Managing Global Business Environment

Running head: MANAGING GLOBAL BUSINESS ENVIORONMENT
MANAGING GLOBAL BUSINESS AND ENVIRONMENT
Name of the Student
Name of the University
Author note

1MANAGING GLOBAL BUSINESS ENVIROINMENT
Comparative analysis
Hofstede’s Cultural Framework
Power distance in Australia is very less. It has an index of thirty six. Inside an
Australian organisation, hierarchy is constructed because of their convenience. Top level
management of a company is always accessible to the sub-ordinate staffs. Managers have
faith on the individual employees. Both the managers and employees are consulting.
Information is shared very frequently among employees. In this case, communication will be
informal, direct and participative. According to Hofstede, within individualist societies,
people are supposed to look after themselves. In this particular aspect, Australia scores
ninety. It indicates that Australia has a high individual culture. It helps to convert the
Australian society into loosely-knit society. In this particular society, people look after
themselves and their family members. In case professional world,
In case Power of distance, Saudi Arabia scores very high. It means that, in that
country, people believes in hierchical order in which every citizen of the country has position.
It needs further justification. Hierarchy inside an organisation is observed because it reflects
inherent qualities and centralization becomes very popular. Subordinate employees of an
organisation highlights what needs to be done. In case of individualism, Saudi Arabia scores
twenty five. It indicates that Saudi Arabia is a collectivistic society. It leads to a long term
communication to the member group. It can be family, extended family or extended
relationship. In this particular case, loyalty is very important. It exceeds other social rules and
regulations. The society may force them to go into a strong relation in which every person
has the ability to take responsibility for their fellow members. In collectivist societies,
offence leads to loss of respect of a person. In this case, employee relationships are treated as
a moral terms.

2MANAGING GLOBAL BUSINESS ENVIROINMENT
Comparison in the basis of theoretical framework
Acculturation theory
Australia is treated as the multi-cultural country. For that reason, it is very easy for the
migrants for keeping their heritage culture (Radzi 2020). According to a recent survey, there
are more than three hundred people who adopt Australian culture. It is also known as
“Australian Acculturation”. They have a greater personal well being. But Australian does not
lead more on the Australian well-being if talented migrants do not adopt the Australian
culture (Liu et al. 2020). Many researchers mention that poor acculturation leads to social
isolation.
In case of Saudi Arabia, there are various types of dialects (Rattrie, Kittler and Paul
2020). There is no similarity of the dialects between eastern and western part of the Saudi
Arabia. Many researchers say that it may create social distance between Saudi Arabia and
other Arabic countries.
Modernization theory
Due to advancement of several technologies, there is a increase in the modernization
in the Australia (Silva and Moreira 2020). It includes manufacturing of car and development
of public infrastructure. Entertain and recreation industries have a vital role in the
modernization of culture of Australian society.
In case of Saudi Arabia, more investments are done in the area of sustainable energy,
tourism and entertainment villages with respect to sports, movie, theme parks and many
others (Thursfield et al. 2020). It helps to the modernization of Saudi Arabi.
Global business environment
Australian economy is a very growing economy. It has a very less unemployment
rate. They have a strong financial system. Up to 2012, Australia had experience more than
twenty years of the economic growth. The average economic growth is 3.5% per year. China