Introduction
It seems a big challenge for the companies to start the business in other countries due to the immense cultural differences. This study revolves around the cultural differences in the context of the United States and China. The multinational company in the United States can face a different culture in China, and this study integrates with the Hofstede’s cultural model to derive the insights regarding cultural differences (Kermeliotis, 2011).
Hofstede’s Culture Dimensions
Being a subsidiary in China, the firm has to adopt the culture of China to link with the needs of the customer, market, and society. Cultural dimensions of this model are power distance, individualism, feminine/masculine, uncertainty avoidance, long-term orientation, and restraint/indulgent.
1-Power distance
The MNC’s in China can gain the benefit of power distance, as it is way above than the United States. Interestingly, authorities such as management can lead people in organizations and employees in an efficient and direct manner as compared to the US. For Instance, in the American power distance seems rare due to the democratic culture. However, due to the communism approaches, it is quite visible in China. Thus, the company can take initiatives, which can let the customers or people behave in a way that the company wants in the market (LIi, 2012).
2-Individualism
Comparatively, China believes in the grouping, as people consider the union the most significant strength to attain everything. In the United States, the company may produce the products or services along with appropriate positioning for individual and related segments. Conversely, in China, the company will have to contain the collaborative efforts to come up with the products/services and promotional techniques, which can benefit the different group of people as the whole (Mah, 2017).
3-Feminine/Masculine
It has been revealed that China and the United States resemble in masculinity, as contributions of males in different companies are higher than females. However, the United States is slightly different because it also believes in the women empowerment. Subsidiary in China can focus on masculinity to trigger with this aspect of the culture. Operations of the company in China can be advantageous if the management manages and maintains people according to their own culture (Tan, 2015).
4-Uncertainty avoidance
Uncertainties are part of the businessman every business can face these uncertainties. Thus, be it the United States or China, uncertainties are visible. However, intentions are entirely dissimilar. For Instance, in the US people like to embrace the challenge. On the other hand, people in China seem reluctant to face the uncertainties. Thus, people are risk-averse in this region, and with the perspective of the multinational company in China, only appropriate strategies may work to sustain the business for a long run (Tan, 2015).
5-Long-Term Orientation
China contains long-term orientations of strategies or plans. The management and people use to be so confident of their plans and sustainability. In the US, the management and people like to make changes with the passage of the time to integrate with the new trends. Therefore, it is highly recommended to the company to make long-term plans for all business operations (Mah, 2017).
6-Restraint/Indulgent
This cultural dimension indicates the measures of happiness in the country. People of United States contain the happiness on l small things, and the companies are justifying through unique promotional and positioning technique to make the customers happy. In China, the management has to do some big thing to make the customers happy, and it is only dimensions or cultural difference, which can give a tough time to the multinational company (LIi, 2012).
Conclusion
In the end, this is to conclude that different cultural dimensions can let the management change the plans or strategies to gain the success and sustain the business, primarily when operating away from home. In this study, several Hofstede’s cultural dimensions have been illustrated with some suggestions to USA MNC’s, which has a subsidiary in China, to depict a prosperous future.
References
Kermeliotis, T., 2011. Doing business in China: Five tips for success. [Online] Available at: http://edition.cnn.com/2011/10/21/business/china-business-investors-culture/index.html [Accessed 12 December 2017].
LIi, H., 2012. Doing Business in China: Cultural Differences to Watch for. [Online] Available at: http://www.ibtimes.com/doing-business-china-cultural-differences-watch-411996 [Accessed 12 December 2017].
Mah, R., 2017. Cultural Differences Between America and China. [Online] Available at: http://www.etiquetteoutreach.com/blog_new-york-etiquette-guide/bid/92662/cultural-differences-between-america-and-china [Accessed 12 December 2017].
Tan, J., 2015. 7 Differences between Chinese and American Culture. [Online] Available at: https://goldstarteachers.com/7-differences-between-chinese-and-american-culture/ [Accessed 12 December 2017].
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