Global Impacts Essay Example | Topics and Well Written Essays - 4500 words

Global Impacts - establish ExampleLouis Vuitton is a luxury fashion and leather goods company headquartered in Paris and France. (Louis Vuitton) India is fast meet an international fashion destination, coordinating efforts with international designers so that Indian designers are exposed internationally and outside(prenominal) designs are exposed in India. (Business Desk, 2009) However, there are a number of internal and external environmental factors with respect to marketing strategies that Louis Vuitton will be required to take into account for the purpose of adapting to and entering the India market. separately of these factors will be examined in this essay.In order to facilitate a smooth transition into the Indian business environment Louis Vuitton will be required to understand the cultural differences. The Hofstede Model of Cultural Dimensions cigarette act as a useful guideline for determining the cultural differences in India and what can be done in the business const itution to accommodate those differences. Hofstede identified five cultural holdings that are relevant for global marketing strategies.The first cultural dimension on Hofstedes cultural dimension scale is personnel quad Index (PDI). PDI draws on the level of equity and inequity among the population in a nations society. high up-pitched force play Distance Index will mean that power and wealth is distributed at a high rate of inequality in that society. In this regard citizens are generally denied upward growth. Low Power Distance typically means that the society is driven by equal opportunities ambitions.(Hofstede, 2001) According to Hofstedes Power Distance Index, India ranks 77 which is high. However, it is not that far ahead of Frances PDI which is at 68 (Hofstedes Dimension of Culture Scale) The average PDI nigh the globe is 56. (Hofstedes Dimension of Culture Scale) The difficulty with countries showing high PDI bes for businesses is that the individual from that cultur e will typically defer to higher authority for a decision even if they are aware that something is terribly defective and what measures are required to correct it. The Korean Air crash in Guam is one example of the consequences of a high PDI ranking. In this scenario, the pilot made an error which the co-pilot was aware of, but deferred to the pilots decision who was his superior.(Gladwell, 2008) For the purposes of internal organization of the business office in India, Indian employees are likely to adhere to the power structure in spite of appearance the organization. Even so, a high PDI is also indicative of fear of and ambivalence toward anything foreign.(Chan and Cheung, 2008) The second of Hofstedes cultural dimension is Individualism (IDV). IDV emphasises the level with which the particular society focuses on either individual or collective relationships and achievements. A country with a high IDV ranking is generally one in which the emphasis is on individualisation and i ndividual rights. Persons within in high IDV countries gravitate toward more relaxed relationships. Conversely, low IDV rankings are typically characterised by collectivism and more tightly woven relationships between persons. Low ranking IDV countries typically focus on families and a collective approach toward looking out for the members within in their tightly woven circle.(Hofstede, 2001) Indias IDV ranking is 48 and relatively low when compared to France which is at 71.