Cultural Differences in International Business: Australia & Singapore

This report delves into the cultural differences between Australia and Singapore within the context of international business. Utilizing Hofstede's Cultural Dimensions, the study provides a detailed comparative analysis, highlighting key distinctions in areas such as power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence. The rationale for selecting Australia as the host country is explored, along with a detailed examination of unique cultural components in the Australian workplace, including work hours, organizational hierarchy, social interactions, office layouts, and communication styles. Furthermore, the report offers strategic recommendations for foreign companies operating in Australia, emphasizing the importance of adapting to local cultural norms. The findings are intended to assist businesses in navigating cultural barriers and developing effective international business strategies.

Running head: ISSUES IN INTERNATIONAL BUSINESS
Issues in International Business
Name of the student:
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Executive summary
This study is based on finding the cultural differences in between the learner’s home country
Singapore and the host country Australia. The study shows the cultural differences by using the
Hofstede’s Cultural Dimension. The paper has shown the usefulness of the model by finding
ample of cultural differences in between Singapore and Australia. Moreover, it is a useful for
those who wish to compare the cultural values of one country with another. Furthermore, this is
also helpful for the foreign companies as it guides them to a diverse culture practiced in
Australia.

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Table of Contents
Introduction......................................................................................................................................3
a. The rationale of Australia............................................................................................................3
b. Detailed cultural analysis of Australia.........................................................................................4
c. Difference between the business culture of Australia and Singapore..........................................6
d. Recommended international strategies for foreign companies in Australia................................9
e. Conclusion.................................................................................................................................10
f. References..................................................................................................................................12

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Introduction
Business expansions are much in practice because of its benefits. Many multinational
companies have used this strategy to enhance their business expertise and the profitability.
Companies across the globe look for potential market to use the opportunities, which is there
(Lynch & Jin, 2016). However, such expansions on the other side are full of challenges too.
Despite the benefits that an international expansion can produce it is still a matter of serious
concern for one important factor. Culture and global business has become a retarding block in
the way of success. It is imperative for the aspiring company that it dislodges the block with
suitable strategies to counter the cultural differences in between the home and the host country.
This seems to be a challenging task as it requires an extra attention apart from other business
strategies (Sarasvathy et al., 2014). In this regard, taking the help of Hofstede's cultural
dimensions to understand the cultural differences of the two countries can be an effective
strategy to move with. Moreover, this is really helpful while expanding into an international
market (Hsu, Woodside & Marshall, 2013). The main purpose of this assignment is to analyze
the cultural differences in between Australia and Singapore. Moreover, the study also suggests
some important points of consideration to avoid any cultural barriers while planning a business
in the selected host country Australia.
a. The rationale of Australia
The rationale behind selecting Australia as a host country is that the learner is working in
an Australian company. The learner is little aware of the culture, which is there in Australia. The
learner has found some useful differences in the cultures of two countries Australia and
Singapore. This is the one reason that has probably excited the learner to select Australia as the

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host country because this will help the learner in knowing more about the culture of Australia.
This will help the learner in performing better in the country and will also help to get connected
to the country’s culture. Moreover, the cultural differences in between Australia and the learner’s
home country Singapore will provide utmost findings using which the learner can effectively
analyze the changes required to be flexible with the cultural differences in Australia (Ferraro &
Briody, 2017). Another rationale behind selecting Australia is to understand the differences of
business cultures in between the two countries. This will help the learner in its academic. After
completing the task, the learner will be able to know the ways to analyze the cultural differences
in between the target and the home country (Stromquist & Monkman, 2014).
b. Detailed cultural analysis of Australia
There are some notable cultural components that are unique when compared with any
Asian countries in particular with the Singapore. Australia is unique to Singapore when it comes
to working hours. In Australia, people have their tendency and its official as well to reach to
office early in the morning and finish the work early as well. They do so to spend important
moments with their families in the later part of afternoon and in the evening. This is entirely
different to what is practiced in Singapore. People living in Singapore not even bother to be in
office by 11 o’clock. They are late as well in the night when they leave the office. In other
words, it means that they have comparatively less time for their families (Williams, Long &
Morey, 2014).
Organizational hierarchy is the other uniqueness that Australia has. It means that in
Australia bosses are not treated the way it happens in Asian countries especially in Singapore.
The bosses or the managers used to sit on the floor with the other colleagues and the employees.

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This is never possible in Singapore. Additionally, the cleaner who cleans the floor in Singapore
gets an equal respect like that of a sales manager in Australia. There is no unnecessary respect to
the boss of the company, which is easily prevalent in Singapore. There is no separate cabin for
the mangers in Australia. They are comfortable sitting with the employees on the floor (Neuhaus
et al., 2014).
Australia is also unique in socializing activities. They wait for an event to get socialize
with their colleagues. They also use to have drinks on Friday afternoon. There are often too
many breakfasts in the morning. In Singapore, it is little different. They are reserved for their
families in the weekends. They do every social activity such as haring of foods on weekdays.
They consider sharing of food as a way to attain the social status. Australia is different to
Singapore as they also believe in going outside to act social (Dare et al., 2014).
Office layout is the one uniqueness in Australia, which is observed nowhere else in the
world. Australian believes in designing their offices to prepare it look like local. The image of
kangaroo on the wall is one of such examples. Australians are very creative in this regard. They
give their utmost effort to appear local. This is very important because being an Australian one
will feel free to fly high in the office. They have gone a long distance to prepare the offices
matching the local touch (Soldan & Nankervis, 2014).
Asking questions is another uniqueness that the Australian workplace has. In Australia
people do not wait for a meeting or any formal discussion. They rather bombard the CEO
passing by the workplace with ample number of questions in a casual way. However, this is
exactly not the case in Singapore. People there wait for a formal meeting. They prepare

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themselves before the meeting on what are the questions to be asked. However, in Australia,
people do not warm um before they ask any question to the boss (Grunseit et al., 2013).
c. Difference between the business culture of Australia and Singapore
Figure 1: Hofstede’s Cultural Dimensions of Australia & Singapore
(Source: Beugelsdijk, Kostova & Roth, 2017)
Power distance-
Australia scores exactly half that of Singapore. It means that there is less distance
between the different powers. It further means that every single member get fare chances at the
workplace. One of such examples is of asking questions, which employees randomly ask to their
CEO or boss without any formal meeting. The office layout is designed in a way that the CEO or
the boss of the company has no separate cabin as it happens in Singapore (Wise & Velayutham,
2014).

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Singapore is significantly different to Australia in terms of power distance. There is
communication gap in between the CEO and the normal employee. Additionally, employees
need to plan a meeting before they could ask any business related question to the CEO (Wise &
Velayutham, 2014).
Individualism-
Australia score a way more than what Singapore scores. This means that individualist is
more required in Australia. It further means that if someone is aspiring to work in Australia the
aspirant need to possess the deliverable qualities. Only such aspirants are selected who can
deliver or has the potential to deliver (Wise & Velayutham, 2014).
Singapore on the other hand is very less centered on individualistic. This further means
that exploration for growth will be comparatively less in Singapore (Wise & Velayutham, 2014).
Masculinity-
Again in terms of Masculinity, Australia scores more than Singapore. This means that
competition for success and recognition is much in Australia than it is in Singapore. This further
means that utmost competitive skills will be required to be successful in Australia. In a more
defined way, it means that success is for those who can deliver (Wise & Velayutham, 2014).
Uncertainty avoidance-
In terms of uncertainty avoidance, Australia scores far more than what Singapore scores.
It simply denotes a fact that Australian are less concerned with the uncertain future. They tend to
live in the present condition. Singapore in an unlike way is more concerned with the uncertain
future. They are worried about that. It is not a healthy sign as thinking of an uncertain future

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might lead to a reserving nature in terms of innovation. Managers might not gather that power,
which is needed to trust in innovative ideas (Wise & Velayutham, 2014).
Long term orientation-
Australia scores quite low to Singapore in terms of long term orientation. This means
they focus more on present. They try to improve the current situation rather than going for a long
term planning. They respect the present and work accordingly. This is good as this will prevent
from any worrying thought about the future (Wise & Velayutham, 2014).
Indulgence-
Australia is more an indulgent society that believes in living the life on their will. They
are very positive towards what they do. A very high score than what Singapore scores mean that
people living in Australia will not hesitate to live the life of their choice. They will spend money
where they feel it should be spent. They will work according to their desire. They will spend
money on their cultural beliefs. They will spend money on fun moments, which can be either
through an outing or spending moments with friends with some drinks and foods (Wise &
Velayutham, 2014).

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d. Recommended international strategies for foreign companies in Australia
Figure 2: Hofstede’s Cultural Dimensions of Australia & Singapore
(Source: Beugelsdijk, Kostova & Roth, 2017)
Hofstede’s Cultural Dimension on Australia has provided ample of facts related to the culture
practiced in the country. It is imperative for the international companies that they must
understand those cultural facts and act accordingly. Globalization has brought multinational
companies of different origin at just one platform. International places provide challenges in the
form of diverse culture that make this difficult to succeed in the target host country (Sitkin &
Bowen, 2013).
There are ample of cultural challenges, which are needed to be taken care with extensive
strategies. It is imperative that a foreign company understands that there is no such difference
in between the CEO of the company and the employees in terms of respect. It means that a
foreign business can never expect employees respecting them like it happens in most part of

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world in particular the Singapore. Foreign companies need to have a human resource system that
understands the quality of employees available in Australia. They need to prepare their selection
criteria according to the type of employees in the country. This will make the selection process
handful and will also help in get the ample amount of talented professionals. Foreign companies
are needed to be optimistic about their future. They should not worry about the future, which
means they should act differently than they do at their home country. Moreover, they should
think of their present in a positive way without bothering much for an uncertain future (Wilson &
Wilson, 2016).
Foreign business does also need to understand that Australian people work according to
their will. It means that foreign companies need to be patient with the diverse culture in
Australia. They should not expect the same kind of work habits as it is in other parts of world
especially in Singapore. They need to understand the differences and move patiently with the
employees. This way foreign company will actually be able to correlate things (Skinner &
Pocock, 2014). Additionally, the foreign companies also need to understand that Australian do
not believe in working till late night. They rather prefer going to office early and returning back
early as well. If they do understand they will find this lot easier to work with the Australians
(Brunetto et al., 2013).
e. Conclusion
There is a strong cultural difference in between Australia and Singapore. Australia is
more about respecting each other’s works, which is comparatively rare in Singapore. Australian
likes to enjoy their working; however, people in Singapore believe in doing hard work.
Additionally, Australians are very optimistic about their future. The discussions covered in this

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study indicate towards a fact that it is necessary to change significantly to get use to the cultures
in Australia. This way foreign company can actually find this lot easier working with the
Australian people.

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f. References
Beugelsdijk, S., Kostova, T., & Roth, K. (2017). An overview of Hofstede-inspired country-level
culture research in international business since 2006. Journal of International Business
Studies, 48(1), 30-47.
Brunetto, Y., Xerri, M., Shriberg, A., Farr‐Wharton, R., Shacklock, K., Newman, S., & Dienger,
J. (2013). The impact of workplace relationships on engagement, well‐being,
commitment and turnover for nurses in Australia and the USA. Journal of Advanced
Nursing, 69(12), 2786-2799.
Dare, J., Wilkinson, C., Allsop, S., Waters, S., & McHale, S. (2014). Social engagement, setting
and alcohol use among a sample of older Australians. Health & social care in the
community, 22(5), 524-532.
Ferraro, G. P., & Briody, E. K. (2017). The cultural dimension of global business. Taylor &
Francis.
Grunseit, A. C., Chau, J. Y. Y., van der Ploeg, H. P., & Bauman, A. (2013). “Thinking on your
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Williams, P., Long, W. R., & Morey, P. (2014). Anytime Email and Work-Life Balance: An
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