES AND HOW THAT PLAY FUNDEMANTAL ROLE IN MULTIONATONAL BUSINESS COPMANIES WITH EXAMPLES.
So you have to identify the five factors and give example for each one in the business field and show how this factors affect the multinational business companies.

Bibiography
Core texts
Cavusgil, S. T., et al (2008) International Business: Strategy, Management, and the New Realities, Prentice Hall.
Dicken, P., (2007) Global Shift: Mapping the Changing Contours of the World Economy, 6th Edition, Sage.
Ietto-Giles, G. (2002) Transnational Corporations: Fragmentation Amidst Integration, Routledge, London.
Morrison, J. (2002) The International Business Environment, Palgrave.
Pitelis, C., and R. Sugden (eds) (2002) The Nature of the Transnational Firm, 2nd Edition, Routledge, London.
Rugman, A. M., and S. Collinson (2006) International Business, 4th Edition, Prentice Hall.
Hofstede, G. & Hofstede, G.J. (2004) Cultures and Organizations: Software of the Mind, Revised and Expanded, Higher Education

Additional Sources
Throughout the module there will be a continuous reference to real world cases. Economic theory will be explained with reference to actual decisions taken by actual businesses. The teaching team will make a widespread use of articles drawn from the business sectors of newspapers and economic journals. You are invited to read these newspapers/journals in order to familiarise yourself with the language used in the business world and to understand how the concepts explained in lectures/seminars apply to real world decisions. The following is a list of some journals/newspapers/websites where you can access useful information:
Journals/Magazines/Newspapers
Journal of International Business Studies
Harvard Business Review
European Journal of Management
The Economist
The Financial Times
The Wall Street Journa
Websites
If you are searching for published materials written on a topic or written by an author then good websites are:
a? mimas.ac.uk
uk

and you can use and reference that has information related to the question


here is some note that related to the question to give you idea about the material



CULTURE AND THE MULTINATIONAL ENTERPRISE


Multinational enterprises operate in different parts of the world with different cultures. In todayas lecture we examine how culture affects the strategic management decisions of multinational enterprises

Culture is the acquired knowledge that people use to interpret experience and to generate social behaviour.

Culture is shared by members of a group, organisation, or society.

Through culture we form values and attitudes that shape our individual and group behaviour.

Culture is learned through both education and experience. Culture is also passed from one generation to another.

Culture constantly undergoes change as people adapt to new environments.

To be successful in international business, multinational enterprises must understand the cultures of other countries and learn how to adapt to them.

Note that all multinational enterprises are home country orientated; the challenge in international business is learning how to broaden their perspective to avoid making business decisions based on misconceptions.


ETHNOCENTRICITY a this is the belief that oneas way of doing business is superior to that of others and this constitutes one of the main causes of misconceptions. Examples of ethnocentric behaviours include patronisation, disrespect, an aura of superiority, and inflexible behaviour.

Ethnocentric behaviour can be found among both individuals and organisations. In the case of individuals, it often takes the form of a?we are better than anyone elsea?. In the case of organisations it is typified by a multinational enterprise that uses the same strategies abroad that it employs at home because it is convinced that the way business is done in the home country is superior to that used by the competition overseas. Other examples include:
(1) not adapting a product to a particular marketas special needs,
(2) bringing profits back to the home country without any reinvestment in the foreign market,
(3) filling key positions of overseas units with home country managers who have done well at home but have no international experience

Ethnocentric behaviour can be avoided by learning about culture where one will be doing business. This can be done by studying the elements of culture.



ELEMENTS OF CULTURE
Culture is a complex, multidimensional subject. The main elements of culture are:

(1) Language

(2) Religion

(3) Values and Attitudes

(4) Manners and customs

(5) Material Elements

(6) Aesthetics
(7) Education

(8) Social Institutions







WHY CULTURE MATTERS IN INTERNATIONAL BUSINESS

Effective handling of cross-cultural interface is a critical source of a firmas competitive advantage. Managers need to develop not only empathy and tolerance toward cultural differences, but also acquire a sufficient degree of factual knowledge about beliefs and values of foreign counterparts. Cross-cultural proficiency is paramount in many managerial tasks, including:
a? Developing products and services

a? Communicating and interacting with foreign business partners

a? Screening and selecting foreign distributors and other partners

a? Negotiating and structuring international business ventures

a? Interacting with current and potential customers from abroad

a? Preparing for overseas trade fairs and exhibitions

a? Preparing advertising and promotional materials





HOFSTEDEaS DIMENSIONS OF CULTURE

To explore the role of culture in international business, scholars have offered several analytical approaches. Hofstede (1980) identified four independent dimensions of national culture:

(1) INDIVIDUALISM a is the extent to which people are supposed to take care of themselves and be emotionally independent from others. In individualistic societies, ties among people are relatively loose, and each person tends to focus on his or her own self-interest. These societies prefer individualism over group conformity. Competition for resources is the norm, and those who compete best are rewarded financially. Australia, Canada, UK, and the USA tend to be strongly individualistic societies. By contrast, in collectivist societies, ties among individuals are more important than individualism. Business is conducted in the context of a group in which othersa views are strongly considered. The group is all-important, as life is fundamentally a cooperative experience. Conformity and compromise help maintain group harmony. China, Panama and South Korea are examples of strongly collectivist societies.
(2) POWER DISTANCE a is the extent to which a culture accepts that power in organisations is distributed unequally. High power distance equates with steep organisational hierarchies, with more autocratic leadership and less employee participation in decision making. Societies characterised by high power distance are relatively indifferent to inequalities and allow them to grow over time. There are substantial gaps between the powerful and the weak. Guatemala, Malaysia, the Philippines, and several Middle East countries are examples of countries that exhibit high power distance. By contrast, in societies with low power distance, the gaps between the powerful and the weak are minimal. For example, in Scandinavian countries such as Denmark