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Question:

Write an essay on Cultural Distance and Integration in International Management?

 

Answer:

Introduction

In this assignment the chosen company on which the cultural distance and integration of international market will be discussed is TESCO. To analyze the cultural difference, the two best models is Hofstede and Trompenaars. These two models help in understanding the cultural differences of the employees of that company when they are working in two different countries. Both Hofstede and Trompenaars models mainly look into the matter that how people try to adopt them in a totally new environment that is totally different from their culture. They mix the culture of an organization with the culture of the nation and proceed to see that how the employees are adjusting them to the new culture and environment (Hofstede, 2011).

Hofstede culture dimension of Tesco

This culture dimension is segregated into six criteria’s.

In case of Power distance dimension, there is no individualism in the society. The employees of Indian culture express their attitude within the organization and also towards the inequalities among them.  The UK people do not involve themselves in among all types of classes where Indian people involve them in everything (Akanni and Ahammad, 2015).

Individualism or Collectivism

When it comes for individualism India ranks less than the rank of UK.  Indian people believe in collectivism while UK mainly believes in individualism. The work culture of UK is very private while for the Indian culture they like to work with many people as they like to work with the group of people. The index of UK is more because they mainly believe in working alone but for the score for India is less as they believe in societies and collectivism (Alkailani, Azzam and Athamneh, 2012).

Masculinity or Feminity

UK scores high when the employees are measured, and it indicates the competition among the employees. The UK people are very competitive, but the Indian employees are not that competitive as the UK people.  When the country is scoring high, then it can be said that the dominance side of an organization of that country is very high whereas when the core is less the dominance side of that country is low. The dominance side of Tesco India is much less than the dominance side of UK.

Uncertainty Avoidance

In Country like India and also the people of this country always tries to avoid the uncertainty that is coming their way. UK people are happy go lucky people they try to avoid tension but for the case of India they take tension easily. So, the score for this dimension is more for India in case of UK.

Long term or Short term investment

Both the countries believe in long term investment. The score is almost same for this country. They always think of their long term investment that will benefit them in their future.

Indulgance

In case of Indulgence the UK people believes in humanity and they involve themselves in many social responsibilities, and they believes in positivism whereas for India they are much behind UK as the economic strength of India is not that good so before involving themselves they have to think a lot (Kragh, 2012).

Fons Trompenaars Model of TESCO:

Trompenaars is further disturbed by the idea of culturally relations import at the individual stage of the study, afterward. This model carries a seven dimension of culture, which communicate well with a nationwide difference.  The seven dimensions are the following:

Universalism v particularism:

Universalism focused on their rules, values, codes, etc. On the other hand, particularism thinks that human relations are much more important than the rules, ethics. For Tesco UK people are focused more toward rules, moral, ethics but Indian people think that maintain a relation is more important than following rules (Parente, Baack and Hahn, 2011).

Individualism v Collectivism:

In Tesco, UK people believe more toward individualism because their working culture is totally different. They think employees can work individually better than the group. On the other hand Tesco India, people think that working in a group is the best option to survive in the communitarian (Singh, Joshi and Mandhan, 2014).

Neutral v affective:

Tesco UK people are not emotionally attached with everybody because they think that showing emotion is not a good option while working in the organization. They think that employee should behave formally. On the other hand Tesco India, Indian people are more attach toward think so, they get affected due to some critical situation. People in India are formal, but they are more emotionally attached to the particular situation (Tang, 2012).

Specific vs diffuse:

Tesco UK analysis the whole situation after that they start working on those particular areas so that they can build their organization well. On the other hand Tesco India thinks that specific or small information are also important while building the organization.

Achievement v ascription:

In Tesco UK, people feel achievement when their colleagues appreciate on their working culture as well as reveal their knowledge accomplishment. On the other hand, Tesco India people feel proud when they achieve a single title related to their job.

Time Orientation:

Tesco UK, People, are very punctual in the working environment, they think that being in time is the good habit, and every individual should follow the every rules and regulation of the environment. On the other hand Tesco India, people are punctual but sometimes they are lazy toward their work. They are irregular at some point.

Internal v external control:

Tesco UK, they have an internal culture because employee believes that what occurs to them is their responsibility. On the other hand, Tesco India people have an external culture in which the surroundings outline their providence (Vidal-Suarez and Lopez-Duarte, 2013).

 

Conclusion:

While concluding, as per describe the researcher describe the two model of cultural dimension i.e. Hofstede and Trompenaars model. On the other hand, both these technique is fairly controversial and perceptibly defective. Consequently they should learn to utilize the survey and the database correctly.

 

References

Akanni, M. and Ahammad, M. (2015). National Cultural Distance and International Acquisition Performance. JOEBM, 3(2), pp.183-187.

Alkailani, M., Azzam, I. and Athamneh, A. (2012). Replicating Hofstede in Jordan: Ungeneralized, Reevaluating the Jordanian Culture. IBR, 5(4).

Hofstede, G. (2011). Dimensionalizing Cultures: The Hofstede Model in Context. Online Readings in Psychology and Culture, 2(1).

Kragh, S. (2012). The anthropology of nepotism: Social distance and reciprocity in organizations in developing countries. International Journal of Cross Cultural Management, 12(2), pp.247-265.

Parente, R., Baack, D. and Hahn, E. (2011). The effect of supply chain integration, modular production, and cultural distance on new product development: A dynamic capabilities approach. Journal of International Management, 17(4), pp.278-290.

Singh, V., Joshi, P. and Mandhan, S. (2014). Concept Integration using Edit Distance and N-Gram Match. IJDMS, 6(6), pp.01-11.

Tang, L. (2012). The direction of cultural distance on FDI: attractiveness or incongruity?. Cross Cultural Management, 19(2), pp.233-256.

Vidal-Suarez, M. and Lopez-Duarte, C. (2013). Language distance and international acquisitions: A transaction cost approach. International Journal of Cross Cultural Management, 13(1), pp.47-63.

Yildiz, H. (2014). Not All Differences Are the Same: Dual Roles of Status and Cultural Distance in Sociocultural Integration in Cross-border M&As. Journal of International Management, 20(1), pp.25-37.

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