Hofstede's Analysis of Azure Sky Tea Company

[Date of Submission]

Introduction - Azure Sky Tea

In order to learn about the problems that are being faced by the Azure Sky Tea, it is important that an understanding about the brand is developed which can give an insight into the problems of the company.

Since past many years Azure Sky Tea has been one of the most reliable brands of the production of herbal and black tea in USA, it is known for its distinguished taste and the secret to that taste which is not known to many. The vision of the company is to expand into those regions and countries where the customers are more likely to prefer their distinguish taste of tea, while focusing more on the healthy aspect of their tea. This means that Azure Sky Tea wants to expand into areas where a healthy tea is preferred over the traditional type of tea.

The business issue that is being faced by Azure Sky Tea in order to remain competitive in the market is to identify and focus on those regions where the people are not following much of a corporate approach but are instead focusing on a more informal life style, which in turn is linked to their preferring of a more healthy tea over the normal tea, which in many ways not only get them addicted but also gets them to rely on the caffeine, while at the same time affecting their health in many ways as well.

The recommendation for Azure Sky Tea is to focus on the identification of two initial locations for the expansion of their business, which are up to the requirement so their target markets. Furthermore, after the recommendations Azure Sky Tea can send in their representatives to identify the market in more depth, which will then concentrate on hiring of representatives from the chosen locations and will start to cater the market initially through supplying the products from their head office. Later on, after an understanding has been developed regarding the market in those locations, Azure Sky Tea can then consider setting up its production facility in those regions. If this practice is found to be effective for after its implication in these two regions, then the company can think upon applying this strategy on other similar identified locations (Hofstede, 1996).

Hofstede's Model

In order to apply Hofstede's model for Azure Sky Tea, it is important to know about the Hofstede's model. According to Hofstede the people all around the world have different set of belief, attitude, morals, customs and ethical standards. While the societies as according to Hofstede are based upon rituals, religions and traditions and they portray different ways of families, social behaviors, personal responsibilities and work. Hofstede therefore described his model on the basis of four key dimensions, which are (Hofstede, 2012):

Power Distance - Those countries or regions that are termed as having high power distance are considered to have a high differentiation in between their classes, whether the classes are on ...