Assignment:
Introduction
This paper is written to discuss the challenges that businesses have in current global markets with their values and ethical beliefs. The markets that will be researched are Paris, Sao Paulo and Shanghai from a social and political climate with the use of Hofstede's Cultural Dimensions. It will be discussed how companies must face many issues due to the complexity of global environments and how they have the responsibility to develop codes of conduct and ethics that every member of the organization must abide by.
It's important to know that in dealing in ethical issues, we must include all concepts such as integrity and trust, but even more complex are issues, which would be in accommodating diversity when dealing in global environments.
Hofstede's Cultural Dimensions
Hofstede's six natural cultural dimensions consist of; Power Distance Index (PDI). Individualism vs. Collectivism (IDV), Masculinity vs Femininity (MAS), Uncertainty Avoidance Index (UAI), Long Term Orientation versus Short Term Normative Orientation (LTO) and Indulgence versus Restraint (IND).
Within these cultural dimensions is explained how a society handles inequalities among people. The divisions have many different variables and can be seen in many ways such as individualism, which is considered to be a loose-knit framework defined as individuals who are expected to take care of only themselves and their immediate families versus collectivism, which is a tightly-knit framework of individuals who can expect their relatives or members of a particular in-group to look after them. They can be compared and referred to as "I" or "we" oriented. (Hofstede, 2017)
In addition, there is the masculinity dimension which represents a preference in society for achievement, heroism, assertiveness and material rewards for success. Society at large is said to be more competitive in this dimension in comparison with the femininity side which stands for a preference for cooperation, modesty, caring for the weak and quality of life. This dimension is looked upon as being "tough versus tender" cultures. (Hofstede, 2017)
Then there is one explained as Uncertainty Avoidance, a dimension that expresses the degree to which the members within a society feel uncomfortable with uncertainty and ambiguity about the future which to their belief can never be known. The questions on their minds are, "Should we try to control the future or just let it happen?" Countries exhibiting strong UAI maintain codes of belief and behavior that are non-swaying from their belief and are intolerant of unorthodox behavior and ideas. Weaker UAI societies maintain a more relaxed attitude in which practice counts more than principles. (Hofstede, 2017)
Another dimension is one in which every society has to maintain some connection with its own past while dealing with the challenges to the present and the future. Societies prioritize these two existential goals differently. Societies scoring low prefer to maintain what was referred to as time-honored traditions and normally viewed societal changes are done with suspicion. Highly scoring cultures, on the other hand, take a more pragmatic approach: they encourage thrift and efforts in modern education in a way to prepare in the future and quoted as "(short term) normative versus (long term) pragmatic" (PRA).
It's important to know here that in the academic environment the terminology Monumentalism versus Flex humility is sometimes also used. Indulgence stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. Restraint stands for a society that suppresses gratification of needs and regulates it by strict social norms.
Research on Expansion
Global Awareness research of ethical issues and responsibilities has been performed below in a social and political climate. Its purpose is to form awareness for expansion to do business in a responsible and conscious, culture driven way by our company, Matrix Induced. Being in the technical business, our company has chosen the following geographical areas Paris, France, Sa[ir4] o Paulo in Brazil and Shanghai.
When we consider the challenges that we might face expanding into these markets within the area of hindrance for this specific company among the most prominent are specializations due to knowledge level. With this being the major common issue in this area, one resolution might be to spread the tasks involved to specific areas, which could handle the needed level of marketable talent. There are always ways around this if it takes manufacturing parts in one area to assemble and sales in another to the design yet in another. (Farnen, n.d.)
Furthermore, in any scenario there are always the communication issues and with a company of this type, one would normally deal with information that rapidly changes, coming from a variety of sources, transmitted across different networks. With common concern when speaking on the line of new decision makers being confronted with increasing amounts of information relevant to various decisions one must have to understand it definitely creates a sense of chaos in the decision-making process. This is due to the organization being segmented and the information and sources of information also become segmented. (Farnen, n.d.)
Another typical concern is technological advancements used in the global expansion of any business organization, which then eliminates the centralized authority affecting the decision making system. Decision makers are familiar with challenges that come with the territory so to speak and because of this, knowledge becomes much more developed. Decisions being made from a distance, in the un-trudged territory, understandably moves relatively slower and can be unresponsive.
On the same note, it would be wise to state, which was found to be particularly important for the company when looking forward to establishing abroad, and it was written on cultural power, that foreign government customers valued unified leadership and a single ultimate executive decision maker. It is notable because power dimensions are one of Hofstede's core dimensions of national culture, and, frequently used to predict national differences in corporate governance norms and standards.
Removing all the normal cultural blocks it is also important to acknowledge the facilitation of economic, social, political and cultural interactions as well as interdependencies due to ongoing globalizations that make how we do business today different from previous times. Remembering our values, and bound by our ethics we have to establish by further research corporate responsibility such as human rights, fair labor conditions, protection of environment and corruption on any level. What our utmost concern during this time is dealing with cultural diversity and thus why the following individualized research of markets has been performed.
Paris France
Our company, Matrix Induced, a manufacturer of microcomputers values include in big part Diversity and Inclusion. Paris France shows a strong degree of power distance as their society in a large part accepts inequality and that can impose issues in our values. The French take great pride in their nation and government and is typically offended by any negative comments about it which tells me that they rate high in individualism. France has a feminine culture as they have a very relaxed working environment with short hours and longer than normal vacations.
French society scores high in uncertainty as they need to be fully informed in business matters before meetings so we need to be mindful of their culture when corresponding and doing business there. Long term orientation score is high for the French as they show ability, even though their common religion is Catholicism, to accept a multitude of languages depending upon the region. Indulgence is moderate in culture with the French as well because based on the fact that their work style is relaxed and score high in needing to know or being well informed before meetings. With these cultural ratings there is much to think about and adjust to in doing business in France. (Zimmermann, 2015)
San Paolo Brazil
Brazilians have a passion for life and are enthusiastic in business dealings, and negotiations require an understanding of their culture to be successful ranking them more towards feminine culture. Appointments are normally set between 10-12 and 3-5 because they believe in lengthy lunches and fewer formal business meetings. Wearing of jewelry is not recommended in business area's due to thieves and this is alarming.
You have to wonder whether they will be accountable for their actions and for this they require strong rules which ranks them high in uncertainty avoidance but low in long term orientation as they don't look to change things instead the warn you not to wear jewelry. Working off our values we would have difficulty in Brazil because their attitudes toward females and lower class are unsettling and with that they rank high in power distance. As a company that acts with integrity in everything I feel that Brazils high ranking in indulgence is unacceptable. At Matrix Induced, we do our best to be fair and just to everyone and those that do not treat everyone fairly, or value diversity and goes against social justice, we would have a difficult time setting rules and culture. (Hamilton, 2017)
Shanghai
Shanghai has a culture of working hard scoring high masculinity as they are success driven and low indulgence. Shanghai when it comes to power distance rank high as their belief that inequalities amongst people is acceptable and that can be an issue. The people of Shanghai are collectivist believing in what's best for the group is more important than what is best for themselves. This is important to our values and tells me they are team oriented. They are also known for their hospitality and courteous behavior making them perfect for team projects and they can offer excellent customer service. They avoid conflict and negativity in public which brings about a great deal of secrecy and they have a pragmatic culture which says that they believe truth depends on the situation and with that they rank high in long term orientation.
Knowing their culture and speaking their language is important for our success as they believe strongly in first impression. Bowing is formal in greeting, and when receiving a business card, it is important to use both hands to receive it and stows it safely away in their presence. Mandarin is their formal language. It appears that the people of Shanghai are very regimented and would be a perfect fit into our culture at, Matrix Induced, of being one that has a strong commitment to our stakeholders as well as being values driven. Research on Shanghai shows that they are very ethical. (Shanghai Cultural Tips,2017)
- Nicely done introduction
- Good job explaining these dimensions, so important to inform the reader so they can be prepared to assimilate the information that comes next
- Excellent explanation overall, really does provide a good context for the reader
- Proofread please
- What is the company?
- Very good thoughts here, shows a real understanding of how we are attempting to weave together a process for expansion decision making
- What is the company and what does it do? Where is the detailed information from the cultural dimensions for this country?
- Where is the detailed information from the cultural dimensions for this country?
- Proofread for consistency in paragraph indents
- It is important to review the rubric to be sure that you have met all of the requirements. There is some very good information here but you missed most of the paper requirements
Research the markets that you can expand into from your home base in Chicago. These are, Paris, Sao Paulo, and Shanghai from a social and political climate of each using Hofstede's Cultural Dimensions, https://geert-hofstede.com/national-culture.html) as a foundation.
Using the results of your research, compare this information to the company mission, vision and values that the team will have already completed to determine the progression of expansion.
Ethical Considerations in Global Expansion
In Unit 1 you formed a team and started the process of growing your simulation company. Part of this team formation is to create a mission and values/culture profile. Greg Ballard talks about this important topic in his video Follow Your Values. View the video "Follow Your Values with Greg Ballard (Glu Mobile). The creation of a mission and values/culture profile is a core element of organizational success and long range planning for all companies, regardless of size or age.
Understanding this process will help increase your ability to contribute to your company's success in the future
In future quarters of game play one task that your team will face is to analyze growth opportunities for expansion. There are many factors to consider when reviewing your choices for expansion. One consideration is one of ethics; does your company culture support the expansion choices you will be making? Decision making tied to ethics and values may not be easy but can be advantageous. McMurrian and Matulich (2006) cite Ferrell "These advantages include higher levels of efficiency in operations, higher levels of commitment and loyalty from employees, higher levels of perceived product quality, higher levels of customer loyalty and retention, and better financial performance (Ferrell 2004)" (p.11).
As part of the management team, you will need to be in consensus on expansion plans and will be using the cultural profile your team has created in the marketplace simulation as one filter to make your final decision. Many companies perform this kind of evaluation when looking to expand internationally. For example, manufacturing facilities in other parts of the world have unsafe working conditions (Saini, 2013).
This may or may not have a direct impact on your GB601 | MBA Capstone company, given its culture, but you should know about these types of things if you want to be viewed as acting in accordance with your company ethics. So your research should go beyond just the typical numbers based data, i.e., GNP. You really want to know the country and how it operates.
This Assignment where you research markets outside the United States and make a recommendation for expansion practices the professional skills of :
- Global awareness
- Awareness of ethical issues and responsibilities
- Make ethical decisions and solve problems
- Work effectively in teams
Assignment Details
In a 4 to 6 page APA formatted paper excluding text, diagrams, and other visual/oral aids as appropriate, address the following:
Discuss the challenges of values/ethics based business decision making in the current global marketplace. Include citations from at least three scholarly sources to support your thoughts. You should also incorporate the work you have done in the Discussion topic(s) for Unit 1 into your response for this section.
Research the markets that you can expand into from your home base in Chicago.
These are, Paris, Sao Paulo, and Shanghai from a social and political climate of each using Hofstede's Cultural Dimensions, https://geert-hofstede.com/nationalculture. html) which you learned about in GB580: Strategic Management, as a foundation. You may also include additional information on culture that you find in your research.
Using the results of your research, compare this information to the company mission, vision and values that the team will have already completed to determine the progression of expansion. For example, the country with the strongest connection to your company culture will be the easiest to expand into, and the country with the weakest connection may be the last.
Recommend to your team the progression of expansion and include a detailed rationale for your choices.
As you work in this Assignment you can share your information in the team space so the team can use it in the decision making process. Remember that differences in opinion are a great tool for discussion and increased effectiveness in decision making.