Wipro’s Global Expansion, Cultural Strategies, and Hofstede's Framework | 60+ MCQs Answer
🧠 Wipro Case Study
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What was a key challenge for Wipro in the 1990s regarding its European expansion?
A) High taxation in Europe
B) Language barriers
C) Indians leading Europeans
D) Lack of IT infrastructure
Answer: C
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Which leadership model did Wipro adopt in Europe for better acceptance?
A) Transformational Leadership
B) European leadership approach
C) Servant Leadership
D) Centralized Leadership
Answer: B
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What was Wipro’s service focus in the 1990s?
A) Manufacturing
B) Financial services
C) IT Services
D) Telecom operations
Answer: C
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What model did IBM use to address cultural differences in the US?
A) Single leadership
B) Matrix leadership
C) Parallel leadership (1 Indian, 1 US)
D) Regional dominance model
Answer: C
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Which of the following is NOT a way Wipro enhanced its global effectiveness?
A) Six Sigma practices
B) 100% local hiring
C) Culture-embedded practices
D) Relocating teams to foreign HQs
Answer: B
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What does the 60:40 mix in Wipro teams signify?
A) Ratio of men to women
B) Ratio of engineers to managers
C) Local vs. Indian team members
D) Full-time vs. contract workers
Answer: C
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Which cultural framework did Wipro use to align leadership styles globally?
A) PESTEL
B) Ansoff Matrix
C) Hofstede’s Cultural Dimensions
D) BCG Matrix
Answer: C
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Why is cultural understanding critical for Wipro’s global strategy?
A) It improves product quality
B) It reduces taxes
C) It helps in customer retention and employee success
D) It helps acquire more patents
Answer: C
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Which dimension of Hofstede is seen in Wipro's decision to keep a 60:40 team mix?
A) Masculinity
B) Power Distance
C) Individualism
D) Uncertainty Avoidance
Answer: B
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In Hofstede’s framework, a high Power Distance culture prefers:
A) Flat hierarchy
B) Equal status
C) Clearly defined authority
D) Team-based leadership
Answer: C
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Which organizational structure did Wipro favor for better cultural integration?
A) Vertical hierarchy
B) Flat organizational structure
C) Divisional structure
D) Functional structure
Answer: B
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Which customer relationship approach did Wipro implement?
A) Call center-driven
B) Automated service
C) Relationship manager-based
D) Vendor-driven
Answer: C
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What does Hofstede’s “Individualism” vs. “Collectivism” dimension refer to?
A) Language preferences
B) Degree of group orientation
C) Religious influence
D) Customer satisfaction metrics
Answer: B
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Wipro's leadership approach includes:
A) Centralized leadership from India only
B) Ignoring local needs
C) Culturally-conscious team leadership
D) Completely outsourced leadership
Answer: C
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Why did McDonald’s use group-oriented ads in Japan?
A) To save money
B) Due to collectivist culture
C) Because kids watch more TV
D) Because of localization laws
Answer: B
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Which of these is an example of adapting to high Uncertainty Avoidance culture?
A) Bold marketing campaigns
B) Minimal rules and structure
C) Quality control and consistency
D) Frequent product changes
Answer: C
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What did Wipro do to localize its leadership?
A) Closed all Indian offices
B) Appointed only foreign CEOs
C) Relocated Indian teams to foreign HQs
D) Outsourced leadership to consulting firms
Answer: C
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Which of these is a cultural challenge in cross-national assignments?
A) Language only
B) Salary structure
C) Employee-to-employee interaction
D) IT system compatibility
Answer: C
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Wipro’s strategy to select corporate locations is based on:
A) Legal benefits
B) Climate conditions
C) Cultural sensitivity
D) Access to raw materials
Answer: C
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Which framework was mentioned as an alternative to Hofstede’s?
A) SWOT Analysis
B) Trompenaars’ Cultural Matrix
C) McKinsey 7S
D) Lewin’s Change Model
Answer: B
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Which of the following best describes Wipro's embedded culture strategy?
A) Emphasizing profits over people
B) Promoting Indian traditions abroad
C) Infusing cultural awareness into all business functions
D) Using the same model globally
Answer: C
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Which practice is used by Wipro for quality control and process improvement globally?
A) Kaizen
B) ISO 9001
C) Six Sigma
D) Agile
Answer: C
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Wipro’s use of “relationship managers” indicates an emphasis on:
A) Cost minimization
B) Personal client engagement
C) Contractual obligations
D) Automation
Answer: B
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What benefit does an EU leader provide in Wipro’s Europe strategy?
A) Better command over Indian employees
B) Immediate understanding of local customers
C) Cost reduction
D) Avoidance of taxation
Answer: B
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In Trompenaars' model, which dimension is relevant when comparing rules vs. relationships?
A) Individualism vs. Collectivism
B) Universalism vs. Particularism
C) Neutral vs. Affective
D) Achievement vs. Ascription
Answer: B
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What does Wipro's localized presence aim to improve?
A) Cost-efficiency
B) Market entry time
C) Cultural connection and trust
D) Product pricing
Answer: C
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Which of the following affects Wipro’s global branding the most?
A) Time zone management
B) Cultural understanding
C) Exchange rate stability
D) Office design
Answer: B
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Which of these is NOT a cultural impact area for Wipro mentioned in the case?
A) Customer service
B) Hiring
C) Employee interactions
D) Product lifecycle
Answer: D
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What’s a direct result of not understanding Indian culture in European leadership?
A) Increased innovation
B) Customer dissatisfaction
C) Internal conflict and disconnect
D) Better process control
Answer: C
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Which Hofstede dimension is highly relevant to remote collaboration?
A) Long-Term Orientation
B) Power Distance
C) Individualism
D) Uncertainty Avoidance
Answer: C
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A team with high Individualism would likely prefer:
A) Clear group harmony
B) Recognition for personal achievements
C) Collective bonus systems
D) Team-based decision-making
Answer: B
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Wipro’s cultural integration improves:
A) Product pricing strategy
B) Employee engagement in foreign markets
C) Patent filings
D) Network latency
Answer: B
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Which country is known for high Uncertainty Avoidance as per Hofstede?
A) USA
B) India
C) Japan
D) Brazil
Answer: C
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In Hofstede’s Masculinity dimension, high score cultures value:
A) Nurturing and cooperation
B) Modesty and care
C) Competition and achievement
D) Equality
Answer: C
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What cultural practice did McDonald’s focus on in Japan to align with local culture?
A) Price cuts
B) Fast service only
C) Family-oriented advertising
D) Exclusive Indian menu
Answer: C
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Which leadership approach helped IBM tackle cross-cultural issues?
A) Functional leadership
B) Parallel leadership with Indian and US leaders
C) Singular CEO-led team
D) Holacratic management
Answer: B
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Which cultural factor most influences employee success in cross-national roles?
A) Salary scale
B) Career development
C) Cultural adaptation
D) Reporting structure
Answer: C
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What aspect of Hofstede’s model deals with dealing with the unknown or ambiguity?
A) Power Distance
B) Individualism
C) Uncertainty Avoidance
D) Long-Term Orientation
Answer: C
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Wipro’s approach to hiring is influenced by:
A) Competition only
B) Local tax laws
C) Cultural fit and local acceptance
D) Global GDP growth
Answer: C
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What type of organizational structure supports flat hierarchy and collaboration?
A) Traditional pyramid
B) Centralized governance
C) Flat organization
D) Multi-divisional
Answer: C
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What is one reason Wipro emphasizes understanding local customer behavior?
A) To lower marketing costs
B) To replicate Indian service models
C) To ensure customer satisfaction and loyalty
D) To reduce product customization
Answer: C
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Which of the following practices reflects Wipro’s commitment to globalization?
A) Hiring only Indian nationals
B) Creating an India-only delivery model
C) Local hiring and cultural embedding
D) Avoiding physical presence abroad
Answer: C
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Which Hofstede dimension is related to the preference for hierarchy and authority?
A) Power Distance
B) Uncertainty Avoidance
C) Masculinity
D) Individualism
Answer: A
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In Hofstede’s framework, a low Power Distance culture would:
A) Respect strict reporting hierarchy
B) Prefer flat structures and open communication
C) Avoid communication with subordinates
D) Demand strong leader control
Answer: B
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Wipro’s team relocation to HQ markets helps in:
A) Tax planning
B) Avoiding Indian HR laws
C) Cultural immersion and better collaboration
D) Import/export control
Answer: C
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Which of the following is a visible outcome of Wipro’s cultural alignment efforts?
A) Decreased customer satisfaction
B) Reduced foreign hiring
C) Enhanced brand credibility and trust
D) Product innovation
Answer: C
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Hofstede’s dimension of ‘Long-Term Orientation’ is concerned with:
A) How cultures perceive time and planning
B) How cultures compete
C) The importance of fun in business
D) The role of hierarchy
Answer: A
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The selection of sales and relationship managers in Wipro is based on:
A) Regional political affiliation
B) Language alone
C) Cultural compatibility and soft skills
D) Age and gender
Answer: C
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A company with a culturally embedded workforce will likely:
A) Avoid adapting to local norms
B) Experience smoother cross-border operations
C) Face more HR issues
D) Focus on short-term results
Answer: B
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Trompenaars’ Achievement vs. Ascription deals with:
A) How performance is tracked
B) Whether status is earned or given by background
C) Job roles in organizations
D) Salary structure in MNCs
Answer: B
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Which Wipro strategy improves internal collaboration across geographies?
A) Strict reporting structures
B) Flat organizational structure
C) Task-based bonus system
D) Mandated hierarchy levels
Answer: B
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In high-context cultures, communication tends to be:
A) Direct and explicit
B) Focused on written documentation
C) Indirect and relationship-driven
D) Always formal
Answer: C
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In low-context cultures, business interactions typically rely on:
A) Relationships and trust
B) Non-verbal communication
C) Formal agreements and clarity
D) Cultural rituals
Answer: C
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Which cultural framework is used to understand team-level interaction differences?
A) Hofstede’s Cultural Dimensions
B) Porter's Five Forces
C) Maslow’s Hierarchy
D) Balanced Scorecard
Answer: A
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Wipro’s strategy reflects a balance between:
A) Profit and cost
B) Global integration and local responsiveness
C) Technical and non-technical hiring
D) Employee skills and education
Answer: B
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A collectivist culture is more likely to value:
A) Individual performance awards
B) Personal freedom
C) Group harmony and loyalty
D) Open confrontation
Answer: C
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McDonald’s exclusive menu offers in Japan relate to which Hofstede dimension?
A) Power Distance
B) Individualism
C) Masculinity
D) Long-Term Orientation
Answer: C
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In Trompenaars’ Neutral vs. Affective dimension, India is considered:
A) A neutral culture
B) An affective culture
C) A universalist culture
D) A sequential time culture
Answer: B
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Hofstede’s “Uncertainty Avoidance” dimension explains how societies:
A) Deal with income gaps
B) Handle power concentration
C) Cope with ambiguity and change
D) Maintain gender roles
Answer: C
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In global expansion, why is it important to address employee-to-employee interactions across cultures?
A) To monitor working hours
B) To track expenses
C) To enhance team productivity and reduce conflict
D) To comply with international tax laws
Answer: C
📌 Key Points to Remember
- Wipro's expansion into Europe faced cultural leadership challenges.
- The company adopted a dual-leadership approach in some cases.
- Cultural sensitivity is key to Wipro’s success in global markets.
- Use of Hofstede’s dimensions like Power Distance and Individualism was crucial.
- McDonald’s case in Japan is an example of high Uncertainty Avoidance and Collectivism.
- Wipro's initiatives included 60:40 team composition, flat hierarchy, cultural embedding, and localized leadership.
- Cultural frameworks help decode employee behavior, hiring practices, and leadership effectiveness.
