Hofstede Cultural Dimensions Theory Essay

INTRODUCTION

Based on my experience of applying PESTLE in the analysis of Netherland’s environment, I want to focus on the country’s sociocultural factors and in doing so draw on Hofstede’s cultural dimensions theory in my essay.

Over the last two decades, there has been growing globalization and internationalization of businesses, which has increased organization’s desire to improve their understanding about social and cultural differences between countries. The Netherlands has a large population and does not have a uniform national culture. They emphasize on the country’s cultural diversity, acceptance of differences and open-mindedness to foreign influences. Which has lead to their significant growth and progress as a nation.

Success in worldwide market depends on understanding the cultures you are undertaking business with. Thus, studies on work-related cultural values are given grave importance in today’s generation.

Hofstede’s theory is a framework for cross-cultural communication, which includes six dimensions (Hofstede et al., 2010). Through which individuals from different cultural backgrounds endeavor to communicate with each other. The current global scenario is such that it requires nations to effectively communicate with each other in order to progress. Through this essay I aim to explore the dimensions of Hofstede’s theory and its criticisms with respect to the Netherlands.

DIMENSIONS OF NETHERLANDS

Power Distance: Hofstede defines it as the extent to which society accepts the fact that power in institutions and organizations is distributed unequally (Hofstede, 1980). It depicts the attitude of the people towards the immeasurable inequalities present. Power Distance Index (PDI) measures Power Distance. Nether...

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...with regards to several aspects of the report. This was a difficult hurdle to cross, however after thorough debate, we collectively decided what to include and exclude and what we thought would be of importance to our investors.

Having researched and analyzed the social environment of the Netherlands. I found that there was ample that could be included with regard to this aspect. Due to the word limit I had to constrain myself. Further, the PESTLE analysis did not include cultural factors, which I found to be of great importance in a country. I had also individually researched on the culture in the Netherlands and how it can be overlooked and its tendency to be neglected in comparison to the rest of the factors. Thus, I decided to focus on the cultural aspect of the country in my individual essay and provide insight on it, as it hasn’t been covered in the report.