Cultural Differences between China and Australia for Business Communication

The essay evaluates the cultural differences between China and Australia for business communication. It uses Hofstede's model of cultural dimensions to understand the differences. The essay provides useful business etiquettes for expanding business in China. It also highlights the importance of maintaining a cordial relationship with the client while making any kind of business deals.

Running head: BUSINESS COMMUNICATION
BUSINESS COMMUNICATION
Name of the Student:
Name of the University:
Authors Note:

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In the current scenario, to achieve success the business owners tries to expand their
businesses so that maximum profit can be gained in future. It is highly relevant for all the people
to know the important consequences and outcome prior to start a business in different country.
Mary, the owner of ‘The Aroma Shop’ deals with varieties of chutneys, sauces, jams and pasta
situated in Australia. It is highly important to identify the business etiquettes present in China
before expanding the business. The essay will evaluate the cultural difference present between
the two countries China and Australia. By doing so Mary would be able to get an idea if
establishing her condiment business in China would be expandable or not. The nation has
enormous population that have huge cash to spend and very debt. There are various cultural
factors that should be in mind before making a strategy carrying the business activities operating
outside the country’s border (Nyambegera, Kamoche and Siebers 2016).
Hofstede’s model of cultural dimension would help in distinguishing the cultural
difference between the countries. The culture dimensions represent the preferences of relating to
one state of affairs with other countries that differences nation (Laitinen and Suvas 2016). The
countries scores on the different dimensions are different due to the difference in personalities of
the people. The Hofstede’s model is made of six main dimensions. These are power distance
index, masculinity versus femininity, individualism versus collectivism, uncertainty avoidance
index, indulgences versus restraints and normative orientation (Eunson 2005).
The power distance index (PDI) showcases the major fact that the people present in the
community are unequal. It is the extent to which less powerful people of a company in the nation
accepts and also expects the fact that power is unequally distributed. PDI rate in Australia is very
low and the superior’s relations with the firm are accessible. The superiors in the firm mostly
depend on the team and people for expertise. The communication in the firm is also informal,
participative and informal in nature. Whereas, in China the PDI rate are high as the society in
China believes that inequality among the people is acceptable. The relationship between
subordinate and superior is highly polarized (Engle and Nash 2015). The subordinate does not
make any kind of defense against their superior and abused power.
The people in China are influenced by the formal authority and sanctions. They are used
to attend the meeting and business seminars in a hierarchical order for giving them respect. The
first one to walk inside the meeting is the head of delegation. Therefore, it is advisable that Mary
should show respect as in China people are not acknowledged by their names in China. Mr. Lau
should be called with due integrity and respect. Title of courtesy is also given as regards to
respect to the people in China. Mary should also be careful while using the words such as
‘comrade’. If Mary will use any Chinese words while doing the business than it would be
appreciated by Mr. Lau. It is important for Mary to learn all these things to make the business
process smooth and cordial.
Individualism is the degree of interdependency that would help the community to
maintain their relation among themselves. In collectivism environment, people are also defined
as a group that guide each other as well as creates loyalty. In Australia, there is high rate of
individualist culture with a score of 90. The people are expected to be very self-reliant and
display initiative in the business world (Beugelsdijk, Maseland and Hoorn 2015). On the other
hand in China, there is high collectivist culture with a score of 20. To do condiment business in
China Mary should also emphasis on the overall group interest instead of individual’s interest. It
is important for Mary to keep a calm composure to do business in China. Mr. . Lau being a fifty

2BUSINESS COMMUNICATION
year old man is also expected to very disciplined and sophisticated. Therefore Mary should be
well-prepared for the meeting and make it successful. It is vital for Mary to use kind words and
try to make the business deal as successful as possible. Gifts are not accepted positively by the
Chinese people, therefore Mary should not carry any kinds of gift but make small talk with Mr.
Lau before commencing the meeting.
High Masculinity score means that the society s mostly driven by the rate of success and
achievement. While low score on feminine approach means caring for other people and quality
of life. China is a masculine society with a score of 66 and in Australia, the score is 61 and the
people are proud of success and achievements (Putnam and Gartstein 2017). The masculinity
score is always high in both the nations. In both the countries people are proud of their success,
therefore it would not be a much problem for Mary to deal with the situation.
Uncertainty avoidance is the process in which the society to deals with the important fact
that future is uncertain. The uncertainty avoidance score helps in evaluating the fact that people
of the respective culture therefore feels threatened by unambiguous and unknown situations.
Australia has a score of 51 in this dimension while China has a score of 30. These people are also
comfortable with ambiguity and the meaning is also difficult to follow for the individuals
belonging from the rest of the world. The employees in China are very attentive and follow a
disciplined timetable to be followed in the businesses (Mazanec et al. 2015). Greetings are also
important and should be practiced in a very polite manner in the country. Handshakes are also
common in China, therefore it is important that the gesture should be started by Mr. Lau.
Long-term orientation is the procedure through which the society maintain the link in the
past and should also deals with future and present challenges that is to be faced. In the normative
society, the cultural dimensions are very low that views the changes in society with suspicions.
The high cultural score means a pragmatic approach and should also adopt as per the tradition of
the nation. China has a pragmatic approach with a score of 87 and the normative culture and
should a maintain a score of 87 (Vitell et al. 2017). Mary should also be careful enough not to be
use strong statements in negative manner that could lead to create an unfavorable impact on the
business . Rather than using words such as ‘no’ and instead use alternatives such as ‘later on’,
‘may be’ and ‘think about it’. Similarly, if Mr. Lau thinks that there is no problem than Mary
should be careful enough to analyze the problem as it means that there are various problems.
Therefore, Mary should try to sort out the problem as soon as possible.
Indulgence is the degree to which, the people would try to control their emotions and
desires. Existence of weak control in the society is called ‘restraint’ , therefore the culture is
known as Indulgent and restrained. Australia is an indulgent country with a score of 71. On the
other hand China is a restrained society with a low score of 24 in this cultural dimension. In
China, which is a restrained society they does not focus on leisure or free time . The people
living over there control their desires. While Australia, which is an indulgent country, the people
mostly gives importance to spend time as per their wish. Therefore Mary should be well prepared
and maintain a controlled and calm body posture. Punctuality is given very importance in China
so Mary should be punctual to make the business deal with Mr. Lau. The dress code should be
conservative suits and not any bright colors as it would be considered in appropriate (Kim 2017).
Hence Mary should practice effectively the Chinese etiquettes to practice business in China as it
is a restraint society.

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The essay therefore successfully showcases the fact that Mary should prepare beforehand
and implement proper measures to establish the business in China. China’s culture is completely
different than from Australia. In China the individuals tries to maintain a cordial relationship
with the client while making any kind of business deals. Mary has to maintain proper composure
while doing the business and thus creating a positive impression. Chinese people also like to
extend the deadlines so that they can gain competitive advantages.. Mary should definitely
expand her business in China and also should maintain smooth relationship with Mr. Lau. The
cultural dimensions between the countries are different. Therefore practicing few useful business
etiquettes should help Mary to make the business dealing successful in an entirely different
country.

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