International Business > QUESTIONS & ANSWERS > Kyla Erwin Case Analysis 1 (All)
Kyla Erwin Case Analysis 1Question 1: Part 1 The company, Hydrola, was increasingly exploring the possibilities of international expansion. The CEO’s expectations of countries that would be intere... sted abroad were European and American Markets but they were surprised that Africa, The Middle East, and Latin America were the leading countries that were interested due to the numerous challenges associated with emerging markets, especially for SMEs. Africa is industrializing fast because of the measures implemented by the government to develop the economy and because of China’s rising manufacturing costs. The demand for industrial equipment is high and the offers are still limited. They want to play a role notably in Africa because of all the historical links existing between France and French-speaking African countries. Question 1: Part 2 Morocco, Tunisia, and Senegal became the first international countries to work with the company because the networks developed locally and the strong growth potential in these regions. One concept that could have been used to see that there was strong potential growth in those regions is using Hofstede’s dimensions. The Hofstede model of national culture is one of the most comprehensive studies of how values in the workplace are influenced by culture. The model consists of six dimensions: Power Distance Index (PDI), Individualism Versus Collectivism (IDV), Masculinity versus Femininity (MAS), Uncertainty Avoidance Index (UAI), Long Term Orientation Versus Short Term Normative Orientation (LTO), and Indulgence Versus Restraint (IVR). These 6 dimensions are a collective influenced by culture which is the collective programming of the mind distinguishing the members of one group or category of people from others. National culture cannot be changed, but it should be understood and respected. Another tool that led those 3 countries to become the first international companies to work with Hydrola is high-context and low-context culture. These are ends of a continuum of how explicit the messages exchanged in a culture are and how important the context is in communication. [Show More]
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