Germany- Hofstede Analysis
Germany: Hofstede Analysis
Germany- Hofstede Analysis Germany is known for its majestic scenery and terrain. There is incredible chocolate, beer and of course, the unique architecture. All these things may be appealing to a firm, but an expanding company may discover complexities expanding into Germany, because “[w]hen you step into a foreign culture, suddenly things seem different. You don’t know what to do or say.” ( Hofstede’s Cultural Dimensions). “If your organization is planning to conduct business with [Germany], potential success depends upon a good understanding of [German] culture” (Doing Business in Switzerland, 1). This quote is a good advice for entering into any country. Germany is a good candidate for multinational firms to expand into because many similarities of culture to the competitive and strong economy; however, management should understand the culture in order to be successful. As companies expand, various barriers have to be overcome or understood; culture happens to be one challenge or barrier. Geert Hofsted said, “Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster.” Hofstede’s five primary dimensions facilitate an understanding of different cultures and how they compare.
The following are Hofstede’s 5 dimensions and their definitions: “(1) Power Distance (PD) refers to the degree of inequality that exists - and is accepted - among people with and without power. (2) Individualism (IDV) refers to the strength of the ties people have to others within the community. (3) Masculinity (MAS) refers to how much a society sticks with, and values, traditional male and female roles. (4) Uncertainty Avoidance Index (UAI) relates to the degree of anxiety society members feel when in uncertain or unknown situations. (5) Long-Term Orientation (LTO) refers to how much society values long-standing - as opposed to short term - traditions and values” (Hofstede’s
Germany- Hofstede Analysis Germany is known for its majestic scenery and terrain. There is incredible chocolate, beer and of course, the unique architecture. All these things may be appealing to a firm, but an expanding company may discover complexities expanding into Germany, because “[w]hen you step into a foreign culture, suddenly things seem different. You don’t know what to do or say.” ( Hofstede’s Cultural Dimensions). “If your organization is planning to conduct business with [Germany], potential success depends upon a good understanding of [German] culture” (Doing Business in Switzerland, 1). This quote is a good advice for entering into any country. Germany is a good candidate for multinational firms to expand into because many similarities of culture to the competitive and strong economy; however, management should understand the culture in order to be successful. As companies expand, various barriers have to be overcome or understood; culture happens to be one challenge or barrier. Geert Hofsted said, “Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster.” Hofstede’s five primary dimensions facilitate an understanding of different cultures and how they compare.
The following are Hofstede’s 5 dimensions and their definitions: “(1) Power Distance (PD) refers to the degree of inequality that exists - and is accepted - among people with and without power. (2) Individualism (IDV) refers to the strength of the ties people have to others within the community. (3) Masculinity (MAS) refers to how much a society sticks with, and values, traditional male and female roles. (4) Uncertainty Avoidance Index (UAI) relates to the degree of anxiety society members feel when in uncertain or unknown situations. (5) Long-Term Orientation (LTO) refers to how much society values long-standing - as opposed to short term - traditions and values” (Hofstede’s
References: Country Reports: http://www.countryreports.org/people/literacyrate.aspx?countryname=&countryid=91 Doing Business in Switzerland: 2007, http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20Switzerland.pdf Global Road Warrior: http://www.globalroadwarrior.com/ContentInfo.asp?nid=13.04&cid=56&next_nid=13.05&ctry=Germany&parent=Business%20Culture Hofstede, Geert: Cultural Dimensions, 1967; http://www.geert-hofstede.com/ Hofstede’s Cultural Dimensions: http://www.mindtools.com/pages/article/newLDR_66.htm Indexmundi: http://www.indexmundi.com/g/r.aspx?c=gm&v=67 Nations, Encyclopedia: http://www.nationsencyclopedia.com/Europe/Germany-ETHNIC-GROUPS.html Spending: German Spending Below Other Nations: OECD, http://www.dw-world.de/dw/article/0,,3633837,00.html