Factors Affecting Local Business Culture in Oceania

The business culture is not related to the company's actions towards clients and employees, it is much more complex than that. The business culture is the company's identity, it is their unique way of doing business and dealing with the business world. Each company has its own way, and each regional culture affects how the local business will react. As global managers, we need to understand the different types of cultures and how they will affect the local business, this will advertise the best country/company that matches with their home country/company. In addition to this diversity there are many factors that may affect each business culture, and this may include but not limit to: Politics and government, gender roles and arts, and business law and economy. This second last newsletter will provide us, "global managers", with a better understanding of how these topics affects Australia and Oceania; which will be divided into 2 islands/countries per region (including: Samoa, New Zealand, Australia, Fiji, Guam, Hawaii, and Papa New Guinea.)

Demographics Australia: 2

Arts and Culture Fiji: 3

Holidays and Traditions Guam: 4

Politics and Government Hawaii: 5

Business Laws New Zealand: 6

Economy Papua New Guinea: 7

Gender Roles Samoa: 8

BUSI 2702B November 27, 2013

Presented By: Asia Sales

;

Spring 2016

2

Lorem Ipsum Dolor

2

the economic growth in Australia is attributed to areas of the country where mining and resource-based industries and services are mostly located. Western Australia and the Northern Territory are the only states that have economic growth.3 Geographic features have helped Australia’s mining and resource based industries to prosper greatly, especially since Australia has a vast array of geographic features such as mines, mountains, plains, desserts, as well as being completely surrounded by the ocean.

Australia’s attractive

geographic features, such as The Great Barrier Reef or the Gold Coast, have considerably helped Australia’s tourism significantly and have accounted for around 3% of the GDP which translates to about 35 billion dollars for the Australian economy for the year ended 2011. Other

1“Australia”, Central Intelligence Agency, Last accessed November 19, 2013, https://www.cia.gov/library/publications/the-world-factbook/geos/as.html 2 “Australia’s 40 Largest Companies”, Lionel Laurent, Last accessed November 19, 2013, http://www.forbes.com/2007/12/03/australia-bhp-forbes40-biz-cx_ll_1203australia40.html 3 “National Economy grows but some non-mining states in recession”, Sunanda Creagh, Last accessed November 19, 2013, http://theconversation.com/national-economy-grows-but-some-non-mining-states-in-recession-12670

1

Business in Australia is one of the most active sectors in the world and as such, also has one of the largest capitalist economies. The size of Australia is deceiving as it is the 3rd least densely populated country in the world.1 The majority of the population’s density can be seen spread throughout the major coastal cities surrounding the country and this has a strong effect on the businesses that reside in Australia. In the major cities, Australia is home to some of the largest companies in the world including BHP Billiton, Commonwealth Bank, Rio Tinto Group and Telestra – which are also among the largest companies in Australia.2

Australia is a very resource rich country in some areas which has caused an in-flux of concentration around these industry hot-spots and is a large part of the Australian economic stability. Much of

Demographics effect on Business in Australia A Europe Ad m in i st ra ti o n Fe at ur e

3

successful industries include mining, manufacturing, health care (which employed the largest proportion of the population aged 20 to 74 (12%)) and Education and Training (which employed 70% female employees). This separation of industries and business cultures has been the main influence on the country’s demographic dispersal and allows for all types of businesses to flourish, whether small or large, as the economy is highly developed and globalized.

;

Spring 2016

3

Lorem Ipsum Dolor

1

Fiji is an island group in the South Pacific Ocean that is known for its tourism, beautiful landscapes, and arts and culture.4 Art and Culture has a large affect on the tourism industry in Fiji. This is due to the high demand of souvenirs by the increasing number of tourists visiting Fiji each year. Tourism is one of the fastest growing sectors in the Fiji economy. It is the largest contributor to gross foreign exchange and contributes substantially to employment and Gross Domestic Product.5

Visitors of Fiji encourage and support the traditions of native art and traditions surrounding the islands rich culture. All forms of art including: music, dance and food are all very core attributes to the strong culture in Fiji. A traditional art form is known as “Meke”. Meke is a dance that embraces traditional song and dance to tell ancient legends, love stories, history and spirits of the island.6 Pottery, mat and basket weaving, woodcarving and the

2

traditional “Masi” are all popular souvenirs for tourists that attribute to Fiji’s healthy economy. Pottery is a craft dating back to the original settlers of Fiji around 1290 BC. Pottery making is still practiced in many of the Fijian islands, with each district possessing their own signature style. Masi is another popular art form practiced by the local men and women. Masi and tapa are names for bark cloth, produced from the inner bark of the paper mulberry tree, which are cultivated by Fijians for this sole purpose. Masi has many uses, including but not limited to wall decorations, ceremonial dress, table mats and handbags.7 They are a popular souvenir among tourists, known for their tribal patterns and authentic designs.

Tourism in Fiji continues to be one

of the largest economical drivers of the country. Having said that, there is no dispute that art, culture and tradition prove to be one of the largest factors affecting business in Fiji today.

4 "Central Intelligence Agency." The World Factbook. N.p., n.d. Web. 18 Nov. 2013. <https://www.cia.gov/library/publications/the-world-factbook/geos/fj.html> 5Fiji Embassy - Tourism. N.p., n.d. Web. 20 Nov. 2013. <http://www.fijiembassy.jp/tourism.html>. 6 "Fiji Culture, Religion and the Fijian Language." Fiji Culture and Religion. N.p., n.d. Web. 18 Nov. 2013. <http://www.tourismfiji.com/fiji-culture-religion.html>. 7 Fiji Traditional. N.p., n.d. Web. 20 Nov. 2013. <http://fijiguide.com/page/4351878:Page:60>.

An America Sales Feature

How arts and culture affects the business culture in Fiji

Masi cloth, made of traditional bark-cloth from the Paper Mulberry tree. These naturally coloured cloths are recognized by the intricate patterns and colours. http://heulwenloves.blogspot.ca/2011/02/south-pacific-tribal-print.html

A print showing Fijian women, doing the traditional Meke dance that portrays ancient tales, love stories and spirits of the island.

http://www.justpacific.com/fiji/fijiphotos/cards/modern/meke.jpg

;

Spring 2016

4

Lorem Ipsum Dolor

8 "Guam History, Language and Culture." Guam History, Language and Culture. http://www.worldtravelguide.net/guam/history-language-culture (accessed November 20, 2013).http://www.bibme.org/ 9 "Countries and Their Cultures." Culture of Guam. http://www.everyculture.com/Ge-It/Guam.html (accessed November 20, 2013).

1

Guam is a small pacific island that lies north of Australia and West of Japan, and is known for its large US naval base and Japanese tourists. Guam is a self-governing territory of the US and thus uses the American dollar as its currency and English is one of the two official languages. Guam’s economy is very dependant on the American military and tourism and therefore has low growth potential.

Guam celebrates Independence Day and Liberation ay in addition to traditional American holidays. Guam’s liberation day is celebrated on the 21st of July with a parade of floats and marching bands, which are staged in honour of military veterans and Chamorro who lived through the years of wartime horror.

2

In Guam, there is a

mix of western and local indigenous customs. Indigenous culture has a large effect on the culture of Guam although they are westernized. When conducting business in Guam, one must take this into account. One very unique native practice still used in Guam is called the “Eyebrow”: Islanders say hello, recognize someone or build a connection simply by lifting eyebrows and jerking their head back. Japanese culture also has a large influence on the island as 90% of the island’s tourists come from Japan. Another interesting gesture is sniffing an older person’s right hand as a sign of respect. This is explained by respect for elders and authority figures being a core cultural value. 8

3

Guam is the host to a

loose class system that splits the local population into the manakhilo, the high ones, and the manakpapa’, the low ones. The manakhilo includes wealthy families from the capital of Hagåtñta who have held positions of power since the colonial era. However class lines are not strict and these people usually live side by side.9

A Europe Sales Feature

How Traditions and Holidays affect the business culture in Guam

This is a street parade during the celebration of Liberation Day on July 21st.

;

Spring 2016

5

Lorem Ipsum Dolor When it comes to setting up a business in Hawaii, it is important to know the latest government issues. Hawaii's booming economy could face setbacks under a prolonged federal government shutdown, economists and lawmakers said. People’s wages are facing cutbacks, as did the 23,000 civilian federal workers. "This is something that's going to be damaging to our economy as a whole and it's going to be very harmful for our working families," said Congresswoman Tulsi Gabbard.10

In addition to that, many industries will be drastically affected by the government shutdown. For example, Hawaii’s republican governor, Linda Lingle, had written to Mr. Obama asking him to make sure "convention, meeting, and incentive," to Hawaii was protected from legal restrictions. CMI travelers have already cancelled 132 Hawaii events worth nearly $100 million in 2009. "The current atmosphere that brands legitimate CMI travel as excess has resulted in 132 group cancellations of meetings and incentive trips to Hawaii so far this year and next, representing a loss of 87,003 room nights," Ms Lingle said. Bailed-out companies are playing with taxpayer money to take CMI trips to Hawaii, and Congress is saying no. This is causing a drop in tourism in Hawaii.11

However, the “Big 5” companies remain on top. “The new 21st-century interrelationship between large landholders and government is more subtle and involves special-interest groups,” TZ Economist Paul Brewbaker says. “In urban development, large landholders are among the most influential special interests.” Large corporations hold significant influence in Hawaiian politics. All in all, the major story circulating the Hawaii News today is the latest government shutdown potential and how it might cost some businesses as well as families a fortune. Despite the changes, the “Big 5” companies will still have their power.12

10 Rick Daysog, “Local impact of government shutdown”, Hawaii News Now, posted September 30, 2013, http://www.hawaiinewsnow.com/story/23562499/local-impact-of-government-shutdown 11 The Economist, “More business travel fallout from America’s bailout”, The Ecnomist, April 5, 2009, http://www.economist.com/blogs/gulliver/2009/04/more_business_travel_fallout_from_ba ilouts?zid=311&ah=308cac674cccf554ce65cf926868bbc2. 12 Cheryl Ernst, “New Big 5 May Be Emerging in Hawaii”, Hawaii Business, April 2013, http://www.hawaiibusiness.com/Hawaii-Business/April-2013/Hawaiis-New-Big-Five/.

An Asia Administration Feature

How Politics & Government

Affect Business Culture in

Hawaii

;

Spring 2016

6

Lorem Ipsum Dolor How Business Laws Affect Culture in New Zealand A Europe Production Feature

1

In New Zealand, business owners must be aware of consumer laws, international trade laws, and employee regulations.

The safety and quality of what a company manufactures or imports must adhere to the Consumer Guarantees Act (CGA), Fair Trading Act, as well as the Weights and Measures Act and product safety regulations. CGA makes sure that goods are of sufficient quality, and are fit for their intended purpose. The Fair Trading Act was created to ensure that competition across industries is fair and healthy.13

There are health and safety laws to reduce the probability of serious injuries. This keeps employees healthy and therefore more productive, benefitting both employees and employers. With the new laws, work related injuries have decreased each year since 2002.14 New Zealand has also put environmental laws into

2

place to preserve the natural environment for later generations. Businesses that comply with the regulations tend to have lower operational costs and an enhanced reputation.15

Importing and exporting are cost-effective ways to gain a new market. An importer has to check with the Ministry of Primary Industries (MPI) since some goods might be a biosecurity hazard and the business can be severely fined.16 There are regulations on animal and plant product imports. New Zealand has trade agreements with other countries and this helps facilitate importing and exporting. Trade has grown in New Zealand in the past 10 years due to globalization.17 The New Zealand Customs Services prevents dangerous products from entering the country. They work with other agencies to preserve the country’s economy. 18

To ensure the fair 13 "Manufacturers and importers." Business support, information and advice, http://www.business.govt.nz/laws-and-regulations/consumer-laws/manufacturers-and-importers, accessed November, 2013. 14 "Injury Statistics – Work-related Claims – information releases." Injury Statistics, http://www.stats.govt.nz/browse_for_stats/health/injuries/info-releases.aspx, accessed November, 2013. 15 "The environment." Business support, information and advice, http://www.business.govt.nz/laws-and-regulations/the-environment, accessed November, 2013. 16 "What biosecurity means for importers." Business support, information and advice, http://www.business.govt.nz/laws-and-regulations/importing-exporting/what-biosecurity-means-for-importers, accessed November, 2013. 17 "New Zealand Exports." TRADING ECONOMICS. http://www.tradingeconomics.com/new-zealand/exports, accessed November, 2013. 18 "Importers and customs." Business support, information and advice. http://www.business.govt.nz/laws-and-regulations/importing-exporting/importers-and-customs, accessed November, 2013. 19 "The Employment Relations Act for employers." Business support, information and advice. http://www.business.govt.nz/laws-and-regulations/employment-regulations/the-employment-relations-act-for-employers, accessed November, 2013. 20 "How does the Privacy Act apply to my business?" Business support, information and advice. http://www.business.govt.nz/laws-and-regulations/employment-regulations/how-does-the-privacy-act-apply-to-my-business, accessed November, 2013.

3

treatment of employees, employers must select candidates for jobs regardless of race or gender. The Employment Relations Act covers union membership, workplace training, and trial (and probation) periods. This act helps foster a more productive relationship between employers and employees, which will lead to a positive work environment.19 Businesses’ payment plans must be as fair as possible. The minimum wage is $13.50/hour. Every New Zealander is guarded by the Privacy Act, which guarantees all customer and stakeholder information collected by businesses is protected.20

;

Spring 2016

7

Lorem Ipsum Dolor

21 "Papua New Guinea." Infoplease. Infoplease, n.d. Web. 20 Nov. 2013. <http://www.infoplease.com/country/profiles/papua-new-guinea.html>. 22 "Central Intelligence Agency." The World Factbook. N.p., n.d. Web. 18 Nov. 2013. <https://www.cia.gov/library/publications/the-world-factbook/geos/pp.html>. 23 "Papua New Guinea." Doing Business in � Business Tips & Regulations. N.p., n.d. Web. 20 Nov. 2013. <http://www.anzbusiness.com/countries/papua-new-guinea.html>. 24 "Papua New Guinea ." Australia Unlimited . N.p., n.d. Web. 20 Nov. 2013. <http://www.austrade.gov.au/Export/Export-Markets/Countries/Papua-New-Guinea/Doing-business#.Uo1Y9KVSYds>.

The Economy and Business Culture in Papua New Guinea (PNG)

1

Economy overview Papua New Guinea is a small country in Oceania that occupies the east half of the island of New Guinea. Papua New Guinea has a GDP of $19.41 billion. This country possesses a very large amount of natural resources, including minerals, timber, and fish and it produces several commercial agricultural products.21 However, exploitation has been compromised by the tough terrain, and by the high cost of developing infrastructure. The economy in the country has a very small formal sector. These sectors focus particularly on the export of the natural resources the country produces. The informal sector employs the majority of the population. Most people in the country work in agriculture as the main activity for income earning. It is important to mention that mineral deposits such as copper, gold and oil make up for two thirds of the export revenue of the country.22 Finally, the government is very committed to improving and boosting public spending in the areas of infrastructure, health and education.23

2

Business Culture Papua New Guinea’s business culture is heavily influenced by the Australian culture as well as by some Asian cultures. People in the country tend to call each other “wantoks” which means “one talk” or “one language”. It has a similar connotation to the Australian term “mate”, however, it posses a much deeper meaning. Contact is very important in PNG when doing business, and they prefer to see the see the same representative for a company every time. Lastly, business laws are based on English principles; nonetheless the application of these principles is not as strict as in other countries such Australia.24

An Asia Production Feature

;

Spring 2016

8

Lorem Ipsum Dolor How Gender Roles Affect Culture in Samoa An Asia Sales Feature

1

Focusing on Samoan culture, we find that there is an age-old tradition of being able to raise your child as a third gender, fa’afafine. Fa’afafine are people born biologically male but raised as a female. This is believed to have arisen because of the roles that need to be filled within the family and was the main reason for raising a child as fa’afafine. There are also parents who see that their male-born child has more feminine traits and characteristics, so they come to the conclusion that this child is fa’afafine and raise them as female.25

When the fa’afafine

willingly take up the role as fa’afafine in Samoan culture, it

2

can be more positive, as the family is nurturing them to be who they were “meant to be”.

This is just one example of how there is emphasis on collectivity, and the needs of the family are put above the individual in Samoan culture. There are deep traditions to be respected and that involves the roles of people in society and old cultural systems. In regards to the fa’afafine’s role in society in business, they take up the traditional female role and are expected to have “female” jobs in crafts, dance, or other jobs related to that and probably have little weight in business culture. Fa’afafines are seen more to be the caretakers of the family, as they do not usually get

25 Patrick Abboud “Fa’afafine: The boys raised to be girls” SBS News, last updated on 26 Aug 2013, taken from http://www.sbs.com.au/news/article/2013/07/16/faafafine-boys-raised-be-girls. 26 “Samoa” ANZ Business, last updated on 2013, taken from http://www.anzbusiness.com/countries/samoa.html.

3

married.26 The take away

for anyone doing business in Samoan culture, is to be vigilant and respectful of the deep traditions that happen and that Samoan culture puts the well being of the group above the needs of the individual.

Reading through this second last newsletter, I can say we have come a long way. We started this project not knowing what was coming out of it, and now I can definitely say that we have learned a lot. Reading each section makes you think about other examples, about other countries and how they compare to each other. I believe this is one of our goals for this class, being able to identify each strength and weakness of a business being related to any of our topics and many others. Business culture is something we need to understand about each company and culture we are or will be doing business with. And I believe this week's newsletter has thought us a lot about Australia and Oceania, especially because it is a part of the world so far from "The Business Centre" that sometimes we forget about. Reading different sections I gain a significant amount of knowledge about countries I did not anything about.

A Letter from Stephannie Abreu:

vi Easton, N. The real revolution in the Middle East: Women in business. Retrieved from http://management.fortune.cnn.com/2012/04/16/middle-east-women-business/ vii Rubin, J. Arab women: The key to middle east progress? Retrieved from http://www.washingtonpost.com/blogs/right-turn/wp/2013/09/18/arab-women-the-key-to-middle-east-progress/