REPUBLIC OF THE PHILIPPINES

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

A Research Paper about Culture and Business

Presented to Ms. Izyl L. Pangan of

Polytechnic University of the Philippines

Quezon City Campus

In Partial Fulfillment of the Requirement of the

Degree in Bachelor of Science in Business

Administration Major in

Human Resources Management

by

ROSALES, ERIKA P.

SALVADOR, KHRIZA JOY R.

ZAPANTA, REGINA ANNE D.

FEBRUARY 2024
 INTRODUCTION

In the frenetic dance of globalization and constant change that defines the
modern business world, the concept of organizational culture has outgrown its
former label as a mere trend, evolving into a formidable catalyst that shapes a
company's fundamental values, operational methodologies, and overarching
success.

The influence of organizational culture extends far beyond mere aesthetics.

A strong, positive culture has been demonstrably linked to key performance
indicators such as increased employee engagement and satisfaction, enhanced
customer loyalty, and improved financial performance (Harter et al., 2002;
Patterson et al., 2011). It fosters innovation, collaboration, and adaptability, all
crucial ingredients for navigating the complexities of the modern business
landscape. Conversely, a weak or toxic culture can breed negativity,
disengagement, and ultimately, hinder an organization's ability to thrive.

According to Hofstede (1980), culture plays a pivotal role in shaping

communication dynamics, leadership styles, and negotiation strategies within the
business context. As businesses expand and operate in culturally diverse
environments, understanding the cultural dimensions becomes imperative for
effective interaction and collaboration. The nuances of organizational culture
extend beyond the traditional definition, influencing the beliefs, values, and
mindsets of individuals within a group (Bhagat et al., 2012). In this context,
Hofstede's cultural framework provides valuable insights, emphasizing the impact
of culture on the organizational structure and strategies. The dynamic and
multifaceted nature of culture, as acknowledged by Bhagat et al. (2012),
underscores the need for businesses to embrace a comprehensive view that goes
beyond static definitions. This acknowledgment is crucial for fostering cross-
cultural understanding, enabling businesses to navigate the complexities of
diverse cultural landscapes and achieve success in the global business arena.

Within this transformative milieu, the concept of service culture has

emerged as a focal point, embodying shared values and behaviors dedicated to
customer satisfaction and service excellence (Heskett et al., 2003). This departure
from transactional engagements underscores a deeper commitment to customer
experience and satisfaction.

This paradigm shift aligns seamlessly with the prevailing trend of

customer-centricity, where businesses aspire to provide exceptional experiences to
stand out in a competitive market. Gronroos (2000) emphasizes the importance of
co-creation and value generation between customers and businesses, underscoring
the necessity of a well-defined service culture. Berry and Parasuraman (1991)
further assert that a robust service culture acts as a key differentiator, establishing
trust and loyalty through consistent delivery of excellent service.

The impact of this cultural shift extends beyond customer interactions,

permeating the entire organizational structure. Employees who align with a
service-oriented culture exhibit higher engagement and motivation (Patterson et
al., 2011), contributing to enhanced productivity, innovation, and teamwork –
integral elements for overall business success (Harter et al., 2002). Differentiation
in a competitive market becomes paramount, where a unique service culture
becomes a distinctive selling proposition (Dennerlein & Johnson, 2014).

The Philippines, amidst its burgeoning business landscape, serves as an

illuminating case study for exploring the intricate relationship between
organizational culture and business success. As organizations multiply, and
diverse talents converge, the inevitability of cultural fusion becomes apparent.
Scholars like Schein (1992) and Hofstede (1980) elaborate on this dynamism,
highlighting its scope beyond demographics to encompass deeply rooted beliefs,
values, and practices shaping collective identity.

However, the expansion of businesses in the Philippines necessitates a

nuanced understanding of cultural dimensions to navigate a diverse customer
base. Hofstede's (1980) framework illustrates the significant impact of culture on
communication, leadership, and negotiation strategies. Service industries,
inherently people-centric, require a profound understanding of cultural nuances
for delivering exceptional experiences and cultivate employee satisfaction
(Schneider & Bowen, 1995).

Moreover, the evolving concept of culture itself is transforming,

transitioning from a traditional, static definition towards a more comprehensive
view that embraces the dynamic and multifaceted nature of beliefs, values, and
mindsets (Bhagat et al., 2012). This shift necessitates an acknowledgment that
cultural perspectives are not absolutes, but subjective interpretations shaped by
individual experiences and cultural backgrounds (Triandis, 1995).

In this culturally rich environment, cross-cultural understanding plays a

vital role. As individuals encounter diverse cultures within organizations,
adapting mindsets and expectations becomes crucial for interpreting gestures,
attitudes, and statements accurately (Gudykunst & Kim, 2005). Cultivating an
inclusive and adaptable viewpoint fosters effective communication and
collaboration, propelling success in the nuanced and culturally diverse business
landscape of the Philippines.
 With these, we can come up with an interpretation that culture and
business are connected. Culture cannot exist without business, and business
cannot exist without culture. There is no denying that we need to understand
different cultures, whether they are organizational or business-related. If we don't
understand this, how can the organization and the employees be successful? In
real life, we will meet different cultures and skills that exist in an organization.
People and employees have different views when it comes to culture. It is not easy
to know what the practice, culture, routine, and so on are. We need to be open to
their views and understand their traditional culture. Workplace behavior is
significantly influenced by the shared values and norms that form an
organization's culture. Organizational culture is reflected in decision-making
procedures, communication styles, and leadership philosophies. By utilizing this
knowledge, companies can build more cohesive teams and raise employee
satisfaction levels overall.

This paper aims to delve into the multifaceted relationship between

organizational culture, service culture, and business success, with a specific focus
on the Philippines as a dynamic backdrop for exploration. By exploring the
interplay between culture and business within the context of service culture, this
study seeks to provide valuable insights for businesses navigating the
complexities of the ever-evolving global and local business environments.

DISCUSSION
 And one of the things discussed in culture and business is the existence of
different cultures in other aspects that we can encounter with different people in
the organization. We have different cultures when it comes to social structure,
religion, education, language, political, and economic philosophies. It's not
because our culture is different that we won't respect and understand each other.
When it comes to business or other organizations, we will meet different people
with different cultures. You can't just follow your culture, or maybe you will
follow it. We will report on the language mentioned here. In language, there are
two types: verbal and non-verbal. In verbal communication, there are different
tones, strengths, and gentleness of speech. Non-verbal communication is the hand
gesture, body language, and emotion that we see in a person, but let's be careful in
expressing them because others may misinterpret our normal speech or the
different types of non-verbal that we think is normal for them to say or express
their feelings. It's the same with others because we don't have the same culture,
and yes, we need to understand the culture of others especially in business
because, when it comes to business we need to negotiate with others, especially in
other countries. We know that the culture in other countries is different; we need
to understand their culture in order for our business to prosper because it helps a
lot in growing the business.

International business studies and cross-cultural management have made

extensive use of Hofstede's 6 cultural dimensions. His studies have produced a
framework for comprehending the ways in which cultural differences can affect
leadership, communication, negotiation, and other business-related processes. It's
critical to remember that, despite its influence, Hofstede's model has not been
without criticism. Some contend that because cultures are dynamic and diverse,
trying to reduce them to fixed dimensions would be an oversimplification of the
complexity inherent in human behavior and culture. However, Geert Hofstede's
work continues to be a fundamental source in the field of cross-cultural studies
and has useful implications for companies conducting business internationally.

Geert Hofstede's Cultural Dimensions Theory stands as a cornerstone in the

understanding of cultural variations and their profound impact on diverse aspects
of human interactions, particularly in the realm of business. This theory,
developed by Dutch management researcher Geert Hofstede, provides a
comprehensive framework comprising six key dimensions that delineate the
intricate differences in cultural values and behaviors across societies. As
businesses increasingly operate on a global scale, comprehending these cultural
dimensions becomes imperative for establishing effective cross-cultural
communication, fostering collaboration, and tailoring business strategies to meet
the diverse needs and expectations of customers.
 Hofstede's Cultural Dimensions Theory serves as a robust foundation for our
exploration of culture and business dynamics, particularly within the unique
setting of service culture in the Philippines. The six dimensions – Power Distance
Index, Individualism vs. Collectivism, Uncertainty Avoidance Index, Masculinity
vs. Femininity, Long-Term vs. Short-Term Orientation, and Indulgence vs.
Restraint – offer a structured lens through which we can analyze and interpret the
intricate interplay between cultural values and business practices. This discussion
explores the relevance of Hofstede's theory within the unique context of service
culture in the Philippines, delving into six key dimensions that shape cultural
variations and profoundly influence human interactions.

Power Distance Index (PDI):

In the context of service culture, understanding the power distance index is crucial
for designing effective communication strategies. In high PDI cultures, customers
may expect a formal and structured approach, with clear authority figures
handling their needs. Customer service representatives may need to navigate
hierarchical structures to address concerns efficiently. On the contrary, in low PDI
cultures, services may adopt a more decentralized approach, empowering
frontline staff to make decisions, fostering a collaborative and customer-centric
environment. A study by Dorfman and Howell (1988) examined the impact of
power distance on leadership styles across cultures. It found that in high PDI
cultures, there is a preference for autocratic leadership, whereas low PDI cultures
exhibit a preference for more participative and democratic leadership styles. This
insight is crucial for businesses in tailoring leadership approaches in diverse
cultural settings.

Individualism vs. Collectivism:

In a service-oriented business, the individualism-collectivism dimension plays a
pivotal role in customer interactions. Individualistic cultures may appreciate
personalized services, loyalty programs focused on individual benefits, and
tailored marketing strategies. On the other hand, collectivist cultures may value
group-oriented services, emphasizing community and shared experiences. Service
providers need to adapt their approach to resonate with the cultural inclination
towards individual needs or group dynamics. Hofstede's own research, based on
data from IBM employees across different countries, found that collectivist
cultures tend to prioritize group goals and emphasize loyalty and relationships.
This cultural aspect has profound implications for team dynamics and employee
relations within multinational corporations (Hofstede, 1980).
Uncertainty Avoidance Index (UAI):
The UAI dimension becomes particularly relevant in service industries where
unpredictability is inherent. High UAI cultures may seek detailed information,
clear policies, and structured service processes to minimize uncertainty. Service
providers in these cultures may need to emphasize reliability and adherence to
established norms. In contrast, low UAI cultures may be more open to flexible
service models, innovative approaches, and adapting to changing customer needs.
A study by Scherer and Sagarin (2006) investigated the relationship between
uncertainty avoidance and risk perception. It found that individuals from high
UAI cultures tend to perceive higher risks in ambiguous situations compared to
those from low UAI cultures. This has implications for businesses operating in
diverse markets, emphasizing the need for adaptable risk management strategies.

Masculinity vs. Femininity:

In the service sector, understanding the masculinity-femininity dimension can
shape the overall customer experience. Masculine cultures may appreciate
competitive pricing, efficiency, and results-oriented services. In contrast, feminine
cultures may value empathy, customer care, and relationships in service
interactions. Tailoring marketing and service strategies to align with these cultural
preferences can enhance customer satisfaction and loyalty. Hofstede and Bond
(1984) conducted a study that supported the cultural dimension of masculinity-
femininity. It revealed that in more masculine cultures, there is a higher preference
for achievement, assertiveness, and material success, whereas in more feminine
cultures, qualities like cooperation, modesty, and quality of life are prioritized.
Understanding these cultural preferences is crucial for marketing strategies and
employee engagement.

Long-Term vs. Short-Term Orientation:

The time orientation dimension is crucial in shaping the service culture's approach
to customer relationships. In long-term-oriented cultures, service providers may
focus on building enduring relationships, emphasizing quality and sustainability.
In short-term-oriented cultures, quick and adaptive services, aligned with current
trends and demands, may be more successful. Businesses need to align their
service strategies with the cultural perception of time to meet customer
expectations. In a study by Bond and Hofstede (1989), the researchers found that
Asian cultures, such as China and Japan, tend to have a higher preference for
long-term orientation, emphasizing persistence, savings, and adaptability. This
influences business practices, including investment strategies and organizational
planning, in these cultures.

Indulgence vs. Restraint:

The indulgence-restraint dimension influences the nature of services offered and
how they are consumed. In indulgent cultures, services may cater to enjoyment
and personal fulfillment, emphasizing leisure and lifestyle. In restrained cultures,
services may need to align with more practical and thrifty preferences.
Understanding these cultural tendencies can guide businesses in tailoring their
service offerings and marketing messages to resonate with the values of the target
audience. Minkov's study in 2011 validated the dimension of indulgence versus
restraint across cultures. The research highlighted that indulgent cultures tend to
prioritize enjoyment, personal freedom, and leisure, while restrained cultures
focus on thrift, savings, and adhering to societal norms. Businesses can use this
insight to tailor marketing strategies and product offerings accordingly (Minkov,
2011).
Culture and business are connected. Culture cannot exist without business, and
business cannot exist without culture. There is no denying that we need to
understand different cultures, whether they are organizational or business-related.
If we don't understand this, how can the organization and the employees be
successful? In real life, we will meet different cultures and skills that exist in an
organization. People and employees have different views when it comes to
culture. It is not easy to know what the practice, culture, routine, and so on are.
We need to be open to their views and understand their traditional
culture.Workplace behavior is significantly influenced by the shared values and
norms that form an organization's culture. Organizational culture is reflected in
decision-making procedures, communication styles, and leadership philosophies.
By utilizing this knowledge, companies can build more cohesive teams and raise
employee satisfaction levels overall.

Culture and business are deeply intertwined, reflecting the shared values
and norms that form an organization's culture. This influences decision-making
procedures, communication styles, and leadership philosophies. Studies show that
a cohesive organizational culture enhances team dynamics and raises overall
employee satisfaction levels. Beyond organizational culture, different cultures in
social structure, religion, education, language, and political and economic
philosophies are encountered in business settings. It's crucial to respect and
understand these differences for successful negotiations, especially in
international business. Verbal and non-verbal communication disparities,
including tone, strength, and non-verbal cues, play pivotal roles in effective cross-
cultural communication. Awareness of these nuances is essential for fruitful
negotiations, particularly in diverse global markets.

As Edgar Schein aptly described in his Organizational Culture Model, a

company's culture encompasses the shared beliefs, assumptions, and artifacts that
shape its behavior and create a unified identity (Schein, 1992). Within this
framework, service culture thrives where a core set of values forms the
cornerstone of every interaction.
 The Philippines, steeped in collectivism (Hofstede, 1980), naturally fosters a
sense of community and shared responsibility, creating fertile ground for service
cultures that prioritize teamwork and customer focus. Studies by Ma. Lourdes A.
Habibis, exploring Filipino service culture, highlights the crucial role of cultural
values in fostering a service-oriented approach where employees genuinely strive
to exceed customer expectations (Habibis, 2018). This resonates with Patterson et
al.'s (2011) work on meaningful work, suggesting that when employees connect
with their organization's values and engage in purposeful service, business
outcomes flourish. Effective communication, both verbal and non-verbal, plays a
pivotal role in building strong relationships and delivering exceptional service.
Gudykunst & Kim's Intercultural Communication Theory emphasizes the
importance of adapting communication styles and interpreting non-verbal cues
accurately when interacting with people from diverse backgrounds (Gudykunst &
Kim, 2005). In the Philippines, understanding the subtle nuances of
communication, from the gentle tone of "pakikiusap" (request) to the unspoken
signals of "tampo" (quiet disapproval), becomes crucial for navigating diverse
teams and creating positive customer interactions. Recognizing these cultural
nuances fosters empathy, builds trust, and ultimately enhances service quality.
While frameworks like Hofstede's Cultural Dimensions offer valuable insights
into cultural differences in power distance, uncertainty avoidance, and
individualism-collectivism, it is crucial to acknowledge their limitations. Critics
argue that such frameworks can oversimplify the inherent complexity of human
behavior and culture, which are constantly evolving and dynamic (Bhagat et al.,
2012). However, the framework's utility lies in its ability to equip individuals with
a starting point for developing cultural intelligence (CQ).

By understanding broad cultural tendencies, individuals can adapt their

communication, behavior, and expectations when interacting with people from
diverse backgrounds. This CQ becomes essential for building successful teams and
fostering a service culture that resonates with a varied clientele. Modern service
culture transcends transactional interactions, embracing diversity and inclusion as
key drivers of excellence. As service industries thrive on the quality of human
interaction, creating an inclusive environment where diverse perspectives are
valued becomes paramount. This aligns with the concept of an inclusive service
culture, where differences are viewed as strengths and leveraged to create a more
dynamic and responsive service experience. Recognizing the unique skills and
experiences individuals bring to the table fosters innovation, improves problem-
solving, and ultimately enhances customer satisfaction. Research by Dennerlein &
Johnson (2014) underscores the positive impact of diverse teams on service
quality, highlighting how different perspectives can lead to more creative and
effective solutions (Dennerlein & Johnson, 2014). While Hofstede's framework
provides a valuable starting point, understanding the intricate tapestry of Filipino
culture demands delving deeper. Concepts like "pakikisama" (smooth
interpersonal relations) and "utang na loob" (reciprocity) are deeply ingrained in
Philippine society and significantly influence service interactions. Recognizing the
importance of building rapport, maintaining personal connections, and honoring
reciprocity becomes crucial for creating a service experience that resonates with
local customers. Exploring case studies of successful Philippine businesses, like
Jollibee or Cebu Pacific, can offer valuable insights into how they leverage their
understanding of these unique cultural nuances to cultivate a loyal customer base.

EXISTING CASE STUDY

I. Jollibee: A Case Study of Cultural Intelligence in Global Fast Food

Jollibee, the iconic Filipino fast-food chain, has risen to global prominence
not just for its delicious offerings, but also for its masterful understanding and
integration of Filipino culture into its brand identity and service strategy. This
essay delves into the multifaceted aspects of Jollibee's journey, exploring how the
company strategically leveraged cultural insights to create a distinctive identity
that resonates deeply with Filipino values and preferences, ultimately fueling its
success in the global arena. Founded in 1978 by Tony Tan Caktiong, Jollibee has
transcended its beginnings as a local eatery to become a national treasure and a
symbol of Filipino pride. Its success rests on a foundation of meticulous alignment
with Filipino cultural values. The brand seamlessly weaves itself into the fabric of
Filipino life, emphasizing family, community, and celebration. The cheerful
mascot, Jollibee, acts as a personification of the brand's warmth and
approachability, endearing itself to families across generations (Torres, 2018).
Beyond mere translation, Jollibee demonstrates a nuanced understanding of the
Filipino palate. This cultural intelligence translates into signature items like Jolly
Spaghetti and Chickenjoy, which have become synonymous with comfort food in
the Philippines (Punla, 2020). Moreover, Jollibee continuously adapts its menu
offerings to cater to evolving local preferences, showcasing its commitment to
cultural sensitivity and relevance (Reyes, 2023).

Jollibee's service culture is deeply rooted in the inherent Filipino hospitality

tradition. The concept of "kilig," or genuine happiness, permeates every
interaction, creating an atmosphere where customers feel valued and appreciated,
not just served (Austria, 2022). This cultural resonance fosters customer loyalty
and encourages repeat business, contributing significantly to Jollibee's success
(Punla, 2020). As Jollibee embarked on international expansion, the challenge lay
in maintaining its authentic Filipino identity while adapting to diverse cultural
landscapes. The company successfully navigated this challenge by conducting
thorough market research, understanding local preferences, and customizing its
offerings accordingly. For example, in the United States, the "Chickenjoy with Jolly
Spaghetti" combo caters to the nostalgic tastes of Filipino-Americans,
demonstrating cultural sensitivity and adaptation (Kwon, 2020).

Employee engagement and corporate culture form another crucial pillar of

Jollibee's success. The company fosters a familial atmosphere within its
organizational structure, mirroring the Filipino value of close-knit relationships.
This approach translates into a motivated and dedicated workforce, contributing
significantly to the overall service experience and brand image (Torres, 2018).
Connecting Jollibee's journey with Geert Hofstede's Cultural Dimensions
Theory provides a deeper understanding of the company's cultural intelligence:

Power Distance Index (PDI): Jollibee's familial yet hierarchical structure aligns
with the high PDI in Filipino culture, where authority figures are respected
(House et al., 1999).
Individualism vs. Collectivism: The emphasis on community values and family-
oriented marketing resonates with the collectivist nature of Filipino culture
(Hofstede, 1980).
Uncertainty Avoidance Index (UAI): Careful menu adaptation minimizes
uncertainty for customers, aligning with the high UAI in Filipino culture (Scherer
& Sagarin, 2006).
Masculinity vs. Femininity: The focus on empathy and long-term relationships
aligns with the more feminine cultural traits, emphasizing cooperation and quality
of life (Hofstede & Bond, 1984).
Long-Term vs. Short-Term Orientation: Jollibee's commitment to enduring
relationships reflects the long-term orientation prevalent in Asian cultures,
emphasizing persistence and adaptability (Bond & Hofstede, 1989).
Indulgence vs. Restraint: Jollibee's celebration of enjoyment and personal
fulfillment in its offerings aligns with the indulgent nature of Filipino culture
(Minkov, 2011).

II. Opening Case: Dunkin’ Brands—Dunkin’ Donuts and Baskin-Robbins:

Making Local Global

Even though digital and high-tech news may be consuming our attention
on a global scale, people still need to eat. A vital component of many cultures is
food. Warm recollections of comfort food or beloved foods that never cease to
pique our appetites are part of the bonds that bind us as children. Therefore, it
should come as no surprise that, regardless of culture, sugar and sweets play a
major role in our diet. The two most well-known American exports are the
Dunkin' Donuts and Baskin-Robbins twin brands. Today, Dunkin' Brands—a
group of private equity firms—owns Dunkin' Donuts and Baskin-Robbins, which
have been sold all over the world for more than 35 years. With over 14,800
distribution points spread across 44 countries, the company's global sales have
reached $6.9 billion as of today.

2010 saw the reopening of twenty new Dunkin' Donuts locations in Russia
following an eleven-year absence. Kevin Helliker, "Dunkin' Donuts Heads Back to
Russia," Wall Street Journal, April 27, 2010, accessed February 15, 2011, Under a
new partnership, "the planned store openings come 11 years after Dunkin' Donuts
pulled out of Russia, following three years of losses exacerbated by a rogue
franchisee who sold liquor and meat pies alongside coffee and crullers." Every
culture has deeply ingrained customs, especially when it comes to food
preferences and what goes with what for specific meals. Businesses that are more
globally conscious are more aware of these problems and keep an eye on their
partners and operations abroad. Controlling local operations is a major challenge
for many global businesses that operate through a variety of franchisees, resellers,
and wholly owned subsidiaries.
 Dunkin' had previously dealt with an overzealous local partner that
attempted to alter operations to suit demands and preferences in the area. When
the company visited Indonesia in the 1990s, it was taken aback to discover that the
locals were topping a custard-filled donut with a mild white cheese. Since the local
customization proved to be so successful, the company ultimately approved it.
David Jenkins, the former director of International Operations Development at
Allied-Domecq QSR International Ltd., in an interview with the author in 2010.

The company that owns Baskin-Robbins and Dunkin' Donuts has not
always held both brands. In the late 1980s, they were eventually combined into a
single organization with the goal of combining the two brands. Having Baskin-
Robbins handle the afternoon snack market and Dunkin' Donuts handle the
morning market was one of the overarching strategies. This was a tactic the
business used when it first began operating and growing abroad because it was
effective in the US. The diverse range of local cultural preferences and customs
that would have an impact on the company's operations on a cultural level
initially caught it off guard. If donuts were known at all in Russia, Japan, China, or
most of Asia, they were more often thought of as a sweet kind of bakery treat,
similar to an éclair or cream puff. Instead of eating them for breakfast, the locals
mostly bought and ate them as an afternoon "impulse purchase" snack at malls.
Actually, there was no Mandarin word in China that meant "donut," and baked
pastries in the European style were uncommon outside of the Shanghai and Hong
Kong markets. The company name of Dunkin' Donuts could not even be
phonetically spelled in Chinese characters that made sense, unlike Baskin-
Robbins, which made sense in Taiwan. This further complicated the company's
entry into China, which was first done in Beijing. Executives from the company
determined that Sweet Sweet Ring, written in Chinese characters, would be the
ideal name and translation for Dunkin' Donuts in China after much deliberation
and investigation. Flavors and preferences were also influenced by regional
cultures. The taste library for Baskin-Robbins is managed in the US, but fresh
flavor ideas have come from regional operators in every nation. Customized
flavors for regional cultures were frequently added to main menus in major
markets, including the US, ten years later. In the 1990s, two of the first custom ice
cream flavors created for the Asian market were mango and green tea. Dulce de
leche became a popular flavor in Latin America. These flavors are now mainstays
on the taste menu in North America.

A Southeast Asian flavor suggestion never quite made it onto the menu.
Though it has a strong, pungent smell, the durian fruit is popular in some parts of
Southeast Asia. The management of Baskin-Robbins was worried that the
overpowering smell would interfere with factory operations. Although the durian
fruit was never introduced as a flavor, the company did agree to produce ube-
flavored ice cream specifically for the Philippine market. Ube is a sweetened
purple yam. The odor of the durian fruit is so strong that it is frequently
prohibited in upscale hotels in several Asian countries. The company expanded its
offering to the Philippines after it was first made available in Japan. Sweet corn
and red bean ice cream were permitted for local distribution in Japan and quickly
gained popularity; however, the two flavors were never exported outside of the
nation. Management performs a market analysis when evaluating local
suggestions to ascertain whether the flavor's worldwide market is sufficiently
large to warrant the expenditure on R&D and eventual production. Apart from
conducting a market analysis, the company must consistently ensure that it can
obtain high-quality fruit and flavors. Mango proved to be difficult because
different countries and cultures have different recipes for pureed fruit. In the US
mainland, samples were taste-tested from Puerto Rico, Mexico, Hawaii, Pakistan,
India, and the Philippines.

It seems that every nation where mangoes are grown considers them to be
the best, and they are culturally valued as national treasures in every nation. The
business eventually decided on a single mango flavor. Enabling local operators to
personalize flavors and food product offerings without undermining the
companies' overall brand is a difficult balance for Dunkin' Brands. Dunkin' has
developed several items specifically catering to Russian flavor preferences, such as
scalded cream and raspberry jam, since most Russians are not familiar with
donuts. Kevin Helliker, "Dunkin' Donuts Heads Back to Russia," Wall Street
Journal, April 27, 2010, accessed February 15, 2011, One of the company's brands
might become well-known in a given market before others do. Overall, Dunkin'
Brands is already well-known as a dessert supplier in Russia. "Dunkin' Donuts
Heads Back to Russia," Wall Street Journal, April 27, 2010, accessed February 15,
2011, " Kevin Helliker, "Dunkin' Donuts Heads Back to Russia," Wall Street
Journal, April 27, 2010, accessed February 15, 2011. Dunkin' Brands is now able to
advertise the doughnut chain in addition to its ice cream due to the strength of its
brand.

If we notice in the case study, it is about Dunkin' Donuts and Baskin-

Robbins. It says in the first sentence of this study that we will never lose food no
matter where we go, especially sweet foods, because we think it is what keeps our
childhood alive. If you notice Dunkin and Baskin-Robbins, they sell globally. They
used different strategies to make their business more attractive to consumers. Just
like what they did in China, there was no donut in their word or in the Chinese
language or Mandarin, so they made this "sweet, sweet donut," which really hit
their business. And they let the different local cultures and the United States
customize their own donut flavors because they think that this is what consumers
want, but they don't like the durian flavor because it has a smelly or strong taste.
Dunkin' Donuts doesn't even approve of other flavors added by local brands, but
they did it so their brand wouldn't be damaged. Another of the strategies they
used to separate Dunkin's donuts from Baskin's Robinsons was Dunkin's in the
morning and Baskin's Robinsons in the afternoon, but it was changed because
Dunkin's couldn't sell in the morning, so it was changed in the afternoon, and they
added ice cream to their brand because of their strong sales. Let's admit that all the
countries mentioned in that study have different cultures, habits, customs and
many others that will really affect their business. So, the brand will be adjusted a
lot for them as a respect for their culture, especially in the foods that they
customize the donut of the local and US culture they support because the
consumers want it and above all it suits their style. The impact of culture on
business is really huge because you have to support what they want in line with
their culture in order to grow and make your business more successful in different
parts of the world.

CONCLUSION

Both Jollibee and Dunkin' Brands, two iconic fast-food chains, have
achieved remarkable success on the global stage. However, their approaches to
cultural adaptation present fascinating contrasts, offering valuable insights into
the complexities of navigating diverse cultural landscapes.
The case study of Dunkin' Brands, featuring Dunkin' Donuts and Baskin-Robbins,
serves as a vivid illustration of how cultural considerations profoundly shape
global business strategies. Beyond the influence of digital advancements, the
enduring connection between the fundamental human need for sustenance and
cultural preferences underscores the power that culture wields in steering the
success of multinational enterprises.

Dunkin' Brands' journey through various cultural landscapes exemplifies a

nuanced understanding of local markets, showcasing the necessity of adapting
products and marketing strategies to align with diverse cultural nuances. The
delicate balance struck by the management in customizing offerings without
compromising the overarching brand identity reflects the intricacies involved in
navigating the globalized business landscape.

The challenges faced, such as unique preferences in Russia, unexpected

local toppings in Indonesia, and careful evaluations of flavors for diverse markets,
underscore the significance of cultural considerations in business decisions. The
refusal to incorporate certain flavors, like durian, due to cultural sensitivities,
alongside the creation of specific flavors for the Philippine market, highlights the
nuanced approach required for successful global ventures.
 In essence, the Dunkin' Brands case study serves as a compelling testament
to the symbiotic relationship between culture and business. The success of their
global ventures hinges on the adept incorporation of cultural diversity, not only
fostering brand recognition but also establishing a resonant connection with
consumers on a deeply personal level. This case study reaffirms that cultural
awareness is not just a business strategy; it is a cornerstone for sustainable growth
and success in the ever-evolving global business arena.

Lastly, for individuals who intend to launch a business and wish to see it
grow to international markets, studying business and culture can be very
beneficial. They must be able to negotiate with people from other countries and
truly take into account their diverse cultures. Because it offers a structured
framework that enhances effectiveness and understanding across cultural
boundaries, Geert Hofstede's study of cultural dimensions is crucial to
comprehend the relationship between culture and business. In the contemporary
globalized business landscape, cultural disparities arise in interactions; this
framework will provide individuals and organizations with informative insights.
Cultural dimensions make it easier to understand and interpret a culture. They
also help to explain how people perceive their own culture. Each cultural
dimension has unique characteristics that set it apart.

Hofstede's Cultural Dimensions Theory helps explain these contrasting

approaches. Jollibee's emphasis on family and community aligns with the
collectivist nature of Filipino culture, while its focus on personal relationships
resonates with the high power distance index. Dunkin' Brands, on the other hand,
reflects a more individualistic and pragmatic approach, evident in its emphasis on
brand consistency and efficiency.

The key to global success lies in finding the optimal balance between deep
cultural understanding and brand consistency. Jollibee's emotional connection
resonates, while Dunkin' Brands benefits from global recognition. By appreciating
these distinct approaches and tailoring strategies to specific cultural contexts and
brand identities, businesses can navigate the complexities of the global fast-food
landscape, ensuring their success transcends borders.