Assignment

On
Establishing an International Business in Context of Hofstede's
Cultural Dimensions Theory.

Course Title: Introduction to Business

Course Title: Bus130

Submitted To:
Tama Chowdhury Tuli
Lecturer,
Department of Business Administration
Southeast University of Bangladesh

Date of submission
21.08. 2022
Submitted by:

No. Name ID

1. Shahriar Obayed (L) - 25% 20222006003

2. Shishir Rahman - 25% 201010002

3. Fahim Khan - 25% 193010010

Shoukhot Islam Sthithil - 25%

4. 193010022

Department of BBA, Batch 16th (A)

Southeast University Dhaka (Bangladesh)

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 Table of Content

SL. Particulars Page No

1 Introduction 4

2 Hofstede Cultural Dimension Theory 5-6

3 Product Description 7-8

4 Country Analysis 9-14

5 Comparison & Decision 15

6 Conclusion 16

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 Introduction
Bangladesh, as we all know, is a nation with a rich, diversified, cultural legacy that is strongly expressed in
our architecture, dance, literature, music, art, and dress. The four major faiths in our nation—Islam,
Hinduism, Buddhism, and Christianity—have had a significant impact on our culture and history. In
accordance with Hofstede's Cultural Dimension and our Bengali culture, the ideal strategy for doing
foreign business is to select a local product that can both make a profit and satisfy the needs of potential
market customers in international business. The main reason for this is because there are national
differences in norms that influence people's behavior, choice and their demands. So a company usually
needs to make some adjustments when entering a culture and it's important to know if their culture,
choices, and demands are similar to our own cultural dimension or not . Therefore, we made the
decision to select a product known as Nakhsikatha, which is considered the most significant aspect of our
culture. Moreover it is a high-quality handicrafts that are created and exported to a variety of nations.
The most important part is in our research we work with five countries, and for your knowledge, we
employ a six-dimension framework to evaluate which country is most similar to Bangladeshi culture .
Finally, we reach a decision on which country is most suited for doing international business

Hofstede's Cultural Dimension

Culture refers to some norms which are based on a nation's attitudes, values and beliefs. It should be
noted that, Cultural change may take place as a result of choice or imposition. Isolation from other
groups, especially because of language, tends to stabilize culture. So here we can see there are national
differences in norms that influence people's culture and behavior. And such norms determine whether
they prefer autocratic or consultative working relationships whether some of them prefer their activities
to set rules and some of them prefer to compete or cooperate with fellow workers. To know and for
understand of a society’s culture on the values of its members, the Geert Hofstede in his research
identifying and analyzing six characteristic models to measure a culture in cross-country society which is
known as Hofstede's Cultural Dimension or Hoftsteds six Dimension Theory . They are given below:

1. Power Distance: It is the first Hofstede's Cultural dimension. Here power distance describes the
degree to which people in a country accept that power in institutions and organizations is distributed
unequally. Power distance classified into two categories :

 High power Distance: It means that large inequalities of power and wealth exist
which further needs no justification for equalize the people of the society.

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  Low Power Distance: The people of low power distance society strive to equalize
the distribution of power, opportunity and as well as demand justification for the
inequalities. So here it is considered that all the people of a society have the same
power under some rules of law for decision making.
2. Individualism Vs Collectivism: Individualism means where the people only act as
individuals and think, take care of only themselves rather than as a member of groups.
Moreover this type of people only believe and maintained their individual rights .On the
contrary ,Collectivism represents a tight social framework where the individuals or
people expect others in groups of which they are a part to look after them and protect
them.

3. Masculinity vs Femininity:

Masculinity: refers to the culture where masculine roles such as achievement, assertiveness, heroism,
power and control within a group. Basically in high masculine organizations the level of gender equality
tends to be compromised.
Femininity: Organizational culture with feminine elements, on the other hand, puts great emphasis on
feminine values such as compromise, quality of life, friendship etc. Moreover, organizations with
feminine values are associated with greater levels of equality between genders.

4. Uncertainty Avoidance:
The fourth Hoftsteds dimension is uncertainty avoidance .It is the degree of tolerance towards
ambiguity and unexpected events and unstructured situations. Uncertainty avoidance classified into
to types :

 High uncertainty avoidance: Societies with high levels of uncertainty avoidance prefer to
operate within a highly structured environment and generally they have a negative approach
towards uncertainties.

 Low uncertainty avoidance : On the other hand, people in low uncertainty avoidance (UAI)
take more risks, they have no problem about ambiguity, they are less rule oriented , adapt and
easily accept the changes of uncertain situations

5. Long Term Orientation vs Short term Orientation:

In long term orientation the people of this dimension are persistence in achieving results, focus on
the future, they are considered as a money saving society.

 Short term Orientation: In contrast, a culture that is short-term oriented places more value on
the present than the future, focuses on the immediate future, and emphasizes achieving short-term
success or satisfaction

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 Product Description

Nashi- Katha is the most well-liked product with a commercial demand that opens a new door for global
trade due to its traditional and cultural aesthetic beauty. Customers are giving these embroidered quilts
to their loved ones on wedding and birthday celebrations, which has increased sales of Nashi- Katha
across the nation. The name was taken from the Bengali word, 'Naksha' which means artistic pattern.
The image of life lived in rural Bengal has been portrayed on the body of Kantha in the seams of sewing.It
is considered a type of traditional craft that is native to Bangladesh. In rural Bengal, the art has been
practised for centuries. Following the 1929 publication of the poet Jasimuddin's poem "Nakshi Kanthar
Math," the term Nakshi Kantha gained popularity. It is a significant form of folk art that depicts the
history, culture, way of life, and numerous tales connected to the daily lives of the people of our country
as well as it represents our traditional and cultural activities.
Nakshi Kanthas can be classified according to stitching or motifs, they can also be divided into three types
based on the method of production.

1. Traditional Nashi- Katha:

The traditional Nakshi Kanthas that we are talking about here are the most well-liked ones. Nowadays, it
is what most people refer to and consider when they think about Nakshi Katha. Layers of cloth and
intricate embroidery cover traditional kathas.

2. Patchwork Katha:
As the name suggests, patchwork Kanthas are made of fabric patches. These are probably the oldest
version of Nakshi Kantha.These types of Katha’s were used as floor mats, prayer mats, table cloths, etc.

3. Applique Katha:
Appliqué is a method in which little patches of cloth are stitched onto a bigger fabric to make motifs or
forms. Kanthas were also created using this technique. This one is no longer well-liked among Katha’s. It
is common for pillow or bed coverings, though .Nashi- katha is not only only used as a winter quilt
embroidered item and is not only exported to countries, but it also has some relatively homogenous and
high-demanding artistic other items, such as bed covers, kamiz, cushion covers, sarees, Punjabi T-shirts,
tops, skirts, ladies' Punjabi, yokes, purses, pillow covers, TV covers, saree piers, shawl sheets, etc. that are
currently exporting Nakshi Kantha in more than 20 countries, including in India, Indonesia , Nepal ,UK ,
UAE etc. It should be emphasized that the quilts' export market is gradually growing. Many overseas
buyers and companies visit our country every year with commercial objectives and to see nakshi kantha
stitching work of rural women.Each Nakshi Katha is unique which does not match to one another. Every
Katha contains a new design. And different designs are created in response to customers' needs also..
Additionally, a large number of local exporters, such as Heat and Craft and Jagarani Chakra, are making
orders for marketing and export. Therefore, it is evident that the Nakshi Kantha sector has captured the
attention of customers throughout the world as evidenced by the amount of orders it has received since

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exhibiting its items at both local and international markets. 90% of those employed in this industry are
rural women, and it directly and indirectly employs more than 3 lakh people. The cost of making ‘Nakshi
Kantha’ is minimum, but the value and time-consuming embroidery work make it luxurious and valuable.
The profit margin is sufficient due to the availability of old clothes which gives a great advantage for
starting business. Besides it is produced in Bangladesh in tens of thousands of different styles, with costs
varying from Tk 1,000 to Tk 50,000 or more depending on the design and material
According to the Small and Medium Enterprise (SME) foundation, Jashore, Jamalpur, and
Chapainawabganj serve as the primary local centres for the manufacture of Nakshi Kantha in Bangladesh.
These regions' extensive cottage industries make this feasible. Especially in Jamalpur city its receipt is
most noticeable. That is why many people call Jamalpur district as ‘City of Handicrafts’ and ‘Nakshi
Kantha’ as Jamalpur District Branding. The value of Nakshi products of Jamalpur is increasing in the
country and abroad. There are many small and big showrooms of this industry in Jamalpur district town
also.By locating index artists from many villages in Jamalpur, NGOs of various kinds, including BRAC,
resurrected the nakshi kantha art. In several locations around the area, a group calling itself the "Ayesha
Abed Foundation" was founded. One year later, in 1986, a non-governmental group began instructing
1,000 rural women in Nakshi Kantha. According to the product descriptions above, we assumed this is
the best choice .

Country Analysis
As we said before For doing business in a foreign country firstly we have to select and
analyze a country according to hosted 6 dimensions / factors and based on our product. So
here I show the 5 country’s 6 cultural factors and analyze them one by one to evaluate
which country is a better option for doing business successfully.

Turkey

Power Distance Index:

Turkey has a high score on this factor (66), which indicates that the following describe Turkish style:
Dependent, hierarchical, with frequently unreachable superiors, and with a fatherly ideal for a boss.
Managers depend on their bosses and the regulations because power is centralized. Employees
anticipate being given instructions. Control is expected, and managers are treated formally. Information
flow is selective and communication is indirect. The family unit exhibits the same structure, with the
father acting as a sort of patriarch who the other members must obey.

Individualism & Collectivism:

Turkey has a collectivist society, scoring 37. This implies that the "We" is significant and that people are
members of in-groups (families, clans, or organizations) that take care of one another in return for
allegiance. Indirect communication is used, and open confrontations are avoided in order to preserve the
group's unity. The moral foundation of the relationship always takes precedence over task completion. It
takes time to build a trustworthy friendship at first. There may be more nepotism. Even in the
commercial setting, feedback is almost always indirect.

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Masculinity & Femininity:
Turkey is on the Feminine side of the spectrum with a score of 45. In other words, the softer components
of culture—like being humble before others, forming agreement, and showing compassion for the weak
—are respected and promoted. In both personal and professional life, conflicts are avoided, and reaching
an agreement is crucial. For Turks, leisure time is crucial since it is when the entire family, clan, and
friends get together to celebrate life. Status is displayed, however the high PDI is more to blame for this.

Uncertainty Avoidance Index:

As we know that the component of uncertainty avoidance is concerned with how much a culture's
citizen’s feel threatened by ambiguous or unknowable events and how much they have developed
structures and beliefs to try to avoid them. Turkey receives an 85 on this metric, indicating a critical need
for legislation and regulations. Numerous rituals are used by people to reduce anxiety. Due to the
frequent mentions of "Allah," they may appear religious to outsiders, yet they are frequently just
established social norms that are applied to certain circumstances to reduce tension.

Long Term & Short term Orientation:

Turkey’s intermediate score of 46 is in the middle of the scale so no dominant cultural

preference can be inferred.

Indulgence & Restraint:

Indulgence stands for a society that allows relatively free gratification of basic and natural human
drives related to enjoying life and having fun. Restraint stands for a society that suppresses
gratification of needs and regulates it by means of strict social norms. With an intermediate score of
49, Turkey cannot be assigned a characteristic matching to this dimension.

Indonesia
Power Distance Index:
Indonesia has a high score on this criterion (78), which indicates that the following describe Indonesian
style: Being dependent on hierarchy, having unequal rights between those in power and those who do
not, being unable to approach superiors, having directive leaders, having management control, and
delegating.

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Individualism & Collectivism:
Indonesia, with a low score of (14) is a Collectivist society. This means there is a high preference for a
strongly defined social framework in which individuals are expected to conform to the ideals of the
society and the in-groups to which they belong. One place this is visible clearly is in the aspect of the
Family in the role of relationships. Indonesian children are committed to their parents, as are the parents
committed to them all their growing lives. Their desire is to make their parents’ life easier. There is a
desire to take care of parents and give them support in their old age.

Masculinity & Femininity:

Masculinity culture implies that wealth, success, gender distinct roles are commonly concentrated on the
other hand femininity implies that people are more oriented on negotiation, consensus, debate, or
decision-making. Their MAS in Indonesia is 46, a masculine nation. To achieve control and achieve
success, they are more into visible work.

Uncertainty Avoidance Index:

This dimension is considered how people cope up with the uncertain and unseen situation, mainly how
they deal with anxiety. In Indonesia UAI 48 which means they are in a middle position, tend to avoid risk;
they do not want to take initiative they are more likely to seek change than avoidance. They will continue
to smile and be courteous, no matter how upset they are within. This also implies that sustaining
workplace and relationship harmony is essential in Indonesia, and no one wants to be the bearer of bad
or negative news or comments.

Long Term & Short term Orientation:

This factor is focused on long-term or short-term decision making by individuals. There are 62 in
Indonesia, which suggests that they are more likely to concentrate on future and long- term decisions, so
they avoid short-term success or problems.
They basically demonstrate a capacity to readily adjust traditions to changing circumstances, a strong
proclivity to save and invest, thriftiness, and tenacity in obtaining achievements.

Indulgence & Restraint:

Indonesia is a place of containment. They believe more in social norms. Everything is based on the
governor, so social, what is nice, what should be avoided, etc. They are more regulated by society and
practice rigid behavior. The low score of 38 in this dimension shows that Indonesia has a culture of
Restraint. The people with this orientation have the perception that their actions are restrained by social
norms and feel that indulging themselves is somewhat wrong.

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 India
Power Distance Index:
India scores high for this dimension, 77, which indicates a high level of inequality in regards to power and
wealth within the society. This condition isn't necessarily imposed on the population; instead, it's
accepted as a cultural norm.

Individualism & Collectivism:

With a score of 48, India is a society that exhibits both collectivistic and individualistic characteristics.
According to the collectivist perspective, individuals strongly wish to be a part of a broader social
structure and are expected to act in ways that will benefit their specifically identified in-group (s). In
these circumstances, the individual's decisions are impacted by a variety of ideas, including the
viewpoints of one's family, extended family, neighbors, work group, and various other larger social
networks to whom one has some attachment.

Masculinity & Femininity:

India scores 56 on this dimension and is thus considered a Masculine society. India is actually very
Masculine .The Masculinity side of this dimension represents a preference in society for achievement,
heroism, assertiveness, and material rewards for success. Society at large is more competitive

Uncertainty Avoidance Index:

India has a fairly low preference for avoiding ambiguity with a score of 40 on this metric. Nothing has to
be flawless or go according to plan; imperfections are accepted in India. India is known for having a high
level of tolerance for the unexpected and even welcomes it as a change of pace. In general, people do not
feel pushed or driven to take action; instead, they stick to familiar roles and routines without challenge.

Long Term & Short term Orientation:

With an intermediate score of 51 in this dimension, a dominant preference in Indian culture cannot be
determined. In India the concept of “karma” dominates religious and philosophical thought. Time is not
linear, and thus is not as important as to western societies which typically score low on this dimension.
Countries like India have a great tolerance for religious views from all over the world.

Indulgence & Restraint:

India obtains a low score of 26 on this area, indicating that it is a restrained culture. Cultures with low
scores in this area tend to be pessimistic and cynical. Furthermore, unlike Indulgent civilizations,
restrained societies place little importance on leisure time and having control over the satisfying of their

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needs. People with this mindset believe that their behavior’s are constrained by societal standards and
that indulging themselves is bad.

Algeria

Power Distance Index:

With a score of 80, Algeria scores high on this dimension, which means that members of the society
accept a hierarchical order in which everybody has a place, and which needs no further justification.
Hierarchy is seen as reflecting inherent inequalities, and the different distribution of power justifies the
fact that power holders have more benefits than the less powerful in society .

Individualism & Collectivism:

At a low score of 35, Algeria is a collectivist culture. This is evident in the early integration and close, long-
term commitment to a strong, cohesive ‘in-group’. These societies foster strong relationships where
everyone takes responsibility for and protects fellow members of their group.

Masculinity & Femininity:

Algeria’s low score of 35 characterizes it as a Feminine society. In Feminine cultures, the focus is on
“working in order to live”. People in such societies value equality, solidarity and quality in their working
lives. It is important to make sure that everyone is included. “Conflicts can be threatening because they
endanger the well-being of everyone; they are resolved by compromise and negotiation.”

Uncertainty Avoidance Index:

Scoring 70 in this dimension, Algeria demonstrates a high preference for avoiding uncertainty. These
societies do not readily accept change and are very risk averse. They maintain rigid codes of belief and
behavior and are intolerant of unorthodox behavior and ideas.

Long Term & Short term Orientation:

The low score of 26, indicates that Algeria has a normative culture. People in such societies have a strong
concern with establishing an absolute Truth; they are normative in their thinking. They exhibit great
respect for traditions, a relatively small propensity to save for the future, and a focus on achieving quick
results.

Indulgence & Restraint:

One challenge that confronts humanity, now and in the past, is the degree to which small children are
socialized. Without socialization we do not become “human”. One challenge that confronts humanity,
now and in the past, is the degree to which small children are socialized. Without socialization we do not

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become “human”. This dimension is defined as the extent to which people try to control their desires and
impulses, based on the way they were raised. Relatively weak control is called “Indulgence” and relatively
strong control is called “Restraint”. Cultures can, therefore, be described as Indulgent or Restrained. The
low score of 32 in this dimension shows that Algeria has a culture of restraint. Restrained societies
have a tendency toward cynicism and pessimism. Also, they do not put much emphasis on
leisure time and control the gratification of their desires.

UK ( united kingdom of Great Britain )

Power Distance Index:

Britain ranks 35 on the PDI, indicating that it is a society that believes inequities between individuals
should be minimized. Surprisingly, research suggests that the PD index is lower among the upper classes
in Britain than among the working classes. The PDI score appears at first to be at odds with the well-
established and historical British class system, and it reveals one of the inherent tensions in British
culture - between the importance of birth rank on the one hand and a deep-seated belief that where you
are born should not limit how far you can travel in life on the other .

Individualism & Collectivism:

At a score of 89 the UK is amongst the highest of the Individualist scores, beaten only by some of the
commonwealth countries it spawned i.e. Australia and the USA. The British are a highly Individualist and
private people. Children are taught from an early age to think for themselves and to find out what their
unique purpose in life is.

Masculinity & Femininity:

At 66, Britain is a Masculine society – highly success oriented and driven. A key point of confusion for the
foreigner lies in the apparent contradiction between the British culture of modesty and understatement
which is at odds with the underlying success driven value system in the culture. Critical to understanding
the British is being able to ‘’read between the lines’’ What is said is not always what is meant.

Uncertainty Avoidance Index:

At 35 the UK has a low score on Uncertainty Avoidance which means that as a nation they are quite
happy to wake up not knowing what the day brings and they are happy to ‘make it up as they go along’

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changing plans as new information comes to light. As a low UAI country the British are comfortable in
ambiguous situations

Long Term & Short term Orientation:

With an intermediate score of 51 in this dimension, a dominant preference in British culture cannot be
determined.

Indulgence & Restraint:

A high score of 69 indicates that the British culture is one that is classified as Indulgent. People in
societies classified by a high score in Indulgence generally exhibit a willingness to realize their impulses
and desires with regard to enjoying life and having fun. They possess a positive attitude and have a
tendency towards optimism. In addition, they place a higher degree of importance on leisure time, act as
they please and spend money as they wish.

Comparison
For knowing the result which country is suitable to conduct business according to all the Hofstede's 6
dimension culture we make a comparison with all the counties cultural dimension based on our own
cultures which are given below :

Bangladesh has a high power distance index (score of 80), meaning that Turkey, Indonesia, India, and
Algeria have PDIs that are comparable to those of our nation. Bangladesh is rated as having a collectivist
culture and gets a score of 20. That indicates that the collectivist cultures of Turkey, Indonesia, India, and
Algeria are comparable to Bangladesh's. Masculinity vs. Femininity is the next dimension, where
Bangladesh scores 55, which is comparable to Indonesia, India, and the UK in terms of masculine society.
Bangladesh earns a score of 60 on this dimension, indicating that it has a high UAI. That suggests that
Turkey, Indonesia, India, and Algeria share cultural traits with Bangladesh and the high UAI. All the
nations are neutral or dominant in this dimension except for Indonesia, which scored 62, indicating that
Indonesia is a long-term oriented nation. Bangladesh's score is thus 47, indicating that it is neutral in the
LTO versus STO comparison. Bangladesh received an extremely low 20 on the indulgence scale,
designating it as a restricted nation. And all four nations—aside from the United Kingdom—are restrained
country.

Decision
According to Hofstede's cultural dimension, India is the ideal market for the export of Nashi- Katha in
foreign business. When other countries' cultures are compared to India's, it becomes clear that
Bangladesh's culture and India's are the most similar overall. We thus decided to establish our business
operations in India.

Conclusion
Nashi- kotha is a potential resource of Bengal. Bangladeshi Nakshi- Kantha is the most popular in the
world. Only Bangladesh makes the first time these types of art in the world, and become so popular for

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this. Especially the rural women who make their art and enhance all traditional activities when they make
any Nashi items. Though at present, some of the traders involved in this industry are facing financial
constraints and are facing obstacles in expanding their business. Here we want to establish this industry
and take initiative at the international level so that it does not lose its legacy. As we described it before,
by using Hofstede's Cultural Dimension it's easy to understand the different cultures and how people
behave according to their cultures or social norm. After analyzing our whole report and after completing
the 5 country comparison ( Turkey , Indonesia ,India , Algeria , United Kingdom ) we come to end that
India is the only country that can be compared to Bangladesh in terms all the Hofstede cultural
Dimension

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