ASSIGNMENT 2 Discuss the 5 dimension of culture laid down by Geert Hofstede and elaborate on how these dimension influence

the marketers decision whe operating overseas

Geert Hofstede is a Dutch scholar that developed another highly useful cultural classification scheme. The 5 dimension of culture is power distance, uncertainty avoidance, individualism, masculinity and longterism. Power Distance Index (PDI) that is the extent to which the less powerful members of organizations and institutions such as family accept and expect that power is distributed unequally. This represents inequality, but defined from below and not from above. It suggests that a society's level of inequality is endorsed by the followers as much as by the leaders. Power and inequality, of course, are extremely fundamental facts of any society and anybody with some international experience will be aware that 'all societies are unequal, but some are more unequal than others. Individualism on the one side versus its opposite, collectivism, that is the degree to which individuals are inter-grated into groups. On the individualist side we find societies in which the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family. On the collectivist side, we find societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families which continue protecting them in exchange for unquestioning loyalty. Masculinity refers to the distribution of roles between the genders which is another fundamental issue for any society to which a range of solutions are found. The studies revealed that womens values differ less among societies than men's values. The men's values from one country to another contain a dimension from very assertive and competitive and

maximally different from women's values on the one side, to modest and caring and similar to women's values on the other. The assertive pole has been called 'masculine' and the modest, caring pole 'feminine'. The women in feminine countries have the same modest, caring values as the men; in the masculine countries they are somewhat assertive and competitive, but not as much as the men, so that these countries show a gap between men's values and women's values. Uncertainty Avoidance deals with a society's tolerance for uncertainty and ambiguity, it ultimately refers to man's search for truth. It indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. Unstructured situations are unknown, surprising, and different from usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security measures, and on the philosophical and religious level by a belief in absolute truth. People in uncertainty avoiding countries are also more emotional, and motivated by inner nervous energy. The opposite type, uncertainty accepting cultures, are more tolerant of opinions different from what they are used to, they try to have as few rules as possible, and on the philosophical and religious level they are relativist and allow many currents to flow side by side. People within these cultures are more phlegmatic and contemplative, and not expected by their environment to express emotions. Long-Term Orientation, these fifth dimensions refer to the distinction between societies with a pragmatic, long-term orientation and those with short-term focus. People in longterm oriented societies tend to have values that centre on the future. While on the other hand, people with a short term oriented culture are concerns with value that reflect the past and present. Values associated with Long Term Orientation are thrift and perseverance, values associated with Short Term Orientation are respect for tradition, fulfilling social obligations, and protecting one's 'face'.

This 5 dimension influence marketer in many aspects when they want to operate in overseas. Few terms need to be verified and understand before operating overseas. As companies try to adapt their products and services to local habits and preferences they have to understand the specificity of their market. For example, if they want to market cars in a country where the uncertainty avoidance is high, they should emphasize on their safety, whereas in other countries they may base their advertisement on the social image the country given. And as for the cell phone marketing is another interesting example of the application of Hofstedes model for cultural differences. For example, if marketer wants to advertise cell phones in China, they may show a collective experience whereas in the United States marketer may show how an individual uses it to save time and money. The variety of application of Hofstedes abstract theory is so wide that it has even been translated in the field of web designing in which marketer have to adapt to national preferences according to cultures values. In the long-term orientation, the marketer need to indicate the country prescribes to the values of long-term commitments and respect for tradition. This is thought to support a strong work ethic where long-term rewards are expected as a result of today's hard work. However, business may take longer to develop in this society, particularly for an "outsider", especially in the Middle East country and China which still highly value their culture and tradition. The marketer also needs to indicate that individuality and individual rights are paramount within the society. Individuals may tend to form a larger number of looser relationships. They also need to verify to what extent do people believe in individual responsibility and reward rather than having these measures aimed at the larger group. Contrary to the stereotype, Japan actually ranks in the middle of this dimension, while

Indonesia and West Africa rank toward the collectivistic side. The U.S., Britain, and the Netherlands rate toward individualism. In the power distance dimension, marketer needs to indicate that inequalities of power and wealth have been allowed to grow within the society. These societies are more likely to follow a caste system that does not allow significant upward mobility of its citizens. Every country in this world tends to have this type of dimension. In the country such as Arab countries, power distance tends to be particularly high .this situation also involve in some Latin American ones, while it is more modest in Northern Europe and the U.S.Therefore marketer need to play an important role in order to market their product in this country. They have to produce a product that can satisfy both sides in order to achieve their target. The 5 dimension of culture by Geert Hofstede give marketer another view of opinion in how operating their business in overseas.Different countries held a different culture in handling a business.By understanding this terms, marketer is given more information than what their thinking.