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Doing Business in Australia

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Doing Business in Australia. History-1. The Aborigines were the only inhabitants of Australia until the Dutch began exploring parts of the continent in the 1620s. In 1770, Captain James Cook took formal possession for Britain. - PowerPoint PPT Presentation

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Page 1: Doing Business in Australia
Page 2: Doing Business in Australia
Page 3: Doing Business in Australia
Page 4: Doing Business in Australia

History-1History-1 The Aborigines were the only inhabitants of

Australia until the Dutch began exploring parts of the continent in the 1620s.

In 1770, Captain James Cook took formal possession for Britain.

Starting in 1788, the British founded penal colonies, mainly in the areas of the present-day Sydney, Hobart, and Brisbane.

As a result, many of the early settlers were either prisoners or soldiers.

Page 5: Doing Business in Australia

Australian EnglishAustralian English Chrissie

Christmas “He’s flat out like a lizard drinking!”

Very busy. Grasshopper or Grassie

Tourist “It’s your shout, mate.”

Your turn to pay for drinks.

Page 6: Doing Business in Australia

History-2History-2 Free settlements were established in

Melbourne, Adelaide, and Perth. The number of people immigrating to

Australia increased rapidly after gold was discovered there in 1851.

The successful breeding of sheep also attracted immigrants.

1868: transportation of convicts to Australia ended.

Convicts there were declared free.

Page 7: Doing Business in Australia

History-4History-4 1901: the colonies became states in

Federal Commonwealth of Australia. Western Australia attempted, but failed,

to secede from Commonwealth in 1930s. UK granted complete autonomy in 1942.

Country has been stable and has grown throughout 20th century.

Most immigration was Caucasian, due to discriminatory policies.

Policy altered in 1966…immigration slowed.

Page 8: Doing Business in Australia

ReligionReligion Christians, divided equally between

Anglicans and Roman Catholics, make up 76% of the population.

Jews, Muslims, and Buddhists are also present.

A significant proportion (13%) claim no religious affiliation.

Page 9: Doing Business in Australia

DemographicsDemographics Population of 18 million.

Concentrated on southern and eastern coasts.

About the population of Florida in an area the size of the USA.

Aborigines constitute only about 1.2% of population.

93% are of European ancestry. Urbanization of 85+%

One of world’s highest rates.

Page 10: Doing Business in Australia

Introductions-1Introductions-1 First names are widely and quickly used in

Australia. However, it is wise to wait until invited to do so. Many visitors have found themselves surprised by

the speed with which Australians adopt the first name as a way of addressing their visitors.

This should not be mistaken as a sign of real friendship -- it only indicates Aussie friendly informality.

Australians are generally quite informal. Don’t be too stiff or overly tactful.

Page 11: Doing Business in Australia

Introductions-2Introductions-2 People shake hands upon introduction as well as at

the beginning and end of meetings. The handshake should be firm and friendly.

When addressing business colleagues, even senior managers, the business title is generally not used.

Australia has its share of British titles and honors. Holders of such titles in Australia may or may

not use them. In case of doubt, the general term “Sir” may be

used to address anyone with respect.

Page 12: Doing Business in Australia

Introductions-3Introductions-3 Aussies greet each other with “Hello” or

an informal “G’day,” but they tire of hearing tourists overuse the latter.

It is appropriate to present a business card at an introduction.

Don’t be surprised if you do not get one in return, since many Australians do not have them.

Page 13: Doing Business in Australia

Social Conventions-1Social Conventions-1 Australians are direct, like people from the

U.S. There are many unique words and phrases in

Australian English (more on this later). Introductory conversation unrelated to

business should be short. The spectacular Australian architecture, local

cultural events, and leisure and outdoor activities are useful conversation topics.

Avoid making comparisons between U.S. and Australia.

Page 14: Doing Business in Australia

Social Conventions-2Social Conventions-2 Don’t give unsolicited advice and avoid

“putting on airs.” Australians demonstrate their disdain of

class by sitting up front with their drivers, both in taxis and limousines.

Aussies are suspicious of pretension and status-conscious behavior.

It is very difficult to impress an Aussie. Men are fairly quick to call another man

“mate” if they take a liking to him.

Page 15: Doing Business in Australia

Social Conventions-3Social Conventions-3 Australians have a healthy sense of humor.

Often their barbs may be directed at the visitor in a good-natured way.

The international visitor should not take such teasing lying down -- while being frank and friendly, he or she can reply with good humor and become respected by the hosts.

Aussies frequently use humor when they are under stress.

Page 16: Doing Business in Australia

Social Conventions-4Social Conventions-4 Australians enjoy controversy and love to

discuss subjects about which they disagree.

Fairness is an important principle in Australian life.

They do not give praise easily. When they do, it is often done in a

sarcastic, joking manner.

Page 17: Doing Business in Australia

Large power distance

Low individualism

Individualism and Power DistanceIndividualism and Power Distance

1218243036424854606672798591

11 28 44 61 77 94 111

Small power distanceLow individualism

COS PAKTAL

COLPERKORTHA

CHLPHL

EAF

HOK

MEXYUG

WAFSIN

EQA

VENIDO

POR

GUA

PAN

PHI

MAL

JAMURUGRE

TURBRA ARA

INDJPNARG

SPA

SAF

FRABEL

ITA

FINGER

SWISWEIRE

NOR

AUTISR

DENNZL CAN

NET

GBR USA

AULSmall power distanceHigh individualism

Large power distance

High individualism

Power Distance Index (PDI)

SAL

IRA

Page 18: Doing Business in Australia

Uncertainty Avoidance and Uncertainty Avoidance and MasculinityMasculinity

DEN

NOR

SWE

NET

FIN

SIN

HOK

MAL

JAM

IREGBR

INDPHISAF

AUL

USA

NZLCANIDO

EAF WAFIRA

THA ARA

PAKTAI

SWIGER

AUT

MEX

VEN

BEL

ARGCOL

ITA

JPN

GRE

CHLCOS

YUG

ISRBRA

POR GUAURUSALPERPANTURSPA

FRA

KOR

Weak uncertainty avoidance Feminine Weak uncertainty

avoidance Masculine

Strong uncertainty avoidance Feminine

Strong uncertainty avoidance Masculine

8

16

24

32

40

48

56

64

72

80

88

96

104

110

5 23 41 59 77 95

Masculinity Index (MAS)

Page 19: Doing Business in Australia

Key Negotiating PointersKey Negotiating Pointers Be punctual.

Australians are easy-going, but they are sticklers about time.

Be informal, but courteous. Americans tend to feel very comfortable

dealing with Australians, who regard formality as insincere and artificial.

Efforts to impress usually are hurtful. Don’t be afraid to use humor.

Page 20: Doing Business in Australia

Key Negotiating PointersKey Negotiating Pointers Make presentations detailed and factual.

Be prepared to respond evenly to pointed questions.

Negotiations move quickly. Make brief introductory remarks and then

get down to business. Keep your administrative requirements to a

minimum. Australians do not like being told what to

do. Operate with few rigid lines of authority.

Page 21: Doing Business in Australia

Key Negotiating PointersKey Negotiating Pointers Stress the practical over the conceptual.

Australian negotiators are pragmatic and profit-oriented.

Make the opening offer fairly close to your desired final position.

Leave yourself some room for movement. Australians do not tend to be “blue-sky”

bargainers (haggling for long periods from very high initial offers).

Page 22: Doing Business in Australia

Key Negotiating PointersKey Negotiating Pointers Expect Australian negotiators to remind

you of the competition and to keep pressure on to make concessions.

Patience is another often-used Australian tactic, as they hope to wait it out for you to concede.

Australians tend to make concessions in a descending pattern.

Generous at first, then tapering off.

Page 23: Doing Business in Australia

Key Negotiating PointersKey Negotiating Pointers Contracts are written, specific, and firm.

Page 24: Doing Business in Australia

Business Practices-1Business Practices-1 Australians are motivated to word hard by

affliction and quality of life. Stark contrast to other countries, where

status and money are viewed as key incentives.

Punctuality is highly regarded. Appointments are necessary, preferably

one month in advance. Business cards are routinely used.

Page 25: Doing Business in Australia

Business Practices-2Business Practices-2 Business is often conducted while having drinks.

Buy only when it is your turn, as it is considered rude to buy out of order.

Melbournians are slightly less conservative than their fellow Australians.

Meeting protocol: get down to business quickly. Presentation should be complete, while not

concealing problems areas. Communicate directly and respond to their

directness with confidence and good humor.

Page 26: Doing Business in Australia

Business Practices-3Business Practices-3 Due to great distances, it is important to have

representation within Australia. There is an Australian version of the “Old

Boy” network among senior industrial executives.

It helps to have connections. Vast majority speak only English. Australians are, first and foremost, pragmatic.

Time has value and they will not waste it. Delays are viewed as inefficient.

Page 27: Doing Business in Australia

Business Practices-4Business Practices-4 Decision-making still tends to be

concentrated at top echelon of companies. Informality reigns in matters of etiquette.

People are seated in random fashion, generally with no special seat of honor.

Seniors in company status may receive certain gestures of respect, but such a show is a formality only.

Australians do not practice deference -- their overall sense of equality is well-ingrained.

Page 28: Doing Business in Australia

Business Entertaining-1Business Entertaining-1 Business lunches are a popular and

acceptable way of both initiating and doing business.

However, business and pleasure do not mix in Australia.

Do not use social occasions, besides lunches, as opportunities to talk business.

Once a social relationship has been established, a businessperson may invite his/her contact to lunch.

Page 29: Doing Business in Australia

Business Entertaining-2Business Entertaining-2 Dinner is usually about 6 pm.

Come 30 minutes early or be on-time, but never be late.

Guests sometimes bring flowers or wine -- not gifts.

A “thank-you” upon leaving is all that is expected.

More formal evening entertaining is in order when the visitor is dealing with upper managerial levels or once a business relationship has been established.

Page 30: Doing Business in Australia

Business Entertaining-3Business Entertaining-3 Formal occasions, especially if the

Australians host them, are likely to take place in a club.

Clubs are often formed around athletic events, but may also be professional.

The business visitor should not propose entertainment over the weekend.

Australians treasure their free time.

Page 31: Doing Business in Australia

Business Entertaining-4Business Entertaining-4 Invitations to a home are not common and must be

considered special. Since this kind of entertaining could be formal or

very informal, it is best to ask the host about appropriate dress.

Often such visits will center around a casual outdoor barbecue and will include all family members.

A modest gift for their home would be unexpected but appreciated.

Otherwise, the practice of giving gifts is unwelcome and might even be considered taboo.

Page 32: Doing Business in Australia

Dining with Australians-1Dining with Australians-1 The main meal is eaten in the evening.

It may be called dinner or tea. Table manners are European, but viewed

with informality and flexibility. While it is considered proper to use the

fork with the left hand, other styles are tolerated.

When eating soup, do so by moving the spoon away from you, not toward you.

Page 33: Doing Business in Australia

Dining with Australians-2Dining with Australians-2 Salads are generally served with the main

course. Indicate that you have finished by laying

your knife and fork parallel on your plate. At a restaurant, use a simple hand gesture

to get the waiter’s attention. Beer is the most popular national drink.

Page 34: Doing Business in Australia

Gestures and Social Gestures and Social CustomsCustoms Australians deny the existence of any taboos.

However, they may have a double standard about the use of their favorite expletives.

While they may use strong language at times, they do not appreciate it when an international visitor does likewise.

Winking at women is considered inappropriate, as are public displays of affection.

When yawning, you should cover your mouth and then excuse yourself.

Page 35: Doing Business in Australia

Gestures and Social Gestures and Social CustomsCustoms The “thumbs up” sign is considered rude. Good sportsmanship is very important in

Australia.

Page 36: Doing Business in Australia

Australian Game Plan-1Australian Game Plan-1 Australians suffer from sense of isolation

from rest of world. Important to show interest in them and

physically visit them at least twice yearly. Government is not so important in

Australian business. Therefore, a bank or corporate reference

is more important than government reference.

Page 37: Doing Business in Australia

Australian Game Plan-2Australian Game Plan-2 Australians do not suffer from inferiority

complex among nations, but they do demand respect and recognition.

Proud of their country. Do not want to be thought of as a little

America. Any display of superiority will turn them

away. Strongest values are egalitarianism and

antiauthoritarianism. Treat them as equals.

Likewise, do not defer to them.

Page 38: Doing Business in Australia

Australian Game Plan-3Australian Game Plan-3 Accept their informality and do not be too

formal around them. Do not be offended if they use your first

name. Do not assume it means friendship…it is a

way to disarm and equalize opponents. They do not like inflated prices.

Bargaining as an art is a waste of time. However, they are competitive and want

the best deal. Be ready to give up something (if needed).

Page 39: Doing Business in Australia

Australian Game Plan-4Australian Game Plan-4 The Aussie’s self-worth is based on his

feelings of equality and masculinity. Compliments will not have the desired

effects. His/her motivations in decisionmaking are

based on company policy and national interest., but there is also strong personal interest in performance.

Help to offer solutions to his problems. He/she will appreciate your partnership.

Page 40: Doing Business in Australia

Language in Australia-1Language in Australia-1 English is the official language.

Spoken by 95% of population. Australian grammar and spelling are mix

of British and American patterns. They use “labor,” not “labour.”

Communication problems can -- and do -- exist with foreign English speakers.

Extensive accent and slang have developed that make spoken Australian English quite unique.

Page 41: Doing Business in Australia

Language in Australia-2Language in Australia-2 Some idiomatic differences in “Strine”

(Australian) include: “Full bottle” = fully informed; knowledgeable “No worries” = no problem “Fair dinkum” = true; genuine “Bludioth!” (Bloody oath!) = yes (emphatically

Aussies tend to shorten words to one syllable, then add a long “e” sound at the end.

Therefore, a barbecue becomes a “barbie,” a mosquito becomes a “mozzi,” and the people are known as “Auzzies.”

Page 42: Doing Business in Australia

Australian English - 3Australian English - 3 “There’s nothing better after a day at the beach

than a few sherberts. Beers

Up a gum tree Confused

Ripper, as in “Bloody ripper, mate!” Someone or something really good.

Pommy Someone form the UK (convicts used to have

initials “P.O.M.E on their clothing [Prisoner of Mother England])

Page 43: Doing Business in Australia

Language in Australia-4Language in Australia-4 Avoid the terms “stuffed” and “rooting;” very

vulgar in Australia. Words which originated in the Australian

frontier: Digger = Australian Amber = beer Banana bender = Queenslander Roo = kangaroo Heart starter = first drink of the day Grizzle = complain Across the ditch = New Zealand

Page 44: Doing Business in Australia

Communicating with Communicating with Australians-1Australians-1

There is no manual for correct behavior in Australia. Country lacks clearly defined social and

conversational map. Most Aussies see this as a strength -- a license

to be erudite or rude in any situation. This keeps conversation lively.

While not entirely true, egalitarianism is a cherished myth.

Americans must be careful not to threaten this notion.

Page 45: Doing Business in Australia

Communicating with Communicating with Australians-2Australians-2 In many countries, accents and education will tell you a

lot about a person -- not in Australia! It is a relatively classless society. Hardly any regional variations, no class pressures on

one’s way of speaking, and people switch from broad to cultivated Australian at will.

However, language is not boring: Uglier than a robber’s dog. Blind Freddie could have seen it. He had kangaroos in his top paddock (he’s crazy). Can I bot a chewie? (May I borrow a stick of gum?)

Page 46: Doing Business in Australia

Communicating with Communicating with Australians-3Australians-3

There are certain conversational subjects which are considered safe or dangerous:

Safe Sports Shows of modesty

Dangerous Being criticized by foreigners. Being constantly or too enthusiastically praised by

foreigners. Taking yourself or your country too seriously.

• Aussies are proud of fact that their Prime Minister is frequently booed at public appearances and that many Australians do not know the words to National Anthem.

Page 47: Doing Business in Australia

Women in Australia-1Women in Australia-1 Although Australians shun class distinctions,

some American women assigned to Australia have found difficulties in being accepted.

Male chauvinism is still strong. Foreign women are often confronted with blunt,

earthy males who are uncomfortable with women. Australian women seem to enjoy that their major

responsibilities are home and family. However, generally there will be no problems

between men and women associates.

Page 48: Doing Business in Australia

Women in Australia-2Women in Australia-2 You usually won’t find a man winking at a

woman. It is considered impolite.

If, after a large meal, you say: “Oh, I’m stuffed,” Australians will think that you’re announcing that you’re pregnant.

If a man approaches you and says “Hi, I’m randy.” That’s not his name.

“Randy” means “horny.”

Page 49: Doing Business in Australia

Gestures in AustraliaGestures in Australia The thumbs-up sign is considered rude. Men should not be too physically

demonstrative with other men.

Page 50: Doing Business in Australia

Business DressBusiness Dress Generally informal.

Fashions follow American trends, although women wear pants much less than in the U.S.

Men may wear a dark suit and tie (jacket can be left off in the summer).

Women may wear a skirt and blouse or dress.

Page 51: Doing Business in Australia

Portrait of an Australian Portrait of an Australian Businessperson-1Businessperson-1 What does he believe is a person’s

responsibility? Personal satisfaction and enjoyment of

life; independence. What does he expect of others?

Equal treatment. How does he interact with others?

Open and friendly. Very informal. First names are used almost immediately.

Page 52: Doing Business in Australia

Portrait of an Australian Portrait of an Australian Businessperson-2Businessperson-2 What impresses him? What does he

respect in another? Accomplishments through use of

masculine traits. What is his attitude towards foreigners?

Friendly and not defensive. Foreigners are held separate from the group if their culture is very different. Aussies are intolerant of different behavior.