Cultural Dimensions

Definition: Cultural Dimensions is a model by Hofstede ('80) describing five (six) dimensions of differences and/or value perpectives between national cultures:
1. Small versus Big Power Distance (the degree of inequality among people that is considered normal)
2. Individualism versus Collectivism
3. Masculinity versus Femininity
4. Preference for Structured versus Unstructured Situations
5. Long-term versus short-term orientation
Added in 2010:
6. Indulgence versus Restraint (with respect to free or restrainted gratification of basic human drives)
A manager with good cultural intelligence should have a good ability to cope with these differences.

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More on external environment: External Environment, Five Forces, PEST Analysis, Specific Environment, Strategic Drift.

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