Hofstede Comparison of Belgium versus Asia and Africa - Callebaut the company

Francine Carron-‐ MGM1-‐ AEBE

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MGM 1 - AEBE Francine Carron Prof. Haiyan Zhang Assignment Lecture 07. Asian business Logic _______________________________________________________________________________

Outline: I. Value Chain activities countries II. Hofstede framework of cultural dimensions A. Belgium and Asia 1. China 2. India 3. Japan 4. Malaysia 5. Singapore 6. Overview Belgium and Asia B. Belgium and Latin America 1. Brazil 2. Ecuador 3. Mexico 4. Overview Belgium and Latin America C. Belgium and Eastern Europe 1. Czech Republic 2. Poland 3. Russia 4. Overview Belgium and Eastern Europe D. Belgium and Turkey E. Belgium and West Africa F. Belgium and Western Europe G. Belgium and North America 1. USA 2. Canada III. Brief summary of major cultural differences


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I. Value chain activity countries • Belgium • Brazil • Cameroon • Canada • China • Czech Republic • Ecuador • France • Germany • Ghana • India • Italy • Ivory Coast • Japan • Malaysia • Mexico • Poland • Russian Federation • Singapore • Spain • Sweden • Switzerland • The Netherlands • Turkey • United Kingdom • United States

II. Hofstede’s framework of cultural differences Hofstede has developed five cultural dimensions. (5D Model) These translate into the following measurements: PDI: Power Distance Index IDV: Individualism MAS: Masculinity UAI: Uncertainty Avoidance Index LTO: Long-‐ Term Orientation Before I can set up the Hofstede framework, I divide the above countries by region to have a clear overview of the cultures. The


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previous action is necessary because certain countries in the same region have similar organizational cultures. For example, there is no specific need to compare France to Belgium; Belgium can be compared to the rest of Europe. Regions: I. Asia: China, India, Japan, Malaysia, Singapore, II. Latin America: Brazil, Ecuador, and Mexico III. Eastern Europe: Czech Republic, Poland, and Russian Federation IV. Turkey V. Africa: Cameroon, Ghana, and Ivory Coast VI. Western Europe: Belgium, France, Germany, Italy, Spain, Sweden, United Kingdom, Switzerland, And The Netherlands VII. North America: Canada, United States First, I will start by comparing Belgium to ASIA. Second, Belgium compared to Latin America. Third, Belgium compared to Eastern Europe and Turkey. Fourth, Belgium compared Africa. Fifth Belgium compared to other European Countries. A. BELGIUM AND ASIA: 1) Hofstede Comparison of Belgium and China


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The PDI is higher for China than in Belgium that means that people in China accept inequality much more than in Belgium that there is unequal distribution of power. However, the difference is not extreme. The IDV level in Belgium is much higher then in China. Belgium is a much more individualistic society where everyone looks after him or herself. This is not the case in China. China is a more collective society. The collectivism of China most likely is due to the fact of having a strong communist basis. One can read from the above graph that both countries are more or less of Masculine culture this means that both females and males value competitiveness, assertiveness, ambition and the accumulation of wealth and material possessions. The UAI level for Belgium difference is much higher than that of China. This means that Belgium is a structured society and China is not.


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LTO relates mostly to countries with a Confucian heritage. This dimension is not to be found in Belgium. Therefore, it seems that Belgians have less values. 2) Hofstede Comparison of Belgium and India

The PDI is higher for India than in Belgium that means that people in India accept inequality much more than in Belgium that there is unequal distribution of power. However, the difference is not extreme. The IDV level in Belgium is much higher then in India. Belgium is a much more individualistic society where everyone looks after him or herself. This is not the case in India. India is a more collective society. One can read from the above graph that both countries are more or less of Masculine culture this means that both females and males value competitiveness, assertiveness, ambition and the accumulation of wealth and material possessions.


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The UAI level for Belgium difference is much higher than that of India. This means that Belgium is a structured society and India is not. Belgium doesn’t have a LTO dimension. LTO relates to values such as family, protecting one’s face, pride, etc. These values are present in Indian society. 3) Hofstede Comparision of Belgium and Japan

The PDI is higher for Japan than in Belgium that means that people in Japan accept inequality much more than in Belgium that there is unequal distribution of power. However, the difference is not extreme. The IDV level in Belgium is much higher then in Japan. Belgium is a much more individualistic society where everyone looks after him or


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herself. This is not the case in Japan. Japan is a more collective society. One can read from the above graph that Japan is a much more masculine society than Belgium. This means that both females and males value competitiveness, assertiveness, ambition, and the accumulation of wealth and material possessions. This aspect of Japanese society can maybe relate to the fact that Japan was already a very prosperous society in the beginning of the 20th century. The UAI level for Belgium and Japan are at the same level. It seems that these countries are both very structured. Belgium doesn’t have a LTO dimension. LTO relates to values such as family, protecting one’s face, pride, etc. These values are present in Japanese society. 4) Hofstede Comparison of Belgium and Malaysia


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The PDI is higher for Malaysia than in Belgium that means that people in Malaysia accept inequality much more than in Belgium that there is unequal distribution of power. The IDV level in Belgium is much higher then in Malaysia. Belgium is a much more individualistic society where everyone looks after him or herself. This is not the case in Malaysia. Malaysia is a more collective society. One can read from the above graph that both countries are more or less of Masculine culture this means that both females and males value competitiveness, assertiveness, ambition and the accumulation of wealth and material possessions. The UAI level for Belgium is much higher than that of Malaysia. It is obvious that Malaysia is not a structured society. Belgium doesn’t have a LTO dimension. LTO relates to values such as family, protecting one’s face, pride, etc. These values are present in Malaysian society. 5) Hofstede Comparison of Belgium and Singapore


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The PDI is higher for Singapore than in Belgium that means that people in Singapore accept inequality much more than in Belgium that there is unequal distribution of power. The IDV level in Belgium is much higher then in Singapore. Belgium is a much more individualistic society where everyone looks after him or herself. This is not the case in Singapore. Singapore is a more collective society. One can read from the above graph that both countries are more or less of Masculine culture this means that both females and males value competitiveness, assertiveness, ambition and the accumulation of wealth and material possessions. The UAI level for Belgium is much higher than that of Singapore. It is obvious that Singapore is not a structured society. Belgium doesn’t have a LTO dimension. LTO relates to values such as family, protecting one’s face, pride, etc. These values are present in Singapore society.


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6. Overview Belgium - Asia: When comparing China, India, Japan, Malaysia, and Singapore to Belgium we see that the above countries are quite similar in culture compared to Belgium. The PDI and IDV level is higher than Belgium in all five Asian countries and there is no level of LTO in Belgium. Japan is the only different case in the group of Asian countries. Japan is a high level masculine country compared to the other Asian countries that are equal to Belgium on the MAS scale. Japan is also different in the dimension of UAI compared to the other Asian countries. On the UAI, scale Japan has an equal level to Belgium, compared to the other countries scoring lower. Japan is the only country in the Belgian-‐ Asian comparison that can be said to have a structured society. Find below an overview of the Belgium -‐ Asia comparison: Belgium China India Japan Malaysia Singapore PDI Higher Higher Higher Higher Higher IDV Lower Lower Lower Lower Lower MAS About

equal About equal

Higher About equal

About equal

UAI Lower Lower About equal

Lower Lower

LTO Present Present Present Present Present B. BELGIUM AND LATIN AMERICA: 1. Hofstede comparison Belgium and Brazil


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Belgium and Brazil have about equal levels on the PDI and MAS scale. This means that Belgium and Brazil regard power inequality in the same way. Both societies are quite materialistic. There is no indication of LTO in Belgium. Belgium scores high on the IDV-‐scale and Brazil much lower. Belgium is an individualistic society compared to Brazil that has a basis of collectivism. On the UAI scale Belgium scores higher than Brazil. However there is no extreme difference. This means that Brazil can be called a semi-‐structured society compared to Belgium who is a fully structured society. 2. Hofstede comparison Belgium and Ecuador


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Belgium and Ecuador have about equal levels on the PDI and MAS scale. This means that Belgium and Ecuador regard power inequality in the same way. Both societies are quite materialistic. There is no indication of LTO neither in Belgium nor in Ecuador. Belgium scores extremely high on the IDV-‐scale and Ecuador much -‐ much lower. Belgium is an individualistic society compared to Ecuador that is a collective society. On the UAI scale Belgium scores higher than Ecuador. However there is no extreme difference. This means that Brazil can be called a semi-‐structured society compared to Belgium who is a fully structured society. 3. Hofstede comparison Belgium and Mexico


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Belgium and Mexico have about equal levels on the PDI, MAS and UAI scale. This means that Belgium and Mexico regard power inequality in the same way. Both societies are quite materialistic and structured. There is no indication of LTO neither in Belgium nor in Mexico. Belgium scores extremely high on the IDV-‐scale and Mexico much -‐ much lower. Belgium is an individualistic society compared to Mexico that is a collective society. 4. Overview Belgium - Latin America: When comparing Brazil, Ecuador, and Mexico we see that the above countries are quite similar in culture compared to Belgium. The PDI and MAS dimension in all three countries are equal to that of Belgium. This means that these Latin American countries regard power inequality in the same way as Belgium and are quite materialistic countries.


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The IDV level in all three countries is much lower than in Belgium, meaning that Belgium is an extremely individualistic society compared to Brazil, Ecuador and Mexico. There is only one Latin American country in this group of three that has LTO. Ecuador and Mexico just as Belgium do not have this dimension. Mexico is the only country in this group that is comparable on the UAI level as Belgium. Find below an overview of the Belgium -‐ Latin America comparison: Belgium Brazil Ecuador Mexico PDI About equal About equal About equal IDV Lower Extremely Low Lower MAS About equal About equal About equal UAI Lower Lower Equal LTO Present Not Present Not Present C. BELGIUM AND EASTERN EUROPE: CZECH REPUBLIC, POLAND, AND RUSSIAN FEDERATION 1. Hofstede comparison Belgium and Czech Republic


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Belgium and Czech Republic have about equal level of PDI and MAS. They are materialistic society and regard power levels in the same way. Czech republic has a low level of LTO, Belgium has no such level. Belgium is still a more individualistic society than Czech Republic even though the IDV -‐ dimension is also quite high. The UAI level in Czech Republic is lower than in Belgium meaning that Belgium is still a more structured society. 2. Hofstede comparison Belgium and Poland


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Belgium and Poland have about equal level of PDI, MAS, and UAI. They are materialistic -‐ structured societies that regard power in the same way. Poland has a LTO dimension whereas Belgium has no such level. Belgium is still a more individualistic society than Czech Republic even though the IDV -‐ dimension is also quite high. 3. Hofstede comparison Belgium and the Russian Federation


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Belgium and Russia have about equal level of UAI meaning that they are both structured societies. Russia and Belgium have no LTO dimension. Furthermore, Belgium is still a more individualistic society than Russia. The PDI level of Russia is extremely high which means that they accept power inequalities much better than Belgians. Belgium is also a more masculine society then Russia meaning that Belgium is a stronger materialistic society. 4. Overview Belgium - Eastern Europe: When comparing Czech Republic, Poland, and Russia we see that the above countries culture is closer to Belgium than that of Asian or Latin American countries.


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Overall, the levels are all about equal. An obvious point is that Belgium is still much more of an individualistic society than the Eastern European countries. The Eastern European countries are more structured than the Asian countries and power is almost perceived in the same way. Find below an overview of the Belgium -‐ Eastern European comparison: Belgium Czech Republic Poland Russia PDI About equal About equal Higher IDV Lower Lower Lower MAS About equal About equal Lower UAI Lower About equal About equal LTO Present Present Not Present D. BELGIUM AND TURKEY Hofstede comparison of Belgium and Turkey


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The PDI, UAI and MAS dimensions are about equal compared to Belgium. There is no presence of LTO in both countries. Belgium is a much more individualistic society than Turkey. Turkey is very much similar to Belgium, they differ the most on the IDV scale. Turkey is a much more collective society. E. BELGIUM AND AFRICA: Cameroon, Ghana, and Ivory Coast There is no data available on these individual countries. Therefore, an overall comparison needs to be made between Belgium and West Africa.

There is a huge difference between Belgium and West Africa on the UAI and IDV dimensions. West Africa is obviously not an individualistic society but more collective. West Africa is less structured than Belgium; this can probably be related to the previous political instabilities in the area.


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Both countries/ regions are masculine. West Africa has a long-‐term orientated dimension. F. BELGIUM AND WESTERN EUROPE:


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The only difference between Belgium and the rest of Europe is that Belgium scores above European average on the Uncertainty Avoidance Index. This means that there is low level of tolerance for uncertainty in the Belgian society. In order to minimize this level rules and regulations are implemented. G. BELGIUM AND NORTH AMERICA: 1. Hofstede comparison Belgium and the United States of America

I am surprised to find out that there are barely any equal levels between Belgium and America. There are more differences here than in Asia, Africa and Eastern Europe. One major change here is that the United States is even much more of an individualistic country than Belgium. On the other hand, Belgium scores much higher o the UAI and PDI scale. The US also has an LTO dimension, which Belgium doesn’t have.


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2. Hofstede comparison Belgium and Canada

On the IDV and MAS scale, Belgium and Canada are about equal. It is clear that these are both materialistic, competitive oriented individualistic societies. The power interpretation for both countries is different and again Belgium scores much higher on the UAI index. No surprise as Belgium is also above average for the UAI dimension in Europe. Canada as the United States also has a LTO dimension, which is non-‐existing in Belgium. Find below an overview of the Belgian -‐ North American comparison: Belgium USA Canada PDI Lower Lower IDV Higher About equal MAS About equal About equal UAI Lower Lower LTO Present Present


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III. Brief summary of major cultural differences As I previously mentioned in China, India, Japan, Malaysia and Singapore is the PDI higher than in Belgium this means that people are better at accepting unequal power distribution. It seems that Asians accept their place in society better as it is. For the value chain activities this means that for example most important meetings happen behind closed doors where only a select few, powerful leaders can attend. For operational answers, employees probably have to wait for the top for the answers. In order to work in countries with a high level of PD it is important to respect hierarchy and acknowledge a leader’s power. Japan is a different case in Asia. Japan is a high level MAS country. This means that there is a well-‐defined distinction between men’s work and women’s work. This can cause issues for European countries who send their female managers to Japan to oversee production facilities for example. Belgium compared to the Asian countries is a high UAI country, which means business, is conducted with lots of rules and policies whereas in Asia there is a more informal business attitude; they are willing to accept the risk of change. If parameters are not clear from the beginning western companies can run into issues as previously seen in the Wahaha -‐ Danone case. The countries in Latin America and Asia have the LTO dimension. This means that in these continents families are the basis of society. In the value chain, this can mean that suppliers in these countries are often family run enterprises. As a foreign company, it is important to understand to show respect for tradition and avoid doing anything that would cause another to lose face. In Africa, countries are low IDV that means that harmony is more important than honesty. Team collaboration in for example marketing where it is important for everyone to speak his or her mind can become very difficult. Employees coming from low IDV countries are not used to expressing their emotions publicly, as a foreign manager however this can be encouraged.


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Hofstede Comparison of Belgium versus Asia and Africa - Callebaut the company