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Challenging the culture guides taught in business schools

While Hofstede’s original work has laid the foundation for cross-cultural and business communication, could it time for something new?



Collective Culture vs. the Individual

In business schools around the world, students are studying Geert Hofstede’s six (as of 2010) cultural dimensions. I was one of those enthralled students, gushing over the depth and conviction of his theses. I smiled and whispered to myself, Yes! Someone gets it… culture is all-important in business. But recently, after chatting with a former B-school professor, I brazenly mentioned it’s time for a “cultural studies re-vamp” in business education. You could have heard crickets chirping, as if I’d just committed the largest case of blasphemy this side of the Holy Land.

In case you aren’t familiar, here’s a brief introduction to Human and Organizational Development 101: Hofstede conducted a worldwide survey of IBM employees in the 1960s and 1970s. He discovered that cultural values could be analyzed on six (originally only four) cultural dimensions: Power Distance Index (PDI), Individualism (IDV), Uncertainty Avoidance Index (UAI), Masculinity (MAS), Long Term Orientation (LTO) and finally Indulgence vs. Self-Restraint. The scores are relative, society to society, and merely serve as constructs. While the dimensions scores do not predict future behavior, they serve to explain an the undergirding effect culture has on members of a society.

While his research was groundbreaking, is this really the universal “truth” we should be following as THE culture guide?

What is culture?

For starters, many agree that culture, in the general sense, is the set of behaviors, beliefs and attributes distinctive of a group. I believe culture is so much more than this. It’s a collection of arts, language, knowledge, mannerisms, prejudices, experiences, tastes, morals, and desires. But is what makes up culture black and white? Is culture dynamic or static? Is it something that one is only born with?

The idea of subculture mitigates this definition conundrum, but raises a whole new set of questions. Is subculture as important as national culture, corporate culture or even family culture? These are all questions that must be answered on some level to conduct business on a global scale. While there may be different answers for each of these questions, it’s far more important to realize that culture is adaptive and is constantly in flux.

Is the sum greater than its parts?

We know what culture is and how it relates to groups, but how does it relate to individuals? In all of the aforementioned definitions, culture is the relationship of an individual to the group. In business, we often stage negotiations and initial meetings based on national cultures and, sadly enough, preconceived notions. But, is the individual culture more important that the group culture? Ultimately it comes down to what our goal is in business. I recently heard a fabulous saleswoman speak on the evolution of the marketplace. No longer are we selling B-2-B, now it’s P-2-P, people-to-people. As such, we must change our frame of reference and focus on the individual before us.

Or is the world in fact getting smaller? We hear, and see, time and time again how the world is shrinking. From Guiness in Africa to Starbucks in Europe to Outback Steakhouse in China, globalization is ever-present. This international brand presence would seem to indicate on some level an emerging “world culture” that we should be aware of. Some characteristics would include international efficiency, use of technology, and a shared common language (revenue!). In this case, how valid are the national cultures of societies? Wouldn’t the collective cultures paint a more accurate picture?

Key Takeaways

While Hofstede made valuable contributions to culture studies in global business, some improvements can be made.
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  • In this millennium, we can’t over look what many have dubbed “The Melting Pot effect” and multiculturalism – the blending and mixing of multiple cultures.
  • In business, we should factor in corporate culture as it pertains to the individual.
  • While P2P is great in long-term business relationships, use Hofstede’s generic national cultural definitions sparingly and only as a starting point for understanding.


Monica Moffitt, founder and Principal Cultural Consultant at Tianfen Consulting, Inc., has traveled the world and enjoys linguistics and all things culture. Having split her career between project management and business analytics, Monica merges logic, fluency in Chinese and creativity in her new role as cultural consultant. She received a Bachelor of Arts in East Asian Studies/Chinese from Vanderbilt University and a Master of Business Administration (International Management and Marketing) from University of Texas at Dallas.

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  1. AdLawGuy

    June 18, 2012 at 1:25 pm

    @Hoeferle Congrats on the German Embassy website mention!

    • Hoeferle

      June 18, 2012 at 1:25 pm

      @AdLawGuy thanks!

  2. diversityreport

    July 17, 2012 at 2:12 pm

    I agree that we are, or should be, in a post-Hofstede phase.  While he remains relevant, I find myself increasingly minimizing what use of his work, placing it tangentially and augmenting it with sub-group analyses using history, arts & cultural expressions.  

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Business News

Coca Cola drops 200 brands, most you’ve never heard of

(BUSINESS NEWS) Coca Cola hopes to revitalize their drink arsenal by rolling back some “underperforming” brands (that you might not have known they were still making.)



Woman drinking Coca Cola against plain wall

2020 has forced a lot of businesses to return to their proverbial drawing boards, and the Coca Cola Company is no exception. Last week, Coca Cola announced in a corporate blog post that they are halting the production of 200 of their beverage brands.

In the words of Cath Coetzer, the head of global marketing for Coca Cola, the restructuring will “accelerate [Coke’s] transformation into a total beverage company”.

“We’re prioritizing bets that have scale potential across beverage categories, consumer need states and drinking occasions,” Coetzer added. “Because scale is the algorithm that truly drives growth.”

That’s… a surprising amount of technical beverage jargon, Cath.

Coca Cola is already the leading manufacturer of non-alcoholic drinks on the planet. It’s hard to imagine their scope becoming any more “total.” But this strategy shift comes as the consumer thirst for soda is drying up.

Soda consumption has steadily fallen over the last ten consecutive years, thanks to a swath of modern studies that link excess sugar intake with negative health outcomes like obesity, diabetes, and heart disease.

In light of this research, regional sales taxes on drinks with added sugar have been debated across the country, despite aggressive corporate lobbying against it. All this has meant that beverage companies have had no choice but to pivot hard.

Take Odwalla, a Coca Cola brand that touted its vitamin content and servings of produce, which was discontinued earlier this year. Despite being marketed as a health brand, Odwalla flavors contained whopping amounts of added sugar: Their popular “superfood” flavor quietly boasted 47 grams per bottle.

The brands affected by Coke’s recent soda cull also include TAB diet soda, ZICO coconut water, and Coca Cola Life, plus internationally marketed drink brands like Vegibeta of Japan and Kuat of Brazil.

Condensing their portfolio allows Coca Cola to prioritize their most profitable products and invest in more new beverage trendsetters that better fit the times, like sparkling water, coffee, or even cannabis-infused products.

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Business News

Uber and Lyft face the music as employee ruling is upheld

(BUSINESS NEWS) The battle for Uber and Lyft drivers’ status continues, and despite company protests, the official ruling has been upheld.



Interior of Uber and Lyft rideshare looking out on palm trees

A gig economy has its pros and cons. For anyone who has ever been an independent contractor, done freelance work, or worked for companies like Uber, Lyft, and DoorDash, the pros are clear – you get to work when you want, where you want and how much you want. Flexibility and gigs go hand in hand.

And the cons? Well, those are a little more complex. Without a W2 linking you directly to the company, you as an independent contractor don’t receive the same rights and perks that your 9-5 employee friends might. For example, your employer is not required to provide a healthcare option for you. You are also not entitled to earned time off or minimum wage.

So which is better?

The gig economy conundrum has made its way all the way to an appellate court in California last week. The ruling was that Uber and Lyft must classify their drivers as employees.

Back in May, Attorney General Xavier Becerra and city attorneys from L.A., San Diego and San Francisco brought forth a lawsuit that argues Uber and Lyft gain an unfair, unlawful competitive advantage by not classifying their workers as W2s.

Uber and Lyft responded to the suit, stating that if they were to reclassify their drivers as employees, their companies would be irreparably harmed – though the judge in last week’s ruling negated that claim, stating that neither company would suffer any “grave or irreparable harm by being prohibited from violating the law” and also that the financial burden of converting workers to employees “do[es] not rise to the level of irreparable harm.” Essentially, the judge called their BS.

Additionally, according to the judge, there is nothing that would prevent Uber and Lyft from offering flexibility and independence to their drivers – and they have had plenty of time to transition their drivers from independent contractors to employees (the gig worker bill that spurred this lawsuit was decided in 2018). Seems fair to me!

However, there is an oppositional proposition on the ballot that muddies the waters. Proposition 22, if passed, is a measure that would keep rideshare drivers and delivery workers classified as independent contractors, meaning that those workers from Uber and Lyft would be exempt from the new state law that classifies them as W-2 employees. And you might be surprised to know how many of the app-based rideshare workers are in favor of Prop 22!

In a class-action lawsuit, Uber has been accused of encouraging drivers and delivery workers to support Prop 22 via the company’s driver-scheduling app. It appears, unfortunately, that Uber is manipulating its workforce by wrongly hanging their jobs over their heads.

On this matter, Gig Workers Rising stated: “If Uber and Lyft are successful in passing Prop. 22 and undo the will of the people, they will inspire countless other corporations to adapt their business models and misclassify workers in order to further enrich the wealthy few at the expense of their workforce.”

Ultimately, the fate of California Uber and Lyft driver’s in still in question. It’s unclear if the question we should be asking is, will Lyft drivers have proper healthcare through their jobs or will they have jobs at all. All of this is occurring at a time where millions are jobless and 158,000 individuals sought unemployment support this week due to COVID-19 layoffs.

Personally, I have little sympathy for tech-giants that rake in billions off the backs of the exploited working-class. If the CEO of Uber is an ostentatious billionaire, then his employees should have health insurance. Clear and simple.

The scariest part of the gig economy is that workers have become increasingly happy to work for a company that gives them little to no benefits. More companies are dissolving or combining positions so that they can further bypass their responsibilities to their employees. Let us not be fooled: The dispute over whether or not to make Uber and Lyft workers W2 employees does not affect the health of the companies themselves. What it will affect is how fat the bonuses will be the big guys at the top, and that’s exactly why the companies are so adverse to the ruling. They’d rather their workers suffer than lose a single dime.

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Business News

Bay Area co-living startup strands hundreds of renters at dire time

(BUSINESS NEWS) They’re blaming COVID for failing as a co-living space, but it looks like trouble was well established even before now.



Person packed a bag and walking away from co-living space.

Over the last few years, “co-living” startups have become increasingly common in tech-rich cities like San Francisco. These companies lease large houses, then rent individual bedrooms for as much as $2,000 per month in hopes of attracting the young professionals who make up the tech industry. Many offer food, cleaning services, group activities, and hotel-quality accommodations to do so.

But the true value in co-living companies lies in their role as a third party: Smoothing over relations, providing hassle free income to homeowners and improved accountability to tenants… in theory, anyway. The reality has proved the opposite can just as easily be true.

In a September company email, Bay Area co-living startup HubHaus released a statement that claimed they were “unable to pay October rent” on their leased properties. Hubhaus also claimed to have “no funds available to pay any amounts that may be owed landlords, tenants, trade creditors, or contractors.”

This left hundreds of SF Bay Area renters scrambling to arrange shelter with little notice, with the start of a second major COVID-19 outbreak on the horizon.

HubHaus exhibited plenty of red flags leading up to this revelation. Employees complained of insufficient or late payment. The company stopped paying utilities during the spring, and they quietly discontinued cleaning services while tenants continued to pay for them.

Businesses like HubHaus charge prices that could rent a private home in most of the rest of the country, in exchange for a room in a house of 10 or more people. PodShare is a similar example: Another Bay Area-based co-living startup, whose offerings include “$1,200 bunk beds” in a shared, hostel-like environment.

As a former Bay Area resident, it’s hard not to be angry about these stories. But they have been the unfortunate reality since long before the pandemic. Many urbanites across the country cannot afford to opt out of a shared living situation, and these business models only exacerbate the race to the bottom of city living standards.

HubHaus capitalized on this situation and took advantage of their tenants, who were simply looking for an affordable place to live in a market where that’s increasingly hard to find.

They’ve tried to place the blame for their failure on COVID-19 — but all signs seem to indicate that they had it coming.

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