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Table of Contents

1. Executive Summary ............................................................................................................... 3

2. Introduction ............................................................................................................................ 4

3. Hosfted domination of culture ............................................................................................... 5

3.1 Nolimit ............................................................................................................................. 5

3.2 Germany ........................................................................................................................... 5

3.3 Hofstede’s four dimensions of culture ............................................................................. 6

3.4 Greet Hofstede develop a four dimensional..................................................................... 7

Low Power distance .................................................................................................. 7 3.4.1

Individualism ............................................................................................................ 7 3.4.2

Masculinity ............................................................................................................... 8 3.4.3

Uncertainty Avoidance ............................................................................................. 9 3.4.4

4. Implications of Hofstede Cultural dimension for the organization ..................................... 10

4.1 Consumer buying behavior ............................................................................................ 10

Power distance effect on consumer buying behavior ............................................. 10 4.1.1

Masculinity vs Femininity effect in consumer behavior......................................... 10 4.1.2

Individualism vs collectivism effect in consumer behavior ................................... 11 4.1.3

Uncertainty avoidance effect in consumer behavior ............................................... 11 4.1.1

4.2 Employee relationship and company structure .............................................................. 13

Individualism Vs Collectivism ............................................................................... 13 4.2.1

Masculinity vs. Femininity ..................................................................................... 14 4.2.2

Uncertainty Avoidance ........................................................................................... 14 4.2.3

5. Cultural factors..................................................................................................................... 15

5.1 Components of Culture .................................................................................................. 15

Language ................................................................................................................. 16 5.1.1

Religion ................................................................................................................... 17 5.1.2

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Value and attitude ................................................................................................... 17 5.1.3

Education ................................................................................................................ 18 5.1.1

Technology and Material cultural ........................................................................... 18 5.1.2

6. Finding & Conclusion .......................................................................................................... 19

7. Recommendations ................................................................................................................ 20

8. Reference ............................................................................................................................. 21

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1. Executive Summary

This report provides an analysis and evaluation current of the prospective culture, business

environment, consumer purchasing behaviors and dimension of the Germany’s cultures.

Because, the cultural factors analysis are important to Nolimit. The fashion chain of Nolimit

should to expand to Germany. The report also examines the fact that the analysis business

opportunities in Germany.

The result of data analyzed show that all cultural indication of Germany. According to

Hofstede's cultural dimensions, Germany is a low power distance, individualism ranking,

masculine society as well as uncertainty avoidance.

In implication of Hofstede cultural dimension, origination affects two types. The Consumer

buying behavior of Germans makes individual purchase decision, both side make purchase

decision. The employment and corporate structure effect on the work, punctuality, staff and

CEO relation as well as long time work of male and female.

The cultural important five cultures factors analyzed in last task. Language with low and high

context cultures, religion value and attitude, education as well as technology and material

culture.

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2. Introduction

Every new organization expands the marketing activity for their international business.

Because every international companies are earn more profit, digital work, reduce employee,

promote to reward to staff as well as can face the big challenge.

The every fashion chin business organization has an experienced in global market. This

analysis will focus on the recent culture of Germany. The analysis will review the research of

people or consumers. The review is motivated by the search for practical methods that

managers can use.

Geert Hofstede conducted perhaps the most comprehensive study of how values in the

workplace are influenced by culture. As with any global study, the results may or may not be

applicable to specific individuals or events. In addition, although the Hofstede's results are

categorized by country, often there is more than one cultural group within that country. The

expanding to international market that company should know their cultures for their success.

Consumer buying behavior is important to success analysis about understanding customers’

habit in competitive world, especially for gaining profit to organization. Their buying

behavior is one of the elements.

As global business continues to expand and bring everyone closer, the critical element of a

successful business outcome may be the appreciation and respect for regional, country, and

cultural differences - known as cultural diversity and requiring good relationship

communication.

The analyze which was finished will surly help to operate in Germany for Nolimt. According

to this fashion chain business will success there.

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3. Hosfted domination of culture

I have selected the Nolimite PLC.

3.1 Nolimit

I have selected Nolimit fashion chain business organization. Nolimit founded by the

N.L.M.Mubarack. The first Nolimit store opened at Dehiwela august 1992 of a modest size,

the store was called French Corner in 2005. French Corner was renamed Nolimit, a brand

change that proved to be changed.

Nolimit is the biggest Sri Lankan fashion retail chain offering clothing and accessories for

man, woman and children. It has 22 showrooms located in towns and cities across the island

in Sri Lanka. Nolimit has a wide range of fashion clothing and accessories that offer total

value for money. The product range includes evening wear, casual wear, formal wear, party

wear, ethnic wear, beach wear, and night wear; the designs are focus future fashion as well.

The collection at Nolimit provides to a mass range of customers. The variety of customer’s

choice is collection of sub brands. These are Nolimit - Sri Lanka's biggest fashion chain,

Glitz - Fashion destination, Pallu - Exclusive for sarees and shalwars and Y pay more -

bottom price and good quality. So, Nolimit has decided to go Germany for the future

business.

3.2 Germany

The country consists of 16 states and its capital and largest city is Berlin. It is the most

populous member state in the European Union. Germany ended 2013 with a population of

82,656,067 people.

Germany has a social market economy with a highly skill labour force. The service sector

contributes approximately 71% of the total GDP, industry 28%, and agriculture 1%. The

official average national unemployment rate in June 2013 was 6.6%.

German is the official and major spoken language in Germany. It is one of 23 official

languages in the European Union, and one of the three working languages of the European

Commission. Recognized native minority languages in Germany are Danish, Low German,

Sorbian, Romany, and Frisian.

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Germany is a federal, parliamentary, representative democratic republic. Germany has a civil

law system based on Roman law with some references to Germanic law. Germany has a

member of European Union, NATO, OECD, the G8, the G20, the World Bank and the

International Monetary Fund.

3.3 Hofstede’s four dimensions of culture

Geert Hofstede develops a major four dimensional framework by which measure several key

attribute of culture. This framework emerged as a result of his research on IBM employees

and has a since attached considerable among business scholars. It describes the effects of a

society's culture on the values of its members and how these values relate to behavior, using a

structure derived from factor analysis.

The four dimensions are power distance, individualism vs collectivism, masculinity vs

femininity and uncertainty avoidance.

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67 66 65

0

10

20

30

40

50

60

70

80

Powder distance Individualism Masculinity Uncertainty

avoidance

culture value of Germany

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3.4 Greet Hofstede develop a four dimensional

Low Power distance 3.4.1

This dimension expresses the degree to which the less powerful members of a society accept

and expect that power is distributed unequally. Everyone sees each other as equals, in every

way possible. This kind of value system is not always favorable for expedient and responsive

decisions-making processes in corporate setting.

According to Hofstede's cultural dimensions, Germany is a low power distance country with

the score 35. The power distance dimension indicates the degree of equality of the people in

the society. Therefore, the low power distance score of Germany reveals the equality of the

people regardless of their position and status.

In professional situations, Germans place great emphasis on being correct and punctual. It is

therefore helpful to keep to the agreed time for meetings or presentations. This also applies to

private appointments. If you cannot keep an appointment or are likely to be late, it is

advisable to give notice of this in good time through a colleague or by telephone.

German country parent lets children to eat whatever children wanted, that shows a low power

distance. Their families on the distance index scales are equal. That children wants to eat

candy for dinner, they can.

Germany’s culture the relationship between bosses and subordinates is one of dependence.

When in a low power distance society the relationship between bosses and subordinates is

one of interdependence.

Individualism 3.4.2

The degree to which individuals and groups are in societies, the pressure is put on personal

achievements and individual rights. People are expected to stand up for themselves and their

immediate family and to choose their own relationships.

According to Hofstede's cultural dimensions, The Individualism ranking Germany is 67

Small families with a focus on the parent-children relationship rather than aunts and uncles

are most common.

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Individualistic cultures are oriented around them self-mentality. For example, German

people more willing get a new job him or herself from company; their more likely getting

marry their personal choice otherwise like to get a divorce their choice.

German is independent country; they place an important of taking care of family. However,

because German family is not an extended family, as their grandparents usually live

peacefully by their own. For this reason, instead of taking care of grandparents, German

teenagers have more time to get a job to raise more money, also to help their spouse get extra

income. Therefore, German becomes increasingly individualism.

Masculinity 3.4.3

The distribution of emotional role is between the genders. Masculine cultures' values are

competitiveness, assertiveness, materialism, ambition and power, feminine cultures place

more value on relationships and quality of life.

According to Hofstede's cultural dimensions, with a score of 66 Germany is considered a

masculine society.

The school systems and other competing environments have embedded into the people of

Germany. Moreover, masculinity also refer to high assertiveness, means that German are

confrontational among their friends. Straightforward is acceptable even it possibly cause a

fight. However, a fight holds only in a short period as German people prefer to debate and

discuss problems reasonably.

In term of business, Germany is conservative, where humor is not appreciated. German

people also easily become aggressive, when they disagree with other's idea.

German culture people expand their wealth. The man and woman are often live and work

long hour as well as part time vacancies in Germany.

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Uncertainty Avoidance 3.4.4

This dimension concerns the level of acceptance for uncertainty and ambiguity within a

society. A country with a high uncertainty avoidance score will have a low tolerance towards

uncertainty and ambiguity. As a result it is usually a very rule-orientated society and follows

well defined and established laws, regulations and controls.

According to Hofstede’s model, Germany has a score of 65 in this dimension. The Germany

businesses, rules, regulations, plans, and contracts are very significant. German entrepreneurs

closely focus on rules; sometimes lead to limitations of creatively.

The example in Germany society, those people are a fast driver, they strictly follow the

traffic light. In case that some accident incurred, such as hitting people, German rarely flees

as it is considered as a severe violation of law.

Moreover, make an organized society, German people really place an important on order, or

queue. Not cutting line or queue is considered as a basic manner in Germany.

Some of the Germany’s low uncertainty cultural measure are usually a country with a young

history, the population is much more diverse due to waves of immigration, risk is embraced

as part of business. Innovation and pushing boundaries is encouraged.

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4. Implications of Hofstede Cultural dimension for the organization

Social implications mean the results or values to society in response to something happening.

Implication effect may be two types in Nolimit organization.

Consumer buying behavior

Employee relationship and company structure

4.1 Consumer buying behavior

Culture is the complex of beliefs of human societies, their roles, behavior, values, traditions,

customs and traditions. Culture is an extremely important concept to understand consumer

behavior and that needs to be examined.

Explain below four type of cultural relationship relating to cultural effect on consumer

behavior.

Power distance effect on consumer buying behavior 4.1.1

People from cultures with a large power distance are more likely to be opinion seekers than

those from cultures with a small power distance

4.1.1.1 Opinion seeking

The high power distance country has to be certain age and own certain amounts of wealth to

qualify as an opinion leader and they have possess power over them otherwise the low power

distance country less recognized and there will be fewer people.

Masculinity vs Femininity effect in consumer behavior 4.1.2

The fundamental idea behind masculinity is the differentiation of sex roles within society.

This idea is established when it comes to decision making in the family.

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4.1.2.1 Decision making

Femininity culture people are making decision by husband dominant but masculinity people

are making purchase decision by themselves.

Individualism vs collectivism effect in consumer behavior 4.1.3

4.1.3.1 Decisions make

Individual countries make an individual decision and collectivism makes a decision collective

decision in the buying activities. Therefore selling the product individualist appeal activities

are separately and collectivism countries participate in group activities, more concern about

in their group as well as fell to conform group opining. Individual country has a self-

confident their purchasing activity but collectivism countries are family orientation in their

purchasing activity. It influence extend their mainly choice. As a result company should

make a decision.

Uncertainty avoidance effect in consumer behavior 4.1.1

Identifying the consumer behaviors related to uncertainty avoidance, it is necessary to

determine those with an element of risk or uncertainty involved as these will be the behaviors

most affect

4.1.1.1 Brand loyalty

People from cultures high in uncertainty avoidance are more likely to remain brand loyal in

their purchase of products or services than those from cultures low in uncertainty avoidance.

4.1.1.2 Perceived risk

Individuals high in uncertainty avoidance have a lower tolerance for ambiguity, and

experience higher concern and stress in their lives. In addition, they are also less willing to

take risks in life. Therefore, when these people perceive a high risk associated with a product

or service, they will not purchase this product or service. They will look for less risky

alternatives.

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4.1.1.3 Innovations

People from cultures that are high in uncertainty avoidance will be less likely to seek out

innovative products or services than those from cultures that are low in uncertainty

avoidance.

4.1.1.4 Information search

People from cultures high in uncertainty avoidance will be more likely to engage in

information search than those from cultures low in uncertainty avoidance.

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4.2 Employee relationship and company structure

According to Hofstede’s four major factor which influence of the workplace.

Power Distance

High power distance country has high ranking officers and reporting officers but low power

distance country people subordinate their friends.

In low power distance business country’s boss communicates friendly with their staff and

boss will not control by their posting. The normal staff and CEO greeting to handshake and

communicate to start greetings then when leaving good bye. The employment don’t motivate

to workers, have a job security, being formal straight forward and positive appreciation for

contributions and ideas. German believes equality relation in their workplace. It may be

respect to that people. But, high power distance country people panic to communicate with

their boss.

Power distance index refers to the differences in the work culture as per the power delegated

to the employees. There are some organizations which believe in appointing team leaders or

team managers who are responsible for their respective teams and have the challenge of

extracting the best out of the members. The team members also have to respect their team

leaders and work as per their orders and advice.

However in some organizations, every employee is accountable for his own performance. No

special person is assigned to take charge of the employees. The individuals are answerable to

none except for themselves. Every employee gets an equal treatment from the management

and has to take ownership of his/her own work.

Individualism Vs Collectivism 4.2.1

Individualism country when you give individualistic goal will achieve and in the collective

country team target. So, the way to business company structure also have to change.

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There are some organizations which strongly rely on team work. Here individuals with a

common interest come together and work in agreement as a team. These organizations

believe that the output is always more when individuals exchange their ideas, discuss things

among themselves to come out with innovative ideas. In such a scenario the employees share

a healthy relationship and take each other’s help when required.

However certain organizations follow a culture where individuals do not believe in working

as a single unit and prefer working individually.

Masculinity vs. Femininity 4.2.2

This refers to the effect of differences in male and female values on the culture of the

organization. Organizations where male employees dominate their female counterparts will

follow different policies as compared to organizations where females have a major say in the

decision making process of the organization. Male employees would be more aggressive as

compared to the females who would be more caring and softhearted. The responsibilities also

vary as per the sex of the employees. The female employees are never assigned something

which requires late sittings or frequent travelling.

The Suggestions for manager are coming to meeting from masculinity. The businesswomen

will be treated with great respect and courtesy, their regardless of the actual seniority of the

western party and they will be a decision maker, The manager must anticipate this and not be

offended by this reaction so she “saves face” and Gradually over time, this apparent sexism

will fade if she takes the time and gentle grace to build relationships slowly

Uncertainty Avoidance 4.2.3

Uncertainty avoidance index refers to a culture where employees know how to respond to

unusual and unforeseen circumstances. It deals with the tolerance level of the employees in

both comfortable and uncomfortable situations. Organizations try hard to avoid such

situations and also prepare the employees to adjust well in all conditions.

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5. Cultural factors

The definition of culture, sum total of learned beliefs, values and customs that serve to direct

consumer behavior in a particular country market.

The culture’s eight categories are language, religion, values and attitudes, education, social

organizations, technology and material culture, law and politics and aesthetics. Culture is

something very important to international marketing and business man adopt themselves

different type of culture. The international marketing needs to take into account the local

culture of the country in which you wish to market.

5.1 Components of Culture

Component of

Culture

Religion

Language

Aesthetics

Law and Politics

language

Technology & Material

cultural

Social organization

Education

Value and attitude

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Language 5.1.1

Language is major part in communication in different culture. Language can be consist of

verbal and writing language as well as nor verbal language such as body language.

The youth culture has developed its own creative approach on the German language. The

German developed into a new language culture, with a strong impact on German

entertainments media.

The academic studies have so far been Germany. The type of guest worker literature has been

renamed. Germany is fairly successful on the German literary, with most of them writing in

both their mother tongue and the German literary works deal with, variety of language one

should consider high context culture or low contexts culture.

5.1.1.1 High context and low context cultures

Low context culture spoken language carries the emphasis of the communication. In the high

context culture verbal communications tend to carry a direct message.so with consider body

language.

The context culture like Germany is considers low context culture. The spoken word carries

most of the meaning. People clearly say what they want to convey without beating around the

bush. Their goal is to get and information when communication with other people. However,

with fields regard to context, low context system tends to be more complex as the spoken

word has to make up for what is missing in the context. As a result low context

communization styles show less intuitive understanding, which makes them slow and less

efficient.

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Religion 5.1.2

The two main religions of Germany are Roman Catholic and Protestant. Many German

festivals and traditions date back to pre-Christian times. The purposes of some festivals were

to drive out the ghosts of winter and bring spring early. Many festivals are based on holidays

from the religious calendar such as Easter and Christmas.

The considering German an important aspects of society and culture in religion particular

approach. The Muslim life has been increase, which can be also being seen in the

considerable rise of scientific publication on Islamic communities, the way of building the

mosques or attitudes of Muslim immigrants. These effects to include the construction of

represent mosques and Muslim cemeteries, the practical of Muslim burial rituals, dress codes,

the ritual slaughtering of animal or the introducing or the public school. So, the more

opportunity to consider the Muslim people in Germany.

Germans are considered to be very sociable country. They are professional performance

success are particular important for most Germans, as is leisure time, which is best spent with

family and friends and the Germans like shopping. The Nolimit would like to make a special

mention of a few characteristics.

German constitute to freedom of belief. Anyone can freely have a joint a religions

community, change or leave it, or decide of all religions and philosophical communities.

Value and attitude 5.1.3

Values and attitudes differ from country to country. So if marketers are planning take

marketing activities in service overseas make sure that you have a good grasp the locality

before you enter the market.

In German country, Time means equal to money and this is economic value. Time is the

opportunity cost of the time that a traveler spends on his/her journey in Germany. In essence,

this makes it the amount that a traveler would be willing to pay in order to save time, or the

amount they would accept as compensation for lost time.

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Education 5.1.1

The male and female has 99% of literacy rate.it compare than other countries very high as

well as the age of 15 and can over read and write

Education may impact the type of message or even the medium that you employ. For

example, in countries with low literacy levels, advertisers would avoid communications

which depended upon written copy, and would favors radio advertising with an audio

message or visual media such as billboards. The labelling of products may also be an issue.

Technology and Material cultural 5.1.2

Technology is a term that includes many other elements. It includes questions such as is their

energy to power our products? Is there a transport infrastructure to distribute our goods to

consumers? Does the local port have large enough cranes to offload containers from ships?

How quickly does innovation diffuse? Also of key importance, consumers actually buy

material.

Technology change in work is different thinks today. It is not job changing and it is

everything for cultural different. The people always too busy the world. So, the company

system data access to staff's lap tab and tab.

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6. Finding & Conclusion

This study reports explain culture, value, and behavior of German country. This analyze has

been made for Nolimit. Analyze clearly said there is opportunity to Nolimit.

In Germany, man and woman like to work many hours in a day in private organization. The

touch work environment is not always good. Germany people are willing to get new jobs

from company. They are taking own choice in wedding. if they like, live both together. If not

divorce. Germany people are accurate in their times. Germany society that relies on rules,

laws and regulation are protecting their lives. The staffs are able to wear what their company

respects free.

German employees don’t be emotional in meeting but also employees say their likes

individualistically. The value for money concept is working among employees who don’t

waste their time. Most of business meeting avoid drinking beer in meeting but the legal

drinking age in Germany is 15. Germans are punctuality, politeness, conservative and very

effective work. Germany is monopoly country where is time is value for money. That country

people and employment don’t waste time. Germany companies select the short name of

company name.

Their mother tongue is German. Most people used German than English. The education

literacy is 99%. Children go to school in age 5. Main religions of Germany are Roman

Catholic and Protestant and Islamic religion is increasing there. New technologies are used in

many work places such as industrial product. These all system of German is very favor

Nolimit to operate in Germany.

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7. Recommendations

Abuse of alcohol and low relation among parents with their children are common in

Germany. This may be effect their child future life, they would like to overtime work,

Muslim female like to work with cultural dress, like good relation with CEO and staff as

well as both parties work more at privet organization. So, Nolimit consider to getting female

and male employee to for their organization.

Germany is cold climate country. When Nolimit planning that marketing activity. Nolimit

exports more cold dress of sweeter, cold jacket, hand close, etc. as well as low focus of others

item.

Children born rate is very low level in Germany and the granter parents and working

employees are the population more. So Nolimite that market segment should focus most

employee and elders.

The Germany people are punctuality, value time for money and hard work. So, The Nolimit

when operating to business is in Germany all of make good for their employees.

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8. Reference

International marketing. Cengage Learning- Indian edition.

http://www.nolimit.lk/

http://en.wikipedia.org/wiki/Germany

http://www.indexmundi.com/germany/

http://www.cyborlink.com/besite/germany.htm

http://webcache.googleusercontent.com/search?q=cache:YHo5Z_4XFVYJ:buinternationa

lmanagement.wikispaces.com/file/view/Hofstede%2Bcomparison%2Bof%2BGermany%

2Band%2BChina.doc+&cd=4&hl=en&ct=clnk&gl=lk

https://sites.google.com/site/thailandgermany/german/hofstedegr/power-distanceth

https://sites.google.com/site/thailandgermany/german/hofstedegr/individualismgr

www.howtogermany.com

http://www.germanculture.com.ua/library/facts/bl_religion.htm

http://managementstudyguide.com/hofstede-model.htm

https://www.youtube.com/watch?v=_GOVVZbzsMs

https://www.youtube.com/watch?v=WqwbbJSPYTw