Jumping Off Place

Q 1: In what way will the culture of Spain be different from U.S? In answering this question refer to figure 4-5, 4-6, 4-7. Ans: if we compare the cultures of United States and Spain, keeping in view the hofstede’s dimensions, following cultural differences were found: 1. Power distance:

This aspect deals with fact that all individuals in societies are not equal. It is defined as: “The extent to which less powerful members of institution & organization accept that power is distributed unequally” Spain‘s hierarchical power distance is accepted. Whereas U.S have low power distance. Within American companies, management levels are established for convenience & superiors are always accessible. Both managers and employees shared information frequently. Communication is informal, direct and participative.

2. Individualism:
It is the tendency of people to look after themselves and their immediate family only. Spain is collectivist as well as individualistic but the practise is not aggressive. Whereas U.S is highly individualistic state. People look after themselves and their families.

3. Mascunist/feminist:
Masculinity is a cultural characteristic in which dominant values are success, money and things whereas feminity is cultural characteristic in which he dominant values are caring for others and quality of life. Spain is a feminist society. They believe in helping the needy people. Whereas united states is masculine society. They are materialistic and after success and money.

4. Uncertainty avoidance:
It is the extent to which the people feel threatened by unpredictable situations and have created beliefs and institutions that try to avoid these. Uncertainty avoidance is highly practice in Spain. People have rules for everything. Any change in the rule causes stress to the people. They are not risk takers at all. Whereas American society is uncertainty acceptance society. People are willing to take risk.

Above mentioned are the cultural differences between United States and Spain.

Q2. If the company expands its operations to Italy, will its experience in Spain be valuable for the company or will the culture would be so different that the manufacturer will have to begin a new in determining how to address cultural challenges and opportunities. Explain. Ans: if we consider hofstede’s dimensions then Spain and Italy are not very much different to each other. Power distance in Spain is acceptable but in Italy it is medium. Distribution of power justifies that upper level have more powers as compared to lower level and have more benefits. As compared to Spain, Italy is more individualistic society. It is “me centred”. Italy is a strong masculine society whereas Spain is a feminist society. Italy is a strong uncertainty avoidance society which means that Italians are not comfortable in unpredictable situation. They avoid taking risks. Same as Spain, they also avoid taking risks.

Italy is the combination of masculinity and high uncertainty avoidance which makes life very difficult and stressful. In my opinion, Italy and Spain have almost familiar culture values and differences. If the business works well in the Spain and the response is good than the U.S Company must expand its business to Italy. As there is no much difference in cultures of both the countries, the work experience in Spain will be valuable for the company as the company would already the cultural values, likes and dislikes, purchasing behaviour of consumer, challenges and opportunities. These all things would help the company for establishing a business in Italy. The company will perform better and will expand its business too.

Q3. If the firm expands into France, will its previous experience will be valuable in helping the company address cultural challenges. Explain. Ans: France culture is similar to Spain and Italy. According to hofstede’s culture power distance is low both in France and Spain as compare to Italy. Individualism is practiced in France at medium level. Whereas Italian practiced at high level and Spaniards practice at low level. Uncertainty avoidance is high in France and other two companies. Masculinity is low in France and medium in Italy. The above line shows that there is no much difference in the cultural values and challenges of the countries. If the business works well in Spain and Italy, it is anticipated that the company would receive good response from France too. They don’t need to study new dimensions of culture. It would cost them too. The company is smart because it is planning to expand in the same cultural values so that they would not face cultural differences that would cause their business to fall down. So the earlier experience in Spain and Italy will definitely be valuable to the company.