Students Corner

Nation brand Issues of culture and institutionalization

Received (in revised form): 26th July 2010

Bartomiej Brach
is an undergraduate student at the University of Warsaw, Poland. His research focuses on how the issues of nation brand institutionalization affect the overall success of the branding efforts. His other areas of interest include storytelling in organizations.

ABSTRACT This article discusses the institutional dimension of nation branding. Four case studies on Switzerland, Sweden, Nigeria and Poland are presented to describe institutions, among which the responsibility is divided. Each study is followed by a comparison with Hofstedes framework for assessing culture. It is suggested that there may be a relation between the two. Further, it is argued that countries shall take into consideration the results of Hofstedes research while creating necessary institutions. Such a relationship proved to be successful in the case of Switzerland and Sweden. On the other hand, Poland lacks necessary adjustments, which poses further problems when proper management of the nation brand is attempted. More research on the topic is recommended in order to verify the suggested pattern.

Place Branding and Public Diplomacy (2010) 6, 256262. doi:10.1057/pb.2010.25

Keywords: institutionalization; Poland; Switzerland; Nigeria; Sweden; Hofstede

INTRODUCTION
A general review of the literature published in Place Branding and Public Diplomacy shows that the contributors to the eld, to a large extent, focus on the identity, positioning and image issues. They are the rst step in the management of a nation brand. According to J.N. Kapferer (2008), a major management challenge arises after a creation of brand identity challenge to organize institutions. In this article, the notion of a relationship between the institutionalization of nation brands and G. Hofstedes framework on cultures and organizations will be examined (2010). First, four case studies of the nation brand institutionalization are presented.

They cover Switzerland, Sweden, Nigeria and Poland, which have been chosen in order to exemplify the major differences between models. The former two have a very distinctive political system, whereas the latter two provide insight into how this question is approached in countries with rather young democratic regimes.

SWITZERLAND
Swiss nation brand management system is organized according to the Loi fdrale sur la promotion de limage de la Suisse ltranger1 (2000) issued by the Federal Assembly of Switzerland on the warrant expressed in the Federal Constitution (1999). The latter states that Foreign relations are the responsibility of the Confederation.

Correspondence: Bartomiej Brach College of Inter-Faculty Individual Studies in the Humanities, University of Warsaw, Ul. Kaprw 9/2 80-316 Gdansk Oliwa, Poland E-mail: Bartek.brach@gmail.com

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Issues of culture and institutionalization

Federal law species that the Confederations goal is to promote knowledge of Switzerland abroad, create positive relations and show its diversity and attractiveness. These issues are handled by the Federal Department of Foreign Affairs (FDFA) or are delegated to other entities inside/outside the government. The FDFA has an obligation to create relationship networks with individuals and institutions that improve Swiss image abroad; prepare and review information that promote realistic and positive image of Switzerland abroad; manage Swiss ofcial representations at international expositions and Olympic Games; and promote the image of Switzerland abroad through nancial support and assigning adequate resources. These tasks are laid out in detail in the Ordonnance sur la promotion de limage de la Suisse ltranger 2 (2008). Article 1 species that the FDFAs duty is to manage image abroad, promote knowledge, present Swiss political stances and maintain a network of organizations. Strategy of international communication must be approved every 4 years by the Federal Council. Cooperation with media, maintaining relations with contemporary and prospective political leaders, taking advantage of events in promotion are suggested as the most important communication methods. The FDFA General Secretariat supervises Prsence Suisse agency that exercises everyday duties in the eld of nation brand management (Organigramm of the Federal Department of Foreign Affairs, 2010). The agency, with a budget of CHF 9.5 million, was incorporated into the Department in 2009 after having served 8 years as an independent body. Prsence Suisse was divided into three departments Foreign Desk, Instruments and Training, Major International Events (Organigramm of Prsence Suisse, 2010). The

rst one deals with consultation, political analysis, communication, strategy development and implementation in various parts of the world. The second one covers the service of foreign delegations, development and production of information materials, instrument-specic communication, training and project management. The third one prepares Swiss presence at EXPO (as of now EXPO 2010 Shanghai and EXPO 2012 Yeosu), Olympic Games, supplies funds and logistics. This division proves that major international events are crucial for the development of the Swiss national brand. Prsence Suisse is a predominant entity, where the implementation of brand Switzerland is concerned. It also acknowledges the contribution made by ministries and organizations, which indirectly support the promotion abroad. Agencys website mentions, for example, the Federal Department of Culture, Conference of Cantonal Authorities, State Secretariat for Economic Affair (SECO), Swissnex, ProHelvetia, Switzerland Tourism, Swiss Olympic Association and Organization of the Swiss Abroad as the organizations considered in the nation brand management process. Figure 1 presents the hierarchical relation between these organizations. This system is characterized by small power distance. The work is delivered by a small agency separated from the Federal Department Prsence Suisse which takes advantage of cooperation with NGOs and other federal entities. Such observation is similar to Hofstedes research (2010). In the power distance dimension, Switzerland is assessed seventieth out of 74. Strong regulations concerning the division of competences prove that this is an individualistic country, where every action is taken in accordance with strict regulations. In the individualism/collectivism dimension, Switzerland was ranked sixteenth close to the most individualistic states.

SWEDEN
Owing to a specic political system, Sweden has institutionalized the nation brand in a totally different manner. The very origin lies in

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Constitution

Federal Council

Federal Assembly

FDFA (Prssence Suisse)

Federal Department of Culture

Pro Helvetia

SECO

Swissnex

Switzerland Tourism

Swiss Olympic Association

Figure 1: Hierarchy in Swiss nation brand management. Source: Own work.

the Instrument of Government, where the tenth chapter states that Agreements with other states or with international organizations are concluded by the Government. From this statement, one may conclude that the government is in charge of the foreign affairs. The Ministry of Foreign Affairs has prerogatives to promote the country (Regeringskansliet, 2004b). These issues are handled by the Department for the EU Internal Market and the Promotion of Sweden and Swedish Trade (Regeringskansliet, 2007). It cooperates with embassies and consulates, and coordinates activities of the Swedish Institute (SI) and Invest in Sweden Agency (ISA). The Departments executive acts as the chairman of the Council for the Promotion of Sweden. The SI has a mission to promote Sweden and strengthen its position on the mental map (Swedish Institute, 2007). The SI manages communication with foreign stakeholders and spreads knowledge among target groups. Its primary activity is Sweden.se website, which was designed as a dialog platform for prospective tourists. Moreover, the SI creates brochures and leaets, organizes courses of Swedish language in 40 countries and arranges concerts and exhibitions abroad. The Council for the Promotion of Sweden was established in 1995, as a forum for dialog,

consultation and cooperation for the effective promotion of Sweden (Regeringskansliet, 2004a). Its management gathering delegates from SI, VisitSweden, ISA, Swedish Trade Council and Ministry of Enterprise, Energy and Communications meets two to four times a year to consult and prepare opinions on the issues of image and perception. The goal of the organization is to make Sweden perceived as a (ibid.) reliable trade partner; attractive market for foreign investments; prime destination for enriching experiences; leading nation in novel technologies, research and development; desired country for work, science and scientic research; important player in the eld of architecture and design; creative culture, nation with exciting heritage. Council chooses Sweden.se as a eld of its main activity. The website, apart from being a contact point for prospective tourists, is a platform disseminating best practices and analytical knowledge concerning place branding for regions, cities and organizations in Sweden.

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Visit Sweden

ISA

Tourism

Investment

Swedish Institute

Culture

Export

Export Council

Exchange

Politics

SI / ISA

MFA

Figure 2: Institutionalization of nation brand Sweden. Note: ISA Invest in Sweden Agency, MFA Ministry of Foreign Affairs, SI Swedish Institute. Source: Own work based on Platform fr en gemensam Sverigebild.

VisitSweden is a communication company active in the marketing of tourism, which has a history of more than a hundred years (see VisitSweden Partner site). It is half-owned by the state and Swedish tourism industry. Its assignment is twofold. First, the organization focuses on the international marketing of brand Sweden. Second, it deals with the marketing of Swedish destinations and experiences abroad. These projects are developed in close cooperation with other members of the Council for the Promotion of Sweden and tourism operators. Figure 2 shows the way one may perceive institutionalization. It takes the form of hexagon, as there is no strict hierarchy. The Instrument of Government grants the preceding role to the Ministry of Foreign Affairs, but the very brand building is managed by a cooperative of institutions. These bodies, for example, SI, Council for the Promotion of Sweden and VisitSweden, although independent, are members of groups in which common projects are developed. The value of cooperation and consensus clearly expressed in the nation brand institutionalization resembles the values of Swedish society. In Hofstedes framework, Sweden scored high on small distance of power and individualism.

NIGERIA
The case of Nigeria is very specic owing to the instability of its political system. The

argument of W. Alabi (The Nation Online, 2009) will be presented. Alabi claims that nation branding in Nigeria begun in 1966 with Yakubu Gowons three R program Reconciliation, Rehabilitation and Reconstruction. This delimitation is a product of the Nigerian way of perceiving nation branding it is not merely an issue of aligning communication with nations identity; it is a project to change the society itself. The three R program was managed top down, as it was launched by military regime. It was followed by General Murtala Mohammeds effort to strengthen Nigerias position in Africa and cut down corruption. Later on, in 1983, came War Against Indiscipline (WAI) a program aimed at establishing discipline in public and private life. One of laws introduced then was the obligation to form a queue while waiting for a bus at the bus stop. WAI was meant to change Nigerians as a collectivity, and change the nations spirit. The fourth one MAMSER,3 introduced by General Ibrahim Babandiga was the most expensive nation branding project ever held in Nigeria (ibid.). It was designed to prompt a new beginning for the country. Local eminences were to lead the people, but they did not know how to manage it appropriately and the project failed. Not that much changed with the establishment of democracy. During Olusegun Obasanjos rst presidential term, the promotion focused on himself. Change came with the reelection. During the summer of 2003, the Nigeria image project was established under the auspices of Federal Ministry of Information and National Orientation (Nworah, 2006). Its activities were meant to be supported by other ministries, agencies and branding experts. The project was renamed Heart of Africa in 2005 and had a budget of US$5.6 million. It was aimed at changing the image of Nigeria abroad. Goals included providing appropriate information about the country, promoting national values, nesting pride and patriotism among Nigerians home and abroad, promoting economic interests and establishing favorable

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image of the country and citizens. The project was strengthened the same year with the knowledge and advice of Business Support Group. Heart of Africa was followed by PRIDE4 a program with the same objectives aimed at internal stakeholders. Both ended within a asco. Welcome to Nigeria advertisements on CNN were of poor quality. Projects lacked both internal and external coordination. Excessive bureaucracy led to competence conicts and incoherence of distributed information. PRIDE did not organize anything signicant apart from Mothers Summit in 2006 and a seminar on the Heart of Africa project. According to U. Nworah (2006), it was denitely too little. More attention should have been paid to internal communication. The last campaign was launched in February 2009. Federal Ministry of Information and Communications announced that Heart of Africa would be discontinued and replaced with a new unnamed one. The goals remained the same. A committee on National Rebranding, consisting of 22 experts in marketing and communications, was established (Nworah, 2009). The projects budget totals at US$1 million. Nigeria managed its nation branding in accordance with its political regime. In times of military dictatorship, projects were launched by leaders and conducted at highlevel command. After 1999, campaigns are inspired by presidents and exercised by the Federal Ministry of Information, which cooperates with ministries and professionals. Both concepts lack permanency and strategic thinking these are ad hoc projects with no end date and evaluation criteria. Apparently, in Hofstedes research there are no data on Nigeria. There are only some aggregated numbers for Western Africa as a whole (Ghana, Nigeria and Sierra Leone). These countries are characterized by high scores on the power distance and collectivism scale. It seems that, particularly, the rst trait may explain the institutional dimension of nation brand Nigeria, which does not give popular

masses a chance to participate. The collectivism dimension may be the reason why programs encompass social engineering change in people habits and customs. More individualist countries, like aforementioned Switzerland and Sweden, have never dared to introduce such ideas in their branding programs.

POLAND
The Constitution of the Republic of Poland attributes foreign affairs to the government, which encompasses the responsibility to promote the country and Polish language. The Ministry of Foreign Affairs has a responsibility to coordinate international promotion in order to maintain correspondence with Polands strategic interests; manage informational policy and public diplomacy; promote and conduct cultural diplomacy as a means to promote the country through culture; support other ministries and agencies in their scope of promotion. The Department of Public and Cultural Diplomacy is responsible for strategy, implementation and coordination of promotional activities of the ministry. It obtained prerogatives that until 2008 were divided between Department of Promotion and plenipotentiary for Polands image promotion. The latter was in charge of PR campaigns (Pawlicki, 2006). The strategy is implemented by embassies and 21 branches of the Polish Institute. The Institute focuses on cultural diplomacy. Its role is to organize own initiatives, provide versatile information on Polish culture, cooperate with local art creators and maintain positive relations with media (Potoroczyn, 2009). These activities are supported by national cultural institutions, which also foster international cooperation the Polish Film Institute, Adam Mickiewicz Institute (AMI), Book Institute, Theatrical Institute and The Fryderyk Chopin Institute.

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The Ministry of Foreign Affairs coordinates promotional activity of various entities. This is the reason why Council for Polands Promotion was established in 2004 (Potoroczyn, 2009). It includes delegates from ministries in charge of: culture and national heritage, science, digitalization, education, public nances, tourism, regional development, religion, physical culture and sport, defense and Secretary of the Ofce of the Committee for European Integration. The Council prepares directives for promotion and further cooperation between administration and NGOs, companies, art creators, Polish Diaspora and churches. Unfortunately, the Council does not work systematically, and had breaks lasting as long as a year. Lack of formal legitimization to initiate projects causes cooperation problems, and thus decisions are still made independently in each ministry. Theoretical major assets coordinated planning across ministries and common budgets are not exercised. Major reasons are the excessive political representation and little professional competences in the body. Although the directive grants the chairman possibility of inviting specialists to meetings, it is rarely done. Apart from the aforementioned institutions, important roles are played by the Ministry of Culture and National Heritage, Ministry of Economy and Ministry of Sport and Tourism. The rst one oversees Polish Institutes and AMI (equivalent of British Council, Goethe Institute or Cervantes Institute). Moreover, it is responsible for preparing major international events like Chopin Year and Polish presence on international events like EXPO or EURO 2012. The second one oversees Polish Information and Foreign Investment Agency, which deals with the FDI and economy, inventors and know-how promotion. The third one, with its Polish National Tourist Ofce, is in charge of the whole tourism promotion. Although this extensive system looks efcient (Figure 3), major problems appeared over the years. One of them is that the Ministry of Foreign Affairs does not have necessary legitimization to exact cooperation. There are no legal regulations to make other ministries

Ministry of Foreign Affairs

Ministry of Economy

Ministry of Culture

Ministry of Sport

PIFIA

AMI

PNTO

Figure 3: Institutionalization of nation brand Poland (key institutions). Source: Own work.

obey. This issue is especially evident in the relations with the Ministry of Economy, as the latter has the biggest promotional budget. It spends 30 per cent more than the Ministry of Foreign Affairs.5 This signicant difference is often the reason of misunderstandings. One of them being the Council for Polands Promotion reform. The Ministry of Foreign Relations wanted to grant it supervising competences, but the Ministry of Economy was reluctant, and thus the proposal failed. What is more the latest promotion strategy of national brands developed by Ministry of Economy was not consulted with other institutions. Poland, according to Hofstedes framework, scores high on power distance and individualism. This is very clear when we take into consideration fragmentation of promotional activities, willingness to create supervising institutions Council for Polands Promotion and lack of cooperation between ministries. Reluctance to change the system can be attributed to strong uncertainty avoidance, which is another dimension in Hofstedes framework.

CONCLUSION
Case studies presented above show that Hofstedes framework may have a lot in common with nation brand institutionalization. It might be hasty, but not without the underlying logic, to claim that the institutions should be created in accordance with tradition and culture. If a country scores low on power

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distance, it should acknowledge the participation of as many parties as possible. If opposite is the case, there should be a clear hierarchical structure set up in order to control various level of engagement. Such an advice is suggested to Poland. If the nation brand project is to succeed, the government will have to break the resistance of particular ministries. The same applies to collectivism/individualism dimension. If the country scores high on individualism, a strong legal framework shall be established to secure the common goal. If it scores low, it should remember not to get involved in projects aimed at changing the whole society, as in the case of Nigeria. Yet after examining these four countries, the proposed relationship is vague. More research should be conducted to clearly state whether such pattern exists. Therefore, the new Nigerian project should prove to be very informative. This time the Federal Ministry of Information and Communication is trying to launch a grassroots campaign involving various stakeholders from all over the country a solution at odds with Hofstedes framework.

NOTES
1 2 3 4 5 Federal Law on promoting the image of Switzerland abroad. Order on promotion of the image of Switzerland abroad. Mass Movement for Self-Reliance Social Justice and Economic Recovery. Patriotism, Resourcefulness, Integrity, Distinction and Enterprise. In the years 20052007, Ministry of Foreign Affairs allocated around US$30 million, exactly the same amount of money as the Ministry of Culture. The Ministry of Economy allocated US$40 million.

REFERENCES
Alabi, W. (2009) How to rebrand Nigeria: Lessons from abroad. The Nation Online, 14 August, http://thenationonlineng .net/web2/articles/14025/1/How-to-rebrand-NigeriaLessons-from-abroad/Page1.html.

Constitution of the Republic of Poland. (1997) Constitution of the Republic of Poland adopted on 2 April 1997, http:// www.sejm.gov.pl/prawo/konst/angielski/kon1.htm. Federal Constitution. (1999) Federal Constitution of the Swiss Confederation of 18 April 1999. Unauthorized translation, http://www.admin.ch/ch/e/rs/c101.html. Hofstede, G., Hofstede, G.J. and Minkow, M. (2010) Cultures and Organizations: Software for the Mind, 3rd edn. New York: McGraw-Hill. Instrument of Government (1974), Relations with other states and international organizations, Article 1, Chapter 10. http:/ / www.riksdagen.se/templates/R_Page____6307.aspx. Kapferer, J.N. (2008) The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term. London: Kogan Page. Loi fdrale sur la promotion de limage de la Suisse ltranger. (2000) Art. 4 Coordination, 24 March, http:/ /www.eda .admin.ch/etc/medialib/downloads/edazen/dfa/orgcha/ prsdoc.Par.0004.File.tmp/194.1_Bundesgesetz_Pflege_ Schweizer_Erscheinungsbild_im_Ausland_FR.pdf. Nworah, U. (2006) Rebranding Nigeria. Critical perspectives on the heart of Africa project. Online report, http://www .brandchannel.com/images/papers/40_Rebranding% 20Nigeria%20%20Critical%20Perspectives.pdf. Nworah, U. (2009) Why we must rebrand Nigeria, http:// www.nigeriavillagesquare.com/articles/uche-nworah/ why-we-must-rebrand-nigeria-13.html. Ordonnance sur la promotion de limage de la Suisse ltranger. (2008) Article 1, Tches permanentes de la communication internationale. 12 December, http://www.eda.admin.ch/ etc/medialib/downloads/edazen/dfa/orgcha/prsdoc.Par .0005.File.tmp/194.11_Verordnung_Pflege_Schweizer_ Erscheinungsbild_im_Ausland_FR.pdf. Organigramm of Prsence Suisse. (2010). http://www.eda.admin .ch/etc/medialib/downloads/edazen/dfa/orgcha/prsdoc .Par.0014.File.tmp/Organigramm_ab_01_01_2010_en.pdf. Organigramm of the Federal Department of Foreign Affairs. (2010). http://www.eda.admin.ch/etc/medialib/downloads/ edazen/dfa/orgcha/organi.Par.0011.File.tmp/Organigramm_ EDA_Internet_EN_01_2010.pdf. Pawlicki, J. (2006) Centralne biuro ds. wizerunku Polski. Gazeta Wyborcza, 31 July. Potoroczyn, P. (2009) Raport. Od wymiany kulturalnej do nowej inteligentnej siy. Promocja Polski przez kulture , Proceedings of the Polish Culture Congress; 2325 September, Warsaw, Poland, Ministry of Culture and National Heritage. Regeringskansliet. (2004a) Council for the promotion of Sweden, http://www.sweden.gov.se/sb/d/3028/a/146544. Regeringskansliet. (2004b) Sverigebilden, http://www.sweden .gov.se/sb/d/3028. Regeringskansliet. (2007) Department for the EU internal market and the promotion of Sweden and Swedish trade, http://www.sweden.gov.se/sb/d/3092/a/81889. Sweden.se. Plattform f r en gemensam Sverigebild, http:// www.sweden.se/sverigebilden. Swedish Institute. (2007) The Swedish Institute Sharing Sweden with the world. Online document, http://www .si.se/upload/Docs/OmSI/About_the_Swedish_Institute_ 2007.pdf. VisitSweden Partner site. Our assignment, http://partner .visitsweden.com/en/Start-page/About-us/Our-assignment/ Our-assignment/.

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