Cultural Dimensions According to Hofstede Theory - Euro Disneyland in France and the United States - Case Study Example

361658 - Euro Disneyland Introduction Culture is more often a source of conflict than the synergy it is supposed to bring and culture differences is always a disaster (Hofstede, 2004). Culture can make international business collaboration easy or difficult. Culture issues that emerge are cultural stereotypes about what we believe about other people’s behavour and attitudes. If a company makes decisions in another country according to how they are made in the mother country there is a high chances in failing to make the right decision (Hofstede, 2001). This paper will compare culture between France and United States basing on the Hofstede and Trompenaars theories. It will also analyze the cultural problems encountered by a company in another company by analyzing the case study of Euro Disneyland, and will provide some solutions of dealing with cultural difference and diversity. Hofstede’s cultural dimensions There are five cultural dimensions according to Hofstede theory: Power Distance Index (PDI), Individualism (IDV), Masculinity (MAS), Uncertainty Avoidance Index (UAI), Uncertainty Avoidance Index (UAI) and Long-Term Orientation (LTO). Power Distance Index is the point at which organizations and institutions with less powerful members like family accept that power is distributed unequally and they expect it. Individualism (IDV) is the degree in which people are integrated into groups. Ties between individuals in the society are loose and everyone is expecting to take care of himself and his family. Masculinity (MAS) is concerned with the distribution of roles between genders. Masculine therefore is the assertive pole while feminine is the modest and caring pole. This implies that Feminine countries have women who have same caring and modest values as men. Women in the masculine countries are somehow self-confident and competitive but not as men. All these countries show a gap between the values of women and the values of men. Uncertainty Avoidance Index (UAI) is concerned with a search for truth by man as he tolerates with society’s ambiguity and uncertainty. Countries that avoid uncertainty try to minimize this through rules and regulations, strict laws, security and safety measures, religious beliefs and so on. Countries that accept uncertainty cultures tolerate different opinions from what they are used to. They exert few rules as well as relative religious and philosophical levels.(Edward, H., & Mildred, H., 1997). Long-Term Orientation (LTO) as the last dimension deals with virtue regardless of truth. Long Term Orientation values are perseverance and prudence while Short Term Orientation values are respecting tradition, protecting one’s image and social obligations fulfillment. Using Hofstede’s cultural dimensions to highlight main cultural differences between the United States and France Hofstede’s cultural dimensions explain some of the main cultural differences between the United States and France. France’s Uncertainty Avoidance Index (UAI) is 34% higher than the average of UAI average by scoring 86. This means French strongly resist change in their traditional beliefs and traditions. The UAI score for United States is 46 and is 385 lower than the world average. This implies that Americans take risks and allow changes in their traditions and institutions. They are very comfortable with rapid change and ambiguities. Individualism score of United States is 91 being highest in the world. France’s Individuals score of 71 is also high and more than the world average by 65%. Americans are more receptive to taking care of themselves and their immediate members only than French (Edward, H., & Mildred, H., 1997) United States has Power Distance Index (PDI) score of 40, lower than the world average by 27%. The power distance society of America is lower and decentralized. It has a flatter organization structure and very few supervisors and employees make their own decisions as they are empowered to do son. PDI score of France is 68, 24% higher than the world average. This means that there is high power distance society which is more centralized. It is a tall and hierarchical organization structure with defined duties and authority and supervisors giving orders at the lower levels. United States Masculinity score is 62, higher than the world average by 24%. This means Americans value success, money and possessions of material things. France has masculinity score of 43 which is relative low and below the world average by 14%. This implies that French’s emphasis is on quality of life and caring for other people. The United States Long Term Orientation (LTO) score is 29, being its lowest dimension compared to the world average of 45. This indicates that Americans believe in meeting their obligations and appreciate cultural traditions. Trompenaars theory in explaining cultural differences between the United States and France According to Nina Jacob (2003), Fons Trompenaars has assessed the national cultures of countries. The type of corporate culture chosen in different countries is determined by the differences between the national cultures. National cultures difference will lead to differentiation of various transnational corporation branches. The four types of culture labeled by Trompenaars are the family, the Eiffel Tower, the guided missile and the incubator. The family as a metaphor is used to describe a corporate culture where there exists a well-defined hierarchy making the relationship between mangers personal. French corporate culture is hierarchical in nature with well defined authority while American corporate culture is a more flat structure. The metaphor of the Eiffel Tower symbolizes a corporate culture that is more bureaucratic. This is where there exists a clear division of labour, with well and clearly defined roles and functions that are coordinated by the top management. In French corporate culture it is more bureaucratic with top management making decisions but American corporate culture is where employees are empowered to make decisions. In the guided missile takes a forma of egalitarian society where individuals don’t have real authority over others. Everyone is economically and socially equal where there are no classes of poor and rich or even middle class. Incubator is the corporate culture where managers can be able to achieve self-fulfillment and self-expression. Their relationships are both egalitarian and personal (Martin, G., & Karen, N., 2002). Mistakes Euro Disneyland made in managing its operation in France According to the case study, Euro Disneyland operations did several mistakes in managing the company. Euro Disneyland Park was opened by Disney in the land known by French for producing sugar beets and cheese. Euro Disneyland was an American Disney them park that had little allowance of French culture. French people found it highly ambiguous as they safeguard their beliefs and traditions. The second mistake was that American management imposed a strict dress code what required extreme short hair. It also banned beards and moustaches. The dress code was highly individualized and based on Walt Disney which portrayed clean American family values (Luthans, 2008). The Americans insulted the family traditions of French by imposing Walt Disney appearance code. Many French individuals refused to work at the Euro Disneyland. The third mistake was the distribution of power in the company. French organization structure is hierarchal one and French people were confused when Disney appointed American-born as supervisors where as their French language wasn’t fluent. According to French people, individuals in high positions are highly learned and fluent in French (Luthans, 2008). Lessons the company should have learned about how to deal with diversity There are lessons that Euro Disneyland in dealing with culture diversity. Disney management should have adapted French culture for it to succeed in business. France masculinity values are friendly atmosphere, cooperation, employee freedom, group decision making and environmental conservation (Jacob, 2003). Disney operations management improved communication and leadership skills adapted to French culture. Euro Disneyland should have had culturally sensitive leadership in that instead of focusing on American business earnings, interests and revenues as the expense of French culture, it should have recognized French cultural traditions and life quality. Disney could have appointed a French person to head the company as away of understanding the importance of cultural traditions of French. The same could be done by hiring French individuals in operational and senior managers positions. Disney should also have adapted a communication model that recognizes cultural norms and values of French. This should have happened by Disney conducting surveys and focus groups to find out whether French people accept hot dogs or use their bare hands in eating spare ribs at Euro Disneyland instead of assuming that the French people will adapt to American-style fast food automatically. Disney should have protected French culture and language before and after it opened by communicating in native French instead of English. French culture creates a need of low stress levels, friendly atmosphere, group decision-making and cooperation instead of money and materialistic success. To effect this, Disney should have received feedback from customer by placing suggestion boxes around the park as well as conduct interviews on customer needs, their cultural expectations and if they were satisfied with the services (Jacob, 2003). Theories of explaining cultural differences between countries are Hofstede and Trompenaars, and they explain the cultural differences between France and USA. Hofstede cultural dimensions are Power Distance Index (PDI), Individualism (IDV), Masculinity (MAS), Uncertainty Avoidance Index (UAI), Uncertainty Avoidance Index (UAI) and Long-Term Orientation (LTO).The four types of culture labeled by Trompenaars are the family, the Eiffel Tower, the guided missile and the incubator. The mistake Euro Disney land made was to impose American culture on French people. To succeed, it should have adapted a French culture in its management and operations. Reference List Hofstede, G. 2001. Culture's Consequences, Comparing Values, Behaviors, Institutions, and Organizations Across Nations Thousand Oaks. CA: Sage Publications. Hofstede, G. 2004.Cultures and Organizations: Software of the Mind. New York: McGraw-Hill U.S.A. Luthans, D. 2008 International Management: Culture, Strategy, and Behavior, 7th Ed, New York: McGraw Hill.pp229-238 Nina J. 2003. Intercultural management. Kogan Page Publishers. Pp121-123 Martin J. Gannon & Karen L. Newman. 2002. 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