Cultural diversity and differentiation is a challenge that every business expanding globally faces. With different aspects of culture to deal with in different countries, it is necessary to adapt to the host country’s culture in order to post a successful campaign against failure in that country. This paper seeks to determine ways in which an American product can survive in a completely different cultural environment. Two major tests of individualism and power distance will be used to make this comparison.
Individualism is a cultural view in America where it is constantly competitive; about one side versus the other. In this cultural view, there are always teams and the struggle is normally antagonistic in nature. Individual ties in such a society are very loose, where everyone is expected to care for themselves and their immediate families (Markus & Kitayama, 1991). This presents one of the greatest strengths in the American system. Moving to a country like Guatemala which is largely collectivist, it is necessary that the company changes its approach to enable quick adaptation into the environment. This may include bringing about benefits to the products that encourage social interactions and gatherings. For example, food advertising could incorporate instances where families and large groups of individuals are sharing the meal. Additionally, the organizational level should accommodate locals and encourage social interactions within the workplace. For example, in Guatemala, it would be beneficial if the foreign managers enquire about the families of their supervisees before pursuing business. This way, the collectivist needs within the environment will be met.
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Power distance measures how acceptable the idea of unequally distributed power is among lower members of the organization. High power distance means that there is a feeling of excessive power that is given to superiors, which lower members of the organization cannot dispute (Smith & Hume, 2005). In America, power distance is relatively low. Nonetheless, adaptation into a country with high power distance means that it is necessary to implement changes to the management to bring out worker efficiency. In a country with higher power distance, there is a belief among lower members of the organization that they have little or no power. As a result, it would not be beneficial to have high employee involvement in management decisions. As a result, representative leadership can be employed. Here, each department could have a head who speaks on behalf of the members of the group. The group head can also be the medium through which instructions from the management are passed to employees. This way, the cultural disposition of a country such as Egypt or Saudi Arabia can remain under high power distance and become productive.
In comparing Egypt with the United States in terms of power distance, one notices that it is crucial to implement high power distance strategies to achieve efficiency in Egypt. This means that consultative decisions are limited. Additionally, this implies a highly efficient leadership whose strategic concerns are well-informed. In the case of Guatemala where it is largely collectivist, it is necessary to adopt collectivist approaches to organizational management. This includes a less formal approach to business by asking about family and the person’s well-being. Additionally, focus on social and communal needs of the society can be addressed in advertising to meet the criteria for collectivist views. This way, an American company can successfully operate in different environments by adopting culture-sensitive strategies.
References
Markus, H. R., & Kitayama, S. (1991). Culture and the self: Implications for cognition, emotion, and motivation. Psychological review, 98(2) , 224.
Smith, A., & Hume, E. C. (2005). Linking culture and ethics: A comparison of accountants’ ethical belief systems in the individualism/collectivism and power distance contexts. Journal of Business Ethics, 62(3) , 209-220.
