South African Breweries Essay Example for Free

South African Breweries Essay SAB has the leading position to produce and distribute both alcoholic and non-alcoholic beverages. it’s been registered in 1895 in London and since then with momentous profit and prevailing market position it has develop its business in home sectors as well. SAB was fully incorporated in 1970 after the shifting of its head office from London to Johannesburg. Government put high restriction on the expansion and international business of SAB. From 1955 to the following seven years beer production was the highest taxed beverage and SAB had to respond to competitors’ acquisition and production and distribution rationalisation. In 1960 it took over Stellenbosch Farmers’ Winery and obtained brewing license locally for Amstel and Carling, Black Label and Guinnes which played major turn of its expansion. Within 1979 SAB could capture about 99 percent South African market alongside major control over Lesotho, Swaziland and Rhodesia. SAB was the first organisation in the country which published a non-discriminatory employment code in 1978. The Lion Match Company merged with SAB in 1987. SAB concentrated on developing three mega breweries in the country in 1990 and the invention of joint venture in Zambia, Mozambique and Angola followed in the following years. The company got dominance over 98 percent of market and faced a little left expansion in local business and tried to expand globally in 2000. It made its way to central Europe in 1993 with the acquisition of the largest brewery of Hungary Dreher. In the following year it established operation in Czech Republic, Poland, Romania, Russia and Slovakia. SAB had spread small business with Rolling Black Beer one of the breweries in United States of America as well. Then 2001 it expanded its business into Central America. In 2001 SAB had production of 77m hectolitres of alcoholic and non- alcoholic beverages and dominated as the fifth largest brewer in the world covering 21 countries. In 1990 the head quarter moved back to London. In this report i would like to narrow down my focus on SABs expansion globally by acquiring the second largest brewery of America; the Miller Brewing Company and having new name as SABMiller in 2002 and it became the second largest volume in the world. Though it is facing some profit margin difficulties in North America because its competitors are lowering down the price of beer. To keep up with the market over there SABMiller has to compromise with the margin of profit. Challenge for the Company No arguments come when SAB admits that South African market is fully dominated by them. Though it had made some tactically poor judgment while expanding in Hungary and US market. Among the challenges SAB faced were: In 2001 it acquires 58 percent interest in breweries in Hunduras and El Salvador which cost them US$ 500million. Further it spent a sum of US$5. 6 bn when it acquired Miller from Altria. To expand its business in Western Europe SAB acquired a major company in Italy named Peroni and spent US$ 270 million. In Africa SAB had to encounter problems when for low income in Malawi the industry does not appear to be set up. Again in Ghana SAB has made its entrance where there is already good competition between Guinness and Heineken. In Nigeria governments has imposed restriction on importing brewing materials as barley. So quality and consumption dropped sharply there. After the acquisition of Miller in US; SABMiller faced problem within six months. SAB had to go on with the existing CEO as head of SABMiller and later on the sacked him. Altria holds 23 percent shares of SABMiller. According to some experts debates SAB has spent too much for acquiring Miller. Again SABMiller is also facing difficulties to keep up in the competition with the competitors in US market. In addition to this in America the Beer market is in downward trend as the Americans are continuously and increasingly turning to wine than beer. This has adverse impact on SABMiller’s profit margin. Another market dominant competitor Anheuser-Busch (AH) upgraded its profit margin to 17. 3% by raising its production where Millers and Coors has (9. 3%) and (8. 9%) respectively. Then to compete with AH SABMiller and Coors went as a joint venture which has very positive impact on their business. Policy/ Strategy The long term direction and scope of a company which are aimed to achieve advantage for the organisation using its configuration or resources in a challenging surrounding is described strategy. In other sense strategy is – -The place where the business aimed to reach in time span. -The market where the business will compete and activities of the competitive market -The process of doing better in this competition -Required ability or resources How to get up with the external and internal environmental factors -The values and expectation of the stakeholders According to Henry Mintzberg strategy comprises five Ps: Plan, Position, Pattern, Perspective and Poly. Andrew (1998) states the term strategy in form of decision in a company which helps identifying and disclosing the target, underlying objectives and company goals. Strategy helps to create m ajor policy and plan to achieve company objectives. The range of the business to follow for the company is also described by strategy. Micheal Porter narrates strategy is about being different or unique. According to him within strategy an organisation purposely sets up a unique package of activities to deliver a mix of value. Paradoxes and debates around strategy The theory of strategy is an academic field which is diversified by many experts as they expressed on the base of different understanding. Thus theories derived from different experts have contradiction as well. Some of the renowned experts as Whittington (2002), Mintzberg (1990, 1998), Schendel (1994) and Kuhn (1996, 1970) have described strategy with the help of several schools. In this study i will try to focus on Mintzberg and Whittington theories.

Toray Textiles in to Mansfield Essay Example for Free

Toray Textiles in to Mansfield Essay Case Study of * What is Toray? * Why Mansfield? * How does it benefit local community? * The multiplier effect. * Factors involving the choice of a work site Toray Textiles Key facts : * Established in Japan in 1926. * Owns over 60 branch plants Asia, North America, Europe, making company name recognised worldwide. * Plants include: Italian artificial suede manufacturer, French carbon fibre manufacturer. * Sales offices located in Milan and Frankfurt. Why Britain? * Close link with Marks Spencer provides a good product outlet and can supply new designs at short notice. * Turnover expected to be over 80 million pounds from new plant in Mansfield. * Japan has become too expensive as a manufacturing base for a product so technically unadvanced. * E.C. rules state that, unless 60% of any product is made in E.C. by E.C. registered employees, then the product is subject to import duty in the form of money or commission, or by limiting the amount of the product sold (tariffs/quotas). * Productivity higher than in Japan and U.S.A. * Automation higher than in Japan and U.S.A. * Less training required. * High unemployment rates. * Longer working week. * No minimum wage or legal paid holiday. Why Mansfield? * Mainline inter-city rail link to London and Birmingham making big cities more accessible products can be sent for sale more easily. * Accessible to the M1 and U.K motorway networks access to buyers and channel ports easier imports and exports. * High unemployment not only will vacancies be filled but there is competition workers could accept lower wages. * Nottingham is nearby worldwide reputation for textiles. * High water table in area vast quantities required for bleaching and dyeing. * Unemployed miners well qualified in safety practices an area upon which Toray places great importance. * Potential to set up and expand onto a green field site lower costs. How does it benefit local community? * Low unemployment. * Higher prestige for area more publicity. * Tourism created by publicity brings in money etc. * Helps relieve pressures on council after large numbers of redundancies from the flop in the mining trade. How does it benefit the U.K.? * Net benefit of 50 million pounds to U.K balance of trade. * Has seen a revival in textile manufacturing. * Has prevented the need to import fabric from abroad. Multiplier effect: * New employees have more money to spend, creating work in tertiary employment i.e. services, shops, tourism, banking, housing and education. * If Toray is successful, other companies may be encouraged to locate in the area. Factors involving the choice of a work site: * Accessablity to a good infrastructure. * Opportunity to set up on a greenfield site. less cost and the opportunity to expand. * Level of unemployment competition for vacancies * Prejudices for/against a particular area, for example the North/South divide in certain areas * Tradition of use of technology. * Political situation a particularly shaky situation may cause people to boycott i.e. South Africa in 1970s and 80s

History of the Public Smoking Ban

History of the Public Smoking Ban The emergence of public smoking ban can be backdated to 1590 when Pope Urban VII threatened to excommunicate anyone who took any form of tobacco inside a church. Afterwards other European cities enacted smoking bans. Modern, countrywide tobacco ban was imposed in Germany during the rein of Adolf Hitler. In the sunset years of the 20th century, second-hand health related risks of tobacco smoking became more publicized. Coupled with restrictions on cigarette advertising and fear of revenue losses, the tobacco industry embarked on campaigns aimed at â€Å"tolerance and courtesy† to reduce the heightened tension between smoker and non-smokers, whilst eluding issues related smoking ban. Over the years, laws implementing bans on outdoor smoking have been enacted by many countries in various ways. The Irish government became the first country to do so. In one form or another, is also has been enacted in countries such as USA, Norway, Netherlands, Romania, Sweden, South Africa, United Kingdom and Australia. The World Health Organization (1997) survey on tobacco control policies reported that a vast majority of countries numbering to 134 now have some form of restriction on smoking in public places. The underlying explanations cited for smoking bans in public places has often been safeguarding of the society from the its detrimental effects, which include increased risks of cancer, heart disease, and other acute and chronic diseases. The implementers have often put forward scientific evidence showing that tobacco smoking is harmful to the smokers and to those inhaling second-hand smoke. Air quality has often been advocated by the public one of the advantages of smoking ban. For this reason, the basis for smoking ban rationale relates to normative economics. Normative economics entails value judgements about â€Å"what the economy ought to be like† or what particular policy measures ought to be undertaken to achieve a desirable objective. Since normative economics looks into the appropriateness of particular aspects of the economy, it advocates for economic policies. In this case, the value desirable goal aims at reducing health care costs and improve productivity and create job opportunities, reduced risk of fire, cleanliness in places where food are handled, potential cutback on energy (decreased ventilation needs), reduced quantities of litter, make it easier for smokers to quit, and to promote healthier environments. Although restrictions attributed to smoking ban are primarily intended to reduce exposure to second hand smoke, it is most likely that there will be a reduction in smokers opportunity to indulge. This may lead to significant reductions in cigarettes smoked and consequently the â€Å"cost of smoking† Chaloupka and Warner (2000). In particular will be the smokers working or mostly spend most of the time within the Central Business District (CBD) of Nairobi where the smoking ban law is stringent as compared to the suburban. In Ireland, for example, it is said that approximately 7,000 smokers are thought to have quit in the first six months after imposition. What does this imply? First of all it is essential to acknowledge that cigarettes as products have inelastic demand. Tobacco is the raw product for cigarettes and contains nicotine an addictive substance that has no close substitutes. According to Curbing the Epidemic (The World Bank, 1999), elasticity of cigarette ranges on an average of (-0.4) though it varies from region to region, and from study to study. With this simple observation, it therefore implies that the total quantities of cigarettes consumed by each individual ‘continuing smoker will decline, ceteris paribas. This means, that there was an inward shift in demand for cigarettes after the implementation of the ban. Figure 2 demonstrates this implication of shift in demand. Before the enactment of the smoking ban, the consumers demand curve was D1 and the amount spent totaled to Kshs. 100.00 as depicted by the shaded area (OABF). After the enactment, the demand shifted to D2, hence the consumer total expenditure was Kshs. 50.00 as shown by the area (OACE). Economists have often referred to this phenomenon as non-price measures to reduce demand on cigarette. The imposition of smoking ban in the proximity of Kenyas county councils and municipalities includes all workplaces (private and public), businesses and public places (indoor and outdoor) with the exception of restaurants which have been obliged to designate special smoking zones. In the Nairobi for example, there are only three spots in the Central Business District (CBD) allocated smoking zones which do not sufficiently address the needs of all smokers. This ban comes in at the time when the tobacco manufacturing industry BAT Kenya Ltd. has been pushed to a threshold level as a result of tough regulation on advertisement campaign. What will the consumer do with the rest of the money saved? Since the consumer will be saving Kshs. 50.00, daily it will sum up to Kshs. 1,500.00 per month. This would definitely affect the cigarette position on the consumers budget line, assuming the income remains the same. In the Neoclassical economics, the goal of consumer behavior is utility maximization (consistent with maximization of net benefits). This means that the marginal utility of the last Shilling spent on the last cigarette will be equal to the marginal utility of the last Shilling spent on any ‘other good (equimargin principle). To get a better picture of this situation, let assume the following: Before smoking ban After smoking ban Income Kshs.30,000Kshs.30,000 Expenditure on cigarettesKshs. 3,000Kshs. 1,500 Amount spent on others Kshs.27,000Kshs.28,500 Table 1: Cigarette smokers budget before and after ban Figure 2 shows the smokers (consumer) budget line. Since the consumer is constrained by it the budget line, the new law will results into an outward movement along the budget line of the expenditure dedicated to smoking relative to what is spent on others. The implication is that the extra money derived from the reduction of smoking will be substituted and spent on others. This may at times result into some level of decrease in demand for inferior goods. Maybe the smoker will buy a gift for his wife or girlfriend, some items for himself, indulge in other activities such as beer drinking to divert from the affects of the smoking ban. In an interesting scenario would be where the consumer will be end up spending on expensive cigarettes since the consumer may want to maximize on utility. The smoking ban carries along with it requirements that the hospitality sector (hotels, casinos, bars and restaurants) has to designate regions for smokers and non-smokers. In addition it would be a not be a surprise to observe â€Å"no-smoking† and â€Å"smoking† related signs in these places. This will have a twofold effect which can also be viewed from the point of opportunity cost of smoking on businesses (due to the fact that the new decree is at times not adhered and may be up to the business to decide despite them knowing of the legal risks involved). One will be on the businesses that will follow the decree. These businesses may benefit from the fact that they may not lose on some non-smoking clientele base, but lose on some smokers who may avoid these places due to the pinching effect of the ban. The second would be businesses that would not completely adhere to the decree and may loose on clientele that may not appreciate the fact that they are not being ackno wledged, but gain from smokers who may feel that they are not being restricted. In general, economic loss will be experience in varying businesses in the hospitality sector. These include: The imposing of smoking ban will reduce pollution causing activities since the polluters, that is, smokers will be affected. This will result into increased levels of purified or cleanliness of the air. Unfortunately this does not come free. In economics any improvement linked to the environment has both benefits and costs to the society. There exists a trade-off between how much improvement is gained and how much money is used. This can be demonstrated by bringing together marginal benefits and marginal costs into one figure to provide some indication of the exchange and determine how socially efficient is the environmental improvement. What economists term as the socially efficient quantity of pollution† means that social benefits will be maximized when pollution is reduced to a certain point. Unfortunately, too much pollution reduction is too costly for us to undertake. In the case of smoking ban in Kenya, net social benefits can be determined by the difference between total benefit (TB) and total cost (TC): Why? For example in the demand and supply curve, consumer surplus is can be determined by the area above the market price (equilibrium) and below the demand curve, which is similar to our case above. The implications would be that there will be a positive social benefit as results of smoking ban and clean air due to movement from MC1 to MC2 This law will entail some long term implication in that it will prevent the youth from smoking at an early stage, as there will be lesser number of people exposed to the perils of smoking. Hence this will greatly benefit the society in terms of reduced levels of current and mostly essentially, the future generation. Furthermore, restrictions on smoking may change the perceived norms related to smoking by changing attitudes concerning the social acceptability of smoking (U.S. Department of Health and Human Services, 1994). Evidence has shown that hospital admissions related to heart attacks the cases of dropped due to enactment of the ban. For example, after the smoking ban was imposed 2003 in Pueblo, Colorado USA heart attacked cases dropped by 27% while neighbouring towns where the ban was not introduced showed no change. Also a survey conducted in Scotland showed that smoking ban has some positive impact on health. The research revealed that massive health gain as a result of smoking ban. So not only will individual Kenyan smokers benefit in terms of better health (since some would quit while the continuing smokers will reduce indulging) but also potential second hand smokers (such as bar workers and those who spend considerable time with the smokers). Net social benefit (NB) = Total Benefit (TB) Total Cost (TC) NB = TB TC In economics, â€Å"net benefits are maximized where marginal benefit equals marginal cost (MB = MC)†. The same applies for socially efficient point that occurs where MB = MC and the point where they interact (MB and MC), maximum net social benefits is realized. This is demonstrated in figure 3 where as a result of the imposition of smoking ban MC1 shifts to MC2, causing the equilibrium to change from E1 to E2. Since smoking ban results to E2, then net social benefits is computed as: NSB = A + B + C C NSB = A + B Loss of revenue Loss of actual employment A decline in wages and salary payments Besides the cigarette manufacturers, the impact of a ban is expected to trickle down the industry chain. This includes the tobacco farmers. In Kenya, there are 300,000 farmers involved in growing of tobacco leaves, which means that there would likely be a reduction in revenue on their side. This will result into some of them halting the growing the tobacco leaves and looking for other substitution to their farming. The fear of being phased out is another determining factor on the future volumes (tobacco leaves) produced unless the tobacco industries takes alternative measures to increase it foreign exports and counter local market situation, hence ensure no decline in local quantities of tobacco leaves demand. It is obvious that the reduction of health risks will result into less expenditure that the government will spend of health care in the long run. This ensures improved productivity which will boost the production possibility frontier (PPT). Others benefits to the government include gains in terms of less energy used for ventilation needs and possibilities of increased investment. One would expect that the government revenue would be reduced from the drop in taxes gained from the manufacturing industries, tobacco farmers and the hospitality. Unfortunately this does not seem to be the case. In June 2007, a month before the enactment of the ban, the Kenyan government increased the â€Å"Sin-Taxes†. It seems that the government had counter measures of reducing any chances of future loss of revenue in anticipation of the ban in Junly 2007. For this reason, then it appears that the stakeholders (smokers and related industries) took the overall burden. However, the government will need to create more job opportunities for loss in employment. In addition, government will have to give subsidies to tobacco farmers since the new law will reduce their income and discourage them to continue farming. Since cigarettes contain the addictive substance called nicotine, some smokers may not be able to eventually quit. This may prompt the government to initiate surrogate smoking programs such â€Å"smoking cessation†. One would expect that the new law will impact on the valuation of the tobacco industries. This is definitely true since there was an initial drop in the stock price of BAT stock in the NSE immediately after the ban was enacted. According to The East African, it is estimated that the BAT stocks in the NSE lost Ksh3.5 billion ($48.6 million) in a period of one year. BAT share prices dropped from Kshs. 200 per share to Kshs. 165.00, the lowest during that trading period. In spite of this, today, the stock price has stabilized. This can be owed to the fact that the short run production was affected which led to market speculations of the uncertainty of the BAT in the long run. However, BAT did take counter measures of expanding its foreign market hence giving assurance of long run. Currently, according to Business Daily, so far the BAT shares at the NSE have been stable despite further series of smoking bans by other local authorities. This is consistent with economics of production wher e all the fixed factors of production are variable in the long run hence ensuring some level of return to scale just as BAT has done to ensure it stays in production. Contrarily, in the short run, a firm is only able to change the variable factors and not fixed factors just as the stock prices of BAT reflect in short run versus long run.

Freuds Concept of the Uncanny Essay -- Freudian concept of the uncann

When a person experiences chills or goose bumps as a reaction to something strange or unusual, they are being affected by a sense of uncanniness. The psychoanalyst Sigmund Freud endeavored to explain this feeling of uncanniness in his essay entitled â€Å"The Uncanny†. Freud’s theory focuses around two different causes for this reaction. Freud attributes the feeling of uncanniness to repressed infantile complexes that have been revived by some impression, or when primitive beliefs that have been surmounted seem once more to be confirmed. The first point of his theory that Freud discusses in the essay is the repression of infantile complexes that cause an uncanny experience. Freud uses E.T.A. Hoffman’s short story, â€Å"The Sandman†, to explain the idea of repression of infantile complexes. The story centers around the character of the Sandman, who steals the eyes of children. Freud states that the fear that the character Nathaniel feels towards the Sandman has more to due with an infantile castration complex than with the actual fear of losing his eyes. In Freud’s theory he states that the â€Å"Study of dreams, phantasies and myths has taught us that a morbid anxiety connected with the eyes and with going blind is often enough a substitute for the dread of castration†(Freud 383). If Freud’s belief is true, than it is Nathaniel’s fear of castration that causes him in the end to go mad and throw himself from parapet. Nathaniel’s fear is embodied in the character of the Sandman, whom Freud says represents Nathaniel’s father, and thus is the cause of his fear of castration. The Greek tragedy Oedipus Rex would also be affected by Freud’s theory. When examining Oed... ...s the knowledge of something in the recesses of our memory that is unattainable in any definite sense. Freud does indeed succeed in explaining two very important causes of uncanniness, and they are easily identified in literature and in society. Freud believes that uncanniness is a result of repressed infantile complexes and also the confirmation of primitive beliefs. Freud’s observations are important because they help us better understand our reactions and our fears, which in turn help us better understand ourselves. As long as people continue to gain some sort of pleasure from enduring this sense of uncanniness, writers and film makers will continue to use Freud’s methods to bring about the uncanny. Works Cited Freud, Sigumund. "The Uncanny." Literary Theory: An Anthology. Ed. by Julie Rivkin and Michael Ryan. New York: Blackwell, 1998.

Newman And The English Major :: essays research papers

Newman and The English Major John Newman’s ideas of education, knowledge, and intellectual fitness are well-formed and truthful. As related to my major, English, it reveals some interesting trends and practices. Although the English major isn’t a real big money-maker, like being a lawyer or doctor, and it generally focuses on literature and creativity, the courses still concentrate on the utility of what is being learned. Although one can sometimes see the relationships between courses, and thereby understand them in respects to each other and draw some connection, this interaction is rarely stated explicitly in those courses. One of Newman’s key ideas is that liberal knowledge (knowing how to think with versatility) is necessary for the more effective and more adaptable use of particular knowledge. A class that has allowed me to think and learn in this way was ENG 3014, Theories of Literature. I took the class twice for the purpose of raising my grade; the first time with Dr. Campbell and the second time with Dr. Logan. In this class I learned various critical literary theories and how to apply them to any text, communication, or other form of expression. Although these theories are based on application, it is the application of a thought process; an analysis which can be adapted and imposed on whatever I choose, which I can choose at my leisure, not just useful in one specific situation. However, most classes only teach facts, lessons, and the direct applications for them. Even the general studies courses and survey courses are taught as thought all the knowledge taught were to be used, not knowledge to savor and help heighten the intellect or thought process. To get an Associate’s degree for example, one must fulfill certain requirements, such as â€Å"natural science.† Instead of the class being taught as a class on general knowledge, which would be insightful into the world around us, they are taught as though every student enrolled were interested in becoming a chemist or biologist, with not enough effort placed on stimulation of interest. The students who are not interested in pursuing the sciences further have no use for this â€Å"particular† information, and it is disused and forgotten. I know that there are all sorts of information that I’ve been taught but are too specific to be useful to me day-to-day and so have been forgotten. The problem is that particular knowledge is useless except in one particular realm or level of discourse.

industrial revolution :: essays research papers

The impact that The Industrial Revolution had on Europe and England was big, it practically changed the economy for years. There were many individuals that had a big impact and there are many acts, rights, and processes devised to produced the most making for the higher classes. Most of the individuals that are involved had invented something that would change a certain company. This whole industrial revolution started small. In fact, it started out with tiny little village entrepreneurs. Entrepreneurs were tiny company’s that would make hand made stuff and sell this profit that is produced. This soon led to more money, which led to more employees, which also led to more entrepreneurs, and it spread ideas. This got people really thinking. One man named Robert Owen a young utopian socialist of Britain who became the manager of his own cotton mill at the age of nineteen. He then developed community farming and had the town of New Lanmark, Scotland living and working for him. He provided proper housing, basic education, and an inexpensive company store for the workers. In fact, he made a very good deal with his employees, that benefited them and he still made a good profit from it. He forbid young children to work in his mills, and he decreased hours and increased wages. One of this man’s supporter’s is Charles Fourier He favored ideal comm unities and that all work should be shared and that the higher class would benefit of the joint labor according to the needs of the lower class. This man boosted the economy tremendously, because he spread his idea of community farming and farmers and entrepreneurs were beginning to use it more often and they were making good profit. However, some entrepreneurship leaders got to greedy and wanted more money so they made deals that basically only benefited them and they built self-centered industries. These deals included lowering the age of working ability, which led to less education, which led to lower wages. The working conditions were horrible and if you lost an arm or any sort of limb they were fired and another child was hired in replace of them. Men like Karl Marx and Friedrich Engles joined together in 1848 to produce the Communist Manifesto. This was a pamphlet that was intended for the workers.

Cultural Differences Affecting Meaning and Understanding Essay

How do cultural differences affect meaning and understanding? In today’s business environment, the mechanics of global business seem to be working on a surface level. We can make quick money transactions by phone or by computer. Consumers can purchase products from all different countries in one transaction. Although trade barriers are still a major topic, they are slowly decreasing. As we sick below the surface, we will see that Global business is still in major jeopardy because of a newly emerging challenge: Cultural differences. Culture is the pattern of beliefs or expectations that inevitably shape the behaviours of individuals and teams within organisations. It is concerned with the basic assumptions, values, attitudes, food and feeding habits, dress and appearance, relationships, a sense of self and space and norms shaped by members of an organisation or country. These elements of culture are usually taken for granted and guide others perceptions, thoughts and actions. For example, the Culture at McDonald’s fast food chain emphasises efficiency, speed and consistency. It orients employees to company goals and charters and suggests the necessary behaviours for success. Many educated, business people may say â€Å"But we are getting closer and closer to each other, we don’t have any cultural problems’. Yes, it is possible to transcend cultural differences; however statements like this can be misleading to many people. (Funakawa, p18) Geert Hofstede, a successful cross-cultural management researcher, observes five different dimensions within a culture: Power/Distancing – This refers to the degree of inequality that exists and is accepted among people with and without power. High Power distancing cultures conclude that society accepts an unequal distribution of power and people understand â€Å"their place† in the system. Low Power Distancing means that power is shared and well dispersed. It also means that society members view themselves as equals. Application: According to Hofstede’s model, in a high Power distancing country like Malaysia, you would probably send reports only to top management and have closed door meetings where only a select few, powerful leaders were in attendance. Individualism – This refers to the strength of the ties people have to others within the community. A high Individualism society indicates a loose connection with people. In countries with a high Individualism society there is a lack of interpersonal connection and little sharing of responsibility, beyond family and perhaps a few close friends. A society with a low Individualism would have strong group cohesion, and there would be a large amount of loyalty and respect for members of the group. The group itself is also larger and people take more responsibility for each other’s well being. Masculinity – This refers to how much a society sticks with, and values, traditional male and female roles. High Masculinity societies are found in countries where men are expected to be tough, to be the provider, to be assertive and to be strong. If women work outside the home, they have separate professions from men. Low Masculinity societies do not reverse the gender roles. In a low Masculinity society, the roles are simply blurred. You see women and men working together equally across many professions. Men are allowed to be sensitive and women can work hard for professional success. Uncertainty/Avoidance Index – This relates to the degree of anxiety society members feel when in uncertain or unknown situations. High Uncertainty societies try to avoid ambiguous situations whenever possible. They are governed by rules and order and they seek a collective â€Å"truth†. Low Uncertainty societies indicate the society enjoys novel events and values differences. There are very few rules and people are encouraged to discover their own truth. Geert also observes that when people write about national cultures in modern society becoming more and more similar, the evidence cited is usually taken from the level of practices; people dress the same, use the same fashionable words in context, buy the same products and brands, they participate in global sports etc. These manifestations of culture are sometimes mistaken for all there is: the deeper, underlying values is often overlooked. (Funakawa p33) The value for cross cultural communication cannot be overemphasised. It is what enables any mission statement, vision or strategy, and affects meaning and understanding on every level.