Business Expansion: Cultural Analysis in Australia - A Case Study

This case study examines the cultural aspects of expanding a US-based custom furniture business into Australia. Faced with declining sales in the United States, the company aims to leverage the Australian market. The analysis focuses on cultural differences between the US and Australia, utilizing ...Read More

Running head: CASE STUDY ANALYSIS
CASE STUDY ANALYSIS
Name of the Student
Name of the University
Author Note

1CASE STUDY ANALYSIS
Introduction
The case study is based on the organization that has been developed by John Ferrer
and Deborah. The organization mainly operates in the custom furniture based industry. The
organization was established in the year 2002 and had been able to show immense levels of
growth by 2006. The company is however aiming at expanding its business operations as the
sales have started declining in the United States. The presence of many other similar
organizations have a major negative impact on the revenues of the company as well (Barthel-
Bouchier, 2016). The country which has been chosen for the expansion of the company is
Australia.
Analysis of the cultural aspects
The expansion of the operations of the business in another country is based on
different cultural differences that exist between the countries. The knowledge levels of people
who are a part of the two countries have a major impact on the ways by which the
organization will be able to operate in a different country. The organization that has been
considered in the case study has started its operations in the United States. The owners of the
company however plan to expand the operations in another country as they are experiencing
losses in the United States (Lu, Chi & Lu, 2017).
I, as the marketing manager of the organization have been provided with the
responsibility of making plans related to the expansion in another country for the purpose
increasing the levels of profitability and revenues. The country that I have chosen for
expansion of the company is Australia. The business based environment in the United States
has become highly competitive in nature. This has led to the decision that has been taken
based on the expansion of the organization in Australia (Minton, Kahle & Kim, 2015).
However, the company will not be able to develop its position easily in the furniture industry

2CASE STUDY ANALYSIS
in an effective manner due to the competitiveness and cultural differences between the two
countries. The analysis of cultural factors will be the most important responsibility that I have
been provided by the owners of the company. The cultural environment of the country will
have a major impact on the operations of the company (Saucier et al., 2015).
Comparison of the United States and Australia – Hofstede’s cultural dimensions can
be used for the analysis of differences between the cultures of the United States and
Australia. The score based on power distance based factor of the model is quite similar for
the two countries in which US has received 40 and Australia received 36
(Countrynavigator.com., 2019). On the other hand, the individualism based score are 61 for
US and 62 for Australia which is considered to be quite close. The uncertainty avoidance
related factor of the two countries are different with scores of 51 and 46 for the US and
Australia respectively (Worldbusinessculture.com., 2019).
The long term orientation of the organization has received scores of 21 and 26 for the
US and Australia. The levels of indulgence of the two countries are quite different from each
other with scores of 71 and 68 for US and Australia (Hofstede-insights.com 2019). I can
suggest to the owners of the company that the culture of the new country will not have any
negative effects on the current strategy which has already been implemented. The
organization can start its operations in Australia by continuing the usage of the strategy that
had been used earlier (Thomas & Peterson, 2017). The dress code and working hours in the
US and Australia are quite different from each other. This will have a major impact on the
communication process and meeting based time as well (Languagetrainers.co.uk. 2019).
Conclusion
The analysis can be concluded by stating that the company can plan to expand its
operations in Australia with the similar strategies that had already been used in the United

3CASE STUDY ANALYSIS
States. The company can use similar approaches in order to expand its operations in Australia
and increase the profitability levels and revenues in an effective manner. The expansion of
operations will play a key role in the wats by which the company can improve its current
position in the industry.

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References
Barthel-Bouchier, D. (2016). Cultural heritage and the challenge of sustainability.
Routledge.
Countrynavigator.com. (2019). 15 cultural differences between USA and Australia. Retrieved
from https://countrynavigator.com/blog/global-talent/usa-and-australia/
Hofstede-insights.com (2019). Country Comparison - Hofstede Insights. [online] Hofstede
Insights. Available at:
https://www.hofstede-insights.com/country-comparison/australia,the-usa/ [Accessed
24 Jan. 2019].
Lu, A. C. C., Chi, C. G. Q., & Lu, C. Y. R. (2017). Sensation seeking, message sensation
value, and destinations: A cross-cultural comparison. Journal of Hospitality &
Tourism Research, 41(3), 357-383.
Minton, E. A., Kahle, L. R., & Kim, C. H. (2015). Religion and motives for sustainable
behaviors: A cross-cultural comparison and contrast. Journal of Business
Research, 68(9), 1937-1944.
Saucier, G., Kenner, J., Iurino, K., Bou Malham, P., Chen, Z., Thalmayer, A. G., ... &
Çankaya, B. (2015). Cross-cultural differences in a global “survey of world
views”. Journal of Cross-Cultural Psychology, 46(1), 53-70.
Thomas, D. C., & Peterson, M. F. (2017). Cross-cultural management: Essential concepts.
Sage Publications.
Worldbusinessculture.com. (2019). Successful Entertaining in Australia | World Business
Culture. Retrieved from

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https://www.worldbusinessculture.com/country-profiles/australia/culture/business-
meals-entertaining/
Languagetrainers.co.uk. (2019). Key Differences Between Australian, American and British
Work Culture | Language Trainers UK Blog. Retrieved from
https://www.languagetrainers.co.uk/blog/2016/09/19/key-differences-between-
australian-american-and-british-work-culture/