Business and Socio-Culture Differences Between US and UK (Essay Sample)

BUSINESS AND SOCIO-CULTURE DIFFERENCES BETWEEN U.S AND U.K
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Table of Contents
Introduction…………………………………………………………………………………....3
Comparative Analysis……………………………………………………………………...….4
Cultural Dimensions………………………………………………………………………..4
Comparison of Selected Socio-cultural features……………………………………………....8
Corporate Governance………………………………………………………………………9
Networking and Internal Environment……………………………………………………..10
Working Culture……………………………………………………………………………11
International Marketing and Brand Perception…………………………………………….12
Briefing…………………………………………………………………………………….…13
Culture and lifestyle………………………………………………………………………….13
Working culture……………………………………………………………………………....16
Conclusion………………………………………………………………………………....…17
References List……………………………………………………………………………......19
Introduction
Globalization comes with great business opportunities that any country cannot afford to assume. Alongside these great opportunities, challenges of socio-cultural divergence come with it (Schwartz 2013, p. 47). Culture is not static. As society changes, businesses should align to these changes to stay relevant to consumer needs. Cultural divergence relates to the differences in shared values, beliefs, norms and behavioural patterns (Ahlstrom & Garry 2011). Globally, many countries have extended their business ties with the view of increasing international relationships. Due to this international cooperation, countries are faced with a challenge of integration of cultures. Triandis (2012, p. 60) notes that although challenges of international ties are reducing with the increase in bilateral agreements, divergence in culture among these countries is of great concern and need to be bridged if international cooperation is to succeed.
This essay will seek to determine how socio-cultural environment of United States compares to that of the United Kingdom. Does divergence of culture between U.S and U.K influence the way businesses are run in both countries? There is need for distinct cultural environments to be managed for business partnering to be successful (Hooker & John 2011). In today’s international environment, socio-cultural factors not only drive growth but also a fundamental requirement to operate in the globalized world.
Hofstede’s (2010) five cultural dimensions will be used to examine different cultural factors influencing the United States and United Kingdom business environment. Part two of this essay will provide a practical rationale for building intercultural competencies aimed at giving an insight into a new person from the United Kingdom going to work in the United States.
A Comparative Analysis
Cultural Dimensions
Hofstede (2010) five cultural dimensions build a framework for comparing socio-cultural aspects. Comprehending the social-cultural differences between the U.S and U.K will help establish a good cross-cultural management practices to reflect the society where business should be conducted.
Hofstede (2001) notes that cultural distance is the extent to which two countries differ from each other based on cultural aspects. Schein & Edgar (2012) assert that cooperation across cultures is fundamental to the success of any organization. Hofstede five dimensions are: Index for Power distance (PDI), Individualism (IDV), Masculinity (MAS), Uncertainty Avoidance (UAI), and Long-term Orientation (LTO).
Hofstede’s (2010) five dimensions of national culture indicate areas of cultural differences between the United States and the United Kingdom. It gives an analysis of how the two countries differ based on socio-cultural environment and insight to organizations on how to operate and meet the demands of the diversity of culture. Hofstede’s five dimensions lay a platform for measuring cultural distance and provide a solid ground for critique. Schwartz (2013, p. 67) notes that by understanding how economies differ in each dimension, managers will stand a position to align their managerial policies.
Figure 1: U.S in comparison to the U.K
Source: Hofstede (2010)
Power distance (PDI)
PDI refers to how people in a given culture view power relationships. Sheffield (2004 p.45) denotes that PDI is the degree to which the less powerful members of the organization agree to the notion of an unequal distribution of power.
The United States has PDI score of 40 indicating less equality compared to 35 of the United Kingdom while both countries score around the medium to low area of the spectrum. Societies are not equal and the range of inequality differs from culture to culture. That U.S has a PDI of 40 is not a surprise since it values liberty and justice for all. This is demonstrated in the emphasis on equal rights to all U.S citizens by the society and the government.
In addition, within the American organizations, hierarchy is created for convenience. Superiors are accessible and managers depend on individual employees and teams for expertise. Information is shared between different levels of organizational leadership and power. Informal, direct and participative communication is emphasized.
Individualism vs. Collectivism (IDV)
IDV describes how close ties are between individuals in a given culture (Becht & Rossi 2010). Cultures with a high IDV score are characterized by a preference for a loosely-knit social framework. The United States and United Kingdom top in the global IDV rankings; the US has a Power Individualistic index of 91 compared to the UK (89).
Hooker & John (2011 p.54) notes that as a country grows richer its culture becomes more individualistic. Indeed, the US and the UK stand a...