Compare key cultural differences and list two potential challenges

Compare key cultural differences and list two potential challenges

According to Hofstede Insights, one of the strongest cultural differences between Australia and the Philippines is the power distance. Australia has an estimated 36 rating, this means the country avoids inequalities in their society. Noticeable inequalities are, but not limited to: the rich and poor, the educated and uneducated, and racial backgrounds. In Australia, work is not difficult to find; however, the leading inequality the country has is housing for the citizens. Rising house prices, from rent to mortgage has increased the power distance for the rich and poor. On the other hand, the Philippines’ power distance is three times as much as Australia, coming in at 94 rating. The book mentions high power distance countries allow the unequal characteristics between individuals to grow into being competitive for power and wealth. In the Philippino culture society respects authority more; for example, a person with a degree is more inclined to emphasize his or her educational status when being addressed in person. Another cultural difference between the countries is collectivism versus individualism. Collectivism is considered the norm in the Philippines, compared to Australia which is more individualism. This may cause conflict within our company based on who may be the spokesperson for our company and how to incorporate the Australian cultural way of individualism in the workforce. Although Jollibee is successful in the United States, expanding the chain to Australia may cause a social clash when introducing a new cuisine and jumping into their market.

(Great Hofstede analysis. However, the cultural differences are negligible since you are targeting the Filipino population primarily. On the other hand, you can leverage indulgence (for example).—professor)

Conclusion/Recommendations: Based on your research findings, what changes would you recommend to your initially proposed strategy?

Based on our research findings we have concluded that expanding Jollibee to Australia should be a good idea and should prove to be successful. We learned Jollibee recently successfully expanded to Daly City, California which is very similar to Australia in terms of culture and way of thinking. So it should play out similarly. Australia has a sizeable fillipino population and bringing fillipino cuisine will bring more diversity, and acceptance. The only concern we have is social mobility. But since our business is fast food and workers will be hired from Australia it won’t be a huge problem. Most of the world has been set on globalization and Jollibee should also be on the same track in order to maximize profits and sales, and Australia is the perfect destination.

(You market segmentation is very clear. The flavor of home is a very attractive marketing strategy.—professor)

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