OPEN UNIVERSITY

of MAURITIUS
Assignment Cover Sheet
Name of Learner Rujub Bibi Rumeysha

OU Learner ID Number 201601720

Full Programme Title Bsc Marketing Management Year Semester

3 1

Name of Part-Time Lecturer Mr A.Ramkelawon

Module Title International Marketing

Assignment Number 1 Please Tick First Submission Re-sit Re-Submission

as Appropriate √

Assignment Due Date 24th Oct 2020 Date Assignment is Submitted No. of Words:
24th Oct 2020

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I certify that I have not plagiarised the work of others or participated in unauthorised collaboration when
preparing this assignment. No part of this assignment has been previously submitted as part of another
unit/course. (In case assignment is being submitted by email, the learner must type his/her name in upper-case
letters).

Signature of Learner: RUJUB Date: 24 / 10 / 2020

Table to be filled in by Part-Time Lecturer

Basis of Assessment
(This may change for different assignments) Weighting % Marks Awarded Marker's Comment/s
Presentation and Style 10
Evidence of Reading/Application of Theory 20
Logical Development/Discussion of the Topic 30
Development of Insight 30
Conclusion 10
Total Marks Awarded 100
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Business Economics by JOOMUN Mohammad Arshaad Page 2

 ASSIGNMENT

Submitted by

RUJUB Rumeysha

At The

Open University of Mauritius

For International Marketing Module

As Part Fulfilment Of

Bsc Marketing Management

Lecturer: Mr A.Ramkelawon

October 2020
 Table of Contents

Chapters Pages

ACKNOWLEDGEMENT & ABSTRACT

1

CHAPTER 1: INTRODUCTION
2
1.2 MAC DONALD AS AN EXAMPLE…………………………….3
1.3 NEED FOR THE STUDY………...…………………………….4

CHAPTER 2 : HOFSTEDE CULTURAL DIMENSIONS

5

CHAPTER 3: APPLICATION OF HOSTEDE THEORY

6-11
3.1 POWER DISTANCE INDEX……................................................6
3.2INDIVIDUALISM VS COLLECTISM ....…......................................7

3.3 MASCULINITY VS FEMINITY ....................................................8

3.4 UNCERTAINTY AVAIDANCE INDEX ..........................................9

3.5 LONG VS SHORT TERM ORIENTATION ......................................10

3.6 RESTRAINT VS

INDULGENCE ....................................................11

CHAPTER 4: RECOMMENDATIONS AND CONCLUSION

12
CHAPTER 5: BIBLIOGRAPHY
13

Acknowledgement

There is many to thank when it comes to those individuals who in a way or another helped me
in putting forward this piece of work. The list surely is long but I have tried to summarise it as
follows:

1. First and foremost, I thank God, the Al Mighty without whom I would not have been in
a position to enroll for this course.
2. Secondly, I would like to show my appreciation to my parents who have constantly
supported me during the weeks of research and work.
3. Thirdly, I thank MR A.Ramkelawon Lecturer of Module International Marketing at the
Open University of Mauritius for his great support and coaching.
4. Fourthly, I thank Mr GOKHOOL, our Coordinator at the Open University of Mauritius
for his valuable directives and information.

In brief, this work has been rendered possible through the wings of distinguished persons.

In the blessed hope,

Abstract

International management is the management of business operations in an organisation

serving markets and operating in more than one country

International Marketing Management by Rujub R Page 1

 CHAPTER ONE: INTRODUCTION

1.1 Introduction

Companies all over the world have always tried to create and capitalise on competitive
advantages, ensuring profitability and long term survival. Due to the increasing competition in
most markets, mainly caused by globalization, liberalisation and better information of the
customers, the need to gain advantages in competition is now more essential than ever.

Since all companies are adopting new strategies and are going international.The very first step
before going international is to study and understand the culture of the Target country. Without
taking culture into consideration, the company can cause severe loss and might also break the
major rules and laws of a particular country. (Hofstede, G & Bond, M. H. 1988)

International Marketing Management by Rujub R Page 2

What is allowed and appreciated in a particular country might be inappropriate and despised by
another country. In the European countries like Spain, France, and Germany, using direct eye
contact is accepted and considered to be a sign of attentiveness, honesty, confidence, and
respect for what the other is saying. In some Latin-American, Asian, and African cultures, the
opposite is true. Direct eye contact might be considered aggressive. In these cultures, avoiding
direct eye contact is a sign of respect, especially to elders or authority figures.It is very
important for a company to study the culture of a country before expanding and introducing the
Services and good. Having a broad understanding of culture also helps an Organization to gain
competitive advantage over others.

1.2 McDonald’s as an Example

McDonald's has around 34,000 restaurants in 118 countries and territories across the world,

serving more than 69 million people every day worldwide.

McDonald’s has potentially created more economic impact for diverse communities than any
other company in the world. Our belief is rooted in “Diversity IS Inclusion”, a bold and
seismic value proposition where every individual feels their culture, identity, and experiences
are valued and respected.

McDonald’s is a living example of a company, who has attained competitive advantage in the
Fast Food industry. One of the main strength of McDonald’s is that, it has preserved the
essence of all cultures. All meals have been created and moulded in order to correspond to the
Culture whereby clients feel at home and are more convinced to buy.

International Marketing Management by Rujub R Page 3

1.3 Need for the Study

The Fast Food industry has been facing many new challenges for instance, increase in the
demand for quality, healthy food items, customer satisfaction and increased competition. To
face these challenges, it is important that Fast Food outlets pay more attention in developing
effective ways to satisfy the needs and wants of Customers. (Desai, 1994, p. 40)

This study focuses on Fast Food operatives, and the company chosen is McDonald’s. The Food
sector plays an important role in the lives of every individual and Food is what we need in
order to live.

This Study will help us to assess how McDonald’s thrives in order to maintain its competitive
advantage by using Culture.

International Marketing Management by Rujub R Page 4

 CHAPTER 2: HOFSTEDE CULTURAL DIMENSION

Service quality is important since it enables managers and researchers to compare consumer
expectations in accordance with the performance of the service provider. This enables
management to be aware of the level of quality services rendered to customers and makes it
easier to increase customer satisfaction. Service quality is directly proportional to Customer
Satisfaction (Lewis & Boom, 1983).

According to Eshghi, Roy, & Ganguli, (2008, p. 121), service quality is described as the
overall assessment of a service by the customers. Looking at the above definitions, it can be
acknowledged that service quality has to do with assessing consumers perceptions with respect
to the type of services offered to them and what they actually expect from companies that is,
their expectations.

service quality enables service organizations to preserve customer support and build
pronounced base and also serve as a great tool for wining customer loyalty (Al, Ramzi, &
Mohamed, 2010, p. 886). According to Nalini et al., (2011, p. 52), service quality plays a
significant role in the success of every business. In order for businesses to improve and
maintain a better positioning in the competitive era, it is necessary to evaluate the performance
of the services rendered by them.

Additionally, the service provider companies spend a great deal of time and money in
configuring the high quality services to satisfy their customers. An assessment of customer
loyalty and trust enables the company to deliver proper services to the right segment of
customers. These services can be delivered rightly if the company understands consumer
perception and expectations.

consumer expectation is described as what consumers feel service provider should offer and
this could be influenced by their past experience, advertisement, personal needs, word-of-
mouth and communications (Parasuraman et al., 1985, p. 49-50).
Furthermore, this signifies that in a situation where perceptions are higher than expectations the
service will be considered excellent. Meanwhile, in a case where expectations equal
perceptions then the services are classified to be of good quality but where expectations are not
attained, the services are termed to be of poor quality.(Parasuraman et al., 1985). Therefore it is
crucial for companies to provide a service that equals the customer expectations or excel it.
service quality is important since it enables managers and researchers to compare consumers
expectations in accordance with the performance of the service provider. This enables
management to be aware of the level of quality services rendered to customers and makes it

International Marketing Management by Rujub R Page 5

easier to increase customer satisfaction. Service quality is measures how effective the services
satisfy or meet the expectations of customers (Lewis & Boom, 1983).

According to Eshghi, Roy, & Ganguli, (2008, p. 121), service quality is described as the
overall assessment of a service by the customers. Looking at the above definitions, it can be
acknowledged that service quality has to do with assessing consumers perceptions with respect
to the type of services offered to them and what they actually expect from companies that is,
their expectations.
The concept of Service quality is of paramount importance to researchers, academicians and
businesses. service quality enables service organizations to preserve customer support and
build pronounced base and also serve as a great tool for wining customer loyalty (Al, Ramzi, &
Mohamed, 2010, p. 886).

Service quality and customer satisfaction are dependent on each other, where service quality is
perceived by customers as more than expected it turns to affect their level of satisfaction
positively and in a case where customers perceptions is far more lesser than what they expects
they turn to be dissatisfied. In a nutshell, a rise in one leads to a rise in the other and a fall in
one leads to a fall in another (Oliver, 1997).

In the light of the above information, understanding what customers perceptions and
expectations are in the realm of health care services makes it easier for health care service
providers to understand how customer perceive service quality and how to measure service
quality in this domain and thus increase the level of customer satisfaction. Therefore,
understanding customer’s perceptions and expectations is important if quality service has to be
delivered.

hygiene, safety &

security, catering, health
care service,
punctuality, behavior
towards passengers.
Hofstede’s Cultural Dimensions Theory was created in 1980 by Dutch management
researcher, Geert Hofstede.The aim of the study was to determine the dimensions in which
cultures vary. Professor Geert Hofstede conducted one of the most comprehensive studies of
how values in the workplace are influenced by culture. He defines culture as “the collective

International Marketing Management by Rujub R Page 6

programming of the mind distinguishing the members of one group or category of people from
others”. (Hofstede, 1980, p. 25)

Nowadays, we live a world whereby we are connected despite of the Geographical

separations.All countries can enjoy the same Food, Fashion trends and many more luxuries.
Undoubtedly, one of the most common essences that are being shared globally is Food. In this
era, Fast food has become an essential part of our daily lives. From Young Adults to Elderly
persons, Fast food has become our kryptonite.

Each country has a particular fashion sense, Eating habits and ways of living. All these factors
are part of Culture.Professor Hofstede conducted many surveys and Researches, and finally
came up with a theory called The Cultural Dimensions of Hostedes’s Theory.This Theory
explains how different factors within Culture vary from country to country.

The Hofstede model of national culture consists of six dimensions. The cultural dimensions
represent independent preferences for one state of affairs over another that distinguish
countries from each other.

Hofstede identified six categories that define culture:

1. Power Distance Index

2. Collectivism vs. Individualism

3. Uncertainty Avoidance Index

4. Femininity vs. Masculinity

5. Short-Term vs. Long-Term Orientation

6. Restraint vs. Indulgence

CHAPTER 3: APPLICATION OF HOFSTEDE’S THEORY

1. Power Distance Index

The power distance index considers the extent to which inequality and power are tolerated. In
this dimension, inequality and power are viewed from the viewpoint of the followers – the
lower level.

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  High power distance index indicates that a culture accepts inequity and power
differences, encourages bureaucracy, and shows high respect for rank and authority.

 In a society with a low power distance, people are constantly trying to equalize the
distribution of power, especially those who have less power.

The Dutch site of McDonald’s professional in terms of design and offers rich information on
all different kind of topics, such as products, quality of ingredients, restaurant locations, and
sustainability. The visitor has access to clear and trustworthy content structure. Any action
taken gives the impression it is taken on our own choice

Visitors from societies with a big power distance are used to authorities and solid
structures.We have to ensure to offer them facts and clear. Visitors from this group are less
critical and less driven to search for detailed information in order to make up their own mind.

The Website of both Countries can be compared in order to understand how the Power
Distance Index can help a company to gain more customers at international levels.

Low Power Index Countries like Dutch.

High Power Index Countries like China

2. Individualism versus collectivism (IDV)

The second dimension describes how much people in a group focus on themselves and on the
group as a whole. The position of a society on this dimension is reflected in whether people
refer to themselves as “I” or “we”. Individualist societies prefer a low social network in which
everyone is expected to take care of themselves and their close families. In a collectivist
culture, people care as much or even more for others than for themselves. In exchange, others
take care of them.
International Marketing Management by Rujub R Page 8
A perfect Example would be the Case of The United States and Mauritius. The US
McDonald’s is very focussed on the benefits of the individual visitor. The Menu is clear and
the site offers a lot of information on all different kind of topics. The Menu is based more on
personal action, such as “Meet McDonald’s fish supplier Kenny Logan”, “Find your favorite
deal”, or “Try our newest catch”, Also, on one of the Banners it says “exactly what you want”,
which appeals to the individual visitor and the idea of self-fulfillment.

However, in countries like Mauritius, People are more Family oriented and will actually go out
with Family and Friends.Therefore McDonals’s Mauritius has been designed in a way to cater
for Families and large Audience.The seating arrangements start as from 2 Persons and reach
upto 10 persons.The menu also have a lot of Family and Friends Meal, for Examply the Crispy
X9 which is appropriate for Large Families, Friends, Gatherings and Outings.

3. Masculinity vs. Femininity

The masculinity vs. femininity dimension is also referred to as “tough vs. tender,” and
considers the preference of society for achievement, attitude towards sexuality equality and
behavior, (Hofstede, 2001)

 Masculinity comes with the following characteristics: distinct gender roles, assertive,
and concentrated on material achievements and wealth-building.

International Marketing Management by Rujub R Page 9

  Femininity comes with the following characteristics: fluid gender roles, modest,
nurturing, and concerned with the quality of life.

If a Company operating in a Male centered Country, makes use of Colourful, fancy and
delicate advertisements, the chance of havinga high profit Margin becomes very low.Therefore,
the company will have low competitive advantage. We have to identify in which country or
culture we are operating and then implement our marketing strategies in order to survive
competition and enjoy high Profit Margin.

In countries where Women Empowerment is continuously

growing, a company should adopt a more feminine approach
like using colours, emphathy and build trust with Customers.
For countries having an assertive Masculine culture, products
and advertisements should be basic with less attractive
packaging and colours.

4. Uncertainty Avoidance Index

The uncertainty avoidance index considers the extent to which uncertainty and ambiguity are
tolerated. This dimension considers how unknown situations and unexpected events are dealt
with.

 A high uncertainty avoidance index indicates a low tolerance for uncertainty, Cultures
with a high uncertainty avoidance stick to what they know and avoid unorthodox
behaviors or ideas

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  A low uncertainty avoidance index indicates a high tolerance for uncertainty,
ambiguity, and risk-taking. Cultures with low uncertainty avoidance prefer practice
over principles and welcome change.

In Russia, advertisements are usually composed of real life situations, positive vibes,visuals of
happy faces and includes Family Happiness.This concept actually helps to gain the trust and
attention of people living in High Uncertainty societies.Eventually, people will buy the product
or Service as they trust and feel at home with the Company.

On the other hand, Companies operating in India need to innovate from time to time to match
the expectations of Indians.As mentioned in the Case Study above, the introduction of a 20
rupees (20p) burger called Aloo Tikki Burger, a burger with a cutlet made of mashed potatoes,
peas and flavoured with Indian spices.

"It's something you would find on Indian streets; it was essentially the McDonald's version of
street food. The price and the taste together, the value we introduced, was a hit. It
revolutionised the industry in India," (Amit Jatia)

The above statement is a proof that adapting to Uncertatinty avoidance can help a company
boost up sales and gain more competitive advantage.

5. Long-term versus short-term orientation (LTO)

This dimension describes how much a society is concerned with its virtue. Societies with a
short-term orientation are normative in their thinking. They value traditions and are interested
in establishing the absolute truth of the moment. They live in the here and now and don’t worry
too much about the future. A long-term orientation on the other hand results in a society that
believes truth depends on situation, context, and time. People believe that traditions can be
adapted to changed conditions; they plan their lives ahead, and set long-term goals.

A perfect example would be the Car Industry.A Short Term orientation Culture, will be
interested in Trendy and luxurious Cars,whereby the car will be used for a short period of time

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and the individuals will keep on buying new models in order to suit his or her current situation
or needs.

However People having a mindset of Long Orientation, will prefer to buy a car which is
affordable, of high quality, long-lasting and also spacious if ever in the future their family will
grow.These people will actually look for durable cars and overlook new, trendy and 2
seatedvehicles.

In the light of the above information, it is clear that a Company should always study the
Culture of the Target Country before entering its Market as this will help to understand
customer needs.Any product, not meeting customer needs will fall out of trend.Nowadays, the
only survival in the international cut throat competition is to identify ways to satisfy customers
and hence lead the competition.

6. Indulgence vs. Restraint

The indulgence against restraint dimension considers the extent and tendency to which a
society fulfills its desires. In other words, this dimension revolves around how societies can
control their impulses and desires.

 Indulgence indicates that a society allows relatively free gratification related to

enjoying life and having fun.

 Restraint indicates that a society suppresses gratification of needs and regulates it

through social norms.

International Marketing Management by Rujub R Page 12

Among indulgent countries are Australia, Canada, the US, Argentina, Chile, and several
African countries. Cultures with high degree of indulgence enjoy life and behave in accordance
with basic human drives. Therefore, having fun and fulfilling desires is considered natural.

As mentioned in the Case Study, Indians have a more Restraint dimension Culture, where
changing or adapting to other Food and culture, is very rigid. People are more reluctant to
welcome changes. For example, if McDonals’s would have kept the Food Items standard, then
McDonald’s would have never existed in India.

Introduction of a Food item related to the normal eating habits helped McDonald’s to attain
double sales. As mentioned in X Research, the research shows that in 2003, of 100 meals that
people ate in a month, only three were eaten out.After the introduction of the Aloo Tikki meal,
eating out has now gone up to 9-10 times per 100 meals and McDonald's in India has more
than 320 million customers a year.

This is a perfect example of how, adapting with the culture helps a company to grow
internationally and become the number one in competition.

CHAPTER 4: RECOMMENDATIONS AND CONCLUSION

Today, we live in a modern world whereby Cultures are being merged and some countries do
not actually have a culture of their own. Having expatriates, immigrants and visitors can make
the Dimensions of Hofstede’s theory biased and can actually diverse results. Therefore,
companies should also take into account if the country is visited by other culture memebers
oftely and should also identify the culture. As a result, advertisements and products will be
moulded to suit the different cultures and the company can attract a larger number of
customers. This will help the company to conquer the market and become a pioneer in
competition. (Hofstede, G. 2005)

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In the Light of the above information, it is clear that understanding culture and its components is
mandatory before embarking on an international business strategy. The different components of
Hofstede’sculture dimensions help companies to identify which Market strategy they should implement
as well as help in developing tailormade products that suit all members of different
cultures.Overall,Hofstede’s dimensions of culture proves to be an effective way to identify and
understand the culture of a particular country.All the mentioned benefits of Hofstede’s Theory helps a
company to acquire competitive advantage over other countries as they know exactly how to appeal
their customers and increase the profits.

CHAPTER 5: BIBLIOGRAPHY

1. Desai, S.; Jain, D. 1994. “Maternal employment and changes in family dynamics: The
social context of women's work in rural South India”, Population and Development
Review, Vol. 20, No. 1, pp. 115– 136.

International Marketing Management by Rujub R Page 14

 2. Hofstede, 1980, p. 25: Hofstede, G. (1980). Culture’s consequences. Beverly Hills: Ca:
Sage.

3. Hofstede, G. (2001). Culture's consequences: Comparing values, behaviors, institutions

and organizations across nations: Sage

4. Hofstede, G. (2005). Cultures and Organizations. Software of the Mind. 2005.

McGrawHill, New York.

5. Hofstede, G., & Bond, M. H. (1988). The Confucius connection: From cultural roots to
economic growth. Organizational dynamics, 16(4), 5-21

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Many researchers
pratminingsih
Rudatin and Suhardi (2013)
found that
customer satisfaction is based
upon the level
of service quality provided
by the service
provider. It highlights that the
quality of the
service impact on the
customer satisfaction
in many service spheres.
Marković(2013)

International Marketing Management by Rujub R Page 16

identified that there is a
close relationship
between service quality
dimensions and
customer satisfaction in hotel
industry.
Many researchers
pratminingsih
Rudatin and Suhardi (2013)
found that
customer satisfaction is based
upon the level
of service quality provided
by the service
provider. It highlights that the
quality of the

International Marketing Management by Rujub R Page 17

service impact on the
customer satisfaction
in many service spheres.
Marković(2013)
identified that there is a
close relationship
between service quality
dimensions and
c

International Marketing Management by Rujub R Page 18