CULTURAL DIMENSIONS AND

ENVIRONMENTAL INFLUENCES

ASSIGNMENT: INCENTIVES, PERKS AND

PROMOTIONS
STUDENT NAME: ABHIJIT KADAM
STUDENT ID: 3074910

DATE: May 10, 2016

COURSE: PROJECT MANAGEMENT, SEPT 15
INSTRUCTOR NAME: STEPHEN HAYES

Moving Costco from United States to Brazil

Power Distance Index: United States ( 40)

Brazil ( / 69)

United States power distance is very low, with an index of 40, compared to
that of Brazil having an index 69.

A large power distance indicates that

inequalities of power and wealth is allowed to grow in Brazil, compared to its

counterpart United States, where there is greater equality between societal
levels, including government, organizations and even within the families. In a
culture with, low power distance people are used to report to different people
on different levels. When moving Costco to Brazil, some of the key changes
that we would adjust related to Brazilian high power distance would be to
implement a Matrix organization structure in the Organization, initially for a
short period of time. Brazilian companies tend to be organized along strict
hierarchical lines. Organizational hierarchy tough cant be complicated by an
intrinsic web political alliances and relationships. So one has to make sure
that one is dealing with a decision maker rather than an influencer of the
decision maker. Brazilians having a high power distance, have the tendency
to follow their superiors on most of the management decisions, so
implementing vertical hierarchy in management operations will help them do
good in the long term. Costco will have to appoint decisive leader for the key
positions, such as the top management, directors and presidents, just

because the Brazilians consider these superiors as only people in charge of

important decisions and their opinions are never contested.

Individualism Index: United States (91)

Brazil

(38)

(The

Hofstede Centre, 2016)

As we can see there is a big difference in the indexes of United States (91)
and Brazil (38). People in Brazil, are integrated into strong, cohesive groups,
which continue protecting its members in exchange for loyalty. In a business
environment, it is observed that an older or a powerful member of a family
will be expected to help the younger member of the family to get hired for
the job in the same company, as they believe in having trust and long lasting
relationships. So when moving Costco from USA to Brazil, the Management of
Costco should take into consideration of the powerful managers to help them
recruit employees for the company. As they will recruit those in whom they
show trust and those who stay with the organization for a longer period of
time.
Group work in Brazil involves the participation of everyone whereas in
America the work is split amongst each other. Relationship with a Brazilian
counterpart is not purely transactional, but is a personal one as well.
Brazilians do business with people, whereas the American do business with
the companies. The management of Costco should be aware of the fact that,
to do business with the Brazilians, one has to devote time to know the
person one is dealing with on a more personal level. Also more of the
formation of social groups in the organization will help them participate more
in the organizational activities. (B, 2012)

Masculinity United States (62)

Brazil (49)

A low score for Brazil (49) over US (62) on this dimension, indicates that the
dominant values in the society are caring for each other and quality of life.
For Brazilians quality of life is a sign of success, whereas for United States,
the society is driven by competition to achieve success. While setting up
Costco in the Brazil, we should see to it that the stakeholders involved with
the business feel that they are getting the best of the quality in terms of
work life balance for the employees and the best service satisfaction for the
customers. (Brazil Business Etiquette & Culture, n.d.)
Brazilians do not follow the concept of time is money, they are rather laid
back when it comes to time and work. On the other hand, Americans strictly
follow their schedule. So the management of Costco should be prepared to
expect the business meetings to start late with the staff or any other the
organizations stakeholders. Starting late is not a way of showing disrespect
towards others, but it is the way how the Brazilians are. During the business
meetings the Brazilians have a tendency to not to follow the meeting
agenda, even if there is one. (B, 2012)

Uncertainty Avoidance United States (46)

Brazil (76)

Uncertainty avoidance ranks highest for Brazil with and index of 76, which
indicates that there is a high concern for rules, regulations, control and
issues with career security. The Brazilians do not readily accept changes and
are risk adverse as well. The high score on this dimension also indicates the
societys low level of tolerance for the society. In an order to minimize or
reduce this effect of uncertainty, Costco will have to should implement strict
rules, laws, policies and regulations in the workplace. This will make the
society believe that everything will be under control if all these rules and
regulations are adopted. Also Costco should take into consideration that,
instant changes should not be implemented in the business, as the
stakeholders wont be ready for changes. Changes should be made in a
subtle way.

Long Term Orientation United States (26)

Brazil (76)

Brazil scores high on this Long Term Orientation Dimension with an index of
76, whereas United States scores a 26. A high-score for Brazil signifies that
the society has great respect for tradition and supports a strong workplace
ethics, where long-term rewards are expected of the current work that they
do. As an organization in Brazil, Costco will have to be aware of the traditions
of the society and see to it that they implement these traditions in their work
culture. Also a sense job security will make the employees will make them

feel confident about their long term goals as well. (Brazil Business Etiquette
& Culture, n.d.)
Brazilians work to live whereas the Americans live to work. Brazilians do work
really very hard, but for them the family and life outside work is more
important. They appreciate and take their vacations unlike the Americans do.
So Costco should include and promote the perks in terms of vacations so that
the employees are kept satisfied.
Conclusion
There are a lot of cultural difference when working with the Brazilians and
the Americans, and there is no right or wrong. Different cultures approaches
the style of doing business in different ways. In the end what matters is
understanding, what the differences are and being mindful of how they can
affect the business as well as personal relationship. Implementing the
business Idea of Costco will be great success if the business sponsor
carefully take inconsideration the Hofstede five cultural dimensions.

References
(2016,

May).
Retrieved
from
The
hofstede.com/united-states.html

Hofstede

Centre:

https://geert-

B, J. (2012, March 31). Seven ways Brazilians work differently than Americans.
Retrieved from http://www.atlascorps.org/blog/?p=812
Brazil Business Etiquette & Culture. (n.d.). Retrieved from Geert Hofstede Analysis
for Brazil: http://www.cyborlink.com/besite/brazil.htm