Identifying cultural differences to internationalize Getama Furniture Company from Denmark to Australia and analyse its managerial Implications.

Focusing on Getama Furniture Company
Analyze the Managerial Implications of Identified Cultural Differences
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Tutor
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DateTable of Contents
TOC o “1-3” h z u Statement of Problem PAGEREF _Toc507749424 h 4Choice of Model and Method of Analysis PAGEREF _Toc507749425 h 6Problem Treatment (Analysis): Cultural Differences between Denmark and Australia PAGEREF _Toc507749426 h 7Corporate Social Responsibility Value PAGEREF _Toc507749427 h 7Business Attitude PAGEREF _Toc507749428 h 7Organizational Hierarchy PAGEREF _Toc507749429 h 8Interdependence among People PAGEREF _Toc507749430 h 8Source of Motivation PAGEREF _Toc507749431 h 9Dealing with Uncertainty PAGEREF _Toc507749432 h 9Maintaining Relationships with the Past (Mentality towards Time) PAGEREF _Toc507749433 h 10Impulse and Desire Control PAGEREF _Toc507749434 h 10Managerial Implications of the Cultural Differences for the Getama Furniture Company Managers PAGEREF _Toc507749435 h 12Conclusion PAGEREF _Toc507749436 h 14References PAGEREF _Toc507749437 h 15Appendices PAGEREF _Toc507749438 h 17Appendix 1: Denmark’s Cultural Dimensions and Scores PAGEREF _Toc507749439 h 17Appendix 2: Australia’s Cultural Dimensions and Scores PAGEREF _Toc507749440 h 18
Introduction
As organizations remain to grow across boundaries and the international marketplace is increasingly becoming more accessible for large and small enterprises similarly, there are more openings for firms to operate internationally (Sarala and Vaara 2010, p.

1365). Cross-cultural and multinational teams are also turning to be ever more alike, implying that companies can gain from a growing varied talent base with intuitive techniques for business matters. Nevertheless, together with the gains of skills and knowledge, international organizations are also exposed to possible uncertain obstacles when it comes to international business and culture (Abdellatif, Amann and Jaussaud 2010, p. 613). Although many ways can be used to define culture, the simple definition is a series of common values that a society shares. However, in an international business setting, what is acceptable for an individual from one nation, could be seen as unacceptable in another country. Vaara, Sarala, Stahl and Björkman (2012, p. 11) state that understanding and appreciating cultural differences have an impact on international business in areas such as etiquette, communication, and organizational hierarchy, can navigate an organization like Getama Furniture in Denmark to escape misunderstandings with clients and colleagues from Australia which in turn increases the company’s success on an international scale.
Statement of ProblemGetama Furniture Company faces the problem of internationalizing its operation to Australia. The company operates in Denmark but is set to move to a new environment with some cultural differences. Operating in Denmark is much different from that in Australia due to several differences in workers’ ideologies, cultural tradition, beliefs, and values, attitudes towards new businesses, marketing patterns like buying decisions, and the ease with which a new market environment is penetrated. Getama Company must face all these problems to succeed in a different culture of Australia, including different business attitude, sources of motivation, and long-term orientation of people. Several aspects of culture can impact a business that wants to expand internationally. The first feature is the cultural aspects. Every society has its unique cultural characteristics which have a significant effect on the way that culture runs its business. Australian and Danish cultures have different ways to perform business as driven by their culture. These aspects may be seen as unreasonable by professionals from both countries, which might lead to adverse ramifications that terminate a business relationship (De Mooij and Hofstede 2011, p. 183). The total disruption can result in a missed business opportunity. Another aspect that influences business relations is communication. An understanding of the obscure difficulties in the application of English with non-English speakers, alongside the hints of non-verbal expression, is vital to attaining business goals when operating in different cultures, for example, a sales representative of Getama Company must understand the non-verbal expression to enhance marketing activities like direct sales promotion to prospective customers. (Abdellatif, Amann and Jaussaud 2010, p. 616). Failure to comprehend and interpret the communication lends itself to inefficiencies in financial resources and time management. Therefore, unclear transmission of information can threaten the business goal.
Next, group dynamics can also affect how a business should be established in another country with a different culture. It involves understanding the way people from different cultural backgrounds socialize in group settings. The understanding of Getama Furniture Company with regards to the group dynamics in the new market’s culture in Australia can substantially affect the sales activities, for example adverting and sales promotion to potential consumers will be impacted by the buying patterns in families, which is made by individuals not collectively as a family. In individualist cultures, such as in Australia, customers make a larger proportion of their purchasing decisions individually, while in collectivist cultures, buying judgments are greatly influenced by the groups, including groups of friends and co-workers, family and community as a whole (White 2005, p. 511). In light of this, the market segment in Australia should have sales processes and marketing collateral targeted towards individuals, not groups. Another aspect of culture is glocalization. This refers to localized global messaging, branding, corporate values, and marketing (Sarala and Vaara 2010, p. 1367). For example, if Getama Furniture Company’s headquarters is in Denmark, and wants to establish satellite offices in Australia, the global messaging, brand, and every form of external and internal communication should be translated in a culturally easy way, not just linguistically fluent to avoid misinterpretation and confusion when sharing essential business insights. An absence of glocalization and proper new market entry approaches can cause significant financial losses and increased cost of business. In sum, before Getama Furniture Company in Denmark internationalizes its operation in Australia, it has to understand the cultural differences, group dynamics, cultural aspects and communication between Denmark and that of the target market, Australia (Sarala and Vaara 2010, p. 1368). The paper identifies these differences and their managerial implications to the company.

Choice of Model and Method of AnalysisThis research attempts to determine and describe the cultural differences between two nations. It utilized a combination of emic and etic research approaches. The emic method was used to explore the issues being studied from the cultures of Denmark and Australia. Therefore, this method demanded developing specific parameters of measurement for every unit of assessment, and a few comparisons were possible. For example, it involved creating various parameters or variables of culture, such as brand personality, group dynamics, cultural norms, buying decisions (Bian and Forsythe 2012, p. 1446). On the other hand, the etic method involved examining the phenomenon being studied from the exterior of cultures of both countries. It assessed universal theories and permitted for creating global parameters that can be related to all cultural settings of the two markets. While emic methodology provided more internal validity and reliability, the researcher found the etic technique more practical, considering the elements of cost and time. With this combination, a derived etic approach was applied to generate relevant data for this report. Once the dimensions of the emic approach were created, they were analyzed to find out if comparisons could be suitably made. Likewise, the linked emic model was applied because it included numerous local settings, its foundation and attempted to integrate culture-specific aspects into the overall theoretical context and research design (Ayoun and Moreo 2008, p. 65). Further, in regards to data collection, the secondary sources were used to gather the data for analysis. Different journal and books offered several case studies of the two nations concerning their cultural aspects, such as organizational culture, cultural dimensions, and the way business people conducted their businesses as well as the types of products they used, considering their values and principles. The data available in these resources were gathered and discerned to obtain a summary of how the two nations vary in their cultures. Samples of the sources used were selected based on the relevance of the article or book to the topic being analyzed.

Problem Treatment (Analysis): Cultural Differences between Denmark and AustraliaCorporate Social Responsibility ValueThe Danish culture actively embraces concerns regarding children’s rights, freedom of religions and speech, and fight against discrimination of minorities and racism. There is increased focus on corporate social responsibility (CSR). With all the most significant private and state-owned firms and institutional investors being required to justify their social responsibility and offer details of CSR in their reports (Dikova, Sahib and Van Witteloostuijn 2010, p. 223). The CSR in Australia is the same, but Australia has shown a modest change in the implementation to CSR strategies, especially in regards to the large companies, which have indicated a small fraction of the CSR programs in their financial reports.
Business AttitudeAustralians are very honest about doing business and, therefore, they do not need to form links for a long period before conducting business with an organization or an individual. They are also receptive to new business suggestions and ideas (Dikova, Sahib and Van Witteloostuijn 2010, p. 227). Australians accept modesty and, hence, a company should not attempt to overvalue itself by applying aggressive sales tactics. Getama Furniture should be realistic, avoid self-importance, and be friendly. Australians establish humility to the extent that they appreciate it. These individuals can even refrain from their success and, therefore, Getama Furniture should not conclude instantly that workers have accepted a particular management decision, for example increasing working hours per day by 30 minutes. This means that showing concern and understanding workers’ grievances is essential for Getama Company. Getama Furniture needs to be keen not to play along if Australians begin self-criticizing themselves because this would lead to PROBLEM.
Moreover, Australians like being involved in debates and make provocative claims with humor. Therefore, an official business meeting can be full of controversies and laughter. However, this behavior can be interpreted by Danish as lack of respect for others and commitment to a particular course and implies that official business meetings will not be conducted within the set timeframe because people’s minds will be diverted. Another Australian aspect of business mindset entails decision-making. Decision-making is slow because of the significant advantages of collaborative and inclusive work (Kreiser, Marino, Dickson and Weaver 2010, p. 960). The top management always engages junior staff while making decisions. Therefore, decisions should not be rushed, and patience needs to be maintained. Conversely, Denmark, in contrasts, has an egalitarian or free business culture and most firms prefer a flat organizational structure with minimal hierarchy. Social justice, equality, and mutual respect at all ranks of the organization are considered essential. Reputation is not seen as important with regards to respect and authority to escape friction between lower levels workers and top management. People recognize the exchange of opinions and ideas in business and, therefore, it is important to respect this uncensored style when operating a business in the country. Also, Danes are fast in their decision-making process.
Organizational HierarchyOrganizational hierarchy relates to the power distance dimension. It is a fact that all people in communities are not equal. The power distance refers to the degree to which the less influential members of organizations and establishments within a nation accept and believe that power is spread unequally (Yoo, Donthu and Lenartowicz 2011, p. 195). Within the Australian business environment, the hierarchy is designed for convenience and upper-management are usually accessible, and top managers depend on individual workers and team for their knowledge. Both employees and managers anticipate to be referred to, and the information is frequently exchanged. Simultaneously, communication is participative, direct, and informal. In contrast, in Denmark, people do not lead, but they coach and that worker autonomy and control are required. Workers also believe in equal rights, independence, accessible superiors, and managers should empower and facilitate junior staff (Ayoun and Moreo 2008, p. 70). Power is decentralized, and management is based on the experience and expertise of its team members. Also, workplaces consist of informal groups that are characterized by involving direct communication as employees want to be consulted.
Interdependence among People
This relates to the individualism dimension in which the focus is whether individual view themselves as “we” or “I.” Individualist culture is where people in the society are concerned with their families and themselves only (Yoo, Donthu and Lenartowicz 2011, p. 196). Australia consists of an individualistic culture. In the business context, workers are expected to be self-dependent and show initiative. Also, with the exchange-oriented work sphere, promotion and recruitment decisions are founded on excellence based on verifiable evidence and work experience. In Denmark, the society is also an individualist. The workplaces consist of direct channels of communication and doing business with these people is fairly easy. Nevertheless, in Australia, the issue of work experience is valued more when it comes to workplace promotion than in Denmark, in which short-term achievements can guarantee an employee a job promotion. Thus, Getama Company has the responsibility of showing patient to workers and giving them opportunities for gaining experience with their specialized tasks to attain job promotion.
Source of Motivation
A masculine culture is one where the society is motivated by achievements, competition, and success, and that success is shaped by the best person in the field. A feminine culture is where the overriding principles in society are concerned about other people and life quality (Yoo, Donthu and Lenartowicz 2011, p. 200). The life quality is the indication of success and being distinguished from a group is worthy. Australian culture is seen as a masculine society. Work behaviors are funded on shared norms that individuals should be aiming at being the best and winners. Individuals are delighted with their achievements and successes in life, and this provides a foundation for promotion and hiring decisions in the organizations. Also, disagreements are settled at the individual extent, and the aim is to win. Conversely, Denmark is a feminine culture. People keep work/life balance. A capable manager should be supportive of his employees, and decision-making is attained via involvement of employees (Moran, Abramson and Moran 2014, p. 32). Managers seek consensus and individuals treasure equality, quality, and solidarity in their working endeavors. Similarly, workplace conflicts and disputes are settled by negotiation and compromise, and people are recognized for their extended dialogs until an agreement has been achieved. Motivation options such as flexible working hours and free moment are preferred. In this regards, Getama Furniture must implement various workplace motivation practices and options like objective ways of problem resolution, recognition for work done, appreciation of individual contribution, and flexible working hours.
Dealing with Uncertainty
Uncertainty avoidance can be defined as the degree to which society members perceive to be confronted by unknown or ambiguous conditions and have formed systems and beliefs that seek to escape these. Australian culture consists of a moderate avoidance of uncertainty. This implies that people have a moderate level of taking business risks and transacting with a new organization and its products due to the change associated with such dealings (Ayoun, Palakurthi and Moreo 2010, p. 17). Consumers in this nation can either fail to take the risk to do business with Getama Furniture or do business with the company because it falls in the middle of the score. In Denmark, people do not require much structure and work life predictability. Schedules change anytime, and new things arise. Curiosity is promoted, and this condition, alongside the individualist culture, contributes to the country’s status within design and innovation (Kim 2012, p. 762). People like attractive things as the society is described by a sense of humor, innovative products, massive consumerism, and highly resourceful industries like marketing, advertising, and financial engineering. It is also okay to say “I do not know” in the workplace because individuals are calm in uncertain circumstances in the work environment.
Maintaining Relationships with the Past (Mentality towards Time)The long-term orientation refers to the way a culture has to uphold some bonds with its past while addressing the future and present challenges. In this case, a normative culture is one in which people uphold norms and traditions while seeing changes in society with distrust. Conversely, a pragmatic culture encourages efforts and prudence in modern education, entrepreneurship, and globalization forces as a means of getting ready for the future (Taras Kirkman and Steel 2010, p. 405). Therefore, both Danish and Australian cultures are said to be normative. Individuals in these two countries have a great concern with instituting the absolute reality or fact and have normative thinking. People also show strong respect for norms and traditions, focus on attaining quick results, and a relatively small inclination to future savings. The managerial implication is that Getama Furniture Company managers have the responsibility to recognize the cultural values of workers, offer a favorable working condition that allows for employees to realize their objectives, and inspire the employees to face future uncertainties that face the organization through internal programs organized by the management.
Impulse and Desire Control
A challenge that threatens humanity all the time is the extent of socialization of young children. A society cannot become human without socialization. Thus, the indulgence aspect refers to the degree to which individuals attempt to control their instincts and desires, founded on how they were reared (Ayoun and Moreo 2008, p. 73). Again, both Danish and Australian cultures are characterized by a tolerant society since people have comparatively weak control of the desires and wishes. Accordingly, persons in these two nations show a disposition to recognize their desires and instincts regarding having fun and enjoying life (Doz 2011, p. 583). They have a positive mentality and are optimistic. Further, people put a higher amount of value on leisure moments, spend more, and act as they wish.

Managerial Implications of the Cultural Differences for the Getama Furniture Company ManagersAs the insights to other cultures can be acquired via learning, many suggestions or implications are offered here for Getama Furniture managers to nurture cross-cultural expertise that will expedite modification in the local cultural context of Australia. For the Danish managers, they will experience an unfamiliar culture (Australian) which can be problematic if they do not develop an open mentality toward such differences because the new market experience is a prerequisite for comprehending a different culture (Vaara, Sarala, Stahl and Björkman 2012, p. 17). The managers’ general willingness towards host citizens, recognition for their culture, and a passion for intercultural links enable them to endure the pressure of culture shock and realize with local managers in Australia. As a result, Getama Furniture managers are to be ready mentally for a foreign industrial location and analyze the way they might respond to the new establishment. Moreover, Getama Furniture Managers are alert to the significant disparities between the host and home cultures, and understanding the cultural differences is the first phase of culture learning. Getama Furniture Company may inhibit successful business practices because of a lack of understanding the cultural differences. The company executes cross-cultural training as a portion of the process of internationalization of their business because cultural aspects of a society have a direct impact on the sales, organizational structure and culture, and communication of the company. The cross-cultural skills and knowledge enable the reduction of culture shock and minimize the chance of ineffective business process or premature return (Killing 2012, p. 64). A lack of training can create confusion that could lead to ineffective management decisions. Training before arrival in Australia can help these managers get mentally organized for a new cultural setting. The training is furthered by managers who understand Australian business culture at the post-arrival to speed up the adjustment course. Accumulating more specific skills and knowledge requires experiential approaches such as communication practices or exercise of intercultural interfaces and role-playing.
Furthermore, mentoring by a company or managers who have operated in Australia with a similar business line can be efficient in facilitating actual training (Dewald and Self 2008, p. 355). Consultants can be referred to help Getama Furniture managers understand any ambiguous events. Cultural orientations at work show social arrangements in the broader society. Managers share their societies’ cultures and cultures of their workplaces with their junior staff. Therefore, Getama Furniture managers in Denmark adopt management styles and training incentives that reflect individualist cultures in Australia. They acquire skills for managing employee performance and expression of bad news in the workplaces in Australia. Thus, to facilitate the translocation to Australia, Getama Furniture Company encourages its managers to attend social functions with packages, including festivals, in Australia to get used to the new culture to escape culture shock and business frustrations.

ConclusionUnderstanding a host culture (Australia) is essential for Getama Furniture Company to prevent culture shock and reduce the obstacles of modification for its managers. Getama Furniture should reinforce the education and training of cultural diversification concerns as a portion of significant internal marketing initiatives to successfully encounter the speedily globalizing industry atmosphere. The power distance, collectivism/ individualism, and avoidance of uncertainty are some of the fundamental cultural values dimensions associated with the behavioral view of building relationships. The cultural differences between Denmark and Australia imply that Getama Furniture Company managers should develop a strategic solution to the cultural challenge. Consequently, it is suggested that the managers develop a positive mentality and culture alertness, have language training, cross-cultural education and training, and related familiarization events like meetings or festivals. These implications are important to cultivate cross-cultural knowledge and skills that are necessary for success in a local cultural context of Australia.

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AppendicesAppendix 1: Denmark’s Cultural Dimensions and Scores

Appendix 2: Australia’s Cultural Dimensions and Scores