Case Study: Frieslandcampina

1a) FrieslandCampina, has its business practice influenced by the cultural norms of its home country, as well as foreign markets. The following graph provides an overview of the scores of the Netherlands using Hofstede’s five dimensions of culture.

Power distance: The score 38 in Power Distance is explained by the Dutch equal rights, upfront communication and independent behaviour (Breukel n.d.). There is a decentralization of power in business, where the management empowers the employees, who participate and encourage 360-degree feedback. There is a hierarchy but the Dutch usually call each other by the first name (Zerif n.d.).

Individualism: Scoring 80 on individualism, the Dutch society values individual achievement and freedom (Peng & Meyer 2016). There are loose ties between individuals, who are expected to take care of only themselves and the

First, Royal FC is fully owned by member dairy farmers, who are independent entrepreneurs from the Netherlands, Germany and Belgium (FrieslandCampina n.d.). Naturally, the company has best knowledge of the tastes and preferences of the European market. Second, the liability of outsidership increases costs for doing business in the distant regions as the transaction costs are higher for countries outside the home region (Peng & Meyer 2016). Moreover, the CSR practices tend to be more expensive outside Europe, and investment in politically unstable areas are avoided (needs source). Third, over 90% of adults in East Asia are lactose intolerant. The intolerance is also common in West Africa, which is a reason why FC does not target these markets as much (Genetics Home Reference 2010). Overall, FC has the intention on continuing the worldwide growth in the future. They already took steps and aligned their current strategy to reach the status of a global firm in the future. Therefore, it is likely it will become a global company in the medium to long