Socio-cultural Analysis of Norway

Socio-cultural Analysis of Norway

Demographic Trends

Norway’s population has declined over the past few years. The highest population growth occurred in 2011 when the country had a population growth rate of 1.33. The population growth rate is 0.94% but is expected to decrease to 0.58% within the next five years. The country’s age structure includes ages between 0 to over 65 years (Statista, 2022). 17.96% of the population comprises individuals between 0 and 14 years old. Other age groups are distributed to 40.75% aged between 25 and 54 years, 12.02% aged between 15 and 24 years, 11.84% aged between 55 and 64 years, and 17.43% aged 65 years and above: the median age is 40 years (Statista, 2022). The current life expectancy in the country is 82 years. Steingrímsdóttir et al. (2012) state that high life expectancy is attributed to sound healthcare systems, exercise, and diet. The government is also ranked the second-best in literacy levels worldwide. Many Norwegians aged 25 and 34 have an upper secondary education, resulting in proficiency in numeracy, literacy, and problem-solving.

Cultural Analysis

Norwegian culture is unique and passed from generation to generation, maintaining cultural heritage and consistency in cultural practices. The two languages used in the country are Sami and Norwegian: Norwegian is the official language. Customs in the country include wearing a Bunad during official celebrations such as Constitution Day (Green, 2008). Norwegians also place a high value on the environment and love spending time in outdoor settings. The country has also passed laws allowing free access to public lands, such as national reserves and parks, as long as people treat nature respectfully. Most Norwegians also have a cabin in forests to maintain close contact with nature. They mainly visit the places during winter and weekends. Norwegians also have a strong sense of civic engagement and history; most wear traditional clothing on special occasions.

Social Institutions

Norway has a low power distance, thus implying that Norwegians are independent, use a hierarchy for convenience, create room to access superiors, and encourage equal rights. Norway is also an individualistic society where most people focus on their well-being, and personal opinions are expressed and valued. They uphold the right to privacy and set clear lines between private lives and work. Relationships between the employee and employer are based on contracts, and leaders focus on managing individuals. The country is also dominated by femininity, which encourages sympathy and cooperation. The country’s culture is more normative, demonstrating a vital concern for establishing the absolute truth. Norwegians focus on quick results, hence showing a high uncertainty avoidance. They also offer a high value for the family: families are generally small, and relatives usually live in the same town. They prefer teaching their children independence and taking responsibility for their actions. The most common type of family in the country is the nuclear family.

Additionally, the government has maintained a long history of recognizing Lutheran as the country’s church. The largest religion is Islam, followed by Catholicism and other Christian denominations. The government also has well-established Buddhist and Jewish communities.

Labor organizations regulate labor in the country. The main unions are the Confederation of Vocational Unions, the Norwegian Confederation of Trade Unions, and the Federation of Norwegian Professional Associations. Many smaller blocks rely on the support of large union confederations. Affiliation with a labor union is optional, and some workers choose not to be affiliated, especially those working in the informal sector. The primary role of labor organizations is to oversee collective bargaining and ensure the rights of every worker are respected.

Informal Trade Barriers

The main social and cultural factor creating barriers is emphasizing looking each other in the eye when talking. Maintaining eye contact is viewed as respect, and people must do it even when they disagree. However, Norwegians may sometimes avoid eye contact for different reasons, such as when talking to strangers. They also avoid eye contact when they do not want to disturb those around them or when they do not want to get noticed. During negotiations, Norwegians respect and trust their business partners. They are also against bribery and corruption and prefer maintaining transparency throughout negotiations. The country’s individualistic culture limits competition across business teams and increases the possibility of mutual understanding during talks. Norwegians also dislike bargaining, and negotiations may include long moments of silence as both parties take time to develop an idea that will end the negotiations in a mutually beneficial way. Ending negotiations with a contract to demonstrate truthful commitment is also essential. Norwegians also prefer direct communication and like honesty and sincerity.

In Norway, business activities are controlled by ethical requirements and various laws and regulations. For instance, laws regulating advertising may create marketing concerns, such as the current prohibition of advertising to children below 12 (Jakhelln et al., 2019). The country also has a new law requiring influencers and advertisers to label images if they have been altered. Ethical requirements focus on employment practices, human rights, and business practices. Employers must write a contract of employment when establishing employment relationships (Jakhelln et al., 2019). The employee and employer should sign the contract. The contract should outline an employee’s salary, salary payment date, vacation allowance, working hours, employee duration, and payment arrangements for employee holidays. Although there is no national minimum wage, collective agreements reached by employers and trade unions dictate the minimum salary in most occupations. Employees are also entitled to reduced working hours for welfare, social, and health reasons.

The country has also established friendly parental leave policies. For instance, parents are entitled to paid leave for a maximum of 53 weeks and a minimum of 43 weeks at a reduced rate. Employers and employees also need to assess possible dangers in the workplace and implement measures to reduce or eliminate them (Jakhelln et al., 2019). Employers should additionally offer systematic training on safety and health issues in a language the employee comprehends. The primary human right that every business should observe is equality. The country prohibits any form of distribution and provides everyone with equal opportunities. The law provides that women should fill 40% of the management positions in an organization.

The country’s business culture is informal. Norwegians follow egalitarian principles promoting equal opportunities in the workplace. In many organizations, women hold senior positions. Another business practice is open communication and hierarchical business structures. However, the hierarchies are flat to promote equality between women and men (Warner-Søderholm et al., 2014). Collaborative decision-making is encouraged to create a friendly work environment. Norwegian law recognizes written contracts and oral agreements as mutual bindings. The deals can be entered into informally through a handshake or short email. Also, punctuality is valued in the business environment because it demonstrates respect.

References

Green, D. A. (2008). Culture, politics, and the media in Norway and England. When Children Kill Children Populism and Political Culture, 29-52. https://doi.org/10.1093/acprof:oso/9780199230969.003.0002

Jakhelln, H., Moen, K. F., & Faret, M. B. (2019). Labor law in Norway. Kluwer Law International B.V.

Statista. (2022). Rate of population growth in Norway from 2010 to 2020.

Steingrímsdóttir, Ó. A., Næss, Ø., Moe, J. O., Grøholt, E., Thelle, D. S., Strand, B. H., & Bævre, K. (2012). Trends in life expectancy by education in Norway 1961–2009. European Journal of Epidemiology, 27(3), 163-171. https://doi.org/10.1007/s10654-012-9663-0

Warner-Søderholm, G., Bertsch, A., Saeed, M., & Abdullah, A. (2014). Doing business in Norway: An international perspective. Asian Journal of Research in Business Economics and Management, 4(11), 32. https://doi.org/10.5958/2249-7307.2014.00971.2

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Socio-cultural Analysis of Norway

Term Project

MGT 4478: Managing in a Global Environment

Troy University

Section Two: Socio-cultural Analysis:

Your organization has reviewed your country’s study and has decided to go with your recommendation for its initial international expansion. A socio-cultural analysis must determine the entry strategy, financing, human resource needs, suppliers, marketing, pricing and distribution, and organizational structure.

Assignment Criteria:

Write a report (2 – 4 pages, font 12) outlining the socio-cultural factors and discuss any cross-cultural issues that must be considered, addressed, and understood for a successful international expansion. You need to use at least three outside sources to complete this assignment. PLEASE remember to cite all your bases; proper citation is required for this course.

Please support all recommendations with sound reasoning and research.

Your report needs to include but not limited to:

• Demographic Trends
Population growth
Age structure & median age
Life expectancy
Literacy
• Cultural Analysis
Language
Customs and Norms
Traditions
• Social Institutions
Where does the country lie within Hofstede’s dimensions
Family structure
Religious structure
Labor organizations
• Informal Trade Barriers
Barriers that are created by social and cultural factors
Communication styles
Negotiating tactics
Marketing concerns
o Ethical concerns
 Employment practices
 Human rights
 Business practices