6.What is the impact of Hofstede’s 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