Hofstede’s Cultural Dimensions

        The main issues in this case are heavily influenced by cultural aspects. A comparison of Hofstede’s cultural dimensions (Attachment 1) shows visually as well as mathematically the differences and similarities between each culture. Greece (Costas) and Spain (Terralumen and Alvarez) have a low Euclidean distance of 27, while US companies Delta and Blue Ridge differ quite greatly, with Euclidean distances of 84.9 in regards to Greece and 70.5 in regards to Spain. This analysis shows that individualism and uncertainty avoidance are the largest differences between the US and Spain/Greece. These differences are seen throughout the case by Sodegran mocking the many client dinners he was invited to and segregating himself in the office. The Spanish management showed high levels of uncertainty avoidance by selling one of their major locations due to a sense of nervousness and high level of emotions. The US has an informal business attitude while being more accepting of change in risk in the financial projects, while the Europeans show the opposite.

Many issues were raised by each member in this case, as seen in Attachment 2. From Delta’s management point of view, there is an issue with slow growth. They see joint ventures as a poor way to enter and develop new markets, and have grown primarily through acquisitions and limited competition. Blue Ridge is struggling to implement Delta’s wishes of increased growth and is forced to dissolve the JV with Terralumen. Along with this, Terralumen has the issue of a dissolving JV, as well as being forced to continue financially without Blue Ridge’s help, forcing them to sell properties. The less experienced Sodegran is not cooperative in group situations, forcing Alvarez and Costas into isolation, and dismantling a strong bond between Blue Ridge and Terralumen.

If I was in Sodegran’s position, I would begin by realizing that the joint venture with Terralumen is meeting its prior developed goals and is very profitable. I would discuss the cultural differences with my US based upper management and suggest we continue operations in a similar manner that we have been with Terralumen and continue the joint venture. I would focus on immediate growth in other areas of the business and over time deploy a more aggressive growth strategy after we have strengthened the working relationship with Terralumen.