The Rational of the Study by Selecting Country of Choice and its Reasons
Discuss about the The Impact of Mission on Ethical Business Culture.
International business essentially includes different commercial business transactions that are (both private and public) that occur between two or else more regions that is beyond political limits. The current study elucidates in detail the justification behind selection of Australia as the host nation for conducting overseas business. In addition to this, the present segment expounds illustratively the cultural aspects of host country that is Australia along with its unique cultural components. Moving further, the study also presents a comparative analysis of the business culture between (Australia) and that of home country that is Singapore) by taking into consideration language, business etiquettes, ways of business meetings and presentations and many others. Thereafter, the current section also takes into consideration the Hofstede cultural dimensions and mentions in detail different factors that foreign companies need to take into account for functioningeffectively in Australia.
The rational of the study by selecting country of choice and its reasons
Australia has been selected as the host country for conducting business activity for the economic resilience, adaptableness as well as record of stable development. This helps in delivering an innocuous, low-risk business environment in which to carry out business. Particularly, the economy of Australia is essentially reinforced by different strong institutions that can be considered as an exceptional service segment and a capability to react to different worldwide challenges. The selection of the Australian economy as the investment decision can be regarded to be justified as this country is rated AAA by three worldwide rating agencies and is estimated to realize approximately 2.9% of average annual real GDP growth in the upcoming five years that is the highest among the major advanced nations (Austrade.gov.au, 2017).
In addition, the Australian economy also has the potential and capacities to dispense superior quality products as well as services to the entire world. Thus, selection of the Australia as the host country for carrying out business is justified as the he mineral as well as energy resources persistently helps in empowering the process of industrialization, business transactions of different agricultural commodities along with premium foods that all meet up the requirements of the region’s green environment(Austrade.gov.au, 2017). Nevertheless, the region is well equipped to provide appropriate wealth management, facilities of healthcare, different educational facilities, tourism as well as professional services. Again, the labor force of Australia is extremely talented, educated, and multicultural and multilingual. Furthermore, Australia is also well situated as a trade as well as investment base for international corporations for carrying out business with Asia. The country is labelled as worldwide top five necessarily on the Index of Economic Freedom that implies that Australia delivers effective governance to different multinational firms (Austrade.gov.au, 2017).
Comprehensive Cultural Analysis of Host Country (Australia) and Clarify the Unique Cultural Mechanism of Host CountryCultural analysis of host country (Australia)
Australia has friendly and open culture. Australians feel that their work will speak for itself so they show no interest other position, title or status (Stephensen, 2016). The culture of Australia is a Western culture that derived from British but gets influenced by unique geography especially in the Australian continent. Australians are very down to earth as well as watchful for not giving the feeling that they have superiority complex with anyone else. Australians value authenticity, loathe pretentiousness and sincerity (Rosecrance, 2014). They have a preference populace who are self-effacing, self-deprecating as well as sense of humor and humble. Australians places high value for their relations. The original population of Australia majorly consists of Aborigines and British people and Irish descent. After World War II, there was serious migration from Europe. In other words, this was in reply to the Australian policy that tries in attracting immigrants for boosting the population as well as workforce (Soares, Farhangmehr&Shoham, 2016). From last thirty existences, Australia has liberalized from its migration strategy as well as opened its limitations to South East Asia.Manners and Customs
In Australia, men wear traditional dark business suit and tie. On the contrary, women wear dress, or skirt and blouse for commerce. At the time of attending business functions, informal clothing is considered inappropriate (McHoul& Luke, 2013). Men should not become actually affectionate with another man or wink at women. For Australians, being punctual is dangerous. They believe in maintaining good eye contact at the time of meeting and conversations. Exchange of gifts is not considering as regular practice in business.
The main faith in Australia is 50% of Christian as their high Individualism Index that correlates with the other Christian based cultures. In the most principal Christian societies, the Hofstede Individualism Index correlates with the cultural dimensions (Kieser, 2014).
Figure: Religion in Australia
(Source: Hofstede& Bond, 2013)Personal Communication
In Australia, they speak English for communicating with other people. Australians shake hands at the time of meeting and while leaving. In case of women, most of them welcome each other with a kiss on the cheek. Professional workers exchange business cards as a general gestures and further communication for building relationships. Australians are gracious and open but honesty and conciseness are even appreciated. Australians respect each other opinion and ready for discussions (Hofstede& Bond, 2014). They are an active listener and ask if anything cannot be understood at the time of conversation. Sightseeing as well as sports is main conversational topics.
Cultural Components of Host Country (Australia)
Language: Analysis of the business culture of the home country that is Singapore reveals the fact that the Singapore is essentially a straightforward location for conducting business. The home country Singapore necessarily has four official languages that includes English, Mandarin, Malay as well as Tamil. However, English is essentially the main language of business as well as administration, also extensively spoken by individuals. In addition to this, varied translation along with interpreting services are also made available at different business centers. Similarly, the Australia also use English or else general Australian as the national language although Australia does not necessarily have an official language (Chaney & Martin, 2013).
Meetings as well as presentations: Evaluation of the business culture replicates the fact that the home country of Singapore has certain social regulations as well as protocols that one needs to stick to. For example, presentation of visiting cards is an essential part as well as customary practice of the business protocol and need to be presented with both the hands with the name written on the card facing the particular recipient (McLuhan, 2015). On the other hand, the business culture of Australia is not very formal, therefore, the greetings in business meetings as well as presentations also tend to be a bit casual and stress-free (Chaney & Martin, 2013). However, presentation of business cards can be done at the time of introduction where contents pertaining facts and figures are important in place of emotions and feelings. Analysis reflects the fact that punctuality is an important facet of the business culture of Singapore as Singaporeans tend to be on time or even before time for business meetings or else presentations. However, preparedness is an important factor for Singaporeans before entering into different business negotiations. Particularly, Small conversation can be regarded as a common aspect especially at the onset of business meetings; questions are asked regarding family or else other private details. However, this is commonly not regarded to be rude. Identically, punctuality is also an important factor for the business culture of Australia. In addition to this, the Australians also essentially have friendly approach to business.
Business etiquette:Singapore also has an official business culture with differentregulations of etiquette that necessarily differ between Chinese, Malay as well as Indian population. Again, Singaporeans are also very vigilant and expected to certain that they are conducting business with correct people. As a consequence, it is essential to institute a good as well as genuine association with a Singaporean equivalent to exhibit that the capabilities are excellent (Craft, 2016). On the other hand, analysis of the business culture of Australia also reflects the fact that it is considered to be polite among Australians to shake first hand and it is also considered to be customary for necessarily business practices. However, Australians have the inclination to be informal in particularly daily transactions and it is general practice to address someone by their first name. Another similarity between the business culture of Singapore and Australia is that they both are very straightforward when it comes to business and do not tend to have long standing relationship before conducting business (Soares, Farhangmehr&Shoham, 2016).
Comparison of Business Culture Between Host Country (Australia) to That of Home Country (Singapore)
Appearance and Behavior: Analysis of appearance and behavior reveals the fact that Australian men wear a conservative business suits (specifically black) and tie but women essentially wears dress, skirt as well as blouse for deals of business. Informal clothing is not appropriate for business meetings in Australia. The Australian appearance is somewhat similar to that of the Singaporean appearance in businesses. Again, evaluation of the behavior reflects the fact that the Australians are punctual, maintain proper eye contact in business meetings, does not practice the act of gift exchanging and waits for turns to speak up in a meeting (Rosecrance, 2014). On the contrary, the behavior of Singaporeans also identical in a certain way. However, the behavior of Singaporeans are a bit more formal than that of the Australian who tend to be somewhat casual and straightforward in their approach.
Hofstede Cultural Dimensions theory is one of the frameworks used for cross-cultural communication that is developed by Geert Hofstede (Hofstede, 2013). This framework helps in describing the belongings of a society on principles from their members who principles relating to performance by using the arrangement as resulting from factor examination.
Figure: Hofstede Model for Cultural Dimensions
(Source: Hofstede, 2015)
In this particular dimension, it explains that all individuals staying in the society are not equal. In other words, it is expressed that the attitude of the culture gives rise to inequalities among the people (Hofstede, 2014). Therefore, Power Distance explains the degree to which the less powerful members of institutions as well as association within the nation expect and accept that power gets dispersed in unequal terms. It directly deals with the fact that inequality in a society gets authorized by the group as well as leaders at the same time.
It has been noted that Australia scores low in this particular dimension scoring 36 as plotted in the above graph. This reveals that Australian association hierarchy is recognized for expediency whereby superiors are reachable and managers relies upon individual human resources and team based on the level of expertise (Hofstede, 2013). It is essential that both managers as well as employees consult with each other for communicating the information that will be shared on frequent basis. In this way, communication is treated as informal, direct as well as participative at the same time.
In this particular dimension, primary issues needs to be addressed as the degree of interdependence a culture needs for maintaining among their members. It depends upon when self-image of individuals defines in conditions of “I” or “We”. As far as individualist society is concerned, people mainly look at themselves and their families at the same time. In case of Collectivist societies, people fit in in group that takes care in replace for faithfulness (Hofstede, 2016).
Australia with a score of 90 in the given measurement is highly individualist culture. In other words, it get translates into a loosely-knit society whereby expectations lies n taking care of themselves and families. As far as business world is concerned, employees expects for remaining self-reliant as well as display initiative (Hofstede, 2014). Therefore, exchange-based world of work involves hiring as well as endorsement decision based upon merit on confirmation in the most appropriate way.
In this particular dimension, high score determines masculine that indicate that the culture will be ambitious by intense opposition, achievement as well as success. Success defines by the winner or best in the field (Hofstede, 2013). Therefore, the value scheme starts in the school as well as continues all through the life span in work and freedom pursuits.
On the contrary, low score determines feminine as they have leading principles in society as well as caring for others and quality for life. To explain, Feminine society is one where quality of life will be treated as sign of success as well as standing out in the crowd. Here, main issue is what motivates populace wanting to be best in case of Masculine or liking what people do in case of Feminine (Hofstede, 2013).
Australia scores 61 on the given measurement as well as considers in Masculine society. In other words, behavior in school, work as well as play based upon the shared values whereby people struggle their best that winners takes all. Australians are proud in gaining success and achievements that they get in life (Dorfman& Howell, 2014). They offer basis of hiring as well as promotion decisions at workplace. Therefore, conflicts get resolved at individual levels as well as goals to win.
In this particular dimension, uncertainty avoidance means the way culture deals with the fact as the future is unknown and tries in controlling the future. In other words, the ambiguity brings with nervousness and unique cultures as it deal with anxiety in different ways (Biddle &Swee, 2012). This means the extent to which members of a culture feel that threatens by ambiguous or unidentified situation and created attitude as well as institutions. Australia scored 51 in this dimension.
In this measurement, it describes how every culture requires maintaining some relations from past at the time of dealing in present and prospect. Mostly, societies majorly prioritize two existential goals. In case of normative society, they achieve low on the given measurement as they prefer maintaining traditional society as well as norms at the time of viewing societal alters with feeling (Bennett & Carter, 2012). Those with a culture will be scoring high by taking practical approach as they support economy as well as efforts in modern education for preparing in the near future.
Australia scores 21 on this given measurement and termed under normative ethnicity. People living in this society will have strong anxiety for establishing the unqualified truth as they are normative in thoughts process. Therefore, Australians display great admiration for traditions where they have small tendency for saving for prospect and focus for achieving quick consequences (Soares, Farhangmehr & Shoham, 2016).
Indulgence considers as one of the confront that confronts humankind now and in the past whereby degree of small kids are socialized. Without considering socialization, dimension reveals the extent to which people tries in controlling their desires as well as impulse based upon the method they are raised (McHoul& Luke, 2013). On the contrary, weak control termed as indulgence is relatively strong known as restraint. Cultures describes as lenient or reserved.
Australia scores 71 in this given measurement so it will be considered as high indulgent country. People in societies classify under high score as it exhibits willingness for realizing their impulses and needs for enjoying life and having fun. They posses optimistic approach as well as have a propensity towards hopefulness (Bennett & Carter, 2012). Therefore, Australian is placed in a higher degree of significance on spare time time as they spend currency in business.
In conclusion it can be said that it is important to understand the market culture before conducting transnational businesses. The present segment helps in gaining deep understanding different components of culture in both the host as well as the home country that takes into consideration manners and customs, religions, communication practices. In addition to this, the present study also helps in analyzing the differences in the business culture of the two countries by carrying out a comparative analysis of culture. Thereafter, the current study also scrutinizes in detail the different components of the Hofstede’s cultural dimensions such as power distance, individualism, masculinity as well as feminism, avoidance of uncertainty, long term orientation and indulgence with special orientation to the both cultural factors of Singapore (home country) and Australia (host country). Analysis of different cultural dimensions can help in analyzing the effectiveness and validation for selection of Australia as the investment decision.
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