Global Leadership & Organizational Behavior Essay

Question:

Identify and discuss the cultural similarities and differences between Brazil, Malaysia and USA illustrated in the case.

Answer:

Introduction

The GLOBE Project stands for Global Leadership & Organizational Behavior Effectiveness Project. This project has generated important research findings in the area of culture and leadership. This project has investigated the relationship between the cultural values, leadership, human condition, competitiveness of the societies and organizational practices across 62 countries in the world. This project has identified nine elements of cultural dimensions that have an impact on the organization practices in these 62 countries which include performance orientation, uncertainty avoidance, assertiveness, humane orientation, in-group collectivism, institutional collectivism, gender egalitarianism and future orientation (GLOBE Project, 2009). This report emphasizes on 5 elements of the cultural dimension such as future orientation, performance orientation, power distance, uncertainty avoidance and institutional collectivism and its impact on the online marketing strategies of Alizee airlines in three countries namely Brazil, USA and Malaysia.

Similarities and Differences in culture in Brazil, Malaysia and USA

Cultural Dimensions/ Country

Brazil

Malaysia

USA

Power Distance

High

High

High

Performance Orientation

Low

Average

High

Uncertainty Avoidance

Low

Low

Low

Future Orientation

Low

Low

Low

Institutional Collectivism

Low

Average

Low

It is indicated from the above table that there is a presence of high degree of power distance in all the three countries i.e. Brazil, Malaysia and USA. This implies that the societies are classified into different classes. Besides this, there is an availability of the required resources to only few people. Along with this, the relevant information is not shared among the people in order to enhance their knowledge and skills. Along with this, The people in the society has a limited movement towards high social status. Limited people have an authority to provide order to the people of the country. Along with this, the information is dispersed from the centre to lower divisions (GLOBE Project, 2009).

Besides this, the countries also has a similarity on the cultural dimension uncertainty avoidance, there is a presence of low uncertainty avoidance. In these countries people prefer to communicate with each other in an informal manner. Besides this, people rely on informal norms for taking informed decisions. People resist changing in a moderate manner. Along with this, companies in these countries take high risks in order to generate high profits. Besides this, people tend to keep few records of the information available in an orderly form. These countries have low future orientation which entails that the people in these countries believe in spending more money in comparison to save it. Organizations in these countries tend to remain rigid in the implementation of different policies and procedures to gain increased profits. Besides this, the entities consider the success achieved in terms of money to be separated from the spiritual fulfillment. In addition to this performance orientation provides the information related to the degree of the entities to encourage reward, high standards and performance improvement. Brazil has low performance orientation which indicates that people in the country emphasizes on building strong societal and family relationships (GLOBE Project, 2009).


Besides this, the formal feedback received from the stakeholders is considered as judgmental People tend to involve in indirect and subtle form of communication. Besides this, there is a high value of the people rather than their efforts. In contrast to this, USA has high performance orientation as organizations have culture to provide training and development to employees in order to upgrade and create new skills and knowledge in order to increase their productivity. Besides this, formal feedback is given to employees which become a basis for improvement in their performance. The importance is given to the efforts made by the people rather their position in the organization. Along with this, organizations give importance to become competitive which results in increasing their performance in the market. There is an occurrence of the communication among different parties in direct and explicit form (GLOBE Project, 2009).

Institutional collectivism reflects the degree of encouraging collective distribution of resources and provision of reward to collective action by adopting different institution practices by the organizations. Brazil has a low degree of institutional collectivism which indicates that members of the organization are independent of the organization. Along with this, the important decisions are made at the individual level. Rewards are provided to individuals for their contribution made to achieve the group aims and objectives. The main aim of the economic system is to maximize the interests of the individuals. Along with this, organizations and people emphasize on achievement of the individual goals at the expense of group goals (GLOBE Project, 2009).

Effect of Similarities and Differences in culture in Brazil, Malaysia and USA

Brazil has low future orientation that implies that the consumers and non-consumers of Alizee take into consideration the price and place and season as a factor to make a choice of a suitable flight. Consumers prefer the flights that provides good offer as people tend to spend money rather saving it for the future. In case of Malaysia, the consumers and non-consumers of Alizee takes into consideration the cost, destination and advance plan to take a trip to make decision related to make a choice of the flight. Besides this, non consumers of Alizee also take into consideration the long term and short term wealth and promotional techniques adopted by the company. In case of USA, the consumers consider wealth management and planning of the trips in advance. Besides this, the non-consumers of Alizee in USA take into consideration the long term orientation and flexibility to reach goals to make a decision related to the choice of flights.

The buying behavior of some of the consumers of Alizee in Brazil is affected by performance orientation i.e. consumers consider the efforts made by the company to increase its sales. In addition to this, the factors consider by the consumers to buy the tickets of flight of the airline is the price offered for online services, flight connections and implementation user friendly innovations. For the non consumer group the aspects of performance orientation are not relevant to affect their buying decision. The factors to be considered in performance orientation by non consumers include price offered to buy a flight service online, reliability and user friendly features. In contrast to it, the performance orientation in Malaysia indicates that the consumers consider ease of use, reputation and reliability of the airline. In addition to this, the non consumer group put emphasis on innovation, performance, high standards and excellence along with the features mentioned by the consumers of Alizee in Malaysia. In case of USA, the factors considered by the consumers and non consumers in relation to performance orientation are reliability safety, excellence and performance at the time of making online transaction with the airline.


In Brazil, with respect to institutional collectivism, consumers and non consumers gather information from the external sources such as forums, blogs and other travel related websites for the purpose of making decisions related to online airline services. In contrast to this, the consumers and non-consumers of Malaysia gather information related to the online services provided by the airline is gathered from family and friends. In a similar manner, the consumers and non consumers in USA have take an opinion of friends and families to make a decision related to making a buying decision of online airline services. Along with this, they also take an individualistic approach for making decisions.

In relation to power distance, the consumers and non-consumers of Brazil consider that the company makes a use of newsletter, e-mails and promotions with targeting helps in communicating the information related to the features of the products and services offered by the company. In contrast to this, Malaysia, the power distance dimension seem irrelevant as the company’s online efforts are targeted towards the people who travel often. The efforts are targeted towards groups as well as individuals. In addition to this, online promotional efforts are directed towards business people and travelers.

In relation to uncertainty avoidance, the consumers and non consumers of Brazil stated that they would prefer to buy airline tickets of other companies as they offer cheap prices and good quality of services as compared to Alizee. In addition to this, in Malaysia, the consumers and non consumers consider the efforts made by the company as risk taking, planning, self-protection and structure. In USA, the consumers and non consumers has a tendency to buy tickets online as they do it in a regular manner and the other factors include structure and avoidance of unexpected events.

Recommendations

It is recommended that the most common channel that should be used by the Alizee company in Brazil is its website. It is essential for the company to provide relevant information regarding the features of the products and services offered by the company. Besides this, it also includes information regarding the availability status, comparison of the prices with products of other companies and safe online payment system so that existing and potential consumers can buy the products by the use of online mode. Customers prefer to buy tickets online by the use of websites as it is considered as the safe and secure channel, although consumers have shift their focus towards the use of mobiles, e-mails, tablets and extra functionality provided by the desktop. The company uses e-mails to display advertisements of the products offered by the company. This has provided a positive response in terms of increase in the customer base and sales of the company. It is recommended that the company should provide a mobile application to customers which includes several features which facilitates them to make payment, order and avail the products and services offered by the company.

It is also suggested that the Alizee company should design its website in such a way that help consumers and non-consumers to buy the products and services online in Malaysia. Besides this, it should also provide a facility to resolve the issues faced by the consumers and non consumers through website 24*7. This facilitates in increasing the customer base of the company. Along with this, the company should use other online means to increase the reach of the products and services to existing and potential consumers such as telephone, mobiles, telephone, social media and so on. Nowadays, customers prefer to use internet for the purpose of buying different products and services offered by the company due to its convenience, comfort and increased speed. It is also suggested that the company should display advertisements on different social media sites which helps in spreading awareness among the potential customers. This facilitates in developing positive image among the customers. This results in increasing the sales and profits of the company.


Besides this, the company should use personalized information to communicate with the consumers which results in building a sense of belongingness with the company. However, customers least prefers mobile phones to be used for the purpose of booking tickets of the airline due to presence of security and safety issues. It is suggested that the company should implement advanced technology in order to build a positive perception among the customers regarding the usage of mobile phones to book the tickets.

In addition to this, it is recommended that the company should design its website in such a manner that it becomes user friendly for the consumers of USA. This is because, consumers do not prefer mobile phones to book a ticket in the airline as it is not considered safe and secure by the customers. It is advisable to the company that it should send personalized messages to existing and potential customers which results in increasing the loyalty level of customers towards the company. It is also recommended that the advertisements published should spread clear message regarding the products and services offered by the company.

Conclusion

It is concluded that the company takes into consideration different cultural dimensions for the purpose of adopting different promotional and marketing strategies for the purpose of increasing the customer base and sales in three countries namely Brazil, Malaysia and USA. it can also be concluded that there is a presence of similarities and differences in different cultural dimensions pointed by GLOBE Project in these three countries due to which the company has to adopt different strategies for the purpose of sustain in the market

Reference

GLOBE Project. (2009). Leadership Dimensions: Culture and Leadership. Retrieved June 16 2017 from

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