Business culture
Part A
Culture is the way in which things are done. This applies in different fields and in many organizations even in business discipline. Therefore culture involves sharing of values, norms, beliefs and practices within an organization. Most of these organizations establish a culture that suites and is in line with the business goals that enables the business to be successful as well as competent. Different organizations have different cultures as different companies hold different beliefs and values. However, cultures change over time with the changes in the employees and the management and with the changes in the business environment and operations. The mode and style in which the business operates determine the way in which different employees in varying levels communicate with each other within the organization. Culture is an important element in business and it has its influences on the strategic direction of business. This therefore influences the management, decision making process and all the organization’s functions and operations (Bowen et al 2004). Business culture in particular is related to ethics, etiquette and conduct. Culture ensures that it incorporate the company’s values, visions, working mode, behaviors and beliefs. It also assists the company as it guides them on the way to respond to any exceptional service request. It is effective as it guides the employees in their day to day operations within the business even in the absence of the managers and the employer.
Once a business decides to globalize their operations by taking their business to the international level several changes in the business culture of the organization must change.
This is because each and every company has its different set of variables that differs with the offshore company’s culture and thus the company should ensure that they consider these changes before globalizing their operations. The understanding of the cultural differences is essential as it enhances the organization to understand what needs to be mapped so as to bridge the gap between the business entities that operates in multiple cultures (Ferraro et al 2015). This is important as it enhances the company to be able to establish market strategies that are grounded in the cultures of the target audience of that country. This will enable the business company to be able to develop and design advertisements that are culturally acceptable to the target audience and hence they are attracted. Understanding of these different cultures will enhance the company that is globalizing its operations to be able to create prosperous international relations. Thus it is important for international businesses to establish cross-cultural communication that enhances them to be able to have effective business dealings thus allowing the business to expand its operations globally (Ferraro et al 2015).
Geert Hofstede performed one of the main widespread researches on the way standards in the place of work are influenced by the culture. According to his definition, culture basically means the mutual mind programming that differentiates the members of one group of people with the other. His model on cultural differences was published in the year 1970s and from that time, the theory became an internationally recognized standard that is even used up to date so as to understand the cultural differences. In his research where he studied a sample of people who worked with the IBM in more than fifty nations, he was able to identify four divisions that could be used so as to differentiate one culture from the other. While analyzing his data of the cultural statistics, he realized that there were similar as well as different patterns that existed in the four dimensions (Hofstede 2011).
Power distance index is one of Hofstede’s dimensions and it refers to the extent in which inequality exists and is accepted by the people who have and lack power. A high power distance index score basically shows that a society accepts the uneven hierarchical distribution of authority and that these people understand their place in the organization system. On the other hand, a low score on the power distance index indicates that the control is shared and is widespread as the members of the community fails to accept the situations in which power is unequally distributed (Hofstede 2011). This dimension is applied in different countries for instance, in countries that have high power distance index such as Malaysia, the team members fail to initiate any action as they like to be guided and directed so as to complete an assignment. Hence if the supervisor or the one in the high rank fails to take charge of the assignment, the others in the lower rank may think that the task is not important.
Individual versus collectivism dimension refers to the power of the binds that people have formed with others in the society. A high rate of individualism versus collectivism shows that there is a weak relational connection among those who are not part of the central family and thus people take less responsibility for other people’s performance and outcomes. A collectivism community, the people are expected to be loyal to the group that they belong to and in exchange, the group will ensure that it protects the individual through defending their rights. Everyone in the large group of people is accountable for the performance and the outcome of the other members (Hofstede 2011).
Masculinity versus femininity dimension refers to the circulation of roles among the men and the women. In the masculine community, the tasks of the men and the women overlap less and the male gender is expected to conduct in an assertive way.
Money and achievement in this environs with high MAS is essential while the feeling of pride as well as that of strong ego is attributed to the status of the people (Soares et al 2007). Whereas in the feminine society, there are the high chances of overlapping of the male and female roles and modesty is viewed as a virtue. While greater importance is given to the good relationships with the managers and cooperation is used so as to enhance unity with one another in the working place. More focus in these low MAS is given on the quality of life for the people.
Uncertainty avoidance index dimension refers to the way in which the people can be able to cope well with anxiety. This is thus involved with the community’s tolerance to uncertainty and indistinctness. In communities which has high Uncertainty avoidance index, the people tries to make life as predictable and controllable as they can. Once they realize that they are unable to control their own lives they give up and stop trying (Hofstede 2011). However, those in low Uncertainty avoidance index are mostly relaxed, open and also inclusive. Hofstede therefore states that people in high Uncertainty avoidance index nations who are prepared to involve themselves in risky habits since this reduces ambiguities and thus they are able to avoid failure (Soares et al 2007).
Hofstede model leaves room for criticism since the averages that are given to that country do not relate to the individuals of that state. This is because not all individuals or locations with subcultures fit in the model. The data is not that accurate since he used some of the data collection methods such as the questionnaire which has its own drawbacks. The data is not updated as the years are changing and thus the data may be inaccurate since the culture changes over time (Soares et al 2007).
Universalism versus particularism Trompenaars’ dimension is involved with legal contracts and loose interpretations that offer low cost strategies with extending rules and discovery exceptions. Individualism versus collectivism is involved in the profit and marketing share strategies that introduces ideas and refines useful products. Neutral versus affective dimension deals with the extent in which the people express their emotions and the interplay that occurs between the reason and emotion in the human relations. Achievement versus ascription dimension refers to the key interest on the way personal status is assigned. Specific versus diffuse dimension deals with the way in which people perceive the picture of life and the extent of involvement in the relationships.
Trompenaars and Hofstede nature of dimensions are quite different from each other in terms of approach. Trompenaars dimensions uses cultures that are more similar to circles which have ideal arcs that are coupled together (Ahlstrom 2010). His aspects are perceived as models to learn with. However, Hofstede’s aspects are in linear structure where the way of doing things are positioned in a high or low or in in the middle positions. His work is viewed as one that has the perfect model. Therefore Trompenaars dimensions are more applicable than that of Hofstede since his work is regularly updated so as to reflect the changes that have been made in the modern business cultures. It is also more applicable since it offers an understanding of the operating dynamics in the emerging markets.
Part B
Burger fuel is a company in the New Zealand that has its operations in six countries inclusive of the fifty locations that are based in New Zealand. The first burger fuel organization was started in the year 1995 in Auckland and over the years it has developed and expanded its operations to all over the world in different countries. This company won the franchise export in 2012 in the New Zealand franchise awards since the company was viewed to be one of the companies whose operations were of high quality and they also produced gourmet products and they improved the company into a specialist exporter which sourced raw materials from New Zealand at any time (Lord et al 2014). The products that the company exports verses are extensive and they constantly ensure that they produce goods that are of high quality to all their customers. The company opened a new company in the Middle East in 2010 (Burger Arabian 2011).
They are involved in the selling of burgers that are made of chicken, beef, vegan, vegetables as well as gluten free. They also sell spud fries made of potato and also sell kumara fries, soft drinks, thick shakes and their own brand of ice creams. They focus on producing and offering their customers healthy menus and it is through this that they are able to be competent against their competitors. Their menu is unique and their operations focus on the wide selection of niche areas. Their menu also features a regular rotation of unique promotion burgers and promotion sides as well.
Customization remains to be the most critical issue in the fast food industry as this is a business structure that is used for competition in the industry. Menu modification is one of the strategies that the burger food company utilizes so as to remain in the business and to meet the needs of the customers with the changes in the consumers’ preferences. Price modification is another strategy that the company has utilized so as to allow many customers to be able to purchase their products. They make their products affordable by reducing the cost of their expenses and thus enabling them to offer the products at a price that is affordable to the customers but again profitable to the company. Production of highly quality products will lead to the company’s satisfaction and a new class of consumers who are willing to pay more for the products due to their unique brands and custom experience (Lok et al 2004).
The company should focus on customizing its brands, products, and services as per the promises of the company’s role to their customers. This offers the company an opportunity to secure a place for quick serve and high demand of goods and thus maximization of profit. The promotional modification is also essential for the company as it allows the company to create awareness to the public of their existence and of their quality operations that attract many potential customers into the business. The company has established a radio station for the companies advertising and informing platform (Burger Company 2012).
There is high competition in this industry and thus the company has to modify some of its cultures regularly so as to be able to compete with their competitors. Thus there is a growing demand for customization process in the company and it is through this process that the company is able to differentiate their products and brands. This enables the company to be customer-centric and thus they are able to deliver better services and deliver the products timely without increasing the cost of their products.
The company implements the uncertainty avoidance dimension where the managers have ideas on what kind of rules and practices are applicable, necessary and accepted in the varying cultures. They thus study uncertainty avoidance so as to be better prepared in their management within the international setting. Middle East culture has high uncertainty avoidance and thus burger food companies in this state usually perform well with more rules and regulations. Planning of the company in this culture requires proper planning so as to be able to avoid the risks and uncertainties as the company looks forward to reducing these risks to the minimum point and thus be able to proceed with the changes strategically. However, the New Zealand culture has a low uncertainty avoidance culture and thus they require more space and freedom and they are slow to the implementation of changes.
The key interest in this kind of culture is on entrepreneurship and business matters. Universalism cultures such as the one in New Zealand makes the company believe in the idea and practices that are applied in the company without modification. Thus the burger food company in New Zealand views one reality and focuses on the formal rules and the business meeting is characterized by the serious business attitude. However, in the Middle East culture, particularism is applied and the burger food company in this region believes in circumstances that dictate the way in which ideas should be implemented. Thus the management views reality as more personal and relationship, in this case, is given a higher priority.
In conclusion, customization is important as it allows the company to be able to improve their operations so as to perform well. The modification is part of the company’s strategy that aims at offering the company an opportunity to succeed in their operations. With the right modification, the company is able to realize higher demands, ratings and thus more profits. This also allows the company to remain focused towards doing their best so as to be competent in their competitive environment. The understanding of the different cultures in the different countries that the company operates in allows the company to be able to customize their traditions so as to fit in the new cultures of those specific countries. Hence the culture that the company establishes in a country determines the success of the business and thus it is essential for the burger company to make considerations while updating and customizing their operations, promotion, price as well as culture. With the emergence of new companies in the same industry, the company needs to improve their operations so as to be able to compete with their competitors and also to be able to overcome them.
References
Ahlstrom, D., & Bruton, G. D. (2010). International management: Strategy and culture in the emerging world. Australia: South-Western Cengage Learning.
Bowen, D. E., & Ostroff, C. (2004). Understanding HRM–firm performance linkages: The role of the “strength” of the HRM system. Academy of management review, 29(2), 203-221.
Burger company launches radio station. (2012). NZ Business, 26(8), 5.
BurgerFuel's Arabian odyssey continues. (2011). NZ Business, 25(11), 5.
Ferraro, G., & Brody, E. K. (2015). Cultural Dimension of Global Business. Routledge.
Hofstede, G. (2011). Dimensionalizing cultures: The Hofstede model in context. Online readings in psychology and culture, 2(1), 8.
Lok, P., & Crawford, J. (2004). The effect of organisational culture and leadership style on job satisfaction and organisational commitment: A cross-national comparison. Journal of management development, 23(4), 321-338.
Lord, S. (2014). A milestone for New Zealand franchising. NZ Business, 28(3), 51.
Soares, A. M., Farhangmehr, M., & Shoham, A. (2007). Hofstede's dimensions of culture in international marketing studies. Journal of business research, 60(3), 277-284.
