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Family Name Given Name
Unit Details
Unit Code MBA6150 Unit Title Working Across Culture (ON)
Name of Lecturer Dr. Alistair Campbell Due Date 28th October 2018
Topic of Assignment Project (Business Expansion Overseas) Group or Tutorial (if applicable) Group
Course Master of Human Resource Management Campus Mount Lawley
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Assignment Cover Sheet
The ECU English Language Proficiency Measure (Feb 2014)Levels of proficiency
Aspects of writing(Indicate with an X main area(s)needing improvement)
Low proficiency
Incorrect or inappropriate aspects of writing obscure meaning in many places.
Significant editing needed to clarify the meaning, along with extensive proofreading to correct technical errors.
Developing proficiency
Incorrect or inappropriate aspects of writing obscure meaning in some places.
Some editing needed to clarify the meaning, along with extensive proofreading to correct technical errors.
Moderate proficiency
Aspects of writing are mostly accurate. Mistakes rarely affect clarity of meaning.Minor editing needed to clarify the meaning, along with careful proofreading to correct technical errors.
High proficiency
Aspects of writing are appropriate and optimally constructed, allowing clarity of meaning.
Meaning is clear and needs only a light proofread to correct technical errors.
Sentence structure
1. sentence completeness
2. sentence length
3. phrase/clause order
4. use of conjunctions
5. word order
6. punctuation
Word use
7. word choice
8. word form
9. word omission/redundancy
10. verb tense/agreement
11. spelling
12. apostrophes
Sentence Structure
1. Sentence completeness: sentence includes subject, verb a complete thought.
2. Sentence length: length is appropriate to context or disciple
3. Phrase/clause order: parts of the sentence (phrases and clauses) are ordered logically.
4. Use of conjunctions: linking words are used correctly to show the relationship between ideas.
5. Word order: words are ordered correctly in a sentence.
6. Punctuation: the correct use of full stops, commas, semicolons, colons and capitals.
Word Use
7. Word choice: words are correct and appropriate for the context.
8. Word form: correct part of speech is used, e.g., [to] affect / [the] effect.
9. Word omission/redundancy: words should not be missing or be unnecessarily repetitive.
10. Verb tense/agreement: correct use of verbs that indicate time and correct word forms that agree grammatically with other words in the sentence.
11. Spelling: correct spelling is used.
12. Apostrophes: indicate ownership or contraction.
Executive summary
Woolmark Company was first owned by the International Wood Secretariat in 1937. Later the
company came to the ownership of Australian Wool Innovation in 2001. Australia is known for Merino
sheep and products of the wool is mainly produced for military garments to the V-neck jumper to fine
tailored suits to little black dress. Beginning from late 1930s, world’s topmost wool-manufacturing
countries resolved it was in their best interest to boost their merchandise on an international scale.
Since then, the company continued to spread the industry across the world. The study attempts to
present various factors including country specific, industry, cultural factors and Human Resource
Management practices in Japan to successfully introduce Woolmark Company in Japan. The study
found out that Merino sheep wool produced in Australia is known for its best quality in that world and
that Japanese values quality products would make it the best country to open up the wool industry.
The study indicates that to open up a business in Japan would be challenging but possible provided
Australia considers cultural differences in terms of business negotiation, business etiquette,
communication style, consumer ethnocentrism and safety and legalities.
ContentsAssignment Cover Sheet.........................................................................................................................1
Executive summary..................................................................................................................................3
Introduction................................................................................................................................................5
Country/ region specific factors...............................................................................................................6
Industry specific factors...........................................................................................................................6
Manufacturing process.........................................................................................................................6
Training..................................................................................................................................................7
Health and safety..................................................................................................................................7
Cultural factors..........................................................................................................................................7
Relationship building culture...............................................................................................................7
Language...............................................................................................................................................8
Staffing culture......................................................................................................................................8
Safety and legalities.............................................................................................................................8
Cultural differences...................................................................................................................................9
Negotiations...............................................................................................................................................9
Preparation and site selection...........................................................................................................10
Team selection....................................................................................................................................10
Opening Talk.......................................................................................................................................10
Discussion............................................................................................................................................11
Agreement...........................................................................................................................................11
HRM Practices........................................................................................................................................11
Cultural challenges.................................................................................................................................12
Communication style..........................................................................................................................13
Translation...........................................................................................................................................13
Consumer ethnocentrism...................................................................................................................13
Measures to overcome challenges.......................................................................................................14
Investment decision................................................................................................................................14
Conclusion...............................................................................................................................................15
References..............................................................................................................................................15
Introduction
Woolmark Company was first owned by the International Wood Secretariat in 1937. Later the
company came to the ownership of Australian Wool Innovation in 2001. Australia is known for Merino
sheep and products of the wool are mainly designed for military garments to the V-neck jumper to
fine tailored suits to little black dress.
Today, Woolmark brand is best-known textile quality in the world, as a result of which beginning from
late 1930s, world’s topmost wool-manufacturing countries resolved it was in their best interest to
boost their merchandise on an international scale. Since then, the company continued to spread the
industry across the world.
In this regard, the focus of the paper is to open up Australian Woolmark Company in Japan. The
study is divided into eight chapters. The first chapter deal with the country specific factors followed by
industry specific factors. The third chapter highlights about cultural factors followed by cultural
differences. The fifth chapter details about business negotiations and it is followed by a chapter on
Human Resource Management Practices(HRM). This is then followed by a chapter on cultural
challenges and finally the chapter underscores investment decisions.
Country/ region specific factors
The study considers opening up Woolmark Business in Japan for several reasons. Firstly, as per
Torrens (1947), the country desires to revitalize the growth and development of textile industry
because without adequate raw materials sometimes in the late mid-1950s, the government of Japan
has to deliberately put to an end to textile industry. Likewise, with the objective to maintain its strong
international competitiveness towards the realization of textile industry revitalization, Japanese
Textile Federation (JTF) is in the process to promote wool business in Japan (JTF, 2011). Similarly,
the fact that Japanese Government is currently making greater efforts to attract companies and
visitors from overseas, while creating a more open market reassures greater success of wool market
(JETRO, 2017) in Japan. Moreover, study carried out by (Cristiano, Liker & White III, 2000) indicate
that wool mark company produces the finest quality of wool and that Japanese consumers prefer
quality inclusive of textile products further guarantees the success of the wool mark business in
Japan.
Industry specific factors
Woolmark Company observes several industry specific factors in order to establish similar company
across the globe. Some of the key steps include manufacturing process, training and health and
safety.
Manufacturing process
The Woolmark company based in Japan will follow all the manufacturing processes done in Australia.
The main manufacturing methods will be followed to produce high quality woolen products. The
smoother yarns will be processed by worsted system and woolen system will produce high quality
yarn which will be bulky and have more texture (Woolmark, 2018)
Training
Since Woolmark is known for its authority in Marino wool quality across the globe and as the
company desires to continue to maintain its quality, Woolmark Company prefers to provide training
on technical specification for wool products and wool care products. So, technical specification
training will be provided at Japan Based Woolmark to produce textile quality fiber and also to provide
guaranteed fiber content and assurance of quality. (Innovation, 2018).
Health and safety
The Woolmark in Australia follows the shearing occupational health and safety guidelines of the state
where they are based. The company have their own occupational health and safety policies and
procedures (Wool harvesting Safety Resource Centre, 2018). Similarly, Japan also has OHS for the
textiles, clothing, leather and footwear industry sectors. They also ensure the international labour
standards through their national legislation and code of practice (JICOHS, 1999). Since both the
countries follow similar OHS at work, the new expanded Woolmark shall frame their own relevant
policies and procedures in compliance with state legislation.
Cultural factors
In order to successfully establish wool mark company in Japan, Australia need to first know Japanese
culture. Of many, Australia needs to focus in understanding key business culture including
relationship building culture, language preferences, staffing style and safety and legalities of Japan.
Relationship building culture
Chew Chye Lay (2006) found out that unlike most of the western countries, Japanese prefer
relationship building before the start of business and that can happen with a simple gift giving culture
because it represents sincerity and friendship in business. Similarly, Japanese values ceremonial
exchange of quality name cards levelled which means foreign business counterparts need a business
card whenever you meet a person in a business or professional setting (Khan,2010) and Hasegawa
(1966). These customs are currently highly regarded in Japanese business culture as they are risk
adverse people (Chang,2006).
Language
Language is one of the other cultural factors to consider to expand business in Japan. Culturally,
Japanese come from high context-culture, Japanese prefers to use indirect but polite words to the
business counterparts basically to not hurt others (Chang, 2006). For example, instead of saying
directly “No”, Japanese use indirect and polite words including “we’ll consider”, frankly speaking”,
sorry to say...”; and you don’t understand (Chew Chye Lay, 2006) and Chang (2006). Additionally,
business counterparts need to understand that Japanese do not speak fluent English and they feel
embarrassed or uncomfortable to see the others communicating in English to them. For this,
Japanese culturally feel impressed to see own lack of understanding or English language ability
(Ojanperä, 2014). Hence, it indicates that in order to expand business in Japan, Australians business
counterparts need to learn indirect and polite ways of saying “No” and employ translator for the best
outcomes of the business interactions.
Staffing culture
Japanese have a unique way of human resource management practices. Culturally, Japanese prefer
lifetime employment, seniority-based wage and upholds gender bias in the workplace. Which means,
if Australian wanted to expand their manufacturing business, it is important to prepare to pay the
salary for the Japanese business counterparts according to the seniority and equally important to
employ more men to women in the work place because traditionally, women are treated not equal to
men in Japanese working place (Powell, 2016).
Safety and legalities
Japan upholds different attitude towards safety and legalities’ business culture. Although the practice
is changing, unlike most of the western countries, Japan still does not too much focus on written
business contracts between the parties involved in business. Even if there is a written form of
contract (Chew Chye Lay (2006) they would have, ambiguous, concise documents that do not spell
out specific details sufficiently to evade disputes at later periods (Rathore, Agarwal &
Agrawal,2018). Instead, culturally, Instead, Japan values interpersonal conversation and messages.
In view of the above, it indicates that in order to expand business in Japan, Australia needs to focus
on conversational and normal messages to that of formal business contracts.
Cultural differences
For the success of Woolmark business in Japan, studies indicate that Australia needs to give due
consideration to cultural differences. Firstly, it is imperative to be aware of the fact that Japan
belongs to a high-power distance meaning they value ranking hierarchy in making decisions
(Lebaron,2003) whereas Australian people belongs to low context culture where it values equality,
freedom of speech and do not follow the rules of superiority with one another. Similarly, Japanese
people are collectivists and prefer working in groups whereas Australians are individualists they
prefer doing things individually.
Another dissimilarity that among the two cultures that needs to be concentrated is their uncertainty
avoidance. The Australian culture has a very low uncertainty avoidance which indicates they are
more exposed to diverse ideas and accept each other’s ideas and way of working whereas, the
Japanese culture is very structural, and they tend to be more anxious about determining new
concepts which makes them high context people. Japanese culture supports structured settings and
workers show a great level of commitment to a company by staying in the company for a longer
period of time (Hofstede 2001). In gist, considering the above differences would immensely help
succeed woolmark business in Japan.
Negotiations
The expansion of businesses beyond the borders now has become an inevitable part for the success
of the international entrepreneurs. However, cultural differences between the counterparties has
always been the outmost challenges in building and maintaining the good relations. If not handled
with proper planning and negotiations, cultural differences could form certain barrier in the business
communication (Nowakowski, 2005). Considering the differences, Australians need to consider the
following steps of negotiations as per (Chaney & Martin, 2014).
Preparation and site selection
The negotiation site is comparatively not important for Australian negotiators as they can accept
either over the phone or in the office. On the contrary, conducting meetings in the spacious room with
proper hierarchy sitting arrangement is necessary in the Japanese culture, where higher rank person
sit furthest from the door (Wilen, 2000) and he will be the first to exit the room after the meeting.
(Chew Chye Lay, 2006).
Team selection
Careful team selection is of paramount importance to ensure a fruitful negotiation. The negotiators
selected should possess relevant qualification in the field. Other areas to be accounted are gender,
age, social class, cooperativeness and the authoritarianism. Furthermore, the number of members on
the Japanese team could consist of four to seven. Therefore, finding out the size of other team is
recommended to balance team sizes. Moreover, one should be mindful of the power distances, that
Japanese particularly doesn’t appreciate when young person of a lower rank come to negotiate with
the top official of their company (Leaptrott, 1996).
Opening Talk
Australians believe to involve in small conversation for short while to build rapport prior to engaging
into business and the discussions are focused based on their objectives (Morrison & Conaway,
2006). But the Japanese negotiators like to cover on many topics at one time (Chaney and Martin,
2013). Therefore, the negotiators from other parties are expected to be prepared accordingly.
Discussion
Higher level of individualism in the Australian culture focus on individual achievements and rights, but
the collectivist culture of Japanese emphasis on the overall benefits of the community and the
interdependence (Hofstede Insights, 2018). Moreover, it is difficult to communicate with the Japanese
since they use complex verbal and nonverbal cues to avoid disappointing others. Silence is an
important part of nonverbal communication and informal behaviours like standing at the table,
doodling or crossing the legs are considered disrespectful.
Agreement
To close the negotiation properly is important but delays are to be expected. It is wise to keep some
considerations to continue with the negotiations even after the signing (Leaptrott, 1996). Japanese
considers signed contracts as the flexible instrument and resolve any problems found even after
signing the agreement through mutual agreement with other party.
HRM Practices
In order to successfully launch Woolmark manufacturing company and effectively manage the
business in Japan, studies show that Australia needs to be aware of typical Japanese HRM
practices.
Firstly, Australia needs to know that Japanese HRM practices is significantly influenced by Japanese
tradition and cultural believes. For example, the HRM is more governed by the philosophy of
collectivisms (Hofstede, 2018). Despite the global competitive forces, the core features such as life
time employment, enterprise unionism, seniority-based wage and promotion are evident in HRM
practices. In addition, quality management system in HRM of Japan is well known over the world.
There are also other notable practices like consensus decision-making and employee loyalty (Powell,
2016).
On the other hand, Australian HRM is rooted in the labour law and governed by individualization due
to which, the managerial strategy is shifted to non-union or co-operative enterprise (Mitchell & Fetter,
n.d). HRM focuses more on flexibility, empowerment, performance related reward, total quality
management and loyalty.
Hence, looking into the matter of HRM practices, new Woolmark company will recruit employees from
both the countries looking and come up with its own innovative and effective HRM practices to have
set of motivated and hardworking employees to penetrate the business and embrace the success.
In consistent to that, the intercultural HRM adjustment of two countries should be done for expatriate
‘s success in international business. To be effective, the company should focus on making work
adjustment by modifying on the system of interaction and other general dimensions (Kanai, 2011).
Woolmark need to merge the philosophy of collectivism and individualism. In this note, Woolmark in
Japan should introduce team work, but team member will set up their own individual roles,
responsibilities and job specification along with descriptions of reward. HR should consider providing
its employee with the options of both individual contracting and life time employment to gain loyalty.
The company should provide remuneration in the form of performance related pay and provide work
flexibility to motivate its employees.
Cultural challenges
For more than decades, the Woolmark Company was progressively executing successively not only
in their home country, but also internationally (Ekeledo & Sivakumar, 2004). However, it will be
challenging to accomplish the similar outcomes while broadening the manufacturing business in
Japan, due to massive cultural differences. On the basis of various literatures, there are numerous
cultural challenges any business would encounter in Japan. The three most significant challenges
include communication style, translation and consumer ethnocentrism. Nevertheless, Woolmark
Company in line with the studies, propose some measures that could potentially overcome these
challenges.
Communication style
Language is one of the most significant issue arises while doing business in Japan (Eckard Marchiori,
Carraher, & Stiles, 2014). Comprehending communication style becomes complex as most of them
do not speak English and those who does the speaking are not so fluent. Moreover, Japanese are
not habituated to speaking up to convey their views, as a result, communication in English
considerably becomes difficult and challenging. Hence, Japanese prefer high context communication
over directly expressed communication.
Translation
Translation can act as a resolution whenever the language becomes a problem (Kim & Peterson,
2002). The interpretation level is determined by the translator’s level of English depending upon how
much he or she understands the content. On the other hand, translation from English to Japanese
rather becomes difficult because the translated text needs to be inherent so that it is easier and
comfortable for native Japanese to perceive the actual meaning.
Consumer ethnocentrism
Japan are often considered ethnocentric. Racial coherence is their primary advantage for political
and economic system, thus over 2000 years Japan have been successful without foreign breeds. In
consistent to that, it is difficult to satisfy Japanese consumers easily, because as mentioned by March
(cited in Uzama, 2009), they have high hopes on the quality foreign products over domestic. At the
same time, Berggren and Thomas (2000) emphasised that the extraneous firms must exhibit their
consumer merchandise into the view of their customs and beliefs and societal hierarchy. Also,
consumers expect lasting commitment from the firm with constant supply of high quality products or
services to keep healthy relationship.
Measures to overcome challenges
Although, many international firms failed their business expansion in Japan due to numerous cultural
challenges, based on the existing studies and through our critical analysis these challenges can
easily overcome if the business workforce undergo training programs on cross cultural awareness
and relationship building extensively, prior to start of the business (Jianfeng, Solan & Bo, 2014). This
will not only help the company make necessary cultural adaptations, but also build interculturally
experienced and efficient manpower to successively launch new market. Moreover, as said by
(Herbig & Milam, 1994), manufacturing high quality products at sophisticated prices can elevate the
customers and gain their trust and long-term relationship.
Investment decision
Starting a business in a new site can be rough but with good ideas and hard work investing in this
project will not only increase our revenue but it will also give us an opportunity to increase our
consumer market in one of the fastest developing country. Japanese people are evolving, and
women are becoming more inspired which is making a huge improvement in their daily and
professional regime (Uzama,2009). In the past, Japanese customers have always been reluctant to
buy foreign products, but now they are gradually more exposed over the time and they are always
eager to buy stuffs from abroad. Japanese customers are extremely diverse when it comes to
comforts and interests. According to Monden (2013), Japanese people are one of the most loyal and
friendly customers. Japanese employees are very hardworking, and the labor cost is also very cheap
in comparison to Australia. Japan also has a very low employee turnover rates and employees are
very productive in the organizations as they are always willing to work extra hard for the company.
Conclusion
In conclusion, Japan offers the best place to open up Woolmark Company for the reason that there is
a huge demand of quality wool by Japanese people. The fact that Japanese Government is currently
making greater efforts to attract companies and visitors from overseas, while creating a more open
market reassures greater success of wool market. However, for the deeper penetration of wool
business, Australia needs to address typical Japanese business culture.
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