Cultural Issues
The company which we have chosen is Hai Di Lao Hot Pot. Here we are going to discuss the cultural differences from which this hotel is suffering in Canada. Moreover, we are also going to apply the Hofstede’s cultural theory to know these cultural issues better.
Before coming to the topic directly, a brief introduction to the Hofstede theory of cultural dimension is given.
Hofstede’s Cultural Dimensions Theory
It is a framework for cross-cultural communication. It is developed by Geert Hofstede. This theory discusses the influence of the society’s culture on the values of its members. There are five dimensions of this theory (Taras, Kirkman and Steel, 2010).
Power Distance Index
It is defined as the less powerful people of the organization and the companies accept that the power is distributed unequally among the members of the organization. However, Hai Di Lao gives equal opportunities to their employees to suggest them with the best if they have something in their mind (Soares, Farhangmehr and Shoham, 2007).
Individualism Vs. Collectivism
This dimension explores the different groups which are integrated into the society. Here the concept of “I” is majorly discussed rather than ‘us.” Whereas discussing its counterpart collectivism, here they talk about generally about a group of people. The concept of extended families and nuclear families include in it (Soares, Farhangmehr and Shoham, 2007).
Uncertainty Avoidance Index
It is the society’s tolerance for ambiguity. In this people avert all the fact which is unknown and invisible (Soares, Farhangmehr and Shoham, 2007).
Long Term Orientation Vs. Short-Term Orientation
In this, they discuss the connection of the past with present and present with future. The challenges of all the phases are discussed. Hai Di Lao is long term oriented (Taras, Kirkman and Steel, 2010).
Masculinity vs. Femininity
This dimension deals with the roles of the both genders with in the culture and the extent of compliance to the prescribed roles of both the genders. In Canada, the prescribed roles of females and males are based on the core values of equality and the compliance to these roles is also shown. Both genders perform all the roles of daily routine and the discrimination based on gender is minimal.
The hotel Hai Di Lao Hot Pot is the famous restaurant in China. It has opened its chain in Canada as well. Here in the European countries, the living standard and values and customs are entirely different from China. China has its food taste, and when they opened their chain in Canada, they have to face a lot of bad experiences as well just because of cultural differences. In the same way, as most of the western countries faced problems when they opened their outlets in China. They made a major mistake in localization. Hai Di Lao in China is not only selling their hot pot, but they are spreading happiness in another way to their customers because everything they do is highly rooted in their culture. Their workers can travel even extra miles just to satisfy their customers and provide them with best of what they have. They also include free massages, manicures, and video games while waiting for the dining table. Noodle dances are also being performed. These all things give them an edge in China because Chinese will not mind in doing that stuff. However, people in America cannot tolerate this stuff. It might be an enjoyment for the Chinese but it surely not for Americans (Taras, Kirkman and Steel, 2010).
Major Flaws
Unable To Understand Their Customers:
One of the biggest flaws is that they did not understand their customers. Americans cannot take messages in an open environment. Their lifestyle is entirely different from them. All these free services were loved by Chinese, but these are not welcomed by the Americans (Marquis, 2014).
Too Much Expensive:
Being too much expensive in Canada drifted apart their customers. In China, they offer one person meal of about $20 the US whereas in Canada, they offer the same meal at $40 US.
Lost the Culture
The way they serve their hot pot in China is different from the way they presented in the US. It lacks feeling. It seems like artificial. The store in Canada lacks the warmth and services with which the Chinese restaurant boasts.
These are the major flaws which came out due to cultural issues because both of the countries have the entirely different mindset, and they belong to different cultures.
Current and Historical Marketing Practices
Hai Di Lao opened its first outpost in America. Hai Di Lao, which was founded in 1994, has now become the dominant hotpot country chain. The company’s culture was based on Zhang’s personal value of kindness and affectionate. They have developed different marketing strategies to imprint their mark in the world. They are highly customer services oriented. Following are the different strategies which are made by them to get a great success (Marquis, 2014). They provide their customers extra free services which include shoe shine and nail polishes. The chain is considered to be legendary for the customer services. The main driving force behind this is US expansion.
Their major focus is on how they can satisfy their customers. They work on it and try to get the best out of it. Their food quality is great. People just love their food. That is why they are ready to pay high prices for it as well. They do not compromise on their quality.
Previous Marketing Strategies
In the start when they opened their store in the US. They were failed in satisfying the customers because of cultural differences. There are many things which give them an edge over many other different well-reputed restaurants. However, all of these things failed when they opened their store in the US. Americans do not welcome nail polishes, shoe shine, noodle dances which are still highly appreciable in China. Their major focus is on customer relationships, however, due to certain cultural barriers, all of their strategies failed. When this restaurant was being constructed many of the citizens started calling it “made in China” which strongly disgrace its image (Marquis, 2014).
New Marketing Strategies
According to the survey, it is found out that happy and loyal employees make happy and loyal customers. So their major focus is on satisfying their employee’s needs and wants. They give them a handsome compensation package to satisfy them. When they get satisfy automatically, they work by heart and try their level best to fulfill the customers want and make them happy. Moreover, for getting more success they need to dig out the wants and needs of their employees. They are trying and finding out the ways to satisfy the American employees. It is very difficult to mold them in their culture. They are working on satisfying their employees. They are exploring what an American employee want. So that they could satisfy their needs and in return, they satisfy their customers. Moreover, for their customers they have made different plans such as they take half orders, décor, i-pad menu, wait, staff, and portion size. They are trying to satisfy their customers in any way (Marquis, 2014).
Works Cited
Marquis, C. (2014). Successful Chinese Hot Pot Chain Stumbles In U.S. Expansion. Forbes.com. Retrieved 19 February 2016, from http://www.forbes.com/sites/christophermarquis/2014/01/22/successful-chinese-hot-pot-chain-stumbles-in-us-expansion/#37e0ed1e2496
Soares, A. M., Farhangmehr, M., & Shoham, A. (2007). Hofstede's dimensions of culture in international marketing studies. Journal of business research, 60(3), 277-284.
Taras, V., Kirkman, B. L., & Steel, P. (2010). Examining the impact of Culture's consequences: a three-decade, multilevel, meta-analytic review of Hofstede's cultural value dimensions. Journal of Applied Psychology, 95(3), 405.
