International Management Essay Example | Topics and Well Written Essays - 1000 words - 1

International Management - Essay Example Living for long in the same geography they share vast similarities. The challenges that this kind of complex countries present are both relevant to ongoing companies as well as for MNCs trying to enter these markets. When making a debut into one market, and preparing an entry strategy firms need to consider very much the national culture of the company, to evaluate whether the culture will help the business to flourish or whether the cultural norms will act as hindrance to the business and profitability. Any cultural theory is based on the assumption that there is no universal method of management theory. And in this global world, doing business in other countries require knowledge and empathy with the locals of the country, hence it is important to understand and be aware of the cultural differences when handling or dealing with cross cultural groups or individuals. Geert Hofstede has described five dimensions of differences in values between national cultures. The five dimensions of Geert Hofstede are Power Distance, Individualism versus Collectivism, Masculinity versus Femininity, Uncertainty Avoidance, and Long-term versus Short-term orientation. The dimension, Power Distance tries to suggest the degree of inequality amongst the different members in a given culture. On a scale the dimension ranges from small to large. In cultures where Power Distance is small, members of the society relate to each other on a more equal level regardless of the status or authority of the people in consideration. Whereas, in large Power Distance situations, there is more formality in interaction amongst people. According to Hofstede, Pakistan has a score of 55 on the cultural scale; which compared to other regional countries is relatively low. It shows that Pakistan is somewhat in the middle and does not have a very large gap between the wealthy and the poor people in the country. But, still it does not strongly believe in the