6.

What is the impact of

Hofstedes dimensions in doing
international business?

 hofstede's dimensions define different

countries on various cultural parameters.
cultural parameters play an important role
in framing a strategy for doing business or
entering a foreign market
countries which are similar to the original
country in which the business lies are very
easy to enter
for countries which are different on cultural
parameters, different approach needs to
be adopted

EXAMPLES
a country with high Power distance has
inequality in power distribution and that is
accepted too. In china, which has a high
power distance, buruecratic hurdles are
very high and it is difficult to run direct
operations there.
a country which has high Individualism,
have people who love privacy and have
loose relations with others. it may imply
that personal choice is very high and
scope of more customisation is there.

 a country with high long term orientation

will be very reluctant to change and
perseverance is highly dominant there.
hence it is difficult to start new ventures in
such country, for eg china.

Q7.What mode of entry should Reale

consider? Should it be different based on
the market selected? What are the
environmental and organisational
variables that should impact the decision?

 The market specific approach should be

used for international operations of the
company.
different countries have different
environmental factors and hence the
approach has to be different and in
alignment with the environment.
For example, the burueacratic hurdles are
too many in china. so joint ventures or
strategic alliances may prove to be helpful
in navigation of the chinese customer's
behavior and the market norms and
preferences.

environmental factors impacting the decision:1. political

the level of ease of doing business in a particular country
helps to make corporate level decisions. the rules and
regulations define the success of the business.
2. economical
various economical factors like the per capita income,
disposable income, GDP per capita etc help to determine
the behaviour of the consumer and their repsonses will
affect the pace and rhythm decision of reale.
3. social
the lifestyle of the people and the kind of social behavior
they engage in will affect reale's decision.

4. legal
various rules and regulations ,for eg, the
rules in buying land will largely affect the
strategy of the business.
organisational factors:1. trade orientation
the company is more oriented towards
global market and hence decisions need
to be taken in that direction.

2. organisational structure
the decision to make the structure organic
or mechanistic for complying with the
environment in different country needs to
be emphasized upon.
3. flexibility
the level of flexibility in the organisation
and the work style of the company needs
to be decided for being successful
overseas