Question

In: Operations Management

CONTINUOUS CASE CHAPTER FOUR How does culture affect companies? When German automakers began their expansion into...

CONTINUOUS CASE

CHAPTER FOUR

How does culture affect companies? When German automakers began their expansion into the

U.S. market, cup holders were not a feature of their products. In contrast, because many

Americans spent significant time in their cars, ate in their cars, and so on, advertisements for

American cars often boasted of the number of cup holders that were part of their design. The

German companies had to shift their thinking from strictly performance-based cars, to ones that

better fit the needs of Americans. Today, many automakers have shifted their focus to the

emerging markets, and how they can best serve the customers in those markets.

How could different cultural dimensions be reflected in the design of automobiles?

Solutions

Expert Solution

Automotive and car design processes focus on the appearance and ergonomics of the vehicles. Design elements concern with interior and exterior design, trim and color, while certain features may also be excluded or included following the cultural and social aspects and preferences of a market. Culture may encompass traditions, habits, customary beliefs, social habits and norms, and values of human behavior and practices in a given security.

Car designs may affect sociability, kinship, work, and habitation. Aesthetics preferences and sensory and emotional responses may also be associated with car ownership and driving. For instance, car designs changed from boxy during the 70s to curvier in the subsequent decades.


Apart from technology and government push for lowering fuel consumption, the changing tastes of society were also reasonable for the design change. The Hofstede model gives a criterion for measuring cultural differences including individualism versus collectivism, power distance, uncertainty avoidance, long term orientation, and masculinity and feminity. Below are how cultural dimensions can be reflected in car designs.


Collectivism versus Individualism


Western societies may promote individualism more while many eastern countries including India believe in collectivism. That is why the sales of cars like SUVs are more in India. SUVs tend to be larger can accommodate more people at a time. Also, extended families are still quite common in India and Asia, in contrast to the West where most families are nuclear and elementary. This is the reason why the design of cars in the East and in India give more stress on the maximization and utility of space. A recent example is the launch of the Renault car “Triber” that accommodates 7 seats in sub-4-meter car design. The car hence brings maximum space utility at the least cost. In western countries, people may prefer cars that provide for better personalization in areas including HMI.


Power Distance


While the West may not believe highly in power distance, people in countries including China value power distance and authority more. Car designs that win an award or reflect the brand name boldly may be preferred in China and other countries with greater power distance. Also, car designs in these countries should focus more on the security and authority of systems like the HMI (Human Machine Interface) system, and the systems should provide information in a structured way, to be preferred by consumers. However, people in the West may also prefer cars that use more abbreviations in providing information. East may also be more loyal to brands (because of a greater commitment to the authority and larger power distance) and hence the car designs presented in these parts of the world include elements that highlight the partnership.


Accommodating cultural preferences


While Germans may see cars as a means of transportation, Americans spend a lot more time in their cars. German cars did not have cup holders at the start. However, they started included them in car design once they became aware of the aspect. Car designs do include the new elements and features that are preferred by customers in a given market, which would create a preference for the offering. While cars in the East may have more features for utility (for instance roof rails and boot space), western cars may be more oriented towards performance, which mya often be the buying creterion.


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