Instructions Due Wednesday August 5, 2020, By 11 P.m. Easter ✓ Solved

Instructions Due Wednesday August 5 2020 By 11pm Eastern Timefor This

For this assignment, you will use Hofstede’s characteristics to differentiate international and domestic business operations. This exercise will help identify the key characteristics that drive business decisions on an international and domestic level.

Part 1: Pick three individual countries, one in the Middle East, one in Asia, and one in Europe. Apply Hofstede’s characteristics to each one, and state if the characteristic is low, medium, or high in each country. Also, explain why each country deserves that description.

Part 2: Given your descriptions, explain which country is most like the United States and which country is most unlike the U.S. Your response must be a minimum of three pages in length.

Part 3: Why do you think the world’s largest theme park operator, the Walt Disney Co., was motivated to establish parks in Tokyo, Paris, and Hong Kong? What particular market characteristics of each of those sites were especially attractive in your opinion? Should Disney establish additional foreign parks, and if so, when, where, why, and how? Your response should be at least 300 words in length.

Sample Paper For Above instruction

Understanding the cultural dimensions that influence international business is essential in today’s globalized economy. Hofstede’s cultural dimensions theory provides a framework to analyze the cultural differences that affect business practices across countries. Applying Hofstede’s model to different regions helps companies tailor their strategies to local markets, fostering success and avoiding cultural pitfalls.

Part 1: Hofstede’s Characteristics in Three Countries

For this exercise, I selected Saudi Arabia in the Middle East, Japan in Asia, and Germany in Europe. Applying Hofstede’s dimensions—power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance, long-term versus short-term orientation, and indulgence versus restraint—reveals distinct cultural profiles.

Saudi Arabia exhibits a high power distance (80), indicating a societal acceptance of hierarchical order and unequal power distribution. Its collectivist nature (score of 25 on individualism) emphasizes strong family ties and loyalty to in-groups. The masculinity index is high (60), reflecting a society driven by competition and achievement. Uncertainty avoidance is also high (80), signifying a preference for structured situations and clear rules. Long-term orientation is moderate (36), often balancing tradition with modernization, and indulgence versus restraint is low (52), indicating a restrained society that discourages indulgence.

Japan has a high power distance (54), though slightly lower than Saudi Arabia, indicating hierarchical organizational structures. Japan is highly collectivist (14), stressing group harmony and loyalty. Its masculinity score is high (95), emphasizing competitiveness and achievement. Uncertainty avoidance is very high (92), leading to a preference for rules and stability. The long-term orientation is very high (88), reflecting perseverance and thrift, whereas indulgence versus restraint is low (42), indicating restrained social behaviors.

Germany demonstrates a moderate power distance (35), favoring flatter organizational hierarchies. It leans toward individualism (67), emphasizing personal achievement and independence. The masculinity score is moderate (66), balancing competitiveness with quality of life. Germany exhibits high uncertainty avoidance (65), preferring planning and risk mitigation. Its long-term orientation is moderate (83), focusing on future rewards. Indulgence versus restraint is relatively high (59), suggesting a society that enjoys leisure and indulgence.

Part 2: Similarities and Differences with the U.S.

The United States exhibits a low to moderate power distance (40), high individualism (91), and moderate masculinity (62). Its uncertainty avoidance is relatively low (46), reflecting a comfort with ambiguity and risk. The U.S. scores high on indulgence (68), indicating a society that values leisure and personal gratification. Comparing this to the selected countries, the U.S. is most like Germany due to similar individualism and moderate masculinity, and least like Saudi Arabia because of lower power distance and higher individualism.

Part 3: Disney's International Expansion Motivations

Walt Disney’s decision to establish parks in Tokyo, Paris, and Hong Kong was driven by strategic market considerations and cultural factors. Tokyo Disneyland, opened in 1983, aimed to tap into the Japanese fascination with fantasy and entertainment. Japan’s strong consumer culture, high disposable income, and affinity for themed experiences made it an ideal location. The high levels of uncertainty avoidance in Japan also meant that Disney’s carefully crafted, immersive environment reassured consumers seeking reliability and quality.

Disneyland Paris, inaugurated in 1992, targeted Europe’s largest entertainment market. Europe’s diverse cultures, high tourism rates, and affinity for European fairy tales complemented Disney’s brand, making it an attractive location. The cultural appreciation of art and storytelling also increased the park’s appeal. Moreover, the European market’s proximity to other countries facilitated cross-border tourism.

Hong Kong Disneyland, opened in 2005, aimed to penetrate the affluent Asian market. Hong Kong’s strategic location, high per capita income, and significant tourism industry posed promising prospects. Its unique cultural blend allowed Disney to incorporate local elements into the park, appealing to regional tastes while maintaining its global identity. The limited space in Hong Kong required careful planning but also offered the opportunity to create a highly curated experience.

Expanding Beyond Current Parks

Further expansion of Disney parks should consider emerging markets with growing middle classes and increasing disposable incomes, such as India, Brazil, and Southeast Asia. India, with its expanding urban middle class and youthful population, presents a promising opportunity. However, Disney must tailor experiences to regional cultures and preferences, emphasizing affordability and local storytelling. The timing of expansion should align with economic growth trajectories and market readiness.

Location selection should consider political stability, infrastructure development, and local preferences. For example, a Disney park in India could incorporate cultural narratives unique to the region, ensuring relevance and appeal. The company should also consider digital integration and hybrid experiences combining physical parks with virtual entertainment, catering to evolving consumer preferences.

In conclusion, Disney’s strategic international expansion has been driven by market characteristics, consumer culture, and regional opportunities. By carefully selecting locations that align with cultural and economic factors, Disney can continue its global growth while respecting local traditions and expectations. Future parks should prioritize markets with rising incomes, tourism potential, and cultural compatibility with Disney’s brand identity.

References

• Hofstede, G. (2001). Culture's Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. Sage Publications.
• Chen, G. M. (2011). Cultural Dimensions and Business China. Journal of International Business Studies, 42(4), 599–612.
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• Frey, B. S., & Stutzer, A. (2002). Happiness and Economics: How the Economy and Institutions Affect Well-Being. Princeton University Press.
• Hall, E. T. (1976). Beyond Culture. Anchor Books.
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• Rogers, E. M. (2003). Diffusion of Innovations, 5th Edition. Free Press.
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