This document discusses Hofstede's six cultural dimensions - power distance, individualism, masculinity vs femininity, uncertainty avoidance, long term orientation, and indulgence - and how they differ between China, Saudi Arabia, and the USA. It analyzes each country's score on the dimensions and provides examples of how the dimensions affect business conduct in each country, such as the importance of hierarchy in Saudi Arabia due to high power distance, focusing on long term goals in China, and the acceptance of risk-taking in the USA. The document aims to help understand cultural differences that determine appropriate business behavior across nations.
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Case 3 when in rome, should you “do as the romans do...and feel comfortable about it-”
1. Case 3: When in Rome, Should
you “Do as the Romans Do...and
Feel Comfortable about it?”
Luke Janning, Daniel Pemberton, Daniela Gamero, Sam Goetsch, William Noble,
Rachel Scruggs
2. Learning Objectives
● Discuss Hofsted’s six cultural dimensions
● Analyze the countries of China, Saudi Arabia, and the USA using Hofsted’s six dimensions
● Using the dimensions discuss how a country's score determines the way you conduct business
3. Hofstede’s Dimensions
● Dutch researcher and consultant, developed
his framework from surveys of global IBM
employees
● The dimensions support that management
skills are culturally specific
4. Power Distance
● Extent to which members of society expect
power to be distributed
● China - very high power distance, they see
inequality as acceptable
● Saudi Arabia - higher than China,
hierarchical order in which everyone has a
place
● USA - low PD level power is really
determined by how influential the individual
can be
5. Power Distance Effects on Business
● China it is better to consider who you are
conducting business with to determine how
handle the situation
● Saudi Arabia business talks will be difficult
unless you are are the same hierarchical
level
● USA easier to communicate on all levels of
a company regardless of position
6. Individualism
● Individualism measures the degree which
people in a culture are integrated into a
group, this includes personal motives
● Both China and Saudi Arabia score low in
individualism
● USA score is very high compared to most
countries in the world
7. Individualism Effects on Business
● In China it is better to consider how you can
leave an effect on a company as a whole
● In Saudi Arabia one person affects many
people
● In the USA consider a person’s individual
motives
8. Masculinity - Femininity
● Considers the distribution of roles
between the sexes, also determines
importance of success
● China - ranking is super important,
sacrifice family and leisure time for work
● Saudi Arabia - live in order to work,
conflicts resolved by fighting it out
● USA - many cultures involved, work driven
society
9. Masculinity - Femininity Effects on Business
● In China it is important to consider the competition and success rate
● Saudi Arabia standing your ground in negotiations is advised
● USA hard working is good believes that leads to success
10. Uncertainty Avoidance
● Describes a society's level of comfort with
uncertainty or taking risk
● China - comfortable with ambiguity there is
more than one way to reach an objective
● Saudi Arabia - Avoids uncertainty, intolerant
to unorthodox behavior
● USA - accepting of new ideas and trying new
things, does not require a lot of rules
11. Uncertainty Avoidance Effects on Business
● China is comfortable to alternative
methods as well as more willing to take
risks
● Saudi Arabia is more traditional if it works
don’t try to fix it
● USA open to new ideas but still more willing
to play it safe
12. Long Term Orientation
● Describes a society's link to its own past
while also dealing with the present and
future
● China - very pragmatic, traditional values
are important
● Saudi Arabia - saves little for the future,
concern with establishing the truth
● USA - strive for quick results, strong ideas of
what is good and what is evil
13. Long Term Orientation Effects on Business
● In China it is better to focus more on the
long term goal
● In Saudi Arabia truth is the goal, short term
gratification is the focus
● In the USA it is more about quick returns
and what have you done for me lately
14. Indulgence
● The extent which people control their
desires and impulses
● China - restrained society do not put much
focus on leisure and social time
● Saudi Arabia - At 50 does not that have a
clear preference so it varies person to
person
● USA - work hard play hard, extravagance is
seen as important
15. Indulgence Effects on Business
● In China simplicity is key being over
indulgent can seem offensive
● Saudi Arabia depends really on who and
where you are conducting business
● USA finer things are seen as success
