Cross-cultural management is one of the method of management to embrace the native culture. Cross-cultural management in international business seeks to understand the countrywide cultures influence management practices. It recognizes differences and similarities in culture in several practices of management and organizational context (Stahl & Tung, 2015). Cross-cultural management is an important aspect that enhances effectiveness in global management. People behaviors, attitude, and values are formed through the culture they follow, which will affect managerial decisions while conducting an operation or expanding organization in the international market. The purpose of cross-cultural management is to create feasible structures of organization and mechanism of management in several forms of cultural environment (Bird & Mendenhall, 2016).
For this research, the target country selected is Pakistan. In this report, utilizing Hofstede’s dimensions of culture, the differences between Pakistan and Malaysia culture will be elaborated. For which understanding of Hofstede’s Dimensions of culture will be included. Moreover, the comparison will be based on qualitative and quantitative factors. The Malaysian organization that is, Marrybrown, need to expand their business to Pakistan, for that the product localizations is required by the companies to fit into the market of Pakistan will be discussed in this report.
Hofstede’s Dimensions of culture
Geert Hofstede propounded the framework that is Hofstede’s cultural dimension theory for cross-cultural communication. It explains the impact of various cultures of society over the values of its stakeholders or members. In addition, the way these values are related to the behavior and use structure derived through analyzing the structure. Six dimensions are there in this model, which distinguish independent preferences from one country to another. Therefore this model can be the base for comparison of the difference in cultures of two countries (Mazanec, et al., 2015).
Six models of Hofstede’s Dimensions of culture and cultural difference
Both quantitative and qualitative comparison between Malaysia and Pakistan is done based on the following dimensions:
Power distance index
This dimension articulates the point to which the lower powerful fellows of a society assent and presume that power is disseminated unevenly. The major problem is how a society handles disparities among individuals (Brass, 2017).
Malaysia
On this aspect or dimension, Malaysia score 100 that are very high, which reflects the society that accepts the hierarchal order, where not everyone needs any further justification (Hofstede-insights, 2018).
Pakistan
The intermediate score for this dimension is 55, which means a clear preference cannot be determined for Pakistan (Hofstede-insights, 2018).
Masculinity versus femininity
This component is related to “tough v/s tender,” in this masculinity represents a preference of society in heroism, achievement, material success rewards, and assertiveness. While, femininity part in this dimension reflects the preference for modesty, cooperation, quality of life, and caring for the weak. It is a consensus-oriented society (Bakir & Rose, 2015).
Malaysia
This dimension of Malaysia is not determined because the score is 50, which is an equal preference for both the components (Hofstede-insights, 2018).
Pakistan
For this dimension also, it is difficult to determine the preference of individuals from Pakistan is Masculinity or femininity because the score is 50 on this dimension (Hofstede-insights, 2018).
Individualism versus collectivism
Here, individualism is considered as the preferences for the social framework of loosely knit, where people are expected to take their and their family care only. Whereas collectivism can be defined as individual preferences for the framework of tightly knit in a society, where people are expected to take care of other members in a group for exchange for unconditional loyalty. This dimension tells that people in society reflect themselves in terms of “we” or “I” (Triandis, 2017).
Malaysia
The score for this dimension is 26, which reflects it as a collectivistic society. Such society fosters close relationships, where all the individuals are ready to take responsibility for other members of the society (Hofstede-insights, 2018).
Pakistan
The score of Pakistan for this dimension is 14, which is very low. It indicates that Pakistan is a collectivist society. This means that a due importance is given to relationship and people are concern about the other members like family and friend. Moreover, employee-employer relations are taken in moral terms, and promotions and hiring decisions are taken into account in-group employees (Hofstede-insights, 2018).
Long-Term Orientation versus Short-Term Normative Orientation
Long-term considers the pragmatic approach while encouraging efforts and thrift in recent education for as to be ready for the future. While normative orientation considers short term, where the preference is given to maintaining time-honored norms and traditions and considering societal variations with suspicion (Minton & Kahle, 2018).
Malaysia
The score is low that is 41, which reflects that Malaysia’s culture is normative. The individuals have a strong concern while the absolute truth is established; their thinking is more of normative (Hofstede-insights, 2018).
Pakistan
Since the score is 50 for this dimension, telling the preference culture of the society is not possible (Hofstede-insights, 2018).
Uncertainty avoidance index
This dimension reflects the extent to which individuals of society sense uncomfortable with ambiguity and uncertainty. The fundamental problem consists of this dimension is the way society deals that the future is uncertain and unknown and decide to whether lit the future happen or try to control the future (Schmitz & Weber, 2014).
Malaysia
The score of Malaysia on this dimension is 36 and therefore has less preference for avoiding uncertainty and the societies with low UAI believe that the rule must be imposed to the extent of necessity and in case they are ambiguous, they must be changed or abolished. For such a society, innovation is not considered as a threat (Hofstede-insights, 2018).
Pakistan
The score for this dimension is 70 of Pakistan, which is very high as compared to that of Malaysia that indicates high preference id given by people for avoiding uncertainty. It indicates that rigid codes of behavior and belief and are not able to tolerate unorthodox ideas and behavior. In such cultures, the emotional need for regulations and rules, urge for hard work and be busy, time is money, punctuality and precision are norms, security is a significant element, but innovation can be restricted (Hofstede-insights, 2018).
Indulgence versus Restraint
Indulgence reflects a society, which allows unrestricted gratification of natural and basic human drives related to having fun and enjoying life. While, restraint reflects the society that overwhelms gratification of desires, and controls it, by creating strict social norms (Sun, et al., 2018)
Malaysia
The score is high that is 57 which reflects that the culture is an indulgence of Malaysia. It indicates the willingness of people to realize their desires and impulses with references to having fun and enjoying life. They carry an optimistic attitude and works with positivity and optimism. Moreover, spend more on leisure time and expend money, as they desire (Hofstede-insights, 2018).
Pakistan
It is highly restrained society because the score for this dimension is zero, which is extremely low. The society has a tendency to pessimism and cynicism. In addition, such societies do not put much focus on leisure time and gratification of wants is controlled. The perception of these individuals is that their action is to be restrained through social norms (Hofstede-insights, 2018)
Comparative data of Malaysia and Pakistan based on Hofstede’s culture theories dimensions:
It is a Malaysian based fast food chain, initiated in 1981. It was Malaysia’s first fast-food chain, which franchises with 138 or more restaurants in Malaysia. The products served by the restaurant includes burgers, fried chicken, desserts, finger food, and beverages, rice products, porridge, and noodles (marrybrown, 2018). The company to extend its organization to Pakistan needs to consider the various cultural difference of the country from the home country.
Especially, food culture of the country is to be considered and according to that, the products have to be introduced to offer in a restrained society of Pakistan. The non-veg options must be increased to capture the fast food market in Pakistan. As discussed above, Pakistan is highly restrained country; they are not ready to spend leisure time or money as they wish. Therefore, a product worth spending must be offered to the residents of Pakistan. Moreover, the price penetration strategy must be followed. The mode of entry best suited for Marrybrown would be “Franchising” (marrybrown, 2018).
Products
Products are the most important aspect of the marketing mix because it is the physical goods that are to be offered to the customer. If it is not good or as per expectation, no other strategy can make an organization successful. For products to fit into the market of Pakistan, it is important to make some innovation and add more products to its menu card.
i.Fried chicken and Burgers
To keep footprints in the market, an organization can offer fried chicken with separately sprinkled masala powder. Burgers variety can include both veg and non-veg options, among which non-veg option must be many more according to the preferences. They can also include corn burgers, egg burger, and chicken nuggets (marrybrown, 2018). Chicken popper (like popcorns) can also be an innovative variety to offer. The most important aspect of the culture of Pakistani is not allowing pig meat in the country; they do not even prefer to take pig name casually. So most importantly, the cultural believes of people must not be hampered while offering products in the country.
ii. Biryani/ flavored rice
Various rice products are offered by the organization in Malaysia. It can be included in the menu in Pakistan but some innovation must be considered as per their local taste. The preferred form of rice in the country would be flavored rice, fried rice, or biryani. Moreover, the biryani must be offered with veg and non-veg ingredient options. Nevertheless, rice-based products need to be limited, because the country is not much fond of rice.
iii.Deserts
Due to the increase of global fast food chains in Pakistan, some changes in taste and preferences had occurred, especially among youth. The western desserts can be offered, like pastries, ice-creams, waffles, donuts. However, to target local people in their festivals, special dishes in deserts can be introduced. It can be a combination of traditional deserts of the country with a touch of western style. Like “falooda” is very much preferred in a variety of ice creams. “sevaiyan kheer” is one of the popular traditional sweet consumed on the festival of Eid (desiblitz, 2018). The sevaiyan flavor in other deserts can also be offered to attract local consumers.
Conclusion
The objective of the report was to study the cross-cultural management. Individual attitude, value, and behavior depend on culture, which is important to adapt in case, an organization wishes to go international. The Hofstede’s dimension theory is helpful in studying countrywide culture. It evaluates the influence of the culture of society over believes and values of its members. The six dimensions of Hofstede’s are the base for comparison of the culture of Malaysia and Pakistan, based on quantitative and qualitative aspect.
To conclude the comparison of the culture of this two country, power distance index of Malaysia is 100 while the low score of Pakistan that is 55, which indicates that Malaysia easily accepts the hierarchal order. When Masculinity versus femininity dimension is considered, both countries tend to be same with 50 scores. Uncertainty avoidance of Malaysia is low that is 36 with the complete contrast of 70 scores, that is very high of Pakistan. Indulgence versus Restraint dimension explains the highly restrained society of Pakistan with zero scores.
Marrybrown, a Malaysian based fast-food chain would like to expand its business in Pakistan. For this, the food culture of Pakistan is to be studied and the products need to be developed of innovating to fit into the local market of Pakistan. Three products that must be introduced in Pakistan market is fried chicken and burgers, biryani, and deserts. Among these products, the variety must be according to the preference of local customers, like instead of plain rice, flavored rice or veg and non-veg biryani should be offered. In deserts, the traditional dish with a fusion of western deserts can be offered.
References
Bakir, A. & Rose, G., 2015. A preliminary investigation of the reliability and validity of Hofstede’s cross cultural dimensions. In Proceedings of the 2000 Academy of Marketing Science (AMS) Annual Conference, p. 226.
Bird, A. & Mendenhall, M., 2016. From cross-cultural management to global leadership: Evolution and adaptation. Journal of World Business, 51(1), pp. 115-126.
Brass, D., 2017. Cross?border acquisitions and the asymmetric effect of power distance value difference on long?term post?acquisition performance. Strategic Management Journal, 38(4), p. 972.
desiblitz, 2018. 5 Traditional Desserts of Pakistan you Must Try.
Hofstede-insights, 2018. Country comparison.
marrybrown, 2018. Burgers.
marrybrown, 2018. MENU.
marrybrown, 2018. Requirements.
Mazanec, J., Crotts, J., Gursoy, D. & Lu, L., 2015. Homogeneity versus heterogeneity of cultural values: An item-response theoretical approach applying Hofstede’s cultural dimensions in a single nation. Tourism Management, Volume 48, p. 299.
Minton, E. & Kahle, L., 2018. The subjective norms of sustainable consumption: A cross-cultural exploration. Journal of Business Research, Volume 82, p. 400.
Schmitz, L. & Weber, W., 2014. Are hofstede’s dimensions valid? a test for measurement invariance of uncertainty avoidance. interculture journal: Online-Zeitschrift für interkulturelle Studien, 13(22), p. 11.
Stahl, G. & Tung, R., 2015. Towards a more balanced treatment of culture in international business studies: The need for positive cross-cultural scholarship. Journal of International Business Studies, 46(4), p. 391.
Sun, J., Yoo, S. & Park, J., 2018. Indulgence versus Restraint: The Moderating Role of Cultural Differences on the Relationship between Corporate Social Performance and Corporate Financial Performance. Journal of Global Marketing, p. 1.
Triandis, H., 2017. Generic individualism and collectivism. The Blackwell handbook of cross?cultural management, pp. 16-45.
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