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Running Head: MAPPING CULTURAL DIVERSITY 0
MAPPING CULTURAL DIVERSITY
MAPPING CULTURAL DIVERSITY 1
Executive summary ...
Running Head: MAPPING CULTURAL DIVERSITY 0
MAPPING CULTURAL DIVERSITY
MAPPING CULTURAL DIVERSITY 1
Cotton On group as an effective organization was established within the late eighties . At that
point of time acid wash as well as Lycra stepping into business market of fashion. The company
paired with fail ure within the Beckley market of Geelong, Nigel has the epiphany and minimized
the amount of price. This was beginning of something big. Cousin’s after Nigel’s hinged the
ventur e of clothing which became gradually family affair. Cotton On al ong with the expansion at
geographical level has never stopped the practice of discover the new and exciting opportunities.
Because of the regular and strong demand of customers, it developed Cotton on Kids within the
year 2004 through providing thee aspir ational and high quality clothing with affordable prices.
All things are regularly changing with the improving demands that not limited to outwear,
leaders enjoyed effectively snow trip with the casual chat, appropriately looking to easily cater
for entire life of customers. Organization launched the Cotton on Body effectively with first
outlet within New South Wales. The company cope with the aspiration to have impact at positive
level on the world donate to healthcare centre as well as launch officially Cotton on Foundation.
It was inspired through the Dorothy’s red slippers. The company launched the footwear label
Rubi. Ultimately practices of company refer to fill the gap within the market requirement for
quick gift and unique stationary, Typo launched within the year 2009 providing the Cotton On
important change to easily engage customers differently.
At the similar time period , in synch with Cotton On, ultimately took the decision to enter within
the world largest market of retail is made at the match of cricket. This is wor th in mentioning
that year 2009, 2012 as well as 2016 are main memorized milestones, particularly presenting the
launch of 500 th, 1000 th, and 1500 th sto re. In year 2013, as member of group has been growing to
19000 individuals , organization already launched the in house learning stage COG Uni, at
regular level focusing on expanding the knowledge of employees and improving the skills of
enterprise. As a ma nagement consultant will present the comprehensive analysis of effect of
present global event (Covid -19) within the Cotton On and assist with future internationalistation
strategy. It will include the focus on culture and context of Malaysia with analysis of situation on
the basis of cultural dimensions, concepts, and cultural theories.
MAPPING CULTURAL DIVERSITY 2
Table of Contents
Executive summary ................................ ................................ ................................ ......................... 1
Introduction ................................ ................................ ................................ ................................ ..... 3
Current situations of business and industries ................................ ................................ .................. 4
Analysis of strategies ................................ ................................ ................................ ...................... 8
Contingency planning ................................ ................................ ................................ ................. 9
Different recommendations/solution ................................ ................................ ............................ 10
Conclusion ................................ ................................ ................................ ................................ .... 12
Bibliography ................................ ................................ ................................ ................................ . 14
MAPPING CULTURAL DIVERSITY 3
Cotton On Group is recognized as the biggest global retailer in Australia. The company is
recognized for fashion clothing as well as stationary brands. The company was developed in
1988 through the Ford Bronco. The company operates almost eight brands. The company is
strongly concentrated on clothing organization commercializes the homeware products and
stationary products by Typo brand. Ultimately, Cotto n On is core sponsor of the AFL Women’s,
and Australian Rules football league for female players (ACRF, 2021) .
The company was founded within the year 1991 . First store of the company was opened within
the Geelong Australia. This includes 8 brands with more than 1500 stores within the 18 nations.
The company was developed through Nigel Austin within the Geelong, Australia. The company
has launched the many new brands. The company opened the first store outside the nation in
New Zealand Queensgate Shopping Centre within the year 2006. Design team within the
Australian office manage the many production steps from planning of merchandise to developing
the specifications as well as production is subcontracted to more than 800 suppliers and factories
at effective level (Cotton On Group, 2021) .
As a management consultant , I will develop the comprehensive analysis about the effect of
Covid -19 in general and to business of Australia such as Cotton on to assist them in future
internationalistation strategy. This consultancy report will focus on the culture and context of
Malaysia to analyze the condition that relied on cross cultural dim ensions, concepts, and cultural
theories. Cotton On has been influenced due to the pandemic of Covid within the many ways. It
has influenced at economic level, faced challenge in transportation of many products to overseas
outlets, and delivery of many ser vices become critical . This consultancy report will explain the
effect of Coronavirus at international level, economy of nation, and dealing practice of business.
This will also evaluate the economic, political, legal, cultural, social, and cultural chara cteristics
within the nation like Malaysia through providing the many strategies which Cotton On should
adopt as well as possible implications in relation to operate the organization within the Malaysia.
This has been identified that effective Australian organizations like Cotton On have been
influenced due to the pandemic of Covid -19. This consultancy report will refer that
internationalization strategies like global strategy and transnational strategy will remain effective
in case of Cotton On within the Malaysia due to pandemic of Covid -19. These kinds of
MAPPING CULTURAL DIVERSITY 4
approaches will enable the company to involve the different approach to focus and build the
efficiency across the nation and remain responsive to preferences of customers and conditions of
Current situations of business and industries
Malaysia holds the great economy and therefore a great level of potential for companies and
businesses of Australia to run the operations effectively . This includes two non -contiguous
regions like Peninsular Ma laysia as well as Malay Peninsula. Population of the nation is around
31.9 million. Official language of the nation is Bah asa Melayu. Most of government officials
mainly speak English. This is recognized as the strong economy as well as expanded with expor t
value of high technical products and second highest after the nation like Singapore within the
ASEAN. This nation over the year is utilizing the comparative benefits of educated employees,
effectively developed infrastructure, political level security, and easily attracted many foreign
investments. This is recognized as the Islamic nation with many cultural traditions. Malaysian
government has taken the many important actions to easily preve nt transmission of virus to
support everyone and ensure the availability of hospital to measure and isolate the patient as well
as prevent them from influencing others. Capacity and capabilities of laboratories improved for
speed up the sample testing and provision of many results (Saudi, 2021 ).
Malaysia is recognized as the federal constitutional monarchy that issued in year 1957 following
the announcement of independence from United Kingdom. There are 13 states as well as three
federal regions. Every state has own written constitution, council for administration, assembly of
lawmaking that are liable to authoritative business as well as directed through the chief minister.
Religious courts within the states are created within the Islamic law. Th ese all are governed
through the state. Overall, pandemic of Covid -19 in nation like Malaysia will influence the
Australian Business Cotton On as create the complicated relations to run the operation . There is
corrupt political system which can cause the business to run the operation in Malaysia at
effective level (Rahman, et al., 2016) .
Nation like Malaysia relies on the export in relation to raw materials like rubber and time
(Rasnan, et al., 2016) . This also produces palm oil, exports big quan tities of petroleum as well as
MAPPING CULTURAL DIVERSITY 5
natural gas. This is the biggest resources of commercial hardwoods. This has highlighted the
exported oriented manufacturing at effective level to fuel economic level of growth. Incomes of
government according the World Bank within the nation like Malaysia amounted with almost
17.3% of countries local products that were about 364.70 billion US dollar wit hin the year 2019 .
Malaysian GDP value presents the 0.30% of global economy.
Nation like Malaysia includes more than 11 businesses that represented through the 350
manufacturing organizations including local as well as overseas which include level of
production, reviews of sales, inventory build ups , new jobs. This is predicted tha t economic
value of Australia presents the anticipated improvement 162 out of 100. Due to pandemic of
Covid -19, Malaysian government has taken the many actions to support the organizations and
control the economy that has granted the enormous budget to many industries to lessen the
impact of pandemic , initiate individuals based economic level of growth, and effectively
encourage the quality investments. This has provided the fi nancial support to owners of
organizations by stimulus amounting to RM 20.0 million. This will have the positive impact to
run the operations in Malaysia despite huge impact of Covid -19.
In every nation laws and policies are very significant and ha ve the power to Halsbury’s Laws of
Malaysia. There are many important sources of law (Zahari, and Romli, 2019) . Legal issues will
be main concerns for the Australian business like Cotton On in Malaysia. Legal oversight due to
pandemic of Covid -19 will influence the bottom line and perception of brand. Organization
through ignore and break any law within the jurisdic tion will have the negative effect on all
Social & cultural
Diversity of lifestyles shapes the society of Malaysia du e to huge amount of population which is
more than 31.9 million. This is easily meeting the many points of diverse cultural tra ditions like
archipelagic, South Asia, Middle East, and West. Culture of Malay is Orang Asli that introduces
Islam and within the 19 th century Western culture influences the many elements of Malay life
particularly economy , law, technology, and social organization. Culture of China spread in
Malaysia as huge number of Chinese traveled over Malay P eninsula within late 19 th century.
People of Malaysia have been affected through the colonial rule of British as well as Western
culture influence especially within the education forms and institutional forms. Pandemic of
MAPPING CULTURAL DIVERSITY 6
Covid -19 has created the many changes within urbanism d evelopment and economic growth
which will negatively influence the business of Cotton On.
Pandemic of Covid -19 has influenced the world and businesses particularly that lead in
improving amount of costs and create the situation of wondering what level of recovery could
look like. This was detected within the nation like China. This has influenc ed the individuals
within the 188 nations. This has influenced the practices of remote working; behavior of
customer’s shopping, level of international advertising spending and many industries such as
food, medical, travel, and transportation. This has res ulted in over 156 million infections as well
as over 3 million deaths (Redington, 2021) . It has the substantial effect on businesses and
industries, growth of GDP minimized while level of unemployment improved as well as negati ve
business sentiment at global level with short -time impact and long -time impact will ripple for
Overall coronavirus had the differentiating effect on the many nations. Rates of interest have
fallen recently to the level of historic lows in U SA. Treasury yield in 10 years from 1.69% to
1.50% in 150 years, yield rate minimized to less than 1% have been founded. Report of insiders
has confirmed that huge number of American applied for benefits of unemployment and almost
43% of businesses have cl osed at temporary level. Many numbers of small businesses had the
massive dislocation as well as required the assistance from government due to the pandemic of
Covid -19 (IBISWorld, 2020) .
In china where mainly virus originated saw the economic shrink through 6.8% within the first
quarter of year 2020. This was the country’s first economic level contraction in over 40 years. In
United Kingdom because of the Coronavirus lockdown organization had to lose and cost up to
£69 billion and almost 234000 small organizations have stopped trading. Nations like Taiwan
and South Koreas was the highest protected nations from Coronavirus and recommended the
strengthening of policy in relation to testing, t reatments, and detection.
Covid -19 is not just the challenge for health but also influenced the world (Lora, et al., 2020) . In
national like Australia, it had the important as well as growing effect on the domestic economic
activity and international econ omic activity. Almost 70% of businesses minimized the hours of
employees, 43% placed employees placed on the unpaid leave as well as thousands of people in
Australia became unemployed. Reduction within the global demand of agricultural organizations
MAPPING CULTURAL DIVERSITY 7
like c otton, wool, as well as food service industry caused the prices to drop relaying on local
Throughout the challenge s, nation like Australia has focused to maintain the economic level
growth (Li, et al., 2013) . This nation succeeds relative level in containing Coronavirus in
compared to other regions. It does not signify that nation is unaffected through Covid -19 but it
has strong governance structure, powerful position of banking sector to survive in all these k ind
of conditions. Governments had the fast assistance audacious reaction offering stimulus at
powerful level to easily retaining the many activities of production altogether which was critical.
Government of Australia has supported the local business with amount of $200bn that is around
10% of its GDP. NSW government has supported the local level business with the amount of
$140.0 million to support agricultural businesses that influenced due to the pandemic of
Coronavirus. Organizations like Cotton On hav e been also influenced due to the pandemic of
Covid -19 (Michael, 2018) .
Level of pressures within the nation like Australia and China has been improved. China is caring
for ever growing economy for natural resources of Australia like fuel as well as liquef ied natural
gas which maintained to flow to China. Students of China have the considerable export income
at regular level to flow to Australia. This kind of condition enables the Australia to support the
redress to economy which is challenging even without seeing economic weaknesses of China.
Nation like Australia maintains the good relation with Asian such as India and Japan that
working with the biggest agreement of trade that mainly focused on developing the economic
level of growth and creates the job w ithin the nation. Goods exports of Australia to other RCEP
nations were mainly valued with $264 billion within the year 2018 that represent 76% nation’s
Institution based theory refers that institution based view explains that foreign entrants need to
develop the strong knowledge in relation to rules of game, both formal as well as informal within
the host nations. Institution based theory in relation to institutional based theory will remain
effective as suggests the degree of competitive within th e industry and determine the level of
organizational performance. This kind of theory will enable the Cotton On to focus on the
particular capabilities like development of engagement and gain insight from the customers in
MAPPING CULTURAL DIVERSITY 8
relation to products and services . This will support the Cotton On new and important
perspectives to run the operations in Malaysia.
Analysis of s trategies
Malaysia has vision in 2020 to reach the status of developed nation. Plans of government have
enabled to maintain the level of progr ess and achieve the vision. Government is fully focused on
four important steps. These are as follow.
All types of organizations are influenced concurrently and government focuses on many
damages to fix it.
All kinds of control loosen as infection spread is contained.
Sentiments of investment expand cautiously and focus to adapt with condition of C oronavirus.
There are m any number s of acquired behaviors has been born out of disaster which will become
the central to new normal.
The company may be influenced through the condition as Dato ’s Abdul Rauf said,
“organizations need to regularly work with government to easily resume all the functions as well
as kick start activities at econom ic level. When Cotton On will launch within the Malaysia then
they should follows the restrictions of government within the cleaning and sterilization of
products, limit face to face conversation and provide the employees facilities of work from home
while implementing the online services with regular online program of training. Overall, it
should follow the risk assessment that will supports in easily responding to many changes and
easily facilitate the regular business improvement overseas (Serra, and Kun c, 2015) .
MAPPING CULTURAL DIVERSITY 9
The company should assess the risk that is Covid -19. It should assess, understand, and deal with
many risks. This should control the risk through apply the effective measure of control which is
practicable at reasonable level within the many conditions and ensure it mainly remains
appropriate over the time (Ayala, and Manzano, 2014) . It review the risks at regular level for
ensure it is functioning according the plan.
International expansion strategy will support the Cotton On to operate the function of business in
nation like Malaysia. All these should include the knowledge about the economy, politics,
culture, legalities, as well as social practices. This should follow all environmental regulations
which are significant to adapt and function successfully (Smith, et al., 2012) . When focusing on
the dynamic business, a modern view in relation to culture is critical that includes combination of
commercial cultures and non -commercial culture. Notion of cultural diversity mainly focuses on
the culture as remain liable for change within the goods with prices.
Cotton On has easily understood all laws which being introduced at international level as
impinge on all operations also. All kinds of pol itical developments and legal development will
influence the Australian organization when conducting the operations within the markets of
Malaysia particularly with the conditions of Covid -19.
Looking at the nation specific recommenda tions, focus on the task is very important when
working in Asian nation like Malaysia. Cotton On at regular level through valuing the governing
structures, rules, reliability, and avoidance of uncertainty will remain important element when
functioning in Malaysia. Level of punctuality also influences the relations as presents the
positive manners. Organizations of Australia for moving to the Asian nation like Malaysia
should separate the private as well as public spher es of lives as all should not be mixed.
Directness of communication level is significant especially within the Malaysia and should be
regularly explicit. For fit in and operate successfully, understanding of culture is critical for
cooperation within the m embers of diverse cultures (Business Insider, 2020) .
Due to diversity of culture within Malaysia, it has the powerful middle class. Power of distance
within the Malaysia is very high as well as individuals within the high distance believes that
power and authority are realities of life. Business culture of Cotton On in Malaysia should direct
MAPPING CULTURAL DIVERSITY 10
to remain hierarchical that can be easily observed from arrangement of seating to procedure of
decision making. Significant levels of decisions are made usually from t he top level. There is
collectivist society within the Malaysia and they have the low level of individualism with
individuals belonging to groups. These focuses on the long time relations with regards to
families as well as businesses and loyalty within th e collectivist culture is fundamental. Within
the business environment of Cotton On in Malaysia for employees and employers relations
should be identified as the effective moral term that is like a family link which will enable to
expand the operations more effectively .
People of Malaysia have the low level of preference for avoid the uncertainty. It means that have
the more relaxed attitude in which all kind of practice counts more in compare to the principle s.
These believe there should be no additional rules as schedules are enough flexible as well as hard
work is mainly undertaken when necessary (Palepu, et al., 2020) . In culture of Malaysia saving
face is very significant. It means conveying messages withi n the ways which keep always others
with self -respect. This indicates not to not negotiate within the public places with controlled
emotions, modest, and maintain the polite relationships. All these will remain very critical
practices for Cotton On to achi eve the success within Malaysia. In negotiations, people of
Malaysia anticipate the long time commitment from the colleagues of business with long time
advantages. These focuses to share the information and discuss the many details before
bargaining phase of negotiation. Organization should focus on the operations as per the cultural
dimensions that have been influenced due to pandemic of Covid -19.
Cotton On as the multinational corporation through apply the different solution will become
enough capable to run the operations smoothly which has been influenced due to the pandemic
of Covid -19.
Organization in today’s competitive business environment through utilizing the global strategy
will become enough capable to made the minor modifications within the products and services
which enable to gain easily economies of scale through providing essentially similar products
MAPPING CULTURAL DIVERSITY 11
and services within the every market (Sui, and Baum, 2014) . For instance, Cotton On should
offer the similar products and services within the Malaysia but adjust to match the local
preference that influence due to pandemic of Covid -19. This will enable the company to easily
gain the effectiveness through becoming m ore appropriate whenever possible with variance that
created due to the pandemic of Covid -19 in Malaysia.
Global strategy is mainly referred as the strategic guide in relation to globalization (Etemad,
2020) . This will be effective in case of Cotton On as face the pressure of cost -reduction. This
will enable the company to include and sell the standardized products and services. Due to
pandemic of Covid -19 in nation like Malaysia Cotton On will enable to refer the plans in which
it has easily d eveloped the target growth beyond the borders. This overall enables to improve the
sales of products and services. It will work as the strategic guide and allows the organization to
reap the many rewards of trading within the international market like Mala ysia despite pandemic
of cov id-19. For example, organization like Microsoft provides the similar software programs
around the globe but regularly adjusts its programs to match the local level languages.
For example, customer goods maker like Procter & gamble focuses to gain the efficiency
through making the international brands whenever possible. Level of global strategies can be
important for the organizations that products and services are hidden from the view of customers
like Silicon Chip maker Int el. For these kinds of organizations level of variance within the local
preferences are not significant.
Cotton On through the use of transnational approach will become enough capable to try and
balance the desire for efficiency wit h necessary requirement to easily adjust the local preference
in Malaysia which influence due to pandemic of Covid -19. It will become capable to make the
concessions to local tastes as well. This kind of approach will enable to make the sense as a
central element (Fleacă, 2017). It will help the company to conduct easily operations within the
abroad market through comprise many series of actions. This will be applied to the many
methods and structures which enable to initiate as well as maintain the functions within the
Malaysia despite huge impact of Covid -19.
MAPPING CULTURAL DIVERSITY 12
Pandemic of Covid -19 has already left the world unprepared. Most of the organizations are
tussling to stay afloat. This is challenging phase for the organization like Cotton On to rethink
about the business strategy and relevance which would hold within the post -Covid scenario.
Cotton on through utilizing the transnational strategy wil l become enough capable to easily
preserve central coordination.
For example, big fast food chains like McDona ld as well as Kentucky Fried Chicken focus on
similar brand names as well as similar core menu products around the globe. All these kinds of
organization create the some concessions for local tastes too. For example, many other products
can be easily purch ased at the McDonald. This kind of approach mainly creates the sense of
organization like McDonald as wine is one of the important and central elements in French diets.
Overall Cotton On through applying the transnational strategy and global strategy will become
enough capable to identify the available opportunities within the market of M alaysia. These will
enable the company to coordinate the activities of international business through effective level
of cooperation and interdepe ndence. These kind s of strategies will support the company to
develop the important set of plan with effective level of operations within the market of
Conventional and global strategies will lead to reduce the level of cost for the Cotton On through
balancing the desire for effectiveness with the requirement to varying preferences across
Malaysia. These will enable the company to combine easily firm wide operating efficiencies and
core competencies. Organization will easily take the advantage as fulfill the dual objectives of
flexibility as well as coordination. These will enable the company to compete more easily despite
new and high level of competition.
In the limelight of the discussion it can be easily stated that present global pandemic has
influenced the health of people, nations, and businesses. Different nations had the different
process to maintain and fight against the pandemic. Nation like Austra lia is enough focused to
maintain it through utilizing the strong government structure and powerful banking sector to
resolve the situation. Australian organizations such as Cotton On for expand into the Malaysia
need to understand the culture, politics, a nd economy within the order to successfully operate .
MAPPING CULTURAL DIVERSITY 13
During the pandemic of Covid -19, organization for operate function of business within Malaysia
should follow the many strategies as well as restrictions. This is very significant to realize that
culture is mainly dependent and intertwined with other policies, especially with particular parts
and technical parts which are becoming more dominant.
MAPPING CULTURAL DIVERSITY 14
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MAPPING CULTURAL DIVERSITY 15
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MAPPING CULTURAL DIVERSITY 16
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