Culture and strategy

• What is a national culture?

  Is a set of rules, specific behavior, shared by multiple member of a nation, that can be seen at home country of a culture or can be seen while members of culture travel abroad.
• Dimensions of Hofstede - several scales, according to which we can characterize any culture. There are 6 of them:

  • Power distance index
  • Individualism vs Collectivism
  • Masculinity vs Femininity
  • Uncertainty avoidance index
  • Long-term/short-term orientation
  • Indulgence vs. restraint
• What is an uncertainty avoidance index?

  It measures a society's tolerance for ambiguity and uncertainty. For cultures with high UAI it is usual to implement strict rules and regulations to minimize it, while cultures with low UAI are more accepting to different behaviors and ideas. High UAI cultures feel uncomfortable in not usual situations, low - prefer flexibility over regulations.
• What is a LT/ST orientation?

  Describes society's time horizon. Long-term oriented value perseverance, thrift, and adaptation to changes, while short-term value traditions and fulfilment social obligations.
• Organizational culture - beliefs, values of organization, that dictate what behavior is acceptable and not.