Four types of corporate cultures. Level

Adaptability culture – a culture used by companies that operate in a quickly changing industry. Adaptability culture requires fast response and high-risk decision-making. Employees have autonomy to make decisions and act freely to meet customers’ needs.

Involvement culture – a culture that focuses on meeting the needs of employess in order to increase productivity. The organization may be characterized by caring and family-like atmosphere. Managers emphasize such values as cooperation, consideration of both employees and customers, and avoiding status differences.

Achievement culture – a culture that focuses on the achievement of results than on satisfaction of employees’’ needs. This culture is suitable to organization that are concerned with serving specific customers in the external environment but without the strong need for flexibility and rapid change. This is resulted-oriented culture that values competitiveness, aggressiveness, personal initiative, and willingness to work and hard to achieve results.

Consistency culture – a culture that focuses on rationality, discipline, and order of doing things while operating in a stable environment.

Adaptability and involvement cultures are very flexible, but achievement and consistency cultures are rigid, with many rules and regulations. Each of this cultures can be successful.

14. Strategies for entering international markets (outsourcing, exporting, …)

Outsourcing – an entry strategy in which a company creates manufacturing division in a foreign country with the purpose of using its chapter labor and raw materials.

Exporting – an entry strategy in which a company produces goods and services within the borders of its country but sells them abroad.

Licensing - an entry strategy in which a licensor sells technology, brand or trademark to a licensee to produce similar products in his country.

Franchising – a form of licensing in which a franchisor sells the right to the franchisee to produce and sell same products in his country.

Direct investing - an entry strategy in which a company is directly involved in managing its productive assets in a foreign country. There are three forms of direct investment:

Joint venture involves a strategic alliance or a program by two or more organizations

Acquisition of a foreign affiliate occurs when a company buys affiliate from another company in a foreign country.

Greenfield Venture occurs when a company builds a subsidiary from scratch in a foreign country.

15. Hofstede’s cultural dimensions Level 3

Hofstede analyzed and found clear patterns of similarity and difference among these five dimensions.

1. Power distance – the extent to which the less powerful members of organizations and institutions accept that power is distributed unequally. A high PD index indicates that society accepts an unequal distribution of power and people understand “their place” in the system(Malaysia, the Philippines, Panama). Low PD index means that power is shared and well distributed. It also means that employees view themselves as equals.

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