Hofstede Model Germany and Australia - Culture - Assessment Answer

Hofstede model Germany and Australia

Culture according to the Geert Hofstede can be referred to as the system of collectively held values. Expanding a business promoting UGG product in an entirely different country needs a proper cultural understanding underlying various parameter. This written piece aims in using Hofstede framework to investigate the cultural dimensions that may impact on your business in Germany in the process of expanding business from Australia.
Hofstede framework has been extensively used in international business to focus upon the country level cultural research using six cultural dimensions, i.e. power distance, masculinity, long-term orientation, indulgence, uncertainty avoidance and individualism. Exploring the Australian and German culture through the lens of the 6-D Model helps in reviewing the different deep driver of the cultures of both the countries that impacts business models (Beugelsdijk, S., Kostova, T. and Roth).

Fig Hofstede Insights for Germany and Australia
Source https//www.hofstede-insights.com/country-comparison/australia,germany/
Power distance can be characterised as the extent to which the less powerful members of organizations and institution within a country expect and accept that power is distributed unequally (Kirkman, Shapiro, Lu and McGurrin 2016). Australia (36) and Germany (35) both scores comparatively same on the dimension of power distance (Hofstede Insights 2019). The power distance index in Germany is marginally lower than Australia that significantly denotes that power is equally spread among all the societal levels that includes organizations, government and even families. Germany significantly has been observed supported by strong middle class and has highly decentralized powers. Direct and participative communication among the hierarchical levels helps in fostering cooperative interaction that facilitates more stable and cultural environment. German markets have been observed being an individualist society with the index score of 67 which reflects a strong belief of self-actualization (Hofstede Insights 2019). Organizational decision in this culture is based on the individual needs. The employer and the employees experience the direct communication where the attributes of loyalty are primarily focused on the basis of groups, in this case families. With a high score of 66, Germany has been characterised as a Masculine society (Hofstede Insights 2019). People are centric to develop self-esteem from whatever work they do and tends to reflect achievement through maintaining status. Low power distance, Masculinity, individualism has considerable impacts on business protocols (Preethinee et al. n.d.). However, Germany (65) scores much high than Australia (51) on the index of uncertainty avoidance (Hofstede Insights 2019). The high score index represents that Germany is more inclined towards incorporating deductive approaches in thinking and planning of a business venture. Germans tends to believe more on expertise and experimenting new ventures and less on following rules and are very much welcoming to the aspect of uncertainty. In business cultures, Germans are very well known to practice assertive rather than aggressive behaviour. Australia displays high emotional stability and extraversion and low on agreeableness and openness. Customer services tends to be inconsistent as seen by varied business adding up to an extra cost of training (Yang et al. 2016). Germany (83) is having a significantly high index of long-term orientation than Australia (21) (Hofstede Insights 2019). It suggests that Germany is a pragmatic country and believes on incorporating activities along with the varied situation, context and time. German markets display ability to adapt traditions according to the varying conditions. The low score of Germany (40) regarding the indulgence factor indicates the culture to be restrained and being pessimistic (Hofstede Insights 2019).
However, it can be concluded that in Germany experiences democratic management where equality and mutual respect are the prime stakeholders of a business structures helps in building and enhancing of a joint business venture promoting Australian quality product to benefit the customers. The low power distance suggests the market approach to encourage collaboration. A detailed analysis of the business before commitment takes place considering all the cultural parameters where it can be concluded that in Germany, employees do not question the managers authority and are very much loyal to the company and promotes growth opportunities.

References
Beugelsdijk, S., Kostova, T. and Roth, K. 2017. An overview of Hofstede-inspired country-level culture research in international business since 2006.Journal of International Business Studies,48(1), pp.3047.
Hofstede Insights. 2019. What about Germany https//www.hofstede-insights.com/country-comparison/australia,germany/
Kirkman, B.L., Shapiro, D.L., Lu, S. and McGurrin, D.P. 2016. Culture and teams.Current Opinion in Psychology,8, pp.137-142.
Preethinee, A., Airin, G., Kariem, S., Seishiro, U., and Katsutoshi, U. n.d. Country culture spotlight Germany. http//cms.iuj.ac.jp/gso/wp-content/uploads/2014/02/Germany-by-KABUTO.pdf
Yang, E., Burger, J., Peters, M., Cruz, B. and Steinberg, H. 2016. Customer Service Management amp Hofstedes Cultural Dimensions in Australia, Brazil, China, Germany, Japan, Norway, And The USA. InAllied Academies International Conference. Academy of Organizational Culture, Communications and Conflict. Proceedings(Vol. 21, No. 1, p. 62). Tustin, CA Jordan Whitney Enterprises, Inc.

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