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Tuesday, February 21, 2012

Interpreting Culture’s Consequences in Café Societies



Interpreting Culture’s Consequences in Café Societies

Select an international cafe chain (e.g., Gloria Jeans or Starbucks). Identify how the chain has utilised Hofstede’s (2001) cultural framework to interpret and adapt its marketing and management strategies overseas

Starbucks is known as an international café chain. They operate coffee chain business and output that based in United State. Starbuck is now the largest coffee chain company in the world, with a record number of 15,011 branches in 42 countries. Starbucks sells coffee, espresso-based drinks, hot and cold beverages, snacks, and coffee mugs. (Starbucks Corporation). It has used Hofstede’s cultural framework to interpret and adapt its marketing and management strategies overseas. Hofstede’s model includes five key dimensions of understanding different cultures such as power distance, individualism, masculinity, uncertainty avoidance, and long term orientation.

First of all, Starbucks has low power distance. It believes in the equality between the employer and employees. Starbucks’s Superiors treat subordinates with respect, do not pull rank and entrusted with important assignments [1].In addition, Starbucks’s Superiors have willingness to accept feedback or advice from their subordinates. Thus , they can communicate with each other in a well relationship and narrow down the power distance.


Furthermore, Starbucks gets a high score of uncertainty avoidance in the Hofstede’s cultural model.Starbucks has their own design rule and structure for their employees to follow. This is used to reduce the uncertainty and risks. In addition, they have to always review and design a new company strategy or policy to avoid any risks before making a decision or changes.

Moreover, Starbucks are considered as a collectivist company. The company operates as a team. Company behaviours are more common than individualistic expression or behaviour. Instead of focusing on individual working ability and personal achievement, Starbucks’ team manager and team members work as a team when working. Furthermore, whenever Starbucks faces a problem, it will not make any decision individually. It will form a team or a group discussion to develop a solution or strategy to deal with the problem.

Additionally, Starbucks’ culture is more on feminine than masculinity. Company meets all employees which means that its views of all employees the same regardless of gender. Also, Starbucks place more value on the relationship between employers and employees. Eventually, thisshow that Starbucks culture is feminine.

According to the Hofstede’s dimension, Starbucks embraces long-term devotion to traditional cultural values. Corporate social responsibility is an example that shows Starbucks focuses on long term orientation. Starbucks’ works for environmental and community issues in the long term. Starbucks work for corporation social responsibility is not for earning profit in the short term. The main objective that Starbucks practices corporation social responsibility is to help the company earn reputation and positive company image. Thus, this can help company generate more profit in the long run.

What recommendations would you make to the cafe chain’s service staff in handling high context (they are affordable) versus low context cultures?

According to hall, members of low-context cultures have less personal contact with each other and therefore, communications within this culture are very detailed, explicit, and direct, often by way of written texts. Whilst this means that more explanation is needed, it also means there is less chance of misunderstanding particularly when visitors are present .The United States is a low-context culture. In contrast, members of high-context cultures have closer and more familiar contact with each other, where information is frequently shared via indirect communication, often based on symbols and pictures. This can be very confusing for person who does not understand the 'unwritten rules' of the culture. China is a high-context culture.

Starbucks is known as international brand and it has more than 15,000 shops in 42 countries. Obviously, in these 42 countries, some have low context culture and the rest is considered as high context culture countries. Thus, Starbucks’ need to face and handle both low and  high context culture.

According to hall, members of low-context cultures have less personal contact with each other and therefore, communications within this culture are very detailed, explicit, and direct, often by way of written texts. Whilst this means that more explanation is needed, it also means there is less chance of misunderstanding particularly when visitors are present .The United States is a low-context culture. As a result, in order to handle the low-context culture, service staffs need to be very familiar with all of the Starbucks products and information. Well educate and experience service staff will be able to providential information to consumer and explain.

Try to make context with relative together.Ask their relative to make their café together.

3 comments:

  1. Hello, interesting post! Is it possible to provide the sources used? Thank you :)

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