Write the job statement for your client Azure Tea Co. ( A statement of the particular concern issue that you will be researching and supplying recommendations for the client. )

Problem Statement:

Formulation of Expansion Strategy in Overseas-Markets, guaranting a culture-fit with Azure Tea Company ‘s subdued corporate manner ( restrained and subdued in nature ) . The research would as integrate the disposition of local consumers towards accommodating the ‘healthy ‘ organic tea. It would be a double scheme comprising of the undermentioned stairss:

Constitution of Sales-offices: The first-phase would consist of proving the abroad markets by deriving a targeted market portion through puting up Sales-offices.

Constitution of Manufacturing-plant: The second-phase, depending on the success of the first 1, would dwell of a long-run program of puting up of production installations in the abroad markets to guarantee local sourcing benefits.

An in-depth analysis of each and every state in the universe, based on the 5-D Cultural Model proposed by Geert Hofstede would be carried out to zero-down at the most suited picks of Abroad Market finishs.

Question 2

Use the Hofstede theoretical account to document your findings for possible combinations of states for the location of the offices. Your notes should include treatment of the place state ‘s ( USA ) relative place on the Hofstede graduated tables compared to other states.

Hofstede 5-D Model

Geert Hofstede, a Dutch organisational sociologist proposed a five dimensional theoretical account to assistance in analyzing the correlativity between National Culture and Organizational Culture. Every major state has been scored on each of the five dimensions comprising of Power Distance Index ( PDI ) , Individualism ( IDV ) , Masculinity ( MAS ) , Uncertainty Avoidance Index ( UAI ) and Long-run Orientation ( LTO ) . Each dimension is a scale with two extremes which could b interpreted subjectively in the context of a specific industry, in this instance Tea induatry.

Analysis of Home state ( USA ) w.r.t other states of the World on Hofstede 5-D Model

Below is the table saying Hofstede Cultural Dimensions for 69 countries/regions of the universe:

State

PDI

IDV

Ma

UAI

LTO

Arab World

80

38

52

68

A

Argentina

49

46

56

86

A

Australia

36

90

61

51

31

Oesterreichs

11

55

79

70

A

Oesterreichs

11

55

79

70

A

Bangladesh

80

20

55

60

40

Belgique

65

75

54

94

A

Brazil

69

38

49

76

65

Bulgaria

70

30

40

85

A

Canada

39

80

52

48

23

Chile

63

23

28

86

A

China

80

20

66

30

118

Colombia

67

13

64

80

A

Costa Rica

35

15

21

86

A

Czech Republic

57

58

57

74

13

Danmark

18

74

16

23

A

East Africa

64

27

41

52

25

Ecuador

78

8

63

67

A

El Salvador

66

19

40

94

A

Esthonia

40

60

30

60

A

Suomi

33

63

26

59

A

France

68

71

43

86

A

Germany

35

67

66

65

31

Greece

60

35

57

112

A

Guatemala

95

6

37

101

A

Hong Kong

68

25

57

29

96

Hungary

46

80

88

82

50

India

77

48

56

40

61

Dutch east indies

78

14

46

48

A

Persia

58

41

43

59

A

Irish republic

28

70

68

35

A

Israel

13

54

47

81

A

Italy

50

76

70

75

A

Jamaica

45

39

68

13

A

Japan

54

46

95

92

80

Luxemburg

40

60

50

70

A

Malaya

104

26

50

36

A

Malta

56

59

47

96

A

Mexico

81

30

69

82

A

Maroc

70

46

53

68

A

Nederlands

38

80

14

53

44

New Zealand

22

79

58

49

30

Norway

31

69

8

50

20

Pakistan

55

14

50

70

0

Panama

95

11

44

86

A

Peru

64

16

42

87

A

Philippines

94

32

64

44

19

Poland

68

60

64

93

32

Portuguese republic

63

27

31

104

A

Roumania

90

30

42

90

A

Soviet union

93

39

36

95

A

Singapore

74

20

48

8

48

Slovak republic

104

52

110

51

38

South Africa

49

65

63

49

A

South Korea

60

18

39

85

75

Spain

57

51

42

86

A

Surinam

85

47

37

92

A

Sverige

31

71

5

29

33

Switzerland

34

68

70

58

A

Taiwan

58

17

45

69

87

Siam

64

20

34

64

56

Trinidad

47

16

58

55

A

Turkey

66

37

45

85

A

United Kingdom

35

89

66

35

25

USA

40

91

62

46

29

Uruguay

61

36

38

100

A

Venezuela

81

12

73

76

A

Vietnam

70

20

40

30

80

West Africa

77

20

46

54

16

Global Average

55

43

50

64

45

The last column indicates the ‘World Average ‘ for each of the five dimensions.

A comparing of USA with the World-Averages would bespeak the comparative cultural cloth of USA in the planetary context.

Index of colour-coding in tabular arraies:

Coloring material

Deviation from USA

A

20 %

A

10 %

Figures in brackets ( … , … ) indicate USA mark and World-Average mark severally.

High Ranking Dimensions

IDV ( Individuality ) : It signifies the grade to which an person is integrated in a group. USA has the highest IDV dimension in the universe, about double the planetary norm at 91 points. This points out towards a slackly held society with weak ties between persons. The public is mostly self reliant and household boundaries do n’t widen beyond the immediate members.

Following is the tabular array picturing the states with IDV within 20 % of divergence from the USA mark:

IDV ( 91, 43 )

United States

Australia

United Kingdom

Canada

Nederlands

Hungary

New Zealand

Italy

Belgique

Danmark

MAS ( Masculinity ) : The following dimension with a high mark is Masculinity which indicates a society disposed more towards the assertive, aggressive and materially inclined traits as opposed to the lovingness and softer ( feminine ) traits. A high mark of 62 as compared to the universe norm of 50 indicated a male dominant state with the female public consequentially being transformed into a more aggressive and competitory strain. The USA society displays a high grade of displacement from females into male function theoretical accounts off from their traditional female functions.

Following is the tabular array picturing the states with MAS within 20 % of divergence from the USA mark:

MAS ( 62, 50 )

Venezuela

Italy

Switzerland

Mexico

Irish republic

Jamaica

United Kingdom

Germany

China

Poland

Philippines

Colombia

South Africa

Ecuador

United States

Australia

New Zealand

Trinidad

Czech Republic

Greece

Hong Kong

India

Argentina

Bangladesh

Belgique

Maroc

Canada

Arab World

Luxemburg

Low Ranking Dimensions:

PDI ( Power Distance Index ) : A low mark of 40 as compared to the planetary norm of 50 indicates a greater equality between the genders. The society endorses a low degree of inequality between the genders reenforcing a more stable and cohesive societal construction.

Following is the tabular array picturing the states with PDI within 20 % of divergence from the USA mark:

PDI ( 40, 55 )

Suomi

Switzerland

United Kingdom

Germany

Costa Rica

Australia

Nederlands

Canada

United States

Luxemburg

Esthonia

Jamaica

Hungary

Trinidad

UAI ( Uncertainty Avoidance Index ) and LTO ( Long-term Orientation ) : Low tonss in these two dimensions, about half the planetary norm signifies a society with higher degrees of tolerance for thoughts, beliefs and doggedness driven orientation towards short-run chances. The society has fewer and less rigorous regulations and ordinances and is endulges in grasp of other civilizations.

Following are the tabular arraies picturing the states with UAI and LTO within 20 % of divergence from the USA mark:

UAI ( 46, 64 )

LTO ( 29,45 )

United Kingdom

35

Canada

Irish republic

35

United Kingdom

Malaya

36

East Africa

India

40

United States

Philippines

44

New Zealand

United States

46

Germany

Canada

48

Australia

Dutch east indies

48

Poland

New Zealand

49

Sverige

South Africa

49

Norway

50

Australia

51

Slovak republic

51

East Africa

52

Nederlands

53

West Africa

54

Trinidad

55

Question 3

Develop a set of specific recommendations for Azure Tea Co. on the two states where they should turn up their new international offices. In your recommendations, include the preliminary informations that you gathered in the old measure that supports your recommendations. State what dimensions of the Hofstede theoretical account you consider most of import for Azure Tea Co. to see as a US Tea company and for the industry that they represent.

Correlation between Hofstede Dimensions and the Problem Statement:

The five Hofstede dimensions can be grouped under the undermentioned tree sub-headings when combined with the position of the Problem statement ( context of Home state, i.e. , USA ) of Phase 1 ( Est. of Gross saless Offices ) and Phase 2 ( Est. of Manufacturing workss )

More-Important Dimensions

Less-Important Dimensions

Low-key Corporate Manner:

It is declarative of a comparatively level organisational construction with lower PDI and UAI mark. The latter contributes to a freer working environment with lesser ordinances regulating the desired result and consequences as the acceptableness degrees of Uncertainty allow freedom of thoughts, beliefs and ideas.

Local public ‘s disposition towards ‘Healthy ‘ Organic tea

A high IDV mark indicated a higher grade of Individualism in the society which may interpret into a favorable Consumer DMP ( Decision Making Process ) . A slackly held society constitutes of households with smaller countries of influence widening to their immediate household members, ensuing in a more independent manner of life. Therefore, it would be easier for these households to switch their pick of Tea from the conventional/presently-used assortments to the Azure Tea Company ‘s offering of ‘Healthy ‘ Organic Tea.

Smooth Organizational Functioning

MAS and LTO are the lesser of import dimensions with mention to the Tea industry scenario. However, in instance of the mark Overseas-Markets, they must be similar to the 1s of USA ( low sores ) to guarantee a smoother organisational operation by extenuating the cultural differences.

MAS importance in the Phase 2 of acquisition: In instance, Azure decides to further progress to constitution of a fabrication installation in the abroad markets, Masculinity could turn out to be a important factor excessively as Womans are the dominant work force in the Global Tea Industry. Thus a higher grade of fight and aggressive attitude in the fairer sex would turn out to be an plus for a tea company in the context of constitution of an efficient Production unit.

Scoring Form:

Following is the hiting algorithm followed to rank the states in order to zero-down on the most-suitable location of the Overseas-Market.

Coloring material

Deviation from USA

Mark

More-Important Dimensions ( PDI, UAI, IDV )

Less-Important Dimensions ( MAS, LTO )

A

20 %

1 Point

0.5 Point

A

10 %

2 Points

1 Ponit

Negative Impact Correction:

In instance, the state ‘s mark in any of the dimension is deviated by more than 20 % of the USA mark value in that peculiar dimension, following rectification is applied:

Deviation between 20 % and 50 % of the USA mark: Deduct 1 point ( PDI, UAI, IDV ) and 0.5 point ( MAS, LTO )

Deviation over 50 % of the USA mark: Deduct 2 points ( PDI, UAI, IDV ) and 1 point ( MAS, LTO )

Net Score = Score – Negative Impact Correction

Global Scoring Chart:

States

Mark

Negative Impact Correction

Internet Mark

Australia

10.5

0

10.5

United Kingdom

6

0

6

Canada

5.5

0

5.5

New Zealand

5

-1

4

Germany

5

-2

3

Poland

4

A

A

Nederlands

3.5

A

A

Trinidad

3.5

A

A

India

3

A

A

Philippines

3

A

A

South Africa

3

A

A

Jamaica

3

A

A

Luxemburg

3

A

A

Argentina

2

A

A

Belgique

2

A

A

China

2

A

A

Colombia

2

A

A

Czech Republic

2

A

A

Ecuador

2

A

A

Esthonia

2

A

A

Greece

2

A

A

Hong Kong

2

A

A

Hungary

2

A

A

Italy

2

A

A

Switzerland

2

A

A

East Africa

1

A

A

Dutch east indies

1

A

A

Norway

1

A

A

Slovak republic

1

A

A

Arab World

1

A

A

Bangladesh

1

A

A

Costa Rica

1

A

A

Danmark

1

A

A

Suomi

1

A

A

Mexico

1

A

A

Maroc

1

A

A

Sverige

1

A

A

Venezuela

1

A

A

Malaya

0.5

A

A

West Africa

0.5

A

A

Irish republic

0.5

A

A

Note:

States below the Mark of 0.5 have been summarily rejected from the tabular array.

Negative Impact Correction computation merely performed for the top 5 states.

Conclusion / Recommendations:

As per the deliberate consequences depicted in the above, the two recommend states to be considered in order to spread out in the Overseas-Markets for Azure Tea Company would be:

Australia

United Kingdom

Besides, the per capita Tea ingestion in Australia and United Kingdom is among the Top 10 in the universe as per the tabular array below.

Ranka†“

Countrya†“

Tea consumptiona†“

1

hypertext transfer protocol: //upload.wikimedia.org/wikipedia/commons/thumb/b/b4/Flag_of_Turkey.svg/22px-Flag_of_Turkey.svg.pngA Turkey

2.1A kilogram ( 74 oz )

2

hypertext transfer protocol: //upload.wikimedia.org/wikipedia/commons/thumb/a/ae/Flag_of_the_United_Kingdom.svg/22px-Flag_of_the_United_Kingdom.svg.pngA United Kingdom

2.0A kilogram ( 71 oz )

2

hypertext transfer protocol: //upload.wikimedia.org/wikipedia/commons/thumb/c/ca/Flag_of_Iran.svg/22px-Flag_of_Iran.svg.pngA Iran

2.0A kilogram ( 71 oz )

4

hypertext transfer protocol: //upload.wikimedia.org/wikipedia/commons/thumb/4/45/Flag_of_Ireland.svg/22px-Flag_of_Ireland.svg.pngA Ireland

1.4A kilogram ( 49 oz )

5

hypertext transfer protocol: //upload.wikimedia.org/wikipedia/commons/thumb/2/2c/Flag_of_Morocco.svg/22px-Flag_of_Morocco.svg.pngA Maroc

1.2A kilogram ( 42 oz )

6

hypertext transfer protocol: //upload.wikimedia.org/wikipedia/commons/thumb/f/fe/Flag_of_Egypt.svg/22px-Flag_of_Egypt.svg.pngA Egypt

1.1A kilogram ( 39 oz )

7

hypertext transfer protocol: //upload.wikimedia.org/wikipedia/commons/thumb/3/3e/Flag_of_New_Zealand.svg/22px-Flag_of_New_Zealand.svg.pngA New Zealand

1A kilogram ( 35 oz )

7

hypertext transfer protocol: //upload.wikimedia.org/wikipedia/commons/thumb/1/12/Flag_of_Poland.svg/22px-Flag_of_Poland.svg.pngA Poland

1A kilogram ( 35 oz )

9

hypertext transfer protocol: //upload.wikimedia.org/wikipedia/commons/thumb/9/9e/Flag_of_Japan.svg/22px-Flag_of_Japan.svg.pngA Japan

0.9A kilogram ( 32 oz )

10

hypertext transfer protocol: //upload.wikimedia.org/wikipedia/commons/thumb/2/20/Flag_of_the_Netherlands.svg/22px-Flag_of_the_Netherlands.svg.pngA Nederlands

0.8A kilogram ( 28 oz )

10

hypertext transfer protocol: //upload.wikimedia.org/wikipedia/commons/thumb/b/b9/Flag_of_Australia.svg/22px-Flag_of_Australia.svg.pngA Australia

0.8A kilogram ( 28 oz )

Therefore Azure Tea Company should take Australia and UK for enlargement in the Overseas Tea Markets. Relative comparings with USA:

hypertext transfer protocol: //www.geert-hofstede.com/graphs/5dgraph.php? c1=United+States & A ; pdi1=40 & A ; idv1=91 & A ; mas1=62 & A ; uai1=46 & A ; ltp1=29 & A ; c2=Australia & A ; pdi2=36 & A ; idv2=90 & A ; mas2=61 & A ; uai2=51 & A ; ltp2=31

hypertext transfer protocol: //www.geert-hofstede.com/graphs/5dgraph.php? c1=United+States & A ; pdi1=40 & A ; idv1=91 & A ; mas1=62 & A ; uai1=46 & A ; ltp1=29 & A ; c2=United+Kingdom & A ; pdi2=35 & A ; idv2=89 & A ; mas2=66 & A ; uai2=35 & A ; ltp2=25