A key to manage effectively across national and cultural boundaries, which is critical to the success (Browaeys and Price, 2011). The basic cultural analysis will be conducted to expand a company unit to Brazil where there are many similarities and differences from the Chinese culture. Analysis is based on the angle of the most important factors from Hofstede’s model, power distance (PD) and uncertainty avoidance(UA)and the repective PD and UA scores as follow.Cf. Hudson (2010) p. 34
PD refers to the interpersonal power or influence between the powerful member of an organization and the least powerful one (Browaeys and Price, 2011). As it can be compared from the scores in the table, China and Brazil have similar PD scores. Normally, a higher PD value implies the requirements of centralised and direct decision-making process rather than plural participations of members in different levels (Velo, 2012) Both China and Brazil are the countries with large land size and populations. High pd value in them are the results of geographical and historical reason ( culture of china and brazil) Meanwhile, the large PD of Brazil and China mean inequalities of power and wealth are however likely tolerated.(Stephen, 2006).The subordinate-superior relationship tends to be polarized and there is no defense against power abuse by superiors. Individuals are influenced by formal authority and sanctions and are in general optimistic about people’s capacity for leadership and initiative. People should not have aspirations beyond their rank. For example most companies from São Paulo Stock Exchange are being controlled by certain familiar amount of CEOs and shareholders(Azevedo 2009), however then burdensome bureaucracy and ...
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...ar budget so as to decrease the probability of losing control the expansion.
Changing management methods should be considered when extending business in emerging economies either Brazil or China. Hofstede proposed a general framework for building the competences required for operating in a cross-culture basis. Building awareness of own culture and culture differences. Developing knowledge of the impact of cultural differences, the relative strengths and weaknesses of different cultures in managerial setting. Building skills for identifying the impact of different cultural setting for managerial problems. Adapting behaviours to achieve effective results in different cultural settings. This allows to avoid misunderstandings caused by cultural reasons and to improve the efficiency of management and communication in new expanding business unit.Hofstede, 2006
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