E-Tailor's Cross-Cultural Management: Indonesia and New Zealand Report

This report examines the cross-cultural management strategies of E-Tailor, an Australian online clothing retailer, as it plans to expand into Indonesia and New Zealand. The report analyzes internal factors such as communication, business etiquettes, and organizational hierarchy, and external factors including consumer behavior, technology, legal and political environments, and economic conditions. The report highlights the significant cultural diversity within Indonesia, posing challenges in understanding consumer preferences, while New Zealand presents fewer cultural barriers due to its shared cultural background with Australia. The report also discusses the importance of technology and the favorable economic and political climates in both countries. Recommendations include developing cross-cultural teams, establishing an IT department to gather market information, and focusing on value chain optimization. The report concludes that while cross-cultural management presents challenges, it is crucial for achieving monetary growth and expanding the consumer base.

Running head: MANAGEMENT AND BUSINESS CONTEXT
Management and Business Context
Name of the Student
Name of the University
Author Note

1MANAGEMENT AND BUSINESS CONTEXT
Executive summary
This report sheds light on cross-cultural management in terms of promoting e-commerce.
An Australian online retailer of clothing named their shopping application ‘E-Tailor’. This
organisation is thinking in order to expand their business in Indonesia and New Zealand. In this
context, cross-cultural challenges of e-commerce have been evaluated in this report. This report
discusses about E-Tailor app, internal factors, external factors in the context of cross cultural
issues. In Indonesia, more than 300 ethnic groups give priority in speaking their own dialect and
wearing their individual ethnic attire. Hence, in order to understand the consumer behaviour of
Indonesia in terms of buying clothing online is the matter of high challenge. On the other hand,
the culture and religion of New Zealand is Christian. Hence, in order to understand the consumer
behaviour of New Zealand, E-Tailor will face fewer challenges in terms of cross-cultural
context. However, other macro environmental factors of those countries indicate sustainable
growth for the online business of E-Tailor. Cultural diversity in Australia is also discussed in this
report, as the organisation belongs from Australia. Based on this discussion, some
recommendations have been proposed in this report. Thus, it concludes that cross-cultural
management is challenging as well as beneficial in terms of securing monetary growth.

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Table of Contents
Introduction......................................................................................................................................4
Describing E-Tailor in the context of international business..........................................................4
Internal factors.................................................................................................................................6
Communication............................................................................................................................6
Business etiquettes.......................................................................................................................6
Organisational hierarchy..............................................................................................................7
External factors................................................................................................................................7
Consumer.....................................................................................................................................8
Technology..................................................................................................................................8
Legal and political.......................................................................................................................9
Economic.....................................................................................................................................9
Recommendation...........................................................................................................................10
Conclusion.....................................................................................................................................10
Reference list.................................................................................................................................11

3MANAGEMENT AND BUSINESS CONTEXT
Introduction
This report focuses on Cross Cultural Management in terms of developing e-commerce.
This report has been developed in the context of an Australian online retailer of clothing, which
is thinking to expand business in Indonesia and New Zealand. The organisation operates its
business through the shopping application named ‘E-Tailor’. As E-Tailor is going to take
initiation in order to go beyond territorial boundaries, it is necessary to consider cross-cultural
challenges. In the part A of this assignment, effectiveness of performing business via online is
critically evaluated. It is part B of this assignment, which aims to bring into notice about major
internal and external factors in terms of dealing with cross-cultural challenges via online. This
report gives some of the feasible business recommendations based on the cross-cultural
management. Hence, this report discusses about E-Tailor, internal factors, external factors,
recommendation along with conclusion respectively in terms of cross cultural challenges.
Describing E-Tailor App in the context of international business
An online fashion retailing in Australia drives their business operation through E-Tailor
App. At the starting of business, this organisation only sells their products to the Australian
consumers. Recently, this organisation intends to globalise their business. In order to be
successful in business, it is necessary to accomplish consumer needs and expectation. This
organisation targets Indonesia and New Zealand in terms of globalising business. Both Indonesia
and New Zealand have stable economic and political base at the present. On the other hand,
business administration of these two countries is highly coordinated with the foreign investors.
However, the problem is to know the varieties cultures of Indonesia and New Zealand. Until or
unless the organisation cannot know the cultural diversity of those countries, it will not be able to

4MANAGEMENT AND BUSINESS CONTEXT
make any idea of the buying behaviour of those countries. Hence, the organisation needs to
promote their online application in terms of cross cultural communication, etiquettes and buying
behaviour. Being a consumer centric organisation, the purpose of E-Tailor App is to offer
individual consumer exceptional shopping experience irrespective of cross cultural diversity. The
online shopping application, ‘E-Tailor’ facilitates the organisation to automate communication
with the consumers from diversified cultural background. On the other hand, with the help of this
shopping application, the organisation is able to operate their business with less number of staffs.
It is one of the positive factors to take into consideration in terms of globalising business
(Ashraf, Thongpapanl & Auh, 2014). In addition, technological arrangement is also necessary to
take into account for maintaining the operation of the application, ‘E-Tailor’. Being an online
shopping application of clothing, E-Tailor has to consider a number of risks in order to develop
loyal relationship with the cross-cultural consumers. The premium risks associated with online
shopping are - data damage, data breach that are considered in order to threaten privacy of
business. E-transaction system of business is also affected due to breach of data in the online
shopping application (Hwang & Lee, 2012). Hence, the organisation may consider a huge
amount of techbills in terms of expanding business outside of Australia (Kuntz et al., 2013). The
application facilitates the organisation in order to adopt the most suitable structure in order to
perform business operation at cross-cultural context. The functional structure of the shopping
application is divided into marketing, finance, and production and application maintenance.

5MANAGEMENT AND BUSINESS CONTEXT
Internal factors
Communication
Language is one of the premium barriers to deal with cultural differences (Stahl & Tung,
2015). As E-Tailor is thinking to expand their business in Indonesia and New Zealand, the
official language of those countries is necessary to take into account in terms of approaching the
consumers of those countries. In Indonesia, the most spoken language is Malay (Suryana &
Ipnuwati, 2015). On the other hand, the official language of New Zealand is English (Rosebery,
Warren & Lee, 2014). However, a large percentage population in New Zealand speaks in Maori
language (Kuntz et al., 2013). As E-Tailor is an online application, it can offer people to set their
preferred language in order to enjoy their online service. Otherwise, it will be highly challenging
in order to deal with Malay and Maori speaking people for the organisation.
Business etiquettes
In order to deal with cultural differences, business etiquettes need to be one of the
primary considerations (Ray, 2014). Business etiquettes of Indonesia is characterised by meeting,
greeting, handshake, conservative attire (Fajar, 2015). It is necessary to note hereby that
Australia and New Zealand are neighbouring countries (Rosebery, Warren & Lee, 2014). Hence,
Australia is familiar with the business etiquettes of New Zealand (Shangqin, McCann & Oxley,
2013). Therefore, in order to operate business in New Zealand, E-Tailer does not need to face
serious challenges.

6MANAGEMENT AND BUSINESS CONTEXT
Organisational hierarchy
As opined by Ashraf, Thongpapanl and Auh (2014), organisational hierarchy plays an
important role in order to set up organisational behaviour regarding cross-cultural diversity. In
order to deal with different attitudes and expectation of cross-cultural people, the organisation
needs to develop multicultural teams. Organisational hierarchy is necessary to take into account
because their attitudes are considered as the reflection of a country’s societal values (Gallagher
& Savage, 2013). Organisational hierarchy of E-Tailor app needs to have experience of working
beyond cultures and geographical borders.
External factors
Consumer
Consumer interest, expectation, needs and behaviour varies based on cross-cultural
differences. In Indonesia, there are more than 300 ethnic groups, who speak different local
dialects (Musgrave, 2014). Each ethnic group of Indonesia gives priority to their individual ethic
dress up, makeup, festivals (Gesteland, 2012). Hence, in order to understand the consumer
behaviour of Indonesia, the organisation of E-Tailer shopping app needs to consider in collecting
a deal of cultural information of Indonesia. On the other hand, in New Zealand a large
percentage of population belongs from the European background (Rosebery, Warren & Lee,
2014). Hence, Christianity is the predominant culture in New Zealand (Kuntz et al., 2013). Being
an Australian shopping application, E-Tailor will face fewer challenges in terms of offering the
most appropriate fashion clothing to the New Zealand’s consumers.
The organisation has started their business from Australia. Hence, cultural diversity in
Australia is also necessary to take into account in this context. Australia is a country of a large

7MANAGEMENT AND BUSINESS CONTEXT
number of cultural differences. A larger percentage of population in Australia belong from the
England. Therefore, main speaking language in Australia is English. More than 200 languages
are spoken in all over the Australia (Piyakul & Chomeya, 2012). Around 26% population of
Australia belong from New Zealand and China. Hence, the organisation has experience in
dealing with cross-cultural diversity. It is expected that this experience will help the organisation
in studying the consumer behaviour in Indonesia and New Zealand.
Technology
Being an online shopping application, E-Tailor app is completely dependent on
technology. Auto update of the online application and cyber security are necessary to take into
account in order to facilitate excellent experience of online shopping to consumers (Ur & Wang,
2013). In addition, technological factors of the countries affect business in terms of managing
resources, demand and production (Kuntz et al., 2013). The Indonesian Ministry of ICT has
announced a new e-commerce roadmap by which Indonesian government will be able to support
1000 new ‘technopreneurs’ by the year 2020 (Suryana & Ipnuwati, 2015). In addition, Indonesia
has exclusive growth in terms of digital innovation. More than 252 million people of Indonesia
who are aged 39 or below 39 are considered highly tech savvy (Gesteland, 2012). Internet access
is available to more than one-third people in Indonesia (Piyakul & Chomeya, 2012). Most of the
people in Indonesia prefer to use internet through smartphone. All these situations are preferable
in terms of fulfilling business expansion in Indonesia. Technological innovation sector in New
Zealand is dynamic (Stahl & Tung, 2015). Therefore, the organisation can enjoy all advancement
of technology in terms of making their business successful. However, online retail business in
New Zealand is highly competitive. In that case, the organisation has to meet high challenge
from the low cost bulk competitors in that country.

8MANAGEMENT AND BUSINESS CONTEXT
Legal and political
Indonesia and New Zealand both are considered as the premium hubs of Foreign Direct
Investment (FDI) due to excellent political and legal support. Legal and political framework in
Indonesia is supportive in terms of boosting global investor confidence (Fajar, 2015). On the
other hand, New Zealand’s legal and political system is developed according to the British model
(Shangqin, McCann & Oxley, 2013). Therefore, E-Tailor’s decision of investing in the online
market of New Zealand is a wise decision. In terms of securing multicultural consumers, these
situations are undoubtedly favourable.
Economic
At the present, Indonesia is one of the premium hubs in leading global economy (Janita &
Chong, 2013). New Zealand also has a high degree of economic stability. In Australia, E-Tailor
has to consider poor protection of property rights in terms of doing online business. However, in
New Zealand, the organisation will receive a great support in terms of protecting the rights of
property (Shangqin, McCann & Oxley, 2013). Hence, E-Tailer can achieve a vast population of
cross-cultural consumers from Indonesia and New Zealand.
Recommendation
 E-Tailor should develop cross-cultural teams.
 E-Tailor needs to recruit in organisational hierarchy the people who have excellent sense
of working beyond cultures and geographical borders.

9MANAGEMENT AND BUSINESS CONTEXT
 E-Tailor ought to develop a department of Informational Technology in terms of knowing
cross cultural information, buying behaviour, consumer needs, online marketing trend of
Indonesia and New Zealand.
 E-Tailor needs to focus on establishing excellent value chain.
Conclusion
From the above discussion, it is extracted that cross-cultural management is highly
challenging, but beneficial in terms of securing excellent monetary growth. Expanding business
in Indonesia, E-Tailor can develop a large percentage of cross-cultural consumers. Knowing the
culture of a large number of Indonesian ethnic groups is a matter of high challenge definitely.
However, the other macro environmental factors like technology, political, legal and economic
stability of Indonesia will help E-Tailor to meet cross-cultural challenges positively. The culture
and religion of Australia and New Zealand are same kind of. Hence, belonging from the
Australia, E-Tailor will not face a high amount of challenges in terms of satisfying the
consumers of New Zealand.

10MANAGEMENT AND BUSINESS CONTEXT
Reference list
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