Company strategic analysis on: Hero Cycles
Introduction
According to the analysis provided earlier it was noticed that Hero Cycles did not have an
international strategy. It only manufactured cycles in India and exported them all over the world
making them the world’s largest exporters of cycles. Hero Cycles got into a partnership with a
U.S company to sell company under the U.S companies name for 20% royalty. To further
consider the strategies of what hero cycle. One of the strategies from the initial analysis is that
the company must not enter British Columbia, Canada. To further understand whether to enter or
not the Canadian market is good strategy we discuss the analysis based on the work of Susan
Schneider and Jean – Louis Barsoux in “Culture and Organisation”.
Discussion
This article studies the behaviour of the people that belong to different nation cultures. It focuses
on Hofstede’s findings. According to Hofstede’s there are four “value” dimensions on which
countries are differed. They are power distance, uncertainty avoidance, individualism/
collectivism and masculinity/ femininity. These dimensions have an impact on the behaviour of
a country with the other, for example in countries where the power distance is low and the
uncertainty avoidance is high organisations are expected to have less hierarchy and decisions
being decentralised. While in the case where power distance is high and uncertainty avoidance is
low the organizations like families and tribes.
In case of hero cycles it is an Indian company and the destination country is Canada. The both
rank differently on the Hofstede’s ranking.
India ranks high on Power Distance index ratio meaning that the unequal distribution of power is
accepted while Canada ranks low showing less tolerance. In case of uncertainty avoidance index
and masculinity / femininity index it can be observed that both the countries are almost similar.
Another difference in the two cultures can be observed in the individualism/ collectivism index
where Canada appreciates more individualistic behaviour very opposite from that of India.
As discussed above that Canada ranks lower in power distance index and weak in uncertainty
avoidance hence according to Hofstede’s Maps Canada lies in Village market and as the power
distance index of India is high and the uncertainty avoidance is weak India lies under Family.
Both of the countries have different characteristics hence when India will enter Canada, based on
the acquisition strategy, when the management team is changed and the structure changes
decentralised to centralised it will create a negative impact. A negative impact will lead to lack
of motivation and poor performance which turns out to be a disadvantage for hero cycles(Harbir
Singh & Maurizio Zollo, 2011). Hero cycles has always managed a staff that is loyal to them but
in case of Canada they will have to adapt people who are entrepreneurial in nature and who work
as free agents of the company, hence to manage such a team may turn out to be very difficult
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