You are on page 1of 7



STUDENT ID: 3074910

DATE: May 10, 2016

have the tendency to follow their superiors on most of the management decisions. A large power distance indicates that inequalities of power and wealth is allowed to grow in Brazil. with an index of 40. compared to that of Brazil having an index 69. When moving Costco to Brazil. In a culture with. initially for a short period of time. low power distance people are used to report to different people on different levels. 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. Brazilians having a high power distance. So one has to make sure that one is dealing with a decision maker rather than an influencer of the decision maker. directors and presidents. Brazilian companies tend to be organized along strict hierarchical lines. where there is greater equality between societal levels.Moving Costco from United States to Brazil Power Distance – Index: United States ( 40) Brazil ( / 69) United States’ power distance is very low. Costco will have to appoint decisive leader for the key positions. including government. compared to its counterpart United States. so implementing vertical hierarchy in management operations will help them do good in the long term. organizations and even within the families. just . Organizational hierarchy tough can’t be complicated by an intrinsic web political alliances and relationships. such as the top management.

.because the Brazilians consider these superiors as only people in charge of important decisions and their opinions are never contested.

Group work in Brazil involves the participation of everyone whereas in America the work is split amongst each other. The management of Costco should be aware of the fact that. Brazilians do business with people.Individualism – Index: United States (91) Brazil (38) (The Hofstede Centre. the Management of Costco should take into consideration of the powerful managers to help them recruit employees for the company. one has to devote time to know the person one is dealing with on a more personal level. whereas the American do business with the companies. 2016) As we can see there is a big difference in the indexes of United States (91) and Brazil (38). So when moving Costco from USA to Brazil. are integrated into strong. 2012) . but is a personal one as well. cohesive groups. 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. to do business with the Brazilians. Also more of the formation of social groups in the organization will help them participate more in the organizational activities. which continue protecting its members in exchange for loyalty. In a business environment. Relationship with a Brazilian counterpart is not purely transactional. as they believe in having trust and long lasting relationships. People in Brazil. (B. As they will recruit those in whom they show trust and those who stay with the organization for a longer period of time.

Starting late is not a way of showing disrespect towards others. n. the society is driven by competition to achieve success. Americans strictly follow their schedule. they are rather laid back when it comes to time and work. 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.d. even if there is one. 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. For Brazilians quality of life is a sign of success.) Brazilians do not follow the concept of “time is money”.Masculinity – United States (62) Brazil (49) A low score for Brazil (49) over US (62) on this dimension. 2012) Uncertainty Avoidance – United States (46) Brazil (76) . whereas for United States. On the other hand. but it is the way how the Brazilians are. (B. (Brazil Business Etiquette & Culture. indicates that the dominant values in the society are caring for each other and quality of life. While setting up Costco in the Brazil. During the business meetings the Brazilians have a tendency to not to follow the meeting agenda.

whereas United States scores a 26. Also a sense job security will make the employees will make them . control and issues with career security. Changes should be made in a subtle way. Also Costco should take into consideration that. The Brazilian’s do not readily accept changes and are risk adverse as well. In an order to minimize or reduce this effect of uncertainty. regulations. A high-score for Brazil signifies that the society has great respect for tradition and supports a strong workplace ethics. laws.Uncertainty avoidance ranks highest for Brazil with and index of 76. instant changes should not be implemented in the business. The high score on this dimension also indicates the society’s low level of tolerance for the society. where long-term rewards are expected of the current work that they do. As an organization in Brazil. Long Term Orientation – United States (26) Brazil (76) Brazil scores high on this Long Term Orientation Dimension with an index of 76. 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. Costco will have to should implement strict rules. 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. which indicates that there is a high concern for rules. as the stakeholders won’t be ready for changes.

Retrieved from http://www. Retrieved from Geert Hofstede Analysis for Brazil: Brazil Business Etiquette & Culture. Different cultures approaches the style of doing business in different ways. So Costco should include and promote the perks in terms of vacations so that the employees are kept satisfied.htm .cyborlink.html Hofstede Centre: https://geert- B. In the end what matters is understanding. Seven ways Brazilians work differently than Americans.d. Retrieved from The hofstede. Conclusion There are a lot of cultural difference when working with the Brazilians and the Americans. (2012. (n. March 31). Brazilians do work really very hard. J. They appreciate and take their vacations unlike the Americans do. May). References (2016. and there is no right or wrong.d.) Brazilians work to live whereas the Americans live to work. Implementing the business Idea of Costco will be great success if the business sponsor carefully take inconsideration the Hofstede five cultural dimensions.feel confident about their long term goals as well. but for them the family and life outside work is more important. what the differences are and being mindful of how they can affect the business as well as personal relationship. (Brazil Business Etiquette & Culture.