Using Hofstede’s four cultural dimensions as a point of reference, what are some of the main cultural differences between the United States and France?
An in-depth understanding of culture is crucial to the success of international business. The Hofstede cultural dimensions can help us understand differences between the two countries. The first cultural dimension is power distance that shows attitudes of cultures toward power inequalities. The U.S has a low power distance because their culture emphasizes equality. The French have a high power distance which is why there was an outcry when an American was appointed at the helm of the company. The second dimension, uncertainty avoidance, expresses the society’s tolerance to uncertainty (Bidgoli, 2010, p. 698). The French have a low tolerance for uncertainty which explains the low turnout at Euro Disneyland opening (Luthans & Doh, 2015, p. 270). Americans are more accepting of new ideas. The third dimension, individualism, addresses the level of interdependence. While both countries rank high in individualism, Americans have a higher degree of individualism than the French. The last dimension is masculinity which explains the levels to which people are driven by success, achievement, and competition (Bidgoli, 2010, p. 698). The U.S is a masculine culture that is oriented toward success especially monetary success. The French are a feminine society oriented toward quality of life rather than power and success.
In managing its Euro Disneyland operations, what are three mistakes that the company made? Explain.
The first mistake at Euro Disneyland was a lapse in planning. For example, the company failed to preempt traffic congestion on their opening day hence people choose not to visit. The company should have anticipated a large turnout and liaised with relevant authorities to ensure smooth flow of traffic (Luthans & Doh, 2015, p. 270). Failure to plan for this deterred thousands of potential visitors which is why the projected numbers of visitors for the first day was not reached.
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Second, the company failed to provide their employee with appropriate working conditions which resulted in thousands of employees quitting their jobs when the company was just beginning (Luthans & Doh, 2015, p. 272). The company tried to impose inappropriate demands on employees. Demanding that employees dress a certain manner could be seen as infringing on personal liberty resulting in dissatisfaction. Additionally, demanding that employees must smile when dealing with customers was demanding too much from employees. The company ought to have engaged employees when making such policies to ensure they were on board to minimize resistance.
The third mistake was overlooking the French culture in designing operations. The company’s decision not to serve alcoholic drinks shows cultural incompetence. The French like to have wine with their meals hence the decision not to offer such was ill-informed. It shows that the company did not conduct comprehensive market research. Additionally, Disney failed to ensure that its spaces provided French customers with adequate personal space (Luthans & Doh, 2015, p. 270). The French do not like tight, congested spaces hence the company expecting them to queue was culturally misinformed.
Walmart Global Strategies
What was Walmart’s early global expansion strategy? Why did it choose to first enter Mexico and Canada rather than expand into Europe and Asia?
When Walmart decided to expand globally, the ideas was to open huge retail stores offering low-cost products. The company hoped to export this model globally as it had succeeded in the U.S (Luthans & Doh, 2015, p. 279). The company began a sequenced market entry approach because it did not have the monetary and managerial resources required to enter various markets simultaneously. Walmart concentrated on Canada and Mexico because they were close to the U.S and seemed to be easy entry destinations. Additionally, Mexico had a large population translating to a large target market. The Asian market was unattractive at this point because it was logistically, geographically, and culturally distant hence would require vast managerial and financial resources (Luthans & Doh, 2015, p. 280). Beginning internationalization in Asia would not be economically feasible because the company lacked the finances required to set up shop in Asia. The European market was unattractive as it was mature and fiercely competitive. It would have been easy for competitors to retaliate against a new entrant hence discouraging. Retail giants in Europe were ready to come together to ensure they gained a competitive edge over Walmart. Furthermore, Walmart’s competitors in Europe had a strong and loyal customer base that would have made it difficult for Walmart amass a considerable market share.
How would you characterize Walmart’s response to pressure for greater ethics and social responsibilities in its expansion strategy and supply chain? Are its responses appropriate and adequate?
Walmart’s response to social pressure saw the company improve its impact on the environment, community, and employee. The pressure made the company sensitive to social and political environments they operate. Ultimately, the company was able to develop and align its corporate strategy to address these issues. Ethics and social responsibility have made the company realize improved performance by taking steps to win the support of the public. The company’s response to the pressure is appropriate as Walmart is today in the forefront of championing for workers safety within and outside the United States (Luthans & Doh, 2015, p.286). Walmart is actively involved in in the affairs of its multiple suppliers to ensure that they comply with safety regulations. The company is doing this to avoid a scenario where the company is accused of being unethical due to the actions of its supplier. The company has invested millions to fund initiatives directed at protecting employees from poor working conditions.
