Business is becoming more and more interconnected around the globe, meaning that diverse cultures are coming close to each other as business turn global. This means that companies are integrating workers from various countries and cultures that call for the organizations’ preparedness to adapt to these cultural diversities. Many countries are immersed in their cultures and may not easily see how this affects their behavioral patterns or thinking. the main reason that has led to the establishment if Hofstede’s Cultural Dimensions framework is the varying cultures across the world. Hofstede’s framework ranks countries based on six dimensions of Power Distance, Individualism/ Collectivism, Masculinity/ Femininity, Uncertainty Avoidance, Long term/ Short term avoidance, and Restraint/ Indulgence.
Comparing Mexico and China based on the United States ranking on the Hofstede’s Power Distance Dimension (score of 40), the organizations in the United States believe in the distribution of power. A worker has access to the top management, and centralized style of leadership is discouraged. On the other hand, China and Mexico accept the dimension of power distance accepting a centralized form of management, which means the two countries accept hierarchical leadership (each with scores of 69 and 80 respectively). Considering the partners will be coming from both Mexico and China, there is no likelihood of differences when it comes to deployment of the franchise since both believe in the power of the leaders above them. It might be difficult for Mexico and China to use the system of leadership used in the US. This is because the company will be obligated to use the existing style.
As about indulgence, Mexico and the United States have the liberty of enjoying life, meaning that it will be easier to deploy the project in Mexico. The Chinese society is quite pessimistic on indulgence, meaning that implementing the project there might face a certain level of opposition based on how people will perceive the project. However, all the three countries tend to embrace a collectivist culture meaning that it will be easier to deploy the project in the two countries based on this dimension. All the states have a low score on masculinity that indicates that other people are considered and cared for, making it easier to explain the objective of the project implementation within these countries. However, each is supposed to strive to do their best.
The two countries within which the project to be implemented believe in power distance and subordinating to seniors. Besides, the United States has a culture of recognizing the contributions of all, regardless of their positions. Both China and Mexico might pose the problem of communication since protocols have to be observed in critical information. Therefore, initial communication might be hard when implementing the project in the two countries.
The cultural differences will influence the time spent on the expansion of the project in the two countries. The management at the head office must familiarize with the culture of the two countries where they wish to expand their project. Besides, the team must engage with the negotiating team to familiarize with the requirements for extending the project in the two countries.
The process of expanding the project in Mexico and China might take longer than expected due to the slowed communication process, which will aim at understanding the culture of the two countries. Therefore, culture matters during the creation of a market penetration strategy.
Ivanov, S. H., & Ivanova, M. G. (2016). Market penetration of hotel chains: Does culture matter. Annals of Tourism Research, 57, 259-264.