Talk about the theory initially.

The implications for current management practices for when ANZ enters into Vietnam is that
ANZ must be patient and aware of their surroundings. Patience can mean that negotiations in
Vietnam can take time and that most of the decisions made there have to go through group
consultation. Due to political instability,

The implications for current management practices when a company steps into the global
market today is that they all must consider the political, cultural, economic and human relations.

http://www.smh.com.au/business/intelligent-investor/asia-powers-anz-to-new-highs-20131104-
2wwxb.html

Understanding the global market: Navigating the international business environment.


How will the banking sector deal with the cultural degrees of working in offshore markets, which
also includes the many languages and styles of negotiation?
Culture and the theory of Globalisation is a very well reputable theme (Globalization and culture
2009).
Geert Hofstede was a man that helped managers understand the core differences between cultures.
Hofstede implied that culture is the collective programming of the mind which distinguishes the
members of one human group from another (Understanding the global market 2014).


Learning offshore English (OE) can be a tedious process that requires a large amount of self-
discipline(Bridging the culture gap 2008). It may sound plain to the native speakers ear, but it does
reduce many misunderstandings that would occur at international meetings.

Managers in todays society must face ever expanding global markets and competition

The globalisation of business
Globalisation has affected many businesses across the world. For example;
through the years we have all seen substantial differences in Australias and New Zealands
positioning compared to the rest of the world. They have grown more into the Asia-Pacific region.
This now means that both countries are now in very competitive environments and that new
challenges have just brought themselves up, challenges such as; understanding the global
environment, doing business globally and managing in a global environment. ANZ, a banking
corporation, aims to grow their establishment in the Asia Pacific region and spring 25-30% of their
earnings from their America Division and Asia Pacific Europe by 2017, while at the same time grow
their Australian and New Zealand core businesses. They must face the same challenges as any other
business that goes global.

The first issue that companies face when going global is cultural issues. For example, very few
Australian students go on to study another language in more depth. This is very unfortunate as
language is the key to understanding culture. As quoted by Nuffield Inquiry: We are fortunate to
speak a global language [English], but in a smart and competitive world, exclusive reliance on English
leaves [us] vulnerable and dependent on the linguistic competence and goodwill of others.
(Managing for a sustainable future 2014 p.125) Culture is primary if we wish to understand the
nuances that come from different languages and negotiation styles. In order to prevent
parochialism, managers must adopt a geocentric attitude towards the world.


One of the greatest situations as to helping managers progress to understand the divergences
between national cultures was created by Geert Hofstede. Hofstede (1980) dispensed with culture
by concentrating mainly on social cultures (differences that are in between suspects from other
different countries).(p,21 Beyond Hofstede). The study found that managers and employees differ
on five aspects of general culture. His learning points towards many parallels between New Zealand
and Australia. Between the 5 dimensions there are 4 dimensions that relate to Australia and they
are; Individualistic, Low power distance, Achievement and Short term Orientation.

The second issue would be the economic environment. Managers need to be conscious of economic
subjects when operating business in other countries. The first condition is to comprehend the kind of
economic arrangement under which the country may function.
There are two types of arrangements are the planned economy and the free market economy.


Competition
Majority of managers must face the cumulative globalization of markets and rivalry. That idea needs
each business to choose whether it needs to become a global player to live.
Dont necessarily focus all your efforts on Asia Pacifics regional capital cities alone. There are many
markets as large or larger than the Australian market located in secondary cities or regions outside
capital cities. (http://www.anzbusiness.com/why-choose-anz.html)

Points:
Economic environment
http://www.emeraldinsight.com.ezproxy.lib.rmit.edu.au/journals.htm?articleid=1895921
Global management a theoretical foundation

Cultural intelligene
Cultural intelligence is perceived as a specific form of intelligence focused on capabilities to grasp,
reason and behave effectively in situations characterised by cultural diversity (Ang et al., 2007)

Global management: Concepts, themes, problems and research issues

According to cultural theory, nations and subgroups within nations, institutions, and organizations can
be characterized by a distinct pattern of cultural values (Hofstede, 1980, Schwartz, 1992 and Triandis,
1989)
the culture-specific argument (Hofstede, 1980) shares the view that organisational practices must
be adapted to the national context to maximize their effectiveness.
http://www.emeraldinsight.com.ezproxy.lib.rmit.edu.au/journals.htm?articleid=1921749

Multinationals continue to face many and varied challenges such as:
entering new geographic markets; building plants in new countries; dealing with
evolving government regulations; and addressing a host of new environmental
imperatives. However, being a well-run multinational is no longer sufcient.
Quite simply, the game has changedand dramatically. Multinational rms treat
the world as their name suggestsmulti-nationallyby addressing a series of
individual national markets. This approach no longer works because today they
face perhaps the most difcult challenge of allthe globalization of customers

http://web.b.ebscohost.com.ezproxy.lib.rmit.edu.au/ehost/pdfviewer/pdfviewer?sid=403a2962-990b-
4c01-b4d5-e69b48808afb%40sessionmgr115&vid=2&hid=112


http://web.a.ebscohost.com.ezproxy.lib.rmit.edu.au/ehost/pdfviewer/pdfviewer?sid=0d8ae4de-74e0-
458d-b464-3662d9d5adb7%40sessionmgr4003&vid=2&hid=4109
Economic uncertainty
`Succession management
-Focus on hiring leaders talented if hired cheap then save costs in short term and lose performance
in long term. (Faulty staff) Link to ANZ Competitive advantage
Leaders achieve long term performance (retention of employees talent management)
- training practices needs to be consistent, if not employees are not motivated and customers will
not receive the same service, staff will not be consistent, they are just there to get paid and will
therefore bad reputation and lose market share. Employees need support and communication (job will
not be done effectively and efficiently waste of resources)
Focus on putting talent with the strategy of business in order to achieve short term and long term
objectives.
Embracing Technology training staff to use the technology, current staff they need to keep their staff
motivated bonuses and salaries
Work Culture no discrimination, appreciating work culture uniform wise, Islamic country cannot
show skin ,make sure to have equality between males and females.
Nowadays business is intensely swayed by globalization. The
number of businesses that are conducting through the perimeter has expanded exponentially. As a
result of this, a sizable collection of managers and employees are out in the open to global strategic
decisions and as well as cross-cultural communication today. One of the key questions that is within
international management is to what degree are managers willing to cope effectively with global
strategic complexity
The number of companies operating across the border has grown exponentially. As a consequence of
this, a large group of managers and employees is exposed to global strategic decisions and cross-
cultural interaction nowadays. One of the key questions in international management, and more
specifically in international human resources management, covering all issues related to the
management of people in an international context (Stahl and Bjrkman, 2006, p. 1) is to what extent
managers are prepared to effectively cope with national diversity and global strategic complexity. In
other words: to what extent is the development of global business strategy aligned to the
development of the capabilities of the human resources needed to implement this strategy. This
alignment appears to be a problem. Firms appear not to be doing enough to prepare managers for the
international business environment (Manning, 2003; Bird and Osland, 2004; Johnson et al., 2006).
Many companies aim to develop these managers internally (Suutari, 2002). This can only succeed if
there is clarity about the criteria for selection and/or development of these global managers.

Managers must first consider if their staff is well trained. A well trained staff system will allow firms
to create a good reputation on their company.
This will allow them to infiltrate diverse cultures much easier than if they are an unknown brand.
Unknown brands are more likely to fail if they are to progress without any reputable backup to
support them as they enter into a new global market.
In this case for IBM, they created a leadership training program that had a 'one size fits all' approach
for all employees including managers high up the ladder. IBM is an excellent example demonstrating
strong leadership by showcasing that they can avoid the trap that most firms fall into; which is, to
focus global leadership training on high end managers instead of the entire organisation that
includes it's lower class employees.
http://www.sciencedirect.com.ezproxy.lib.rmit.edu.au/science/article/pii/S0090261613000314

New global markets require good knowledge of customs. These customs will also help companies
relate to new customers without violating any of their societal rules in order to achieve optimum
business objectives for both parties effectively and efficiently. Without proper knowledge of
customs, managers may find that their businesses will be turning into parochial ones instead of
geocentric ones. The actions of businesses in a country that has culture as a commonality can be
manipulated by that culture as they are controlled by people who live in a world with those exact
culture values.
http://www.sciencedirect.com.ezproxy.lib.rmit.edu.au/science/article/pii/S0019850110001707

The economic environment must also be considered. How do we know if one will enter into a
country that is economically stable enough in order for business to operate?
Economics is an important variable which is to be accounted for because if managers enter into a
country that is rather faulty economically then they must suffer the implications of a failed business.
Businesses need a stable economic environment in order to function because without it, they will
automatically fail (include an example of a failed business in the past due to economic uncertainty).

The political/legal environment is definitely needed to be considered as the only way to innovate
successfully without any third party intrusion is a strong and stable legal system to protect any
copyright or patented material that is to be released into the public for business purposes. Business
purposes would include the creation of a new ideas that need to be protected in order for progress
to happen. Progress means that there would be economic certainty as there would be no one there
to destroy or copy ideas that innovators work very hard to create. If there are no law enforcers there
to protect businesses, then businesses will have no choice but to be susceptible to external
influences and therefore fail.

Effective and efficient leaders must be included when a company goes global. Leaders are the
backbone of the business. They can uplift a business and if hired ineffectively, they may destroy one.
Many companies today have suffered the traumatic experiences of a difficult leader due to
manager's spending frugally on ineffective leaders in order to 'get the job done'. This is wrong
because in the short run they will see a savings in dollars in their balance sheets, however in the long
run they will see possible betrayal and backlash as the company becomes more global. This has
evidently been seen when (include evidence here).