International Business Communications: Cultural Differences, Sensitivity, and Strategies for Mark and Spencer in Indonesia

This report discusses the cultural differences and sensitivity in international business communications, focusing on Mark and Spencer's expansion into Indonesia. It covers linguistic and psychological barriers, and recommends communication strategies such as visual and oriented communication.

International Business
Communications

Table of Contents
INTRODUCTION .........................................................................................................................3
INTRODUCTION TO THE DEVELOPING COUNTRY SELECTED ...................................3
CULTURAL DIFFERENCES ...................................................................................................5
CULTURAL SENSITIVITY .....................................................................................................7
COMMUNICATION BARRIERS AND CHALLENGES........................................................7
COMMUNICATION STRATEGIES AND RECOMMENDATIONS .....................................7
CONCLUSION................................................................................................................................7

INTRODUCTION
International business is defined as the method in which good and services are traded
within international territories (Beugelsdijk, Ambos and Nell, 2020). This is associated with
transactions of cross border transactions in which trading activities are performed between more
than two countries. With the help of international business major aspects related to cultures and
business strategy can be developed so that in the same manner business and market skills can be
undertaken. Using business communication within organisation is highly necessary in order to
get such succession and growth opportunities and to convey the same with associated party.
When an organisation is associated with manufacturing activities then they may face various
challenges in their functions and operations (Breakenridge, 2021). This is being seen that every
country is having their own standards of living and social standards and in this manner economic
growth opportunities can be inhaled by the organisation. Besides this situation of labour and
demand is also different in various countries and in order to align the same far-reaching approach
is required to be adopted by the organisation so that to maximise opportunities within global
boundaries and to develop the business as well. This report is providing various aspects related
with examining of different barriers which are faced by the company and cultural sensitivity
faced by the company while functioning within some other country to their origin. The company
is selected Mark and Spencer which is British based multinational retail base company. The
company is uses to offer different traits of product and services which generates more productive
outcomes that generates premium base product and services.
INTRODUCTION TO THE DEVELOPING COUNTRY SELECTED
For a business in current time expanding their business in global territory is required as
this will lead into providing such insights by which higher market prominence can be attained by
them. In order to expand business with higher success then communication plays significant role
in order to gain global success and to execute stronger business relationship within market and to
deal with several challenges coming to the business. The developing country is selected
Indonesia, it is officially Republic of Indonesia where the country is South east Asia and Oceania
between the Indian and pacific oceans (Bücker, Poutsma and Nies, 2020). It consists of over
seventh thousand island. As it is lower middle income country and member of the G20, where
Indonesia is been classified as newly about industrialised country. It is 15th largest economy in

the world where they have nominal GDP and also considered for 7th largest in terms of GDP. For
Marks and Spencer company, it is a benefit for their supply power as the labour would be
cheaper than other developing countries. The product and services which Marks and Spencer are
premium based where the Bargaining power customer would be high but the supplier must be
lower. By applying Pestle Analysis of Indonesia which would prevents more developing factors
in perspective of Marks and Spencer business for their business establishment are:
 Political factor: It is system of country which is democratic and the president and vice
president within country are elected. It is been already declared within the republic and
their rules and regulation along with developed under Roman Dutch law. The president
and vice president are elected after five years and having president having authority
towards appointment for his votes of public (Buckley and Casson, 2021). This country
got through better independence from Japan on 17 August 1945. It is been celebrating for
independence on that particular day. Al through struggling is hard for better financial
stability which is has introduced various reform about yet 22% of its population is
spending about their lives under poverty lines.
 Economical Factor: As the Indonesia is developing country and the government which
has taken various steps for increasing steps the GDP growth in few years. The
government is used for spends only 23.5% of their GDP on which they usually generates
revenue around $92.62 billions and their expenses are about $98.88 billions. Indonesia
has made significant development robust GDP growth towards 6.1%. Indonesia earned
14% of growth in GDP through farm and agriculture, 48% from different business or
industry and 38% is from services sector like hospitality (Buckley and Casson, 2021).
The government of Indonesia is having separate attention on Foreign Direct Investment
and has good inflow of FDI with 67.3 billion which shows where it consistently
increasing side and better strength in better economic sector. Usually Indonesia is some
product which like machinery, fuel, chemicals, equipments and food stuffs from other
countries where like China, Malaysia, Japan, US etc. This would be benefit for new
business like for example Mark and Spencer who deals with selling premium product and
services.
 Social factor: As Indonesia has large experiences which is increasing steadily within
ratio of 1.13%. They have good average life within over 70 years as most of people are

having concerned with Agriculture and industry where they working for development
about their country. The government of Indonesia has given enough attention to
education and it has impressive literacy rate is about 90.4%.
 Technology Factor: Indonesia which has developed about their transport system along
with they have 139 airports, railways and water ways to go towards other parts island of
country. As it is located in ocean and Indonesia is have big and small ports with biggest
merchant marine of 971 through 114 are registered with foreign countries. This country
use to developed it communication system through various through new brands of better
smart phones which available (Charoensukmongkol and Phungsoonthorn, 2020. As
people are like to use landline and cell phones and they also use internet. The government
of Indonesia has adopted the effective board casting technology.
 Environment factor: The geographical location of the country is very interesting as this
country where mostly comprised where thousand of island and it is majorly located
between Pacific Ocean and Indian Ocean. The climatic condition is always fluctuates
where sometime it has hot and humid country weather condition is about moist round the
year.
 Legal factor: The Indonesia which has introduced with new rules and regulation in
country and having labour laws which are introduced that give right to share income of
labor (Deligonul, 2020). The laws also suggest to show working hours around 7 hour/ day
and 40 hours in work weeks. After spending 4 hours consecutive working hour spend
then 30 minutes break allows to them. As the government of Indonesia also introduced
the company laws and every business has its legal entity which they have directors and
commissioners.
CULTURAL DIFFERENCES
The international communication which is any symbolic interaction between people of
different nation states. The intellectual communication arises in between people on different
cultures in which cultural values and an obvious factor in the nature of interaction that
determining for generate outcomes of better interaction. In following there is implies Hofstede
Cultural dimensions culture that provide differentiate or comparison provides on the basis of six
dimensions of culture are:

 Power Distance index: According to this power culture factor emphasis where the
society accept unequal distribution of power, better democracy and that people to
understand their places in system. In following there is score between United Kingdom
and Indonesia. In perspective of United Kingdom score which is low. The score of UK in
power index is 35 which means that their society not freely engage and accept the
unequal power of distribution and organisation like Mark and Spencer company is also
belong from United kingdom which is flatter organisation structure. In perspective of
Indonesia score in PDI is 78, which means they citizen like which is extermely high level
of organisation hierarchy culture. Individualism and Collectivism: This culture is having trait in which person is more self
centred and is less responsible for other actions. Whereas, in collectivism team working
which is supported and people of society care other. In United Kingdom the score is
around 89 which represent the individualists where organisation culture within UK like
Marks and Spencer through which personal life and goals get to better fulfilment of
happiness. In the respect of Indonesia is having low score that score 14 is collective
society (Kopus. and Klimova, 2020). This means there is high preference for having
strongly defined about social framework in which individual are expected towards
conform towards ideals of society and the group which belong. Uncertainty Avoidance Index: Through the United Kingdom score in UAI is counted as
low that is 35 which means about open culture of innovation within better United
kingdom organisation. The United Kingdom people are very much pleased and engaged
towards better inclusive towards emergency and also having potential through uncertain
situations. In perspective of Indonesia, 48 on dimension and thus has low preference for
better neglecting Masculinity Femininity: The score of United Kingdom and Indonesia which is similar si
representing around 66 the high degree of masculinity that depicts money and culture is
the main priority for people. As in both countries cases the organisation are more better
oriented towards better success. For the score situation of Indonesia, where the high score
in masculinity on the dimensions indicates through society which will bring by
competition, achievement and success being defined through winner. In femininity,
Indonesia score low where the dimension that means that dominant values in society are

caring for others about quality of life. As the score generate around 46 which means it is
very low masculinity then other Asian countries. Long term orientation Short term orientation: On the basis of score of United Kingdom
is 51 that represent the moderate degree that means people which are both type of
behaviour programitic and normative as the goals result required. As the UK culture used
to follows both long term and short term as per its objectives. The score which indicates
of Indonesia have high score of 62 that indicating which support pragmatic culture. In
societies with pragmatic orientation where people believe truth depends where high
situation context of time.
 Restraint Indulgence: The United Kingdom culture is indulgence with having better high
score is 69 therefore about organisation show gratification towards the emotions feeling
within employees (Lind, 2020). On the basis of Indonesia, it has low score of 38 is the
dimension which shows Indonesia which has its own culture of restraint.
CULTURAL SENSITIVITY
According the term Cultural Sensitivity is term implies about cross cultural awareness
that is the knowledge, sense and having proper awareness about to understand of someone else
culture which is part of their values. For the organisation that puts its foots within into
international market through international market through better joint venture which is essential
to have a deep insight about better culture sensitivity (Lovitt and Goswami,, 2020). This situation
happen due to having lack of knowledge which can lead for harm sentiments of other person due
to action that where not liable and having right form of cultural values. Therefore, to avoid any
kind of negative consequences on business like Mark and Spencer can make joint venture PT
Trans Retail business in Indonesia. Bur the Indonesia cultural is very sensitivity where it is
important to adapt and respect the values and also having their cultural sentiments. Usually the
Indonesia follows their main culture is Buddhism, Christianity, Confucianism, Hinduism and
Islam which is all strong is major trading cities. As there is huge importance of privacy and
ethical business practises therefore which is important be careful protecting within better
individual dignity and respect.

COMMUNICATION BARRIERS AND CHALLENGES
The communication barrier which is have common for the organisation at the time of
planning or operating within international marketing. The bases for the communication barrier
which is accept like lingustic, culture and psycological. There is difficulty faced through Marks
and Spencer where to entering into Indonesia retail and in that many retail business are line up
for collaboration. Therefore, it is important to consider the below mentioned barrier of
communication where Indonesia expand its business while facing two communication barriers
are:
Linguistic barrier: The difference is the language of the nations where it is having major barrier
of communication (Lovitt, 2020). As there are having huge language difference between the UK
and Indonesia. In Indonesia they have common language and United Kingdom is having British
language which is English.
Physiological barrier: The difference in the perception and thinking of the people and society of
two different country is also considered as the communication barrier. As in Indonesia there is
the perception of affordable and reasonable price mobile phones that are more good in looking
rather than quality whereas the UK has psychology of quality in products.
COMMUNICATION STRATEGIES AND RECOMMENDATIONS
The innovative communication strategy which can mitigate the barriers or issues of
communication that comply with some of communication strategy which will fill the gaps of
communication strategy will also helps through Marks and Spencer to determine which help for
focus on competitive marketplace and also maintain the working environment that is flexible and
open to communicate. Some of communication strategy recommend for Marks and Spencer
success at the time of establish business are:
The Marks and Spencer is recommended to use upward use the visual communication
strategy at this will useful to convey better use of digital visual communication strategy as this
will use of convey the messages of company vision and mission among employees.
The Mark and Spencer about oriented communication strategy that should be used as this
will keep the employees focused on their work effectively. In Marks and Spencer it is
recommended to have internal lateral communication using the different channels like message,
voice calls, e-mails etc (Schützler and Reis, 2021). for selling and promote product and services
as this will be effective for the company as this will require less efforts in explaining the

employees a message in different language and also the message would be more clear and
precise to understand.
CONCLUSION
As per above report of International business communication about an organisation
towards business in the foreign developing countries the company must evaluate culture factor
before establishing the business as there is having various form of challenging and barriers of
related culture and communication. The organisation which must utilise the appropriate theory
like Hofetde culture dimension model which explain different ways of culture that follows in
United Kingdom and Indonesia.

REFERENCES
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Online
Hofstede Insights, 2021[online]. Available through:<https://www.hofstede-insights.com/country-
comparison/indonesia/>
Hofstede Insights, 2021[online]. Available
through:<https://www.hofstede-insights.com/country/the-uk/>