Cross-Cultural Management - GLOBE - Case Study Example

Cross Cultural Management Case Study Name Class Unit 1. Executive summary This assessment uses a consultant perspective in analysis of cultural dimensions impact on Alizee airlines online behaviour and consumption of their digital channels in consumers from Brazil, Malaysia and USA. The aim is to identify the cultural values and dimensions of different cultures and how the impact international business performance. The GLOBE cultural research dimensions are; performance orientation, future orientation, assertiveness, power distance, humane orientation, institutional collectivism, in-group collectivism, uncertainty avoidance, and gender egalitarianism. The significance of GLOBE Study’s cultural dimensions for studying the three chosen cultures enhancing online behaviours of consumers and non-consumers of the Alizee airlines is then looked at. GLOBE Study’s culture data for Brazil, Malaysia and USA is compared discussed and analysed using examples. Lastly, recommendations for Alizee airlines are given on how they can mitigate some of the cross cultural problem to enhance their performance. This involves changing their websites to reflect the individualistic, collectivism and power distance. Alizee can improve their online market performance in USA, Brazil and Malaysia through addressing the cultural differences as recommended. Table of Contents 1.Executive summary 2 Table of Contents 3 3. Introduction: 4 4. GLOBE Study’s cultural dimensions analysis 4 4.1 Power Distance 7 4.2 Uncertainty Avoidance 7 4.3 Humane Orientation 8 4.4 Collectivism I: (Institutional) 8 4.5 Collectivism II: (In-Group) 8 4.6 Assertiveness 9 4.7 Gender Egalitarianism 9 4.8 Future Orientation 9 4.9 Performance Orientation 10 5. Recommendation 10 6. Conclusion 11 7. Reference list 12 3. Introduction: Cultural dimensions have an impact on the consumer purchase behaviour in different countries. GLOBE study for the cultural values for Brazil, Malaysia and USA and how they enhance online behaviours of consumers and non-consumers of the Alizee airlines shows the impact of cultural differences on market. The study shows that GLOBE project is an important tool in understanding the social, personal and psychological components of citizens in a given country (Hofstede, 2006). It also shows that when customers approach Alizee online services, they do so in cultural constructs basis which does not necessarily follow the GLOBE results. Alizee has been able to successfully launch online channels in USA, Brazil and Malaysia. Due to competition in the industry, Alizee has been constantly looking for ways to connect with their customers. The study by Alizee aims at knowing the cultural similarities and differences and how they affect the buying behaviour for the Alizee services through their online channels in USA, Brazil and Malaysia. This can help Alizee in optimising their online marketing activities specific to each country (Chhokar, Brodbeck & House, 2013). This assessment analysis and gives recommendations on the cross cultural case study of Alizee Airlines using the GLOBE study cultural dimensions as the point of reference. The report identified and discusses cultural similarities and differences between Brazil, Malaysia and USA illustrated in the case. Using the GLOBE study, the report critically analyses how cultural similarities and differences could affect combined results for consumers and non-consumers in each of these three countries so that Alizee can optimize online marketing activities which are specific to each. Examples are used to support the analysis. 4. GLOBE Study’s cultural dimensions analysis GLOBE program (Global Leadership and Organizational Behaviour Effectiveness) is a research that was carried out in 61 nations focusing on culture and leadership. The national cultures were examined and based on the nine dimensions which are; performance orientation, future orientation, assertiveness, power distance, humane orientation, institutional collectivism, in-group collectivism, uncertainty avoidance, and gender egalitarianism. Through the global research, six global leadership cultures have been identified and discussed (Chhokar, Brodbeck & House, 2013). Significance of GLOBE Study’s cultural dimensions Globe study on cultural dimensions is significant in analysing the three chosen cultures and how they impact the online behaviours of consumers and non-consumers of the Alizee airlines. Through use of GLOBE research it becomes possible to gain more insight into the culture. An insight is gained on the cultural differences in the three countries and how they have an impact on the online purchasing behaviour for the Alizee customers (Park & Jun, 2003). The research is important in decision making process. The cultural similarities and differences identified can be used to the advantage by Alizee when optimising their marketing activities in the three countries. The GLOBE research provides vital data that can be used in determining the role of culture in decision making (Chhokar, Brodbeck & House, 2013). The results also are an important source of knowledge on how to improve connections with the customers. Comparison tables for the GLOBE Study’s culture data for Brazil, Malaysia and USA Dimensions Brazil Malaysia USA Power distance High High Low Performance orientation Low Average High Uncertainty Avoidance Low Low Low Future Orientation Low Low Low Institutional Collectivism Low Average Low In group collectivism High High Low Gender egalitarianism Average Average High Humane Orientation Average High Low Assertiveness Average Average High (Chhokar, Brodbeck & House, 2013) Results based on Alizee airline case study Variables for GLOBE Study’s cultural dimensions Analysis Brazil Malaysia USA Consumers Non-consumers Consumers Non-consumers Consumers Non-consumers Power Distance (Low) Not relevant (Low)Not relevant Not relevant (Low)Not relevant Low Low Uncertainty Avoidance Low Low Low Low Low Low Humane Orientation Average Low High High Low Low Collectivism I:(Institutional) Low Low Average Low Low (Low)Not relevant Collectivism II: (In-Group) High High High Average Low Low Assertiveness Average Low Average Average High High Gender Egalitarianism Average Average Average Average High High Future Orientation Low Average Low Average High High Performance Orientation Low Average Average Average High High 4.1 Power Distance In all three countries where Alizee has carried out their study, it is evident that power distance impact is not very relevant. This is the extent to which a society accepts or endorses authority or power difference and status privileges (House et al., 1999). There is also perception by the non Alizee customers that the online efforts are directed to the rich people and wealthy travellers. This may lead to the need to redesign the marketing for online services target the right market. This is especially as evidenced by the non Alizee customers (Park & Jun, 2003). For an example, a consumer in Malaysia may fail to buy an online service claiming that it is meant for the rich. 4.2 Uncertainty Avoidance All countries have a low score in GLOBE research program (Javidan & House, 2001). This is the extent to which a given society relies on social norms and rules, procedures in order to alleviate the unpredictability of the future events. In low uncertainty avoidance there is use of informal interactions and few records are maintained. There is more reliance on norms and risks are less calculated. This is a group that has low resistance to change (House et al., 2004). This is also evidenced by some of non Alizee customers in the three countries. In Malaysia, there is low uncertainty avoidance as most purchased online tickets without fear. Aspects of uncertainty avoidance by Alizee non customers are also evident. In USA, evidence of uncertainty avoidance is there. There is low level of uncertainty avoidance and customers are risk takers. 4.3 Humane Orientation Malaysia ranks high in this aspect while USA and Brazil ranks low for both consumers and non-consumers. This is degree in which the society rewards people for being generous, fair or kind to others (Jarvenpaa, Tractinsky & Saarinen, 1999). In high humane orientation countries such as Malaysia, there is strong emphasis on being sensitive to others, offering social support and upholding the community values (House et al., 2004). The low humane orientation evidenced in USA and average in Brazil shows that the societies there are less supportive to others, there no or low rewards for being kind to others. 4.4 Collectivism I: (Institutional) This is the degree in which a society encourages societal or collective action (Jarvenpaa, Tractinsky & Saarinen, 1999). It involves the society support for the collective distribution of resources and action. In Malaysia, institutional collectivism is average while USA and Brazil is low for consumers and non-consumers. Institutional collectivism has an impact on the level of group loyalty, autonomy and friendship which are all high in Malaysia than the USA and Brazil. The cohesiveness of these cultures varies hence their approach to online shopping as evidenced in the research. 4.5 Collectivism II: (In-Group) This is the degree in which people express their pride, cohesiveness and loyalty in their societies, organisations or families (Jarvenpaa, Tractinsky & Saarinen, 1999). Both Brazil and Malaysia have high in-group collectivism compared to USA for both consumers and non-consumers. This implies that duties and obligations are major determinants of behaviours in Malaysia and Brazil. There are high group relations in both Malaysia and Brazil unlike in USA. There is also high distinction in the groups in both countries as opposed to US. In USA, personal needs and attitudes are used to determine the social behaviour. The external influences are more likely to affect the purchasing behaviours of Alizee customers as well as non-customers in Brazil as evidenced in the research. The opinions of others count in this case. For the USA customers, individualistic approach when making decisions is evident. This is common for both customers and non-customers. 4.6 Assertiveness This involves the degree of assertiveness and aggressiveness in the relationship with others (Jarvenpaa, Tractinsky & Saarinen, 1999). USA is a highly assertive culture. Brazil and Malaysia scores average in assertiveness while US has a high score for consumers and non-consumers. This determines the success of Alizee online marketing communications in different countries and cultures. It determines the level of complaints lodged, competition, ambiguity and trust. An example for high assertiveness in USA may be evidenced by the number of complainants in the USA Alizee Facebook page. 4.7 Gender Egalitarianism This is degree in which gender inequality is minimised in the society. In this case, USA scores high in gender egalitarianism while Brazil and Malaysia scores average for both consumers and non-consumers. This is relevant for Alizee online marketing communications and it shows the level of gender inequality in their markets (Javidan et al., 2006). In USA, women are empowered and there is high level of equality. This implies that both men and women are involved in decision making more than in Malaysia and Brazil. This makes the marketing communication to target the market of the three countries differently. For example, in USA, a woman may make a decision to take the family on a vacation as compared to Malaysia and Brazil. Women in USA can also make the purchase decision alone without consulting their male partners compared to Malaysia and Brazil. 4.8 Future Orientation Brazil and Malaysia ranks low in future orientation while US ranks high for both consumers and non-consumers. This is the degree in which an individual engage in future oriented behaviours. In cultures where there is high future orientation, there is averse to risk taking and decisions are made in a less opportunistic manner. Less future oriented societies are more opportunistic and are less systematic in their actions (Jarvenpaa, Tractinsky & Saarinen, 1999). This leads to a spending culture in the three countries analysed. Consumers in these countries seek gratification soon and may tend to be inflexible. The countries are also less adaptive. For example, consumers buying Alizee products in the three countries may spend a lot on the website for holiday bookings. Also, the consumers may engage in impulse buying when on the Alizee website. Another example is the fact that most of the customers in USA plans for their trip in advance. 4.9 Performance Orientation In Brazil, perfoamcne orientation is low for consumers and average for non-consumers. It is average in Malaysia and high in USA for both consumers and non-consumers. This refers to the extent in which a society rewards its members for performance and excellence. It also involves the setting challenging goals and attaining them (Jarvenpaa, Tractinsky & Saarinen, 1999). For Brazil and Malaysia where performance orientation scores are low, its impact on the purchasing behaviour is also low. This makes it irrelevant to most of the Alizee customers and non-customers. An example is an American customer for Alizee online services is highly likely to check on excellence and performance before making a purchase. This is as compared to the Brazil customer. 5. Recommendation It is vital for Alizee airlines to consider the cultural differences identified in the three countries and improve their efficiency of the online operations. It is also important for Alizee to keep track of the home carriers’ online activities in the three markets. This will help in understanding the existing difference between the home carriers and Alizee activities in the market. The cultural differences in the three markets make it prudent to come up with ways of enhancing online behaviours for the consumers and non-consumers alike. For individualistic countries such as USA, the firm website should give the customers a sense of personal achievement and motivate actions. Use of novelty and difference in the website content can attract a lot of attention in individualistic society such as USA. Images used should favour materials and symbols of success. In a collective society, it would be vital for Alizee to design website using we instead of me. The website should respect tenets and traditions. The website must show that it respect privacy and personal life for Brazil and Malaysia. In high power difference such as Malaysia and Brazil, the website should have order and hierarchy in content. Cultural and national symbols should be included and authority figures for endorsement. Where appropriate, Alizee should consider use of official stamp and certifications in high-power distance countries. In low power distance countries such as USA, there is need for transparency. Use of ratings and testimonials is also preferred for endorsements. There is also need to use a loose structure for USA websites to ensure that users can explore for themselves. Also, the differences in other aspects of culture can be addressed through website design and market approach. The unequal distribution of power in the US, Malaysia and Brazil may lead to the need for Alizee to redesign their marketing in these societies. It is vital for Alizee to know that decision making in the three countries is hierarchical and there is limited one way participation and communication. Low uncertainty avoidance may require use of simple processes and broad based strategies when marketing online in the three countries. Alizee will have to be sensitive to the Malaysia humane orientation. This may require showing more social support as well as rewarding their loyal online customers. For Alizee, there is need to ensure that there is safety in the online offers as evidenced by some responses by Brazilian customers who are more risk averse. The level of assertiveness in USA requires the firm to be ready to handle complaints in time (House et al., 1999). In Brazil and Malaysia, it is vital to ensure that harmony and trust is maintained through offering good services to meet the people’s needs. 6. Conclusion To sum up, cultural differences have an impact on the consumer interactions with the digital channels. In the analysis, it is evident that cultural differences in USA, Malaysia and Brazil have an impact on Alizee airline online transactions. Each of the markets has their own profile of consumption for the digital channels based on the cultural dimensions and the market conditions in the airline industry. All this, is identified through use of GLOBAL research program cultural dimensions. Through following the recommendations given, it will be possible for Alizee airlines to use cultural effectiveness to improve their online market. The company will be able to enhance their online marketing communications through use of the cultural perspective to improve their impact. 7. Reference list Chhokar, J. S., Brodbeck, F. C., & House, R. J. (Eds.). (2013). Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. Routledge. Hofstede, G. (2006). What did GLOBE really measure? Researchers' minds versus respondents' minds. Journal of international business studies, 882-896. House, R. J., Hanges, P. J., Javidan, M., Dorfman, P. W., & Gupta, V. (Eds.). (2004). Culture, leadership, and organizations: The GLOBE study of 62 societies. Sage publications. House, R. J., Hanges, P. J., Ruiz-Quintanilla, S. A., Dorfman, P. W., Javidan, M., Dickson, M., & Gupta, V. (1999). Cultural influences on leadership and organizations: Project GLOBE. Advances in global leadership, 1(2), 171-233. Jarvenpaa, S. L., Tractinsky, N., & Saarinen, L. (1999). Consumer trust in an internet store: a cross‐cultural validation. Journal of Computer‐Mediated Communication, 5(2), 0-0. Javidan, M., & House, R. J. (2001). Cultural acumen for the global manager: Lessons from project GLOBE. Organizational dynamics, 29(4), 289-305. Javidan, M., Dorfman, P. W., De Luque, M. S., & House, R. J. (2006). In the eye of the beholder: Cross cultural lessons in leadership from Project GLOBE. The academy of management perspectives, 20(1), 67-90. Park, C., & Jun, J. K. (2003). A cross-cultural comparison of Internet buying behavior: Effects of Internet usage, perceived risks, and innovativeness. International Marketing Review, 20(5), 534-553. Read More