National Culture in Australia

Introduction – For doing business in successful manner required understanding of culture as what work in our country may not work in other country where we plan to initiate business hence it is necessary to understand the national culture of the country where we planned to operate business.  In this research project we will try learn the importance of national culture for business and the new entrance who want to expand their business in country other than the country in which they have already business operation. We analyse the helps of national culture in business operation for the multinational and transnational organisation. We also analysed the country wise national culture and their importance in business for that particular country, comparison between different country’s national culture and their contribution in business, chances of setting up of business etc in whole research project. Whole research project will be helpful to understand the what is national culture of country, How national culture of any country help for expansion of business for any organisation, what kind of national culture are required for inviting more organisation for business in the country. 

National Culture – Definition given by professor Greet Hofstede National culture is “The collective programming of the mind of distinguishing the member of one group or category of people from other.” They define the national culture of any country have six dimension i.e. Individualism, Power Distance, Muscularity, Uncertainty Avoidance, Long term orientation and Indulgence. As well as all the dimensions of national culture have some different value in national culture of country.

Other definition of national culture is “The set of behaviours, Norms, Customs and belief that exist between the populations of sovereign nation.” National culture of any country reveal their way of leaving, earning, Clothing, competition, Rules and regulation, education, language and many other things through this any company can understand advantage available for him within the country.  Multinational company create there management, environment within the organisation and other practice based on national culture of country in which they are operating their business. Each country has their own national culture, which we have to understand before initiating business.

Importance of national culture for corporation seeking to operate in Global Business environment –

Cultural awareness of the country in which we planned to operate business have many importance in business. Before initiating any business in the country other than own country we have to idea about their culture as which is considered as good in one country may be considered as insult in other country. As initiation of any business requires marketing, investment, workforce and understanding of the language with that one more thing is necessary is that understanding of the culture of that country.  Day by day business is become very closer to the global environment. Every company expand and mobilize their business on cross boarder so importance of the national culture is increased.

Benefits of Cultural Awareness

Understanding of cross border culture for initiating business has following benefits –

·        Communication – First and foremost requirement of any business is communication.  Communication in strange country in only possible when we have  understanding of language, body language and sign of that particular country as one cannot communicate without understanding of all this things  one cannot communicate with the strange people. Hence cultural understanding has an added advantage for communication.

·        To motivate team member – Second most benefit of cultural understanding is to motivation to the local team member of that particular country. This also required understanding of national culture.

·        Increase Confidence – Cultural understanding of country in which planned to operate business increase confidence to initiate business in the country as we have idea about the country and their behaviour which make us more confident in decision. 

Business implication of national culture –

As we have seen the benefits of national culture and its importance of national culture. But how can we take better decision by understanding the national culture is depends on the understanding of business implication of national culture. Some of business implications of national culture are as under –

·        Success of Business – Every successful business require analysis and understanding of the country’s culture based on which marketing, packing, Pricing can be done which generate higher business. We can say that understanding of culture is road to success for any business.

·        Increase profitability - Through the understanding of national culture of the country organisation can improve its profitability. As profitability of the company are depending on the sale of the products. Product can only sold when it is as per the requirement of the customer, packing of the product are as per the choice of people of country and products are available within the budget of that country. Hence by way of understanding of culture of that nation, management of organisation can understand the like and dislike of  the people in the country for that particular products, budget based on which price of the product can be decided and other factor necessary for launching of product. Hence understanding of culture also helps to increase turnover, profitability and better quality of service. 

·        Expand Business quickly – Increase in sales and increase in profitability helps to grow rapidly in the new business environment as well.

·        Recovery of investment –  Any new business and current business in new market require high amount of investment for the set up of plant and machinery , technology, marketing and recruitment which are recover only when we have understanding of culture otherwise organisation have to bear huge amount of loss which may impact going concern of the organisation hence any new investment require analysis of the understanding new culture and organisation’s capacity to change internal environment according to the new culture.