Abstract 摘要
This report provides with the evidence for deriving the analysis on the cultural influence on the multinational corporations while dealing with the cross-national markets. On the basis of the world famous cross-cultural expert, Geert Hofstede's elements of culture, the report has been guided for making the proper analysis of the example taken i.e. L'Oreal, which has been taken for supporting the activities performed by the corporation to deal with the cultural differences in various international markets. This report is commissioned by Rumorama Banking Corporation. The report is intended for internal use only and is specific to the factors regarding the adoption of online banking. The internal use is primarily as a managerial guide to the marketing and commercial targets of Rumorama Banking Corporation.
1.0 Introduction 简介
CultureIt is the "set of values, beliefs, rules, and institutions held by a specific group of people". It is learned and shared by common category people and the elements of culture are interconnected. Group boundaries are well defined by the culture. Each large culture may contain some subcultures having the same context. Culture influences the decision making, impacts the management in strategic activities and also the negotiations. Ethnocentricity is a belief that one's own culture is universally superior to others. (Hofstede, 1982) Elements of Culture
Aesthetics - sense of beauty and good taste Art, color, symbols, music, folklore Attitudes and beliefs Time, directness, achievement, work, change Manners (appropriate behavior) and customs (traditional behaviors) Education Literacy, science, math, trades, management Legal and political system Secular versus religious Free or not free Planned versus laissez-faire Societal organization Family structure, in-laws, extended family, divorce Class mobility Associations by age, gender, common interests, or otherwise Language and communication Verbal and non-verbal Gestures and body language Office size and closed versus open doors Conversational distance Touching Protecting traditional languages
2.0 Background 背景
2.1 Elements of Culture Observed by HofstedeIndividualism versus collectivism
High/low power distance
High/low uncertainty avoidance
Desire for achievement/affiliation
Long/short time horizon
2.2 Affects of culture on business:
Culture has an impact on nearly all the functions of the management i.e. from finance to marketing to HR to IT. Culture is the major factor which decides whether establishing a business in foreign land will be an easy or difficult task by considering various cultural differences. The work ethics of the business will vary with different country leading to a major change in the work structure. Need Hierarchy Lower-order needs must be fulfilled prior to higher-order needs
Workers in poor countries motivated by lower-order needs
People from different countries or cultures may rank needs differently
5 dimensions of culture are: Power Distance - Cultures are ranked high or low on this dimensions based on that society's ability to deal with inequalities, power, authority. Individualism vs. Collectivism - Cultures are ranked on their orientation towards intersocietal relationships: Individualistic societies: loose ties, individual achievement and freedom - In social orientation the relative importance of the interests of the individual is high in the individualism and the interests of the individual take precedence. And in power orientation the appropriateness of power/authority within organizations is high and in respect of power the authority is inherent in one's position within a hierarchy. Collectivist societies: tight ties, tend to be more relationship-oriented - In social orientation the relat
