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Imagine that you are the HR Director for a manufacturing company headquartered in the United States. The company’s executive team is considering expanding operations to South Korea. You recognize there are cultural differences and the need to consider any labor union differences. You do not have unionized employees in the U.S.
Review cultural differences between the U.S. and South Korea using Hofstede’s work. Summarize what you learned about the two countries. What recommendations would you make regarding culture and union implications as the company considers expansion?
The cultural comparison of the two countries i.e. the USA and South Korea is given as below=
POWER DISTANCE= If we look at the two countries, South Korea is a hierarchical society in comparison to the USA and it indicates that the people are more acceptable to the difference among the society members and the instructions given by the boss is accepted by the juniors without question.
INDIVIDUALISM= South Korea is a more collectivistic society on the other +hand, the USA is a more individualistic society. The decisions made in South Korea are based on mutual consent and collective in nature while in the USA, the decisions are more dependent on the individual’s preferences
MASCULINITY= South Korea is a Feminine society and thus the members of this country follow the principle of “working to live” and the focus remains on developing consensus, equality, and quality of life, and compromise and negotiation are used to resolve the conflicts.
UNCERTAINTY AVOIDANCE= South Korea is a high Uncertainty Avoidance than the USA and it indicates that the country has a strict code of conduct to be followed and they do not accept any unorthodox behavior.
LONG TERM ORIENTATION= The comparison of the two countries indicates that in the case of South Korea, it is the most pragmatic, long-term focused society in the world while the USA is the short term oriented country
INDULGENCE= South Korea has the nature of Restraint and thus it has cynicism and pessimism and they avoid leisure time
Recommendation= As we look at the above comparison of the two countries, it is quite evident that there is a huge variation in the cultural orientation of the two nations and if the company from the USA is looking to expand its operations in South Korea, it has to change a lot to accommodate the local culture. Thus, I would advise the management to first analyze the local culture, developed those competencies among the employees, and then expand.
Imagine that you are the marketing manager for a U.S. manufacturer of disposable diapers. Your firm is considering entering the Brazilian market. Your CEO believes the advertising message that has been effective in the United States will suffice in Brazil. Outline some potential objections to this. How would you have to tweak your advertising message to cater to the local culture? Your CEO also believes that the pricing decisions in Brazil can be delegated to the local managers. Why might she be wrong? The CEO continues to believe that within 20 years, we will see the emergence of enormous global markets for standardized customer products. Do you agree with this statement? Justify your answer.
1.Advertising should always be done keeping in mind the target market. The Brazilian market has totally different ethnicity, race,culture, likes, dislikes, preferences, climate, mindsets as compares to the US market. they might not like what US market would like so there should be a diff advertising plan for brazil
.Pricing should be centralized because the local employee would not be able to adjudge the profitability of the company while deciding on the price. The management should confirm the paying capacity of the brazilian market from the local employees and take it into consideration and then decide the price.
With the increase in consumer awareness due to the advent of internet and social media, companies are trying to customize their products as per the customer requirements. They have been investing in data analytics to understand consumer buying behaviors and trends and design the products accordingly. Customers also receive notifications and emails on recommendations of products.
But slowly, the trend has been changing to standardization of customization wherein companies strive to customize the products but it will lead to a standardization where large number of customers will look forward to buy the same product.
With increase in globalization and international trade, the products which were earlier restricted to a specific market or country are now available in other countries. Firms that are committed to Global standardization theory view the world as a single entity rather than as a mix of various cultures having different preferences. The basic idea of the product and the marketing remains the same with differences in the product parameters viz. price, promotion etc.
Firms are working on providing products with optimum features and parameters to deem those fit globally. The ideal fit should be a high proportion of globalization with a little localization with respect to the marketing mix.
Imagine you are working for Kitchen Magic, an appliance manufacturer that produces dishwashers. A competitor introduces a new dishwasher that uses sound waves not only to clean even the worst burned-on food but also to sterilize dishes and silverware. You need to develop a similar offering fast, or your company will lose market share. Write an e-mail to management outlining the problem and explaining your rationale for recommending use of a cross-functional team to respond quickly.
I am writing this mail regarding the latest trends in our space of dishwashers. I have been monitoring the trends and technologies being utilized by our competitors to increase their market share and the one of the most impressive one which I think will be a game changer in this space is the one where our competitor XYZ is using sound waves to clean even the worst burned-on food. Its a revolutionary design as in the recent years no one has used such an advanced technology for a dishwasher.
I would like to bring your attention to the fact that our competitor is selling this revolutionary design in almost the same price band as we are selling our dishwashers and this might eat up out market share in no time. I would like you to call out all teams meeting where we can come out with a cross-functional team to brainstorm and come up with a new design where we can offer something new to our customers and retain the market share. Cross functional teams will be helpful in a way that they will be bringing different expertise to the table which will help Kitchen Magic to look into it from different perspectives. We need to include front end people i.e. sales team and even our manufacturing shop floor guys to help us with the feasibility study of this design. Let me know when can we discuss more on this.