Arnott's Expansion to Canada

The assignment examines the feasibility of Australian biscuit company Arnott's expanding its operations to Canada. It compares Canadian and Indonesian work cultures using Hofstede's cultural dimensions to assess compatibility. The analysis considers factors like work ethics, communication styles, and individualism/collectivism. Ultimately, the paper argues that Arnott's cultural alignment with Canada presents a promising opportunity for expansion.

Running head: INTERNATIONAL BUSINESS
International Business
Name of Student
Name of University
Author Note

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Executive Summary
The report focuses on the importance of international business and the manner in which
organisations need to compare the business prospects of different countries before expansion.
The report takes into account an Australian company Arnott for the promotion of its product,
Tim Tam. Comparison is made between Canada and Indonesia using Hofstede’s cultural
dimension model. The six dimensions that affect business in these two countries are analysed.
Comparison is made with Australia to understand the country most suited for the expansion.
After the analysis it is seen that Arnott can expand its business in Canada due to the similarity
of business factors in both the countries.

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Table of contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Comparison of the countries......................................................................................................3
Conclusion..................................................................................................................................6
Reference....................................................................................................................................8

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Introduction
International business is one of the most important aspects that every manager needs
to undertake for the expansion of the opportunities of an organisation. To do so it is necessary
to access the environment of a country in which the business is targeted to expand (Russo &
Fouts 2017). The assignment provides the analysis of two countries, Canada and Indonesia in
which an Australian company, Arnott wants to promote its product, Tim Tam. Canada is a
developed country having the fifteenth-highest nominal per capita income. Business in
Canada can be suited due to the existence of economic freedom and quality of life in the
country. On the other hand, Indonesia is an archipelago and is one of the important regions
for trade since early civilisation. Business is Indonesia can be risky due to the existence of
native ethnic and linguistic groups. The assignment makes detailed comparisons about the
business form in both the countries.
Comparison of the countries
Canada is considered as a developed country with high development in the Human
Development Index and in the economy. Trade relations between Canada and the USA are
string owing to the advantages it has for being neighbouring countries. For a country like
Australia, an analysis needs to be made on the business environment that exists in the
country. The comparison is made by using Hofstede’s cultural dimension in an organisation
(Hofstede-insights.com 2018).
The analysis of Hofstede’s cultural dimensions shows that the power distance in
Canada marked by the interdependence it has on the individuals. This is mainly because the
people of the region do not entertain the thought of class distinction in societies. The people
of Canada value a straightforward exchange of information within the organisations.
Individualism refers to the ability of employees to work in a group. In this case, the analysis
shows that the rate of individualism is high in Canada. This indicates the fact that people
look after their own need and are reluctant to provide necessary support required for success
in the business (Samaha, Beck & Palmatier 2014). The two dimensions counter one another,
as, despite the low power distance, the employees of Canadian organisations tend to support
one another easily.

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The masculinity score of 52, in the Canadian organisations, signify that
competitiveness exists with the organisation as well as outside. Every employee aims to
achieve success and because of it, the productivity of the organisations can improve rapidly.
The work-life balance in the country also exists despite the urge to achieve success. Due to
the competitive nature, organisations in Canada accept the uncertainty that is present in
front of them (Larsen, Smith & Rosenbloom 2015). They tend to be involved in innovating
products and aim to try out new ventures. The culture is also less expressive and tends to
break certain rules in the organisational setting.
The analysis of the long-term orientation indicates that Canada respects the tradition
of the land along with being innovative and adjusting to the modern society. Organisations
are normative in their thinking and believe in achieving quick results for success. However,
as observed by Mathews et al. (2016), the Canadian people remain positive and have a
tendency to be optimistic in their work approach. The indulgence to control desires is less
among the Canadian people. They spend a high amount of time on leisure to allow for
spending more money to have personal fun time. Thus, it can be said that the Canadian
cultural dimension displays positive results that can be exploited by Arnott while trying to
promote their new product.
Figure 1: Comparison between Canada and Indonesia
(Source: Hofstede-insights.com 2018)

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On the other hand, the power distance in Indonesia is high that signifies the fact that
the organisations depend upon hierarchy. There exist unequal rights between power holders
and non-power holders that make it difficult for employees to work in a united method. The
overdependence on the employers makes the employees vulnerable in taking decisions
related to managerial activities. The level of individualism is low which means that the
people of the country believe in collective working experience. They treat the employees with
respect and remain dependent on the instructions that need to be provided to them. Thus, as
observed by Meenaghan (2017), the two dimensions can be related due to the level of
interdependence that is observed in the characteristics.
Similarly, it is seen that the Indonesian people are low on masculinity level. The
position of a person is considered more important than the competitive nature of the business.
People seem to value equality, however; this is not present in the country due to a high power
distance that exists between the employees and employers. Due to the existence of
collectivism, decisions regarding organisations are taken using a collective method. It is also
seen that the Indonesian culture have a low level of uncertainty avoidance. This means that
the people value the work environment and the bad news is not spread within the organisation
that may disrupt workplace balance. In other words, the people do not indulge in taking up
challenging tasks for the betterment of the organisation (Armstrong et al. 2015).
The analysis of the long-term orientation culture shows that Indonesia has a
pragmatic orientation towards the society and work culture. People tend to believe that the
truth depends upon the situation and tries to adapt the traditions with the change in the
modern society. The people show an ability to save and invest along with the required
perseverance to achieve the desired results. This can be attributed to the fact that in the
Indonesian culture, the managers enforce upon changes (Baker & Saren 2016). The
indulgence result shows that Indonesian people are more pessimistic. The people are restraint
in their activities and do not indulge in leisure time fearing the loss of jobs. Hence, the desires
of the individuals are not fulfilled due to a negative attitude towards work and life.
Hence, after the analysis of the cultural dimensions of both the countries, it can be
said that in order to expand their business in the international borders, Arnott can look to
expand its business in Canada. This is mainly because of the fact that the organisational
cultural dimension in Canada is similar to that in Australia. The power distance in Australia
consists of equality of rights for both the employees and the employers. Keegan & Green

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(2015) observed that the individualist culture is similar to that followed in Canada. Apart
from this, the high masculinity and the interest to take up challenges can help Arnott to gain
success in the markets of Canada.
Hence, it can be said that with the similarity in the nature of work done along with
work culture and the similar mentality of the people, Arnott can blend in well in the
marketing environment of Canada. Koh & Wong (2015) stated that despite Indonesia being a
successful country in terms of establishing trade relations with other countries, the dissimilar
nature of the work culture might have a negative consequence for the expansion of the
organisation as well as the product.
Figure 2: Comparison between Australia, Canada and Indonesia
(Source: Hofstede-insights.com 2018)
Conclusion
Hence, it can be said that to stage an international business it is necessary for an
organisation to undertake a proper analysis of the various factors that govern the business
environment. External as well as internal analysis is required that signifies the convenience of
location. Analysing the work environment culture by using Hofstede’s cultural dimension is
an important strategy that companies can take to match the compatible nature of the business.

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In the case of the Australian company Arnott, the compatibility of the company matches with
the Canadian culture thereby, providing an opportunity to expand its reach in the country.
The fact that the nature of the business is competitive and the people develop a proper work-
life balance can help the employees to continue its effective production of the product Tim
Tam and look for further growth.

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Reference
Armstrong, G., Kotler, P., Harker, M. & Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Baker, M.J. & Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Hofstede-insights.com 23 Jan. 2018. Compare countries - Hofstede Insights,
https://www.hofstede-insights.com/product/compare-countries/
Keegan, W.J. & Green, M.C., 2015. Global marketing. Upper Saddle River, NJ: Pearson.
Koh, A.C. & Wong, J.K., 2015. The Impact of International Marketing Research on Export
Marketing Strategy: An Empirical Investigation. In Proceedings of the 1990 Academy of
Marketing Science (AMS) Annual Conference (pp. 172-175). Springer, Cham.
Larsen, T., Smith, B.A. & Rosenbloom, B., 2015. Culture and Communication in
International Marketing Channels. In Global Perspectives in Marketing for the 21st
Century (pp. 13-14). Springer International Publishing.
Mathews, S., Bianchi, C., Perks, K.J., Healy, M. & Wickramasekera, R., 2016. Internet
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Meenaghan, T., 2017. The role of sponsorship in the marketing communications
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Samaha, S.A., Beck, J.T. & Palmatier, R.W., 2014. The role of culture in international
relationship marketing. Journal of Marketing, 78(5), pp.78-98.