SECTION 1
Cultural Differences:
Many Australian and New Zealand organizations are seeking business opportunities in Asian countries as these Asian countries are in developing phase and they offer vast business opportunities to already developed nations. Here, we are going to analyze the business expansion of Australian and New Zealand organizations in Indonesia. During Global expansion of a business, it is very important to understand the culture and cultural differences between your country and the other country in which you are going to expand your business. This will help in developing better relationship and in the long term it will help the businesses to penetrate globally.
The New Zealand and Australian culture is very different from the culture of Asian countries. To analyze the cultural differences between these countries it is very important to understand the meaning of culture first.
Understanding Culture:
Culture is basically the behavior and beliefs of a particular ethnic or social group. It is a way of working, thinking or behaving in a place or organization. While doing business in global market it is very important to learn about the culture to decrease the complexities and challenges. In other words we can say that cultural understanding is synonym for a successful business.
Hofstede’s Cultural Dimensions:
Hofsetede has categorized cultural differences into three wide categories i.e National culture, Business Culture and Organizational culture. National culture depicts the political and cultural boundaries of the nation. Business culture involves rules, regulations, values and beliefs of doing business in a particular culture. Whereas, organizational culture illustrates the norms and beliefs that the people follows in an organization.
National Culture dimensions are as follows:
1. Power Distance
2. Individualism vs Collectivism
3. Masculinity vs Femininity
4. Uncertainty