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

Global Impacts - Essay Example Louis Vuitton is a luxury fashion and leather goods company headquartered in Paris and France. (Louis Vuitton) India is fast becoming an international fashion destination, coordinating efforts with international designers so that Indian designers are exposed internationally and foreign 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. Each 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 can act as a useful guideline for determining the cultural differences in India and what can be done in the business organization to accommodate those differences. Hofstede identified five cultural dimensions that are relevant for global marketing strategies. The first cultural dimension on Hofstede's cultural dimension scale is Power Distance Index (PDI). PDI draws on the level of equity and inequity among the population in a nation's society. High Power 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 Hofstede's Power Distance Index, India ranks 77 which is high. However, it is not that far ahead of France's PDI which is at 68 (Hofstede's Dimension of Culture Scale) The average PDI around the globe is 56. (Hofstede's Dimension of Culture Scale) The difficulty with countries showing high PDI rankings for businesses is that the individual from that culture will typically defer to higher authority for a decision even if they are aware that something is terribly wrong 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 pilot's 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 within 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 Hofstede's 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 individuality and individual 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) India's IDV ranking is 48 and relatively low when compared to France which is at 71.