Cross-Cultural Management: Analyzing Critical Issues for Setting Up Subsidiaries in South Africa and Thailand

CROSS CULTURAL MANAGEMENT
ANALYSES OF CRITICAL CROSS-CULTURAL ISSUES RELATED TO SETTING UP A SUBSIDIARY AND DO
BUSINESS IN SOUTH AFRICA AND THAILAND

EXECUTIVE SUMMARY
The Commonwealth Bank of Australia is a provider of financial services which includes
retail, institutional banking and funds management along with other activities such as
broking services, general insurance and superannuation. A Case of Commonwealth
Bank has been induced in the study. Commonwealth Bank has taken a measure to
increase their sale by expanding their services in the other countries.
The Cross-cultural dimensions provide a critical analysis of the cross-cultural practices
with respect to expansion in the business in the South Africa and Thailand region. The
report provides the analysis of cross-cultural issues related to setting up a subsidiary in
South Africa and Thailand. The contextual global implication for the change in the
business is developed by Hofstede Cultural dimension theory.
This model helps in interpreting and identifying the features of cultures for developing a
subsidiary in Thailand and South Africa with an attainable measure of the Western
world. After accessing on the cultural dimensions, the implications of adapting the
effective cross-cultural interactions measures have been undertaken by the Australian
company is discussed.

Table of Contents
EXECUTIVE SUMMARY................................................................................................. 1
INTRODUCTION..............................................................................................................3
HOFSTEDE CULTURAL DIMENSIONS THEORY..........................................................4
COMPARISON BETWEEN SOUTH AFRICA, THAILAND AND AUSTRALIA.............4
KEY ISSUES IN THE CROSS-CULTURAL MANAGEMENT...........................................8
RECOMMENDATIONS TO ADAPT EFFECTIVE CROSS-CULTURAL INTERACTIONS
......................................................................................................................................... 9
CONCLUSION............................................................................................................... 10
REFERENCES...............................................................................................................11

INTRODUCTION
Cross-cultural management is the management of people and things that involve
different culture background for designing a feasible structure for an organisation
(Thomas & Peterson, 2017). The business utilises this concept in order to modify their
business or approaches to compete on a level with no longer bound. The case of the
Commonwealth Australian Bank has put their stances on enhancing the online
interactions with other countries in order to gain profitable margin and aligning their
policies and procedures across the entities of the corporate in South Africa and
Thailand.
This report represents the cross-cultural issues that occur while exploring the business
on the international context. The term culture is considered as the most effective
dimension while exploring the business in other regions (Tonts, et al. 2013). This can
access similarities and differences in the business.
Commonwealth Bank of Australia is an Australian Multinational bank with business
across the countries like United States, United Kingdom, Asia and New Zealand.
However, expansion of the business has been limited in Thailand and South Africa. The
company provides the variety of financial services to the people and is considered as
the largest bank in the Southern Hemisphere.