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Understanding Cultural Dimensions in Business Expansion

May 20, 2025

Guest Lecture on International Business Expansion and Cultural Dimensions

Introduction

  • Guest speaker: Co-founder of Benjamin Parker
  • Focus: Application of Hofstede’s cultural dimensions to international business expansion
  • Context: Case study of expanding a business into Australia
  • Assignment Reminder:
    • Due: Next Friday, 23rd of May
    • Two parts: 500-word reflection
      • Part 1: 250 words on today’s lecture using Hofstede’s dimensions
      • Part 2: Personal reflection on cultural differences

Speaker Background

  • Co-founder, COO, CTO, and shareholder of Benjamin Parker
  • Background: FSD student at Nei Yan (1997-2000), former faculty at HMS
  • Company focus: Lifestyle and design in retail and F&B sectors
  • Expansion challenge focus: Australian market

Australian Market Expansion

  • Timeline: First store in Melbourne in 2016, followed by two more that later closed
  • Challenges:
    • Initial confidence but faced cultural misalignments
    • Blind spots in understanding Australian consumer behavior

Hofstede's Cultural Dimensions Applied

1. Individualism vs. Collectivism

  • Singapore: Collectivist society, team-oriented
  • Australia: Individualistic, focus on personal achievements and autonomy
    • Employees expect role clarity and personal career growth
    • Cultural shift needed to adapt management style

2. Power Distance

  • Singapore: High power distance, hierarchical structures
  • Australia: Low power distance, flat organizational structures
    • Employees expect consultative decision-making
    • Need for a collaborative rather than directive approach

3. Uncertainty Avoidance

  • Singapore: High avoidance, structured and scripted environment
  • Australia: Low avoidance, more flexible and adaptable
    • Resistance to rigid SOPs, preference for context-specific interactions

4. Masculinity vs. Femininity

  • Singapore: Subtle, understated fashion
  • Australia: Preference for bold, expressive styles
    • Misalignment in product offerings

5. Long-term vs. Short-term Orientation

  • Singapore: Long-term business strategy focus
  • Australia: Preference for quick wins and immediate value
    • Need to communicate brand value quickly

6. Indulgence vs. Restraint

  • Singapore: Work-centric, long operating hours
  • Australia: Value work-life balance, shorter store hours
    • Management of operational expectations and cultural adaptation

Lessons Learned

  • Importance of understanding cultural dimensions in international business
  • Adapt strategies according to the host country’s culture
  • Consider using local management for better cultural alignment
  • Franchising as a strategy for international expansion

Q&A Highlights

  • Clarissa's Insight: Importance of authenticity in customer interactions
  • Discussion on incentivizing employees in different cultural settings
  • Reflection on missteps and the potential for different approaches

Conclusion

  • Hofstede’s dimensions as a tool for better organizational communication
  • Importance of cultural awareness in global business operations
  • Encouragement to apply learnings for upcoming assignments

Final Notes

  • Lecture slides will be available on MS Teams
  • Importance of timely assignment submissions

Reminder: Ensure attendance has been recorded post-class by scanning MPGo with your respective lecturer.

Full transcript