Pestel Analysis of Mobile Phone Industry Essay

Geert Hofstede defined that culture is “collective programming of the mind distinguishing the members of one group or category of people from another”. (HOFSTEDE, 2012a) Human culture derives from people’s background, education, gender and so on. Therefore, different people have various cultures. Culture can influence employees’ relationship in workplaces. (HOFSTEDE, 2012b) Geert Hofstede studied this question for more than six years, and found six groups of national cultural dimensions.

The first group is Power Distance (PDI) which illustrates the level that people who do not have much power in organisations and situations assent and that power does not distribute equal. (HOFSTEDE, 2012b) Figures of PDI about China and Japan are 80 and 54 respectively. Hence, Chinese is more centralisation than Japanese. For instance, Chinese organisation’s authority level is clearer than Japanese organisation. The Chinese employees who work in the low level have less chances than Japanese employees to participate in organisation’s main decisions. ITIM, 2012)The second group is Uncertainty Avoidance (UAI).

Scores of UAI about Japan and Singapore are 92 and 8 respectively. It means Japanese society is more like to rely on rules, laws and regulations than Singaporean society, because Japanese wants to decrease risks to the minimum. (ITIM, 2012)The third one is Individualism versus Collectivism. It is relate to national wealth. For example, figures of Individualism about China and Japan are 20 and 46 respectively. It means that Chinese people have less individualism and more collectivism than Japanese. ITIM, 2012)The fourth one is Masculinity versus Femininity. It can be clear shown in government’s election. A score of MAS about Japan is 95 and Singapore is 48. Japanese work to live and they pay more attention to achievement than Singaporean. (ITIM, 2012)The fifth one is Long-term versus short-term orientation. Hofstede stated “Long-term orientation is correlated with school results in international comparisons”. (HOFSTEDE. 2012b)Scores of LTO about China and Singapore are 118 and 48 respectively which mean Chinese pay more attention to long-term than short-term.

However, Singaporean pays less attention to long-term than Chinese. (ITIM, 2012)The sixth group is Indulgence versus Restraint (IVR). It means the extent of freedom which can make people feel enough about their lives and expect, and the extent of social regulations and morality which people can obey. (KAETHE, 2012)There are four significant levels which also can evaluate culture. They are Individual level, Organizational level, Occupational level, Gender level. (HOFSTEDE, 2012a)There are three levels can be distinguished in human’s mental programming.

The fist one is universal level of mental programming is the most fundamental but least distinct. Almost everyone can share it. The second one is collective level which is similar with people who are in same team or category. The last one is individual level of human programming which just belong to one people, and no one have the same part. This area only belongs to personal individuality. (HOFSTEDE, 2001)


• HOFSTEDE, G. (2012)a. HOME. Available: http://www. geerthofstede. nl/culture. Last accessed 24th Oct 2012. • HOFSTEDE, G. (2012)b. HOFSTEDE DIMENSIONS. Available: http://geert-hofstede. com/dimensions. html. Last accessed 21 OCT 2012. • HOFSTEDE, G (2001). CULTURE’S CONSEQUENCES: COMPARING VALUES, BEHAVIORS, INSTITUTIONS AND ORGANIZATIONS ACROSS NATIONS, 2nd EDITION. THOUSAND OAKS CA: SAGE PUBILICATION LTD. P1-36. • ITIM org. (2012). What about China. Available: http://geert-hofstede. com/china. html. Last accessed 26th Oct 2012. • KAETHE. (2012). Cultural differences – indulgence versus restraint. Available: http://www. binschedler. com/2012/02/indulgence-restraint/. Last accessed 26th Oct 2012.