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Brand loyalty

Recent research indicates that Australian customers are committed to purchase and repurchase Japanese cars such as Subaru -63, 1 %, Toyota – 58, 9 %, and Mazda – 57,6 percent (Roy Morgan Research, unpaged). The fourth, fifth, and sixth places are occupied by Volksvwagen, Honda, and Holden. In turn such companies as Ford, Nissan, Hyundai, Mitsubishi have lower level of brand loyalty, approximately, 35 percent (Roy Morgan Research, unpaged).

On the basis of these data it is possible to argue that the average level of brand loyalty is relatively low which means that Australian customers do not feel attached to one particular car-manufacturing company. Moreover, a new entrant will be able to gain the trust of consumers either by providing products that would be superior in terms of reliability, design, gas consumption, and so forth.

Capital requirements

A company, which intends to start its operations in Australia, will have to incur the following expenses: 1) cost of recruiting and hiring personnel; 2) lease of premises for manufacturing facilities; 3) procurement of equipment; 4) the fees paid to the government.

At this point, it is impossible to present any definitive number because there is no available information about the costs incurred by foreign car-manufacturing companies, when they were starting their operations in Australia. The thing is that the majority of these corporations like Toyota, Ford, Mazda or Mitsubishi launched their operations more than then twenty years ago, and since that time, the cost of equipment and averages salaries have changed.

Cultural dimensions of Australia and South Korea

At this point, it is necessary to indentify cultural dimensions of Australia and South Korea. Our finding can be presented in table format. This comparison will be based on the theory of cultural dimensions developed by Geert Hofstede (2010, unpaged).

Country Power distance Individuality Uncertainty Avoidance Collectivism and individualism Time orientation Quality vs Quality of life
South Korea 63 High (more formal relations among colleagues) 25. Low 90 – very high Collectivism (more emphasis on group work) Long-term orientation 91. Quality
Australia Low – 40 (less formal relations among collegues) High 95 67 – Relatively High Individualism (more attention is paid to the individual contribution) Short Term Orientation – 47 Quality

(Hofstede, unpaged)

The major difference between the cultures the two countries is power distance and attitude toward individuality. In Australia, colleagues tend to relate to each other as equals, even despite the fact that they occupy a different position in a workplace hierarchy (Hostede, unpaged). Moreover, they will be more willing to take independent decisions.

Furthermore Australians emphasize their individual contribution rather than collective work. In contrast, business culture of South Korea stresses importance of formal barriers between top management and frontline personnel. South Korean employees will be less willing to take initiative. Additionally, people of this country attach more value to group work rather than individual effort of an employee. Another distinction between them is different attitude toward risks (Hostede, unpaged).

Australians have a lower rate of uncertainty avoidance than South Koreans and Australian employees will be more ready to take independent decisions, even if it entails a certain degree of risk. Finally, these data suggests that South Koreans are more oriented toward long-term goals, whereas Australians are more inclined to pursue long-term objectives. These distinctions should be taken into consideration by the management of the Korean company when they will try to motivate employees.

Works Cited

Hostede G. 2010. Cultural dimensions. Web.

Roy Morgan Research. Roy Morgan Automotive Currency report. Roy Morgan

Research 2010. Web.

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"Group Business Project." IvyPanda, 27 Nov. 2019, ivypanda.com/essays/group-business-project/.

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IvyPanda. "Group Business Project." November 27, 2019. https://ivypanda.com/essays/group-business-project/.

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IvyPanda. 2019. "Group Business Project." November 27, 2019. https://ivypanda.com/essays/group-business-project/.

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IvyPanda. (2019) 'Group Business Project'. 27 November.

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