Analysis Of International Business Opportunities: Focus On Canada And Indonesia

Business Environment in Canada

Question:

Discuss About The Capabilities A International Market Growth?

International business is one of the most important aspects that every manager needs to undertake for the expansion of the opportunities of an organisation. To do so it is necessary to access the environment of a country in which the business is targeted to expand (Russo & Fouts 2017). The assignment provides the analysis of two countries, Canada and Indonesia in which an Australian company, Arnott wants to promote its product, Tim Tam. Canada is a developed country having the fifteenth-highest nominal per capita income. Business in Canada can be suited due to the existence of economic freedom and quality of life in the country. On the other hand, Indonesia is an archipelago and is one of the important regions for trade since early civilisation. Business is Indonesia can be risky due to the existence of native ethnic and linguistic groups. The assignment makes detailed comparisons about the business form in both the countries.

Canada is considered as a developed country with high development in the Human Development Index and in the economy. Trade relations between Canada and the USA are string owing to the advantages it has for being neighbouring countries. For a country like Australia, an analysis needs to be made on the business environment that exists in the country. The comparison is made by using Hofstede’s cultural dimension in an organisation (Hofstede-insights.com 2018).

The analysis of Hofstede’s cultural dimensions shows that the power distance in Canada marked by the interdependence it has on the individuals. This is mainly because the people of the region do not entertain the thought of class distinction in societies. The people of Canada value a straightforward exchange of information within the organisations. Individualism refers to the ability of employees to work in a group. In this case, the analysis shows that the rate of individualism is high in Canada. This indicates the fact that people look after their own need and are reluctant to provide necessary support required for success in the business (Samaha, Beck & Palmatier 2014). The two dimensions counter one another, as, despite the low power distance, the employees of Canadian organisations tend to support one another easily.

The masculinity score of 52, in the Canadian organisations, signify that competitiveness exists with the organisation as well as outside. Every employee aims to achieve success and because of it, the productivity of the organisations can improve rapidly. The work-life balance in the country also exists despite the urge to achieve success. Due to the competitive nature, organisations in Canada accept the uncertainty that is present in front of them (Larsen, Smith & Rosenbloom 2015). They tend to be involved in innovating products and aim to try out new ventures. The culture is also less expressive and tends to break certain rules in the organisational setting.

Business Environment in Indonesia

The analysis of the long-term orientation indicates that Canada respects the tradition of the land along with being innovative and adjusting to the modern society. Organisations are normative in their thinking and believe in achieving quick results for success. However, as observed by Mathews et al. (2016), the Canadian people remain positive and have a tendency to be optimistic in their work approach. The indulgence to control desires is less among the Canadian people. They spend a high amount of time on leisure to allow for spending more money to have personal fun time. Thus, it can be said that the Canadian cultural dimension displays positive results that can be exploited by Arnott while trying to promote their new product.

On the other hand, the power distance in Indonesia is high that signifies the fact that the organisations depend upon hierarchy. There exist unequal rights between power holders and non-power holders that make it difficult for employees to work in a united method. The overdependence on the employers makes the employees vulnerable in taking decisions related to managerial activities. The level of individualism is low which means that the people of the country believe in collective working experience. They treat the employees with respect and remain dependent on the instructions that need to be provided to them. Thus, as observed by Meenaghan (2017), the two dimensions can be related due to the level of interdependence that is observed in the characteristics.

Similarly, it is seen that the Indonesian people are low on masculinity level. The position of a person is considered more important than the competitive nature of the business. People seem to value equality, however; this is not present in the country due to a high power distance that exists between the employees and employers. Due to the existence of collectivism, decisions regarding organisations are taken using a collective method. It is also seen that the Indonesian culture have a low level of uncertainty avoidance. This means that the people value the work environment and the bad news is not spread within the organisation that may disrupt workplace balance. In other words, the people do not indulge in taking up challenging tasks for the betterment of the organisation (Armstrong et al. 2015).

The analysis of the long-term orientation culture shows that Indonesia has a pragmatic orientation towards the society and work culture. People tend to believe that the truth depends upon the situation and tries to adapt the traditions with the change in the modern society. The people show an ability to save and invest along with the required perseverance to achieve the desired results. This can be attributed to the fact that in the Indonesian culture, the managers enforce upon changes (Baker & Saren 2016). The indulgence result shows that Indonesian people are more pessimistic. The people are restraint in their activities and do not indulge in leisure time fearing the loss of jobs. Hence, the desires of the individuals are not fulfilled due to a negative attitude towards work and life.

Comparison between Australia, Canada and Indonesia

Hence, after the analysis of the cultural dimensions of both the countries, it can be said that in order to expand their business in the international borders, Arnott can look to expand its business in Canada. This is mainly because of the fact that the organisational cultural dimension in Canada is similar to that in Australia. The power distance in Australia consists of equality of rights for both the employees and the employers. Keegan & Green (2015) observed that the individualist culture is similar to that followed in Canada. Apart from this, the high masculinity and the interest to take up challenges can help Arnott to gain success in the markets of Canada.

Hence, it can be said that with the similarity in the nature of work done along with work culture and the similar mentality of the people, Arnott can blend in well in the marketing environment of Canada. Koh & Wong (2015) stated that despite Indonesia being a successful country in terms of establishing trade relations with other countries, the dissimilar nature of the work culture might have a negative consequence for the expansion of the organisation as well as the product.

Comparison between Australia, Canada and Indonesia

Conclusion

Hence, it can be said that to stage an international business it is necessary for an organisation to undertake a proper analysis of the various factors that govern the business environment. External as well as internal analysis is required that signifies the convenience of location. Analysing the work environment culture by using Hofstede’s cultural dimension is an important strategy that companies can take to match the compatible nature of the business. In the case of the Australian company Arnott, the compatibility of the company matches with the Canadian culture thereby, providing an opportunity to expand its reach in the country. The fact that the nature of the business is competitive and the people develop a proper work-life balance can help the employees to continue its effective production of the product Tim Tam and look for further growth.

Reference

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Baker, M.J. & Saren, M. eds., 2016. Marketing theory: a student text. Sage.

Hofstede-insights.com 23 Jan. 2018. Compare countries - Hofstede Insights, https://www.hofstede-insights.com/product/compare-countries/

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