Intercultural Business Communication

This report discusses the importance of intercultural business communication in contemporary organizations, with a focus on the case of Wesfarmers. It explores the theoretical approaches of CQ model, Iceberg framework, Hofstede framework, and Lewis model to analyze the cultural differences between Australia and the UK. The report also provides recommendations for reducing employee attrition due to cultural conflicts.

Running head: INTERCULTURAL BUSINESS COMMUNICATION
INTERCULTURAL BUSINESS COMMUNICATION
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Rationale....................................................................................................................................2
Theoritical approach...................................................................................................................3
Analysis of the organizational approach of Wesfarmers:..........................................................4
CQ model...............................................................................................................................4
Iceberg framework.................................................................................................................5
Hofstede framework...............................................................................................................6
Lewis model...........................................................................................................................8
Recommendation........................................................................................................................9
Conclusion................................................................................................................................10
Refernecs:.................................................................................................................................12

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Introduction
The term intercultural mmanamgemnnt can be defined as the the combination of
skills, experience as well as knowledge that is needed for efficiently deal with national as
well as regional cultural difrences between culture of the employees as well as the employers
within an organization. In this era of high compition between companies, it is highly crucial
for the management of multicultural organizations to develop effective incultural managerial
skills in order to effectively deal with multicultural conflicts within the organizations
(Abayadeera et al.,2018). Such conflicts has the potential to cause attrition of experienced as
well as skilled employees. Not only this, effective multicultural management also has the
potential to help the organization to communicate effectively with th condumers in a foreign
land and enhane their sales and reputation (Christopher 2016). While employee retention
lowers the yearly investment cost of the organization along with enhancing its copetative
advantage in the industry, effective communication with the consumers results in
enhancement of revenue and brand reputation. Thus it can be understood that intercult-ural
management is a highly crucial aspect of contemporary business. In this report the
intercultural management of Wesfarmers, one of the most popular retail organizations of
Australia has been disussed.
Rationale
The Wesfarmers limited is refferd to an Australian conglomerate that posess its
headquuaters in Perth. The orrgainization exists predominantly in Australia nd new Zealand
nd the business setor of the conglomerate ranges from retail to chemicals, fertilizers and
industrial safety products (Collier 2015). The retail sector of the organization is highly
reputed and is correcntly operating in Australia, new Zealand, Ireland, united kingdom and
India. Currently, the organization is facing issue of employee attrition in its uk retail outlets.

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According to majority of the employees cultural difference and conflicts within the
employees as well as employers and the chief reason behind this attrition. Attrition of skilled
and experienced employees is grabed the attention of the management (Hua 2018). This is
because excessive employee attrition is lowering the competitive advantage a well as
lowering ts capabuility to deal with the high amount of consumer base. In order to deal with
this issue, the management has decded to assess the cuture of both the host country Australia
and guest country UK in order to identify the ultursl barriers that are leading to the mentioned
issue. On the basis of the issues identified effective recommendation will be presented in this
report in order to ensure reduction and eventually elimination of employee attrition.
Theoritical approach
The theoretical approach on the basis of which the culture of two countries that is
Australia and UK will be ssessed includes the CQ model, The ice berg framework, the
Hofestede framework and the Lewis model (Lei 2016). The CQ model that is the cultural
Intelligence model will offer the management a perspective as well as an total selection of
skills that can come near in any multicultural situation he or she discovers himself or herself
in. The CQ model can be differentiated into cognitive, meta cognitive as well as behavioural
aspects in order to understand the knowledge about both the countries that the organization
knew and lacks knowledge of. Along with this, the CELM will use to identify culture,
Mentality. Lifestyle as well as Environment of both the host and the guest countries. In order
to conduct the meta cognitive and behaviioral attributes of both th countries the Iceberg,
hofstede and Liwis framework has been used. The ie berg mode lhelps the management of an
organization to understand the visible cultural aspects like behaviours and practice as well as
the hidden cultural aspects like interpretation and core values of the countries (Martin 2015).
The Hofstede framework is used by the marketers to analyse the multicultural aspects of the
countries in which a company is established in or is planning to expand. The chief six factors

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on the basis of which the management of Wesfarmers can compare the culture of Australia
with that of United Kingdom are authority expanse, uniqueness, virility, uncertainty
avoidance, long tem alignment and forbearance (Neuliep 2017). When it comes to the Lewis
model, it is considered to be a crucial model by the managers of multicultural organization
sine it helps them to understand the complexity of the merging corporate cultures, planning,
decision making, issues in leadership, task assessment as well as recruitment.
Analysis of the organizational approach of Wesfarmers:
CQ model
Australia, as one of the world's most diverse culturally, has all to gain from active lev
eraging of its cultural capital.Australia's cultural diversity can not be underestimated by the o
pportunities of businesses, governmental, tertiary, schools and local communities to use it.
Cultural intelligence (CQ) development goes far beyond our desire for various foodstuffs,
customs and travel experiences. When it comes to UK, the culture oof the country, is rooted
in its long history. The nation is healvily influenced by the elements of iits countries namely
England, Scotland, wales and Northern Ireand.
The UK's corporate culture is characterized by corporate communication, business
etiquette, etiquette, internships and student appointments, living costs, work-life balance and
social media guidance (Prentiss and Walton 2019). The United Kingdom is described as a
multi-faith society, but in 2011 it was christian for a majority of 59 percent. Muslism is
practiced by approximately 5% of the population are the second most prevalent religion.
When it comes to Australia, Australians are found to be highly candid when it comes
to their trade, and hence they do require to build associations for a prolonged time. They are
highly receptive to new ideas. Modesty is appritiated, and hence wsfers should not try to
oversale the comany. Australian business prefers to be realistic, outgoing and to the point,

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avoiding narcissism (Tran 2016). The decision-
making process in the Australian business culture will be slower than usual because the work
environment collaborates. Subordinates will be consulted by the top management. Australians
isn't very formal, so welcome is relaxed – a smile and a handshake are appropiate. In both the
countries, English is the offcieal spoken language .
Target consumer LIFESTYLES in UK is not very different than Australia. Both of
this target consumers prefer to communicate in a polite yet direct manner, possess limited
body language, are job oriented and sticks to the fact. In Australia the huge mixing of culture
values though patterns of the residents of a specific country possess high potential to impose
impact on their purchasing behaviours (Tuleja, E., 2016). Hence it comes to Australia to the
lifestyle of Australian residents, the economy of the nation is highly supported by meat as
well as life stock organizations. Target consumer MENTALITY in UK howeer depends on
social communication, occupational etiquette, etiquette, internships and student
appointments, living costs, work-life balance and social media guidance. While the business
culture of Uk an Australia possessa good number of similarities, both the country also
possess a good number of dissimilarities that needs to be tken into accounr by the managemt
of Wesfermers. However, when it comes to mentality Australians prefer to live a light life
style and Workplace culture in Australia tends to emphasis on wellness and ‘mateship’, while
in Britain, the emphasis is on competition and efficiency.
Iceberg framework
According to researchers, it is highly crucial to understand the culture of the country
before establishing a business in the mentioned organization (Tuleja, 2016). The cultural
values and though patterns of the residents of a specific country possess high potential to
impose impact on their purchasing behaviours. The external part of the culture in the iceberg

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model includes the behaviours and beliefs. The internal or subconscious part includes part of
the culture that is below the surface of a society. Hence it comes to Australia to the behaviour
of Australian residents, the economy of the nation is highly supported by meat as well as life
stock organizations (Collier 2015). Thus in Australia animals are kept in humane paddocks or
farms. Pets are common in a good number of houses. Residents of UK are also found to be
fond of animals and hence UK is also known as the nation of pet lovers. When it comes to
dining etiquettes in Australia, Australians are found to be fonder of fast food compared to UK
(Neuliep 2017). When it comes to diversity, both the residents of UK an Australia was found
to be highly multicultural and both the cultures embrace diversities as well. The internal,
values and thought patterns of both the counties, that is UK and Australia possess both
similarities and dissimilarities. For instance, both Brits as well as Australians are found to be
sharing the sense of fair play. Both the culture dislike boastness and loudness in any business
situation. However, when it comes to lifestyle, Australians prefer to live a light life style and
Office culture in Australia tends to focus on wellness and ‘mateship’, while in Britain, the
focus is on competition and productivity (Koester and Lustig 2015). When it comes to views
of raising children, it has been seen that children plays a great part in the future of Australia
(Ladegaard and Jenks 2015). A good number of schools are there that are dedicated to a great
schooling. Like Australia, education is also given a huge importance in UK as well. Children
are always encouraged to think in an independent as well as creative way. Majority of the
Australians are found to be the believers of Catholics and Christianity. However when it
comes to UK, 49 of UK is found to irreligious. However, In UK, the numbers of Muslims are
increasing with time.
Hofstede framework

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The Hofstede framework is used by the marketers to analyse the multicultural aspects
of the countries in which a company is established in or is planning to expand. The chief six
factors on the basis of which the management of Wesfarmers can compare the culture of
Australia with that of United Kingdom are authority expanse, uniqueness, virility, uncertainty
circumvention, long tem alignment and indulgence. The power and reserve dimension deals
with the amount to which the less powerful associates of organisations and organisations
within a nation expect and receive that power is disseminated inequitably. From the Hofstede
score, it can be clearly understood that both UK and Australia, the hierarchy established on
the basis of convenience and superiority and managers are found to be extremely cooperative
and rely on each and every individual teal members for their experience. On the other hand,
when it comes to individualism, it is demarcated as the gradation of interdependence a
society preserves among its associates. Both the score of Australia and UK are high, when it
comes to individualism (Piller 2017). Thus it can be understood that in both the countries
people’s expectation is to look after themselves immediately after their families. In the
business world, employees are expected to be self reliant as well as to display initiative.
However, in both the countries, hiring as well as promotional decisions are completely based
on merits or evidence. Masculinity can be defined as the fundamental issue that motivates
people, wanting to be the bet as well as liking their own performance (Tran 2016). From
Hofstede’s comparison it has been found that Masculinity is slightly higher in UK compared
to Australia. Both the societies are found to be driven by achievement, competition as well as
success. The value system is found to be initiate in school and continue to both workplace as
well as leisure pursuits. The fourth aspect of Hofstede model includes indecision
circumvention that is definite as the amount to which the adherents of a culture feel
endangered by unclear or indefinite situations and have formed views and organizations
that attempt to circumvent these. Here the results of UK and Australia have differed to a

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great extent. While UK has scored as less as 35, the score for Australia is 51. Thus
uncertainty avoidance is higher in Australia and thus brings the anxiety (Martin and
Nakayama 2015).
The long term orientation refers to the fact how each and every society has to
maintain some links with its own past while they deal with the challenges of both the present
as well as future. Considering the fact that Australia possess a normative society, the score of
the nation is as low as 21. This is because, people in normative society are found to prefer
maintain the traditions and norms and are suspicious to social changes. However, this is not
in the case of UK, people in UK prefers to encourage thrifts and efforts in modern education
as a method of preparing for future.
Lewis model
The Lewis model is considered to be a crucial model by the managers of multicultural
organization sine it helps them to understand the complexity of the merging corporate
cultures, planning, decision making, issues in leadership, task assessment as well as
recruitment. Lewis considered that previous cross-culturalists, in accumulating the
multiplicity of dimensions listed in the preceding paragraph, ran the risk of creating
confusion for those who sought clarity and succinctness. According to researchers, a good
number of global retail organizations in UK, are found to be poorly managed as well as
misunderstood (Martin 2015). The Lewis model has been divided into three sector namely,
liner active, multi active and reactive. When it comes to Australia and UK, both of the
nations are found to be falling under the liner active portion of Liuws Model. Some of the
features of the mentioned model includes preferring to communicate half of the time, does
not think during the time, plans in an appropriate step by step, prefers to communicate in a

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polite yet direct manner, possess limited body language, are job oriented and sticks to the
fact.
Recommendation
Considering the fact that a good number of cultural differences have been noticed
between the Australia and UK, It is highly crucial for the management of Wesfarmers to
considered the following recommendations in order to ensure effective business in both its
host country that is Australia and the country where it has established its business, that is UK
1. The first and foremost step that needs to be taken by the management of Wesfarmers
is to learn about each and every team member of its organizations. Team members of
each sector should be provided with training and education so that they can
effectively communicate with each of the team members and understand their cultural
values, points of views and others. For this ice breaking sessions and other co
curricular activities can be organized within the team. Better understanding of each of
the team member will not only enable the team leaders to prevent any kinds of
cultural conflicts, but will also help them to obtain unique and helpful ideas
incorporation of which can lead to enhancement in the revenue of the business
(Prentiss and Walton 2019).
2. Secondly the employees of the host country, who have been transferred to UK
branches of the Wesfarmers organization, will be provided with effective training
about the cultural values communication and multicultural aspects so that they can
effectively communicate with their colleagues and understand the specific needs of
the consumers.
3. Considering the fact both the retail market of Australia and UK are highly
competitive, the company should retain a culturally diverse staffs in order to ensure

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high revenue of the organization. According to researchers, a good number of global
retail organizations in UK are found to be poorly managed as well as misunderstood
(Martin 2015). As a result of this, these organizations lack loyalty of the employees.
By providing its employees with effective opportunities and understanding their
needs, Wesfarmers can gain competitive advantages in the retail market by retaining
valuable employees. For this, the management needs to provide effective
opportunities to the individual for receiving recognization for their multicultural skills
as well as recognize them in order to avoid negative outcome.
4. Finally, it is highly crucial for the Wesfarmer organization to create stern policies as
well as norms in order to effective implement and maintain a culturally diverse work
force. For instance, in order to avoid discrimination on the basis of age, gender, caste,
colour or race, stern anti discrimination policies should be implemented. This will
ensure lack of conflict in the organization on the basic of cultural difference.
Conclusion
From the above discussion it can be said that in this era of high compition between
companies, it is highly crucial for the management of multicultural organizations to develop
effective incultural managerial skills in order to effectively deal with multicultural conflicts
within the organizations. According to majority of the employees cultural difference and
conflicts within the employees as well as employers and the chief reason behind this attrition.
Attrition of skilled and experienced employees is grabbed the attention of the management.
Lifestyle as well as Environment of both the host and the guest countries. In order to conduct
the meta cognitive and behavioural attributes of both the countries the Iceberg, hofstede and
Liwis framework has been used. The chief six factors on the basis of which the management
of Wesfarmers can compare the culture of Australia with that of United Kingdom are power
distance, individualism, masculinity, uncertainty avoidance, long term orientation and

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indulgence. Considering the fact that a good number of cultural differences have been noticed
between the Australia and UK, It is highly crucial for the management of Wesfarmers to
ensure effective business in both its host country that is Australia and the country where it has
established its business, that is UK. It has been found that Australians prefer to live a light
life style and Workplace culture in Australia incline to emphasis on wellness and ‘mateship’,
whereas in Britain, the emphasis is on competition as well as productivity.

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