The Azure Sky Tea is an American company located in the Rocky Mountains. The herbal tea company boasts of a market share of 9 percent, but has plans to increase its market share through expansion into new markets. The company has a low-key culture and therefore must find markets suitable for this culture. The Hofstede model can help the company find suitable countries having similar dimensions as the United States (The Hofstede Centre, n.d). This is important because the company has plans to maintain its culture in the new office.
The Hofstede Model gives national cultural scores for dimensions such as power distance, individualism, uncertainty avoidance, and masculinity (The Hofstede Centre, n.d). High power distance implies acceptance of power differences between members of society. Low power distance implies intolerance to uneven distribution of power and therefore there is need for sharing of power among different people (The Hofstede Centre, n.d). The power distance scores of Great Britain and Australia are 35 and 36 respectively. These scores are closest to United States score of 40. With respect to individualism, Great Britain, Australia, and United States have scores of 89, 90, and 91 respectively (The Hofstede Centre, n.d). These close scores imply Azure Company can operate without much challenges in the two countries. Therefore, Great Britain and Australia have similar qualities to the United States and therefore are potential locations for the company’s international offices.
Similar cultural qualities for potential international offices are important because it will enable the company roll out its operations easily (Wiklund, 1987). However, potential risks Azure must expect include political,
