The Global Financial Crisis In Australia

Published Date: 02 Nov 2017

Contents

Instruction

The Global Financial Crisis in Australia impact on many areas. For instance, the Australian dollar has been in a very high rate for couple of years since then, and it also affects the International Education Export Business.

It is like domino effect; the international students have to spend more money on the cost of living and studying in Australia, Moreover, the skilled immigration Australia requirements has kept changing, many international students who were planning to migrate to Australia through the VET education at Tafe, had to change or cancel their study plan. The budgets of Government funding for Education organizations included Tafe - MSIT, have been reduced. Suffering double whammy with decreasing income and financial support, MSIT needs to find a way to attract students in sufficient numbers to cover the funding constraints.

This case study aims to find useful tips for MSIT to get over the business crisis and seek to grow business market in the following two countries – India and Brazil. It will be focused on the Communicating styles with these customers, and Identifying customer needs, and maintaining customer relationships by the following steps:

research the cultural implications for doing business in India and Brazil, and relevant business behaviour in each of the two countries

find out the tips of business appropriateness in the international clients such as education agencies

E.g. how to seek their feedback, and how to build a good interpersonal communication, representative from each of these companies

incorporate the feedback into a toolbox of MSIT’s marketing unit, keep it updated and continue improvement of international clients’ service with all MSIT departments.

Cultural Considerations

2-1. General Information

As the table below, India and Brazil are both the largest countries in the size of the area and the population of the people. They are also having high GDP which mean they are the richest countries in the world; Brazil is rank 7, and India is rank 8 in 2013. (IMF, World Economic Outlook)

India

Brazil

GOVERNMENT

Federal Republic -

Republic of India

Federal Republic -

Federative Republic of Brazil

Capital

New Delhi

Brasília

Largest city

Mumbai

São Paulo

Area

3,287,263 km2 (7th largest)

8,515,767 km2 (5th Largest)

GDP

(sources: IMF, World Economic Outlook)

USD 1.9 Trillions (Rank 10 in 2012)

USD 2.1 Trillions (Rank 8 in 2013)

USD 3.2 Trillions (Rank 6 in 2017)

USD 2.4 Trillions (Rank 7 in 2012)

USD 2.5 Trillions (Rank 7 in 2013)

USD 3.3 Trillions (Rank 5 in 2017)

GDP PPP per capitat

$3,900- (Rank 135)

$12,000 (Rank 82)

POPULATION

10-03-2013

1,224,614 (2nd largest)

Male (51.6%) / Female (48.4%)

194,946 (5th largest)

Male (49.2%) / Female (50.8%)

POPULATION GROWTH RATE

1.31

1.1

map_brazil_in_south_a_large.jpg

india_index_map.jpg

2-2. Customs

India

Brazil

MAJOR ETHNIC GROUPS

Indo-Aryan 72%

Dravidian 25%

Mongoloid and other 3%

55% population is white (Portuguese, Intalian)

38% mulatto

6% black

1% other that Japanese, Amerindian, and Arab

MAJOR RELIGIONS

Hindu 80.5%

Muslim 13.4%

Christian 2.3%

Sikh 1.9%

Other 1.9%

Roman Catholic 80%

Protestant 15%

Others 5 %: Buddhism, Judaism, Shinto, Islam, Candomble, Macumba and Christianity

GENDER

Generally the woman’s role in India is a housewife, mother, homemaker etc., less respect in the smaller, rural areas.

Traditional Indian women do not drink or smoke.

Depends on the social class, most of women do not have lots of work opportunities.

Women are still expected to do most like cooking or cleaning.

An unaccompanied woman is not common if a woman goes to local bars and clubs alone.

LAW AND ORDER

The drinking age 18-25; depending on the area.

Legal smoking age is 18.

Drug laws are heavily enforced.  

Legal drinking age is 18, but it is not heavily enforced.

Legal smoking age is 18 but it is not enforced at all.

Drug laws are not so heavily enforced. Take drugs in or out of the country, automatic jail.

POPULAR MUSIC

Film music

Samba

FESTIVALS

Sikh Festivals

Buddhist Festivals

Jewish Festivals

Christian Festivals

Boi Bumba’ Festival

Festa Junina

Brazilian Carnaval

FOOD

Muslims, Jews, Sikhs eat any meat except pork.

Christians all eat meat

Eating beef despite the widespread poverty and periodic famine in India Hindus.

Lower-caste Hindus eat any meat except beef; the higher castes and all Jains are vegetarian, some even don’t eat eggs.

Brazilian foods and drinks threatened by punishment remain safe originated in Portuguese

mix specific fruits with milk -> you´ll die if you do it.

ask for food to be saved and packed after a meal at a restaurant is taboo ->deemed as low-class

in the Good Friday, Catholics eat fish only (no other meat)

Have lentil soup in the New Year eve.

TEMPO AND TIME

Polychronic Time culture

Polychronic Time culture

2-3. Protocols and Etiquette外交礼节，外交惯例 when

India

Brazil

Gift Giving

For a first meeting, it is not necessary to bring gifts.

Avoid a gift of alcohol or products made from any leather, alcohol related gifts. Chocolates or flowers except white flowers are safe.

Black and white is not welcome colours for wrapping presents. Red, green or yellow are ok.

As a gift, give money in an odd number $11 instead of $10. Usually add a single digit.

Do not open the gifts in the front of the giver.

Bring the hostess flowers or a small gift when visiting Brazilian house

Avoid giving anything purple or black colours, Brazilian think these are mourning colours.

It is polite to open the gift when received. 

Dressing

There are many rules for women’s dressing; avoid tight fitting, short shirts, and sleeveless attire, and should not reveal too much of the legs.

Brazilians pride themselves on dressing well. 

It is very important to dress elegant and feminine.

Touching

Indian culture and tradition forbids unnecessary touching or any form of physical contact, especially between a man and a woman, in public. Kissing in public is a not advisable here. You can shake hands with people, or better still stick, to the traditional Namaste, the popular Indian style greeting. For this, you need to press your hands together with all fingers pointing towards the sky in front of your chest and politely say Namaste, while looking at the person you are saying it to.

Light touching and close proximity are construed as signs of general friendship (as opposed to romantic intimacy). There is also a fair amount of touching between man and women and women and women while conversing.  This includes hand on shoulders, hand on arms, and hand on hands.

Brazilians tend to stand much closer to each other than their North American counterparts.  Usually one to two feet apart is normal. 

Public Displays Of Affection

it’s best not to perform hug and kiss in public.

Temple Etiquette

Take shoes off before enter into a place of worship in India, and avoiding wear revealing clothes.

Dining Etiquette

Hindus don’t eat food with the left hand

Arrive at least 30 minutes late for the dinner.

Arrive up to an hour late for a party.

Dress elegantly or even over-dressing, it is safer than under- dressing.

If you did not bring a gift, it is good to send flowers to the hostess in the next day.

Communication Emphasis

Communication Emphasis

Communications should be kept formal both in written and spoken form.

Communication may go far beyond words.

Depending on the society you are doing business with, how you say something is as important as what you say.

Low v/s High Context Language

A low context language is one that is heavily dependent on explicit verbal expression.

Swiss, German, Scandinavian

A high context language is one that relies heavily on the context or nonverbal communications.

Japanese, Arabian, Latin American

Low Context Culture

(North America and much of Western Europe)

logical, linear, individualistic, and action-oriented.  DIRECT

  Solving a problem means lining up the facts and evaluating one after another.  Discussions end with actions

Decisions are based on fact rather than intuition. . 

And communicators are expected to be straightforward, concise, and efficient in telling what action is expected. 

To be absolutely clear, they strive to use precise words and intend them to be taken literally. 

Explicit contracts conclude negotiations. 

High-context business people may even distrust contracts and be offended by the lack of trust they suggest.

High Context Cultures

Middle East, Asia, Africa, and South America

emphasize interpersonal relationships and trust. 

Collectivist culture, preferring group harmony and consensus to individual achievement. 

less governed by reason than by intuition or feelings. 

Context over words: speaker’s tone of voice, facial expression, gestures, posture—and even the person’s family history and status.   

Flowery language, humility, and elaborate apologies are typical.

Topic Example Video

The following video explains the difference between low and high context communication cultures.

Take note of the key points.

http://www.youtube.com/watch?v=8tIUilYX56E

Communication Questions

When doing business in a foreign country, how important is the context of the language when conversing?

What constitutes a confirmation or denial in the language you are doing business in?

Formality

Formality relates to the level of respect and manners you give to your customer.

As a marketer, you must know what the formal rules are for dealing with customers.

Formality Questions

What is the proper greetings for the person you are doing business with?

When and where is it appropriate to talk business?

What is appropriate side discussion?

What is the formal business dress?

3-1. Language

India

Brazil

OFFICIAL LANGUAGE AND

Official language is Hindi.

14 other official languages: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi, and Sanskrit

Official language is Portuguese.

OTHER LANGUAGES ARE SPOKEN

Hindustani is a popular variant of Hindi/Urdu spoken widely throughout northern India but is not an official language

The most important language for national, political, and commercial communication is English

Other languages are also spoken in Spanish, French and English.

Quite direct in their manner of speaking as well as in what they say.

http://www.brazil.org.za/traditional-customs.html

3-2. Behaviour

India

Brazil

GESTURES

It is common to remove one's shoes at places of worship, when visiting people's homes, and  even in certain shops and businesses.  A good rule to follow is if you see shoes arranged near the door, take yours off as well.

People beckon one another by extending an arm and making a scratching motion with their fingers, palm facing down.

The head wobble, which is very common throughout the country can mean "yes" and not "no".  It depends on the angle and expression and the speed to determine which is which.

Pointing with one finger is common.

One usually always eats with the right hand as the left hand is considered unclean. 

 Rubbing the two index fingers of each hand together indicates close friendship between two people.

Gently pulling the lower eyelid down can indicate "watch out, be careful" or "do you think I'm stupid enough to believe that?"

Thumbs up means OK, cool, positive, good-luck, thanks, you're cool, I agree. Thumbs down means the opposite.

Holding your hands in front of your body with your wrists loose and brushing your fingertips across each other means I don't care or I don’t know, depending on the situation.

Pretending to suck your thumb means that one has been left out or is disappointed.

Dressing

Men are conservative, dark coloured suits, easy to slip on and off shoes.

Women are conservative business suits or dresses and blouses. Traditional dress like the "salwar kameez" or "sari". Not too tight, short or sleeveless clothing, especially in the rural areas, small towns and cities. 

For a first meeting, avoid wearing jeans or too casual.

Men wear conservative, dark coloured business suits.

Women wear elegant and feminine suits or dresses with good quality accessories.

Normally, jeans are unacceptable

PERSONAL SPACE AND TOUCHING

The comfortable amount of personal space during conversations in India varies with different sub-cultures. In general Hindus tend to stand about 3 or 3 ½ feet apart.

Indians are not too conscious of their personal space on trains & buses where everyone is usually squashed together.

Indians do not generally touch as part of communication, although it is common to see male friends holding hands or with their arms around each other when they walk.  This is usually a sign of friendship.

Men and women hardly ever display any form of physical affection in public.Touching of any kind between men and women especially when not related can be interpreted as flirting.

Cupping the face of someone in your hands to show affection is common in families, especially between mothers and children.

Light touching and close proximity are construed as signs of general friendship (as opposed to romantic intimacy). There is also a fair amount of touching between man and women and women and women while conversing.  This includes hand on shoulders, hand on arms, and hand on hands.

Brazilians tend to stand much closer to each other than their North American counterparts.  Usually one to two feet apart is normal. 

3-3. Formality level形式;仪式;俗套拘謹, 禮節, 儀式, 正式手續, 拘泥形式 (輩分, 層級)

• FORMALITY (noun)

  The noun FORMALITY has 3 senses:

a requirement of etiquette or custom

2. a manner that strictly observes all forms and ceremonies

3. compliance with formal rules

India

Brazil

COMMUNICATION STYLE

When communicating it’s often the case that Indians will tell you what you want to hear in order to be polite.  It’s best to be patient and see what actions follow the communication.

Indians tend to favor an indirect style of communication over direct.

Communication is often informal and does not rely on strict rules of protocol.  Anyone who feels they have something to say will generally add their opinion.

Brazilians tend to be direct in most situations.  This is more common in urban environments versus rural.

Hands and Feet

There’s a whole hierarchy of the body parts in Hinduism. The head is superior to the rest of the body, and the feet are lowest on the rung.

Feet are considered dirty in India, so take off your shoes before you step into someone’s house. Don’t step on anything important and if you do, immediately express your apologies.

It’s a sign of deference to bend down and touch a respected elder’s feet in India.

The left hand is customarily used for cleaning oneself after defecation, so Indian people never eat with their left hands. Also remember never to pass on anything – money or a gift – to an Indian with your left hand. The most conservative Indians might take offense.

GREETING

Man greeting Man - Light handshakes are common after the initial "Namaste".  Sometimes the Namaste alone will suffice.

Woman greeting Woman - Light handshakes are common after the initial "Namaste".  Sometimes the Namaste alone will suffice.

Greetings between Men & Women - In formal and business situations it is usually best to let the women initiate contact, if at all.  Many Indian women will avoid contact with men in public situations.  The "Namaste" is the most common form of greeting.

Note: Most all meetings generally begin with palms pressed together at around chest level and saying, "Namaste" or "Namaskar" (which is more formal).  People usually nod or bow slightly as well.

When greeting an elder, there is also a touching of the feet of the elder, with the right hand, then touching your chest.  After this, is the palms pressed together.Foreigners are not expected to do this, but should when meeting those of extremely high status like a religious leader or guru.  

Man greeting Man - Men shake hands when greeting one another, while maintaining steady eye contact. At a first meeting a handshake will suffice but it usually lasts slightly longer than the typical North American handshake. Hugging and backslapping are common greetings among Brazilian friends.

Woman greeting Woman - Women generally kiss each other, starting with the left cheek and then switching to the right cheek. Some kiss one cheek, but most kiss two or three times (alternating cheeks).

Man greeting Woman - If a woman wishes to shake hands with a man, she should extend her hand first. It is common for men and woman to exchange kisses on the cheek when first meeting in social situations. This is often accompanied with a touch on the arm and shoulder. Some Brazilians kiss one cheek, but most kiss two or three times (alternating cheeks).

EYE CONTACT

Sustained eye contact is not generally the norm, especially a woman looking at a man.

If doing business, it’s not uncommon to keep eye contact, but it may seem odd to hold it intently for a while. The best option is to look away or even down once in a while. This can be accomplished effortlessly be simply using the looking away as a chance to gather your thoughts.

Note that as a foreigner, one can expect to be stared at.  Especially in rural areas.

When communicating with elders it is common to use indirect eye contact.

Direct eye contact is becoming a little more acceptable in the cities but in some parts of the country it can be inappropriate and rude to have direct eye contact.  Especially for women to give eye contact to the husbands.

Brazilians favor direct eye contact over indirect.  However, service people such as maids, delivery people, repair people, etc., will often avoid eye contact when dealing with people they are serving or working for.

During conversations sustained eye contact is commonplace rather than intermittent.   They associate a steady gaze with sincerity. 

Brazilians tend to look at each other often in public places/situations (on a bus, in the elevator, etc.)

Intercultural

a hierarchical organizational structure

Respect for hierarchy, status, age, experience and etiquette is a must.

Business Appropriateness

Part 2: Use culturally appropriate communication styles

2.1 Based on your research, explain how you would incorporate this knowledge into any interpersonal dealings/communications you might have with representatives of MSIT’s clients in each of the three identified countries.

C-class Take Credit (Taking Meetings /Lasting Business Relationships /C-class Take Credit / Learning the Ropes /

Brazil is actually divided into five economic social classes with the wealthiest class being the A-class and the poorest being the E-class.  However it is the middle class, also known as the C-class, that is the primary reason for Brazils emerging economic growth. Until recently, the C-class had not been extended the luxury of credit from banks. However as new micro credit and micro-finance markets emerge, Brazil will continue experiencing this tremendous economic growth because a large part of the Brazilian population is just now emerging as a very large demographic purchasing power.

4-1. Performance

China

Brazil

Nature resources iron & oil

Most influential country in South America: economic giant ,the largest media

1st ,2nd and 3rd Relationship

Local Commitment

Organizational Structure- Hierarchical lines. Deal with the right decision maker

Business Meetings- informal more relaxing, start and finish are not on time, no more than 1 or 2 meeting per day, small talk – really important

Teams & Management – Time & Space & Opportunity for the building the important relationship- team efforts. Managers are expected to manage <- get a Clear, Precise, instructions

Language – Brazilin, Pottage translator

Personal Communications – Oval are more important than written, body language, strong levels eye contact

The written Word – deal with the matter is by phone call or meeting, not emails

Humour – easy going, love of the life

Appearance – men and women, the level of the important

Get right -> Get access to the most dynamic business

Get wrong -> head back to home

India

Brazil

10 extraordinarily useful Brazilian Portuguese phrases

4-2. Ethics

India

Brazil

In India foreigners using baksheeh (speed money) to bribe bureaucrats at various levels. This is prevalent but illegal. Your company should develop a policy for dealing with graft, and understand the legal and moral consequences.

4-3. Practices

India

Brazil

Greetings

In Brazil, business introductions are usually made through a mutual contact.

Formality is mainly expected when greeting elders, where the use of "o senhor for men or "a senhora" for women is

appropriate. Men shake hands and women double kiss on the cheeks, alternating them from left to right. However, it is

expected that non-Brazilians may only shake hands, and women traditionally extend their hand first. Once relationships

have been developed, greetings become less formal and may include hugging or a pat on the back.

Avoid the OK hand signal as it is considered a rude gesture in Brazil.

Gift giving

Gift giving is not expected when doing business, although a traditional gift from the person’s home country is considered

an appropriate gesture. The exception is when you are invited to someone’s house. Always bring a gift such as flowers

for the hostess. Orchids are recommended.

Avoid gifts that have a connotation with the number 13, anything purple or black (mourning colors), knives and

handkerchiefs.

If you forget or are unable to bring something, flowers with a thank you note should be sent the day after.

Business cards

Business cards are exchanged during introductions and given to everyone attending the meeting. It is considered

appropriate to have the business cards in both English and Portuguese, although not necessary. If providing a card in

both languages, always hand it over with the Portuguese side facing up.

Business meetings

Although time is more fluid in Brazil, business is traditionally punctual. Always make appointments in advance, with

meetings best scheduled between 10 a.m. and noon or 3 p.m. and 5 p.m.

Brazilians dress fashionably, so a stylish business suit or dress is appropriate. Three-piece suits traditionally denote

executive positions, so refrain from them if you do not hold a senior role. Ties with short-sleeved shirts, jeans or sport

shirts should be avoided.

Successful business in Brazil often directly results from the fostering of more personal relationships with your

associates. Brazilians like to feel comfortable with you, so always allow some time to socialize.

Lunch is a Brazilian’s most important meal, so plan at least two hours for working lunches. Business talk is often

reserved for the end of the meal with the traditional coffee.

Dinners and social events

Brazilians prefer to get to know business partners, and social gatherings are a good chance to make a good

impression.

During dinner, most of the conversation will be informal. Good conversation topics include soccer, family and children.

Avoid discussions about Argentina, politics, poverty, income distribution, the rain forest and U.S. government policy.

Although located in South America, Brazilians do not speak Spanish and do not consider themselves Hispanic. Avoid

mixing English words in the middle of Portuguese phrases as it is perceived negatively.

Mind your manners when eating with Brazilians — eating with your hands, using a fork for cutting, drinking straight from

the bottle and speaking while chewing. All will be looked on with disfavor.

Most meals finish with coffee. Brazilians love their coffee and compliments are appreciated.

The bill should be either paid for by one person or evenly divided among the group. Tipping is typically 10 percent in Brazil but is frequently included in the bill.

http://knowledgenetwork.thunderbird.edu/thunderbirdforgood/2008/10/03/5-etiquette-tips-for-your-next-business-trip-to-brazil/

Feedback

2.2 Explain how you would go about seeking feedback as to the cultural appropriateness of your interpersonal communication/dealings with representative from each of these companies.

2.3 Explain how you will incorporate this feedback into your future dealings/communications with foreign representatives of MSIT’s international clients

5-1. Interpersonal communication

5-2. Business interactions相互交流

Conclusions

Reduced Government funding of TAFE has increasingly affected the Institute’s ability to provide quality education to its students. Changes to the way in which tertiary student places are funding have been at the core of the National reform of the Tertiary Education Sector for much of the past decade. The impact on MSIT has been significant: less funding per student from both the Federal and State governments, and increasing competition for student places from universities and private providers. With decreasing revenue streams from government, the Institute has come under increasing pressure to attract students in sufficient numbers to make up the funding constraints.

In order to minimise the ongoing impact of cuts to TAFE funding at both Federal and State level, the Institute has decided to create an International Marketing unit. The purpose of this new marketing unit will be to promote MSIT and its courses to potential international students.

Market research has so far identified China and India as representing an enormous marketing opportunity to MSIT, and that South America (especially Argentina, Brazil and Chile) as a largely unknown market that require further research.

You have been employed in a marketing development role and charged with the brief of establishing links with potential partner organisations in two of these five countries, one Asian and one South American.

Recommendations

Appendix