In the case under consideration, an American beverage company plans to expand to French and Indian markets, also aiming to merge with some local companies. The first question is in which country the merging process will be easier to perform? Secondly, it is also essential to identify the best suitable global selection approach to hiring new employees in these countries.
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As it is presented by Hofstede insights (2012), there are six principal domains according to which it is appropriate to assess the country’s approach to business and organizational culture. These domains are the following: power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence (Hofstede insights, 2012). Based on Hofstede insights’ (2012) measures, it is possible to suggest that the merging process would be easier to perform in France because the measures of individualism and indulgence are highly compatible for the US and France. The measures of power distance and long-term orientation are significantly higher for India and France than for the US, and the masculinity measure is at the relatively similar level (Hofstede insights, 2012). However, India and the US are highly compatible with the uncertainty avoidance measure while it is twice as high for France (Hofstede insights, 2012). Also, it is appropriate to mention that the US and France are closer in terms of cultural values and background, and thus the merging process will be easier.
Considering the type of global selection approach to hiring new employees in these countries, one can state the following. In France, the polycentric approach is more suitable since countries are closer in terms of culture. In India, the geocentric approach should be used because there numerous peculiarities of local business with which PCNs are not familiar with.
Hofstede insights. (2012). Country comparison. Web.