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The culture environments facing business - Australia
- 1. THE CULTURE ENVIRONMENTS FACING BUSINESS By: Sherin Haroun El. Rashied
- 2. 01 02 Introduction to Culture Our case Study Our Index
- 4. What do we mean by Culture? Culture comes in many shapes and sizes. It includes areas such as politics, history, faith, mentality, behavior and lifestyle.
- 5. Types of Culture Universal Culture A nation’s/Social culture -40 Human/ Individual Culture Inherited Learned Inherited & Learned Collective by group ”Nations Sub-culture: refer to governorates, tribes….etc Common to all mankind “Love, pain, fear,.. Personal experience ”Attitude, gender, education,.. Culture is the way you think, behave, act and interact
- 7. About Australia Country in Oceania Southern cross symbolizes the constellation Union Flag 6th British colony. The Commonwealth 7 pointed star represents the 7 territories. Australia is a country and continent surrounded by the Indian and Pacific oceans. Its major cities – Sydney, Brisbane, Melbourne, Perth, Adelaide – are coastal. Native Australians. The Aborigines have lived in Australia for over 40,000 years. Now they only represent 1% of the population James Cook discovered Australia in 1770 Britain sent prisoners and criminals to Australia Europeans sold the land of Aborigines and killed thousands of them.
- 8. About Australia Country in Oceania Capital Canberra Population 25,308,300 Area 7,692,024 km2 Currency Australian dollar (AUD) Language English- Chinese- Italian- Greek- Arabic &others Religion Protestant- Catholic- Eastern -Orthodox Other- Christian Buddhist- Muslim and others GDP (PPP) 1.313 trillion Per capita $52,191
- 9. The culture of Australia is primarily a Western culture, to some extent derived from Britain but also influenced by the unique geography of Australia, the cultural input of Aboriginal, Torres Strait Islander and other Australian people. Culture of Australian
- 10. +cricket In Australia it is usually very warm, so Australians love sport like Cricket. + Sydney Opera House + Surfing The biggest city is Sydney, where there is the famous Sydney Opera House. In Australia it is usually very warm, so Australians love sport like Surfing. Culture of Australian
- 13. Shared Values Equality of individuals Equality of gender Equality of opportunity Equality under law Freedom of speech Freedom of association Freedom of religion Peacefulness
- 14. Cultural Values Low power distance High individualism High masculinity Fair uncertainty avoidance Short-term orientation
- 15. Doing Business Modest and authentic Serious business Friendly language Direct negotiations Conservative attire
- 16. Failure Brands in Australia
- 17. Starbucks • Starbucks penetrated the Australian coffee market in 2000, the company approached the endeavor with great ambition. • Not only did they build stores in major cities like Sydney and Melbourne, but they also set up stores in less populated communities that occupy the coastal regions of the country.
- 18. By 2008, they had established 85 stores. All the stores were internally structured and operated the same as they do in the United States. Essentially, they attempted to infiltrate the Australian coffee market by establishing their presence within the market relative to their presence in the US and other international markets. Starbucks accumulated $105 million in losses, forcing the company to close 61 locations. Lack of understanding local culture is very evident in Starbucks entry into Australia. What Starbucks ignored when they set up the 85 outlets in Australia is a “very sophisticated coffee culture” according to the Starbucks Asia Pacific president John Culver. Starbucks Failure in Australia
- 19. Starbucks had been successful all around the world, but Australians did not want to buy coffee from the corporate giant, as Australians were not impressed the Starbucks coffee culture. Starbucks International failed to pay attention to the Australian’s passionate coffee preferences and culture. Consumers said it did not compare with the numerous local brews available which were largely better. Starbucks Failure in Australia
- 20. Starbucks Failure in Australia Australian cafe market is the only country, with New-Zealand, outside Italy with 100% espresso-based markets in the world, comparing to the United States and other countries mostly dominated by filter style, or brewed coffee. The country has been immersed in the cafe scene since the mid-1900s when Italian and Greek immigrants moved to the continent. It was then that Australians were introduced to espresso, the key ingredient to an Aussie favorite – the flat white. Australian have the reputation to be the consumers who have a unique taste in espresso- based coffees (Mercer). So entrance into such a market would clearly be a tough task for an American coffee brand. Australians also compete in barista competitions and can enroll in coffee-making classes, so they take their coffee seriously.
- 21. Australia’s already-thriving coffee culture also proved to be a challenge for the American brand. The Australian cafe industry is expected to hit more than $6 billion in revenue in 2018. Any random person on the street can tell you why Starbucks was a failure in Australia — we have taste buds. “When we order a coffee, we expect a delicious long black or creamy latte... not a half-litre of flavored swill”
- 22. Successful Brand in Australia
- 23. McDonald's Australia is the only country in the world that refers to McDonald's as Macca's the brand is thriving. The fast-food chain has reported three straight quarters of same-store sales growth in Australia, where the burger company is fondly known as "Macca's."
- 24. McDonald's Success in Australia International food giant McDonald's is embracing its Australian nickname, with selected stores around the country changing their signage to "Macca's“ which around 920 shops. For a few weeks leading up to Australia Day, McDonald’s in Australia became ‘Macca’s’, on the website, in advertising, on menus and even on signs on selected stores. McDonald’s research found that 55 per cent of Australians called the company Macca’s and they have submitted the word to the Macquarie Dictionary for consideration.
- 25. It’s an Australian habit to abbreviate names. So it’s not surprising that we also created our own familiar version of the McDonald’s name. McDonald’s themselves have embraced the knickname. Although the signage might have been temporary, the company has registered Macca’s as a trademark and uses the term frequently on social media and on its website. They have also released the mymacca’s app to let customers order and pay online, making fast food even faster. “Getting Macca’s in your hands has never been so satisfyingly easy. McDonald's Success in Australia
Editor's Notes
- Culture is a word for the 'way of life' of groups of people, meaning the way they do things. ... Excellence of taste in the fine arts and humanities, also known as highculture. An integrated pattern of human knowledge, belief, and behavior. The outlook, attitudes, values, morals goals, and customs shared by a society. Culture is developed within the individual as well as the outside environment It is continually changing and dynamic Culture is not inherited, it is learned
- The personality of the organization
- Australia is a country and continent surrounded by the Indian and Pacific oceans. Its major cities – Sydney, Brisbane, Melbourne, Perth, Adelaide – are coastal. Its capital, Canberra, is inland. The country is known for its Sydney Opera House, the Great Barrier Reef, a vast interior desert wilderness called the Outback, and unique animal species like kangaroos and duck-billed platypuses. The name Australia (pronounced /əˈstreɪliə/ in Australian English]) is derived from the Latin Terra Australis ("southern land"), a name used for a hypothetical continent in the Southern Hemisphere since ancient times. When Europeans first began visiting and mapping Australia in the 17th century, the name Terra Australis was naturally applied to the new territories
- Home to nearly five million immigrants from 160 countries, Australia is rich in cultural diversity. Australians, or "Aussies,“ enjoy an easy-going lifestyle and are generally friendly and relaxed. Modesty and equality are valued. 25-54 years = 42% of total Population 92% white + 7% Asian + 1%Aboriginal and others
- The Indigenous people of Australia were custodians of the land for an estimated 60,000 years before it was colonised. In the late 18th century, settlers established the country as a penal colony for the convicts of the British Isles. As the land was colonised, the Aboriginal and Torres Strait Islander populations were dispossessed of their land and their societies were fractured and marginalised. The social makeup of the country was dramatically changed and a European-like cultural mainstream came to be established. The following cultural information depicts this newly dominant culture – a Westernised society whose values have been influenced by continual migration to the Australian continent in the last 250 years. Australian Culture Mateship Egalitarianism Authenticity Optimism Humility Informality Easy-going Common sense Humour Australia’s society reflects its British penal history as well as the subsequent waves of migration from elsewhere in Europe and almost every other continent. Australians (or Aussies) have been inventive in adapting their cultural roots to suit the new environment, climate and resources of the country. Modern society is asserting a confident and unique identity through its diversity, language(s), architecture, ‘Australianised’ cuisine, bush identity and sporting prowess. Australia is the 6th largest country in the world, yet its population is comparatively small at only roughly 24 million people. This makes it one of the least densely populated land masses in the world. Nevertheless, it is also highly urbanised with people grouped into relatively small areas around the major cities. Many Australians enjoy a high standard of living with enough social and economic security to give them a reasonably optimistic outlook on the freedom and possibilities around them. A common national narrative hails Australia as the ‘lucky country’ for the comfortable quality of life it’s population enjoys. In a recent large-scale survey, SBS found nearly two thirds of Australians believe that their country has the best lifestyle in the world. Despite their good fortune Australians tend to resist overt displays of national superiority (with the exception of their sporting prowess). Moreover, at times they have criticised their own country as somehow lacking cultural refinement compared to their European counterparts.
- Practices Make appointments in advance Working hours: 9 to 5 Working days: Mon to Friday Punctual (Lateness = careless) Everyone can decide Focus on data, not emotions Open and direct negotiations Don’t rush decisions No gift exchange (It is not customary to exchange business gifts during initial meetings, When invited to an Australian’s home, bring a small gift (flowers, chocolates, or books about your home country or region) for your hosts.) Relationships Mr, Mrs, Miss? First name = respect (Australians generally move to a first-name basis quickly. Still, wait to use first names until invited to do so.) Shake hands with everyone present upon meeting and before leaving. Allow women to offer their hands first.(Women generally do not shake hands with other women). Academic or job-related titles are downplayed Etiquettes Maintain eye contact Maintain personal space Wear formal suits No hard-selling No visits on Easter and Christmas No personal life topics No V and Thumbs Up
- Also, they launched too rapidly and didn't give the Australian consumer an opportunity to really develop an appetite for the Starbucks brand. They also moved into regional areas, into outer suburbs of major cities ... it was too available .. it wasn't an organic growth.
- McDonald's is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States.