Module 4 - Social and Cultural Influences
In order to expand into another country, an understanding of cultural difference that can affect the business needs to be addressed. This is called cross-cultural literacy. To gain a better understanding of Australia, a study was conducted of population, social and cultural aspects.
Demographic Trends
In 1945, the population of Australia was seven million and was predominantly Anglo Celtic. Today, the population is twenty-one million with 43% either being born overseas or at least one parent being born overseas. In 2009, the birth rate was 12.47 births per 1,000 persons in the population. The literacy rate is 99.0%.
Cultural Analysis – Values, Norms, Social Structure

Australia has a blend of traditions and influences which define their values and norms. “..Everyone is expected to uphold the principles and shared values that support Australia’s way of life. These include: respect for equal worth, dignity and freedom of the individual; freedom of speech and association; freedom of religion and a secular government; support for parliamentary democracy and the rule of law; equality under the law; equality of men and women; equality of opportunity; peacefulness; a spirit of egalitarianism that embraces tolerance, mutual respect, and compassion for those in need. Australia also holds firmly to the belief that no one should be disadvantaged on the basis of their country of birth, cultural heritage, language, gender or religious belief.” (1)

English is the national language with 15% of the population speaking other languages at home. Some popular other languages are Italian, Greek, Cantonese, Arabic, Vietnamese and Mandarin. The nuclear family is the norm. Sixty percent of the population over the age of 15 is married. Citizens are said to have a commitment to family. People are said to have immigrated to Australia since 1945 to escape poverty, war or persecution. The society is considered sport-oriented with most of the population either playing or watching sports. The people are described as being gregarious, outgoing and casual. The society is described as egalitarian with no emphasis on class distinction. Christianity is the dominant religious orientation. Sixty four percent of the population identifies themselves as Christian however; citizens of Australia are free to practice any religion.

Informal Trade Barriers
It is through cross-cultural literacy that Australia was found to be similar to the United States in many respects therefore no informal trade barriers were identified. Factors such as language, religion, family make up and political designation are similar or the same as the United States and therefore prevent barriers of trade.

Module 9 – Human Resource Needs
Staffing
In reviewing the various staffing policies available for international expansion, the geocentric approach was found to be the most attractive policy. The geocentric approach seeks the best people for jobs throughout the company, regardless of their nationality. This approach has the advantages of using human resources efficiently and building strong culture and informal management networks. (5) Unemployment rates were found to be low in Australia. In September 2010, the unemployment rate was listed as 5.1% and jobs are on the rise.
Training, Development and Performance Appraisals
Sephora puts a strong emphasis on training and development of its employees. The domestic training program was found to be transferable to Australia. Sephora sends all employees to Sephora University to attend the Science of Sephora which is a four-day training program on skincare, haircare, makeup, fragrance and beauty know-how. For employees looking to take their knowledge to the next step, Skincare Encore and Skincare PhD courses are offered. The philosophy of Sephora is a self-help store where assistance is available. This lends itself to the Australian culture. “Being served” is a foreign concept to Australians. In fact, service attendants consider themselves equal to customers and do not act or feel subservient. The self-service nature of the store should transfer well in this type of environment. Standard performance appraisal systems used in the US were found to be transferable to the Australian location with little to no problem. Training and development would be offered for poor performing associates.
Compensation
In the first quarter of 2010, the average annual salary of Australian workers was A$64,594. The average female worker earned A$56,950 and the average male worker earned A$69,233. In the retail industry, the average annual salary was A$48,703. One benefit that is available to all Australian workers in the government mandated superannuation program. This program was instituted in 1992 and is a retirement program with a compulsory element. Employers are required to pay a portion of salary/wages (currently 9%) into a fund until an employee meets conditions of release. This program applies to all working Australians except those earning less than A$450/month or for those under 18 years of age or over age 70. “The Australian federal government (ATO) requires withholding tax on employment income, under a system known as pay-as-you-go (PAYG).” (4) Employers are also obligated to pay taxes on employees that may be a fixed charge or a portion of the employee’s pay. Works Cited
1. "About Australia: People, Culture and Lifestyle." Australian Department of Foreign Affairs and Trade Home Page. Mar. 2008. Web. 11 Oct. 2010. .
2. "Australia Birth Rate - Demographics." Index Mundi - Country Facts. 19 Feb. 2010. Web. 11 Oct. 2010. .
3. Baldassar, Loretta, and David S. Trigger. "Australia Birth Rate - Demographics." Index Mundi - Country Facts. Web. 11 Oct. 2010. .
4. Country, By. "Payroll Tax." Wikipedia, the Free Encyclopedia. Web. 12 Oct. 2010. .
5. Hill, Charles W. L. "Global Human Resource Management." International Business: Competing in the Global Marketplace. New York: McGraw-Hill/Irwin, 2011. 606. Print.
6. Industry, By. "Wages / Salaries Australia." Living In Australia | Emigrating To Australia. Web. 12 Oct. 2010. .
7. "List of Countries by Literacy Rate." Wikipedia, the Free Encyclopedia. Web. 11 Oct. 2010. .
8. "Superannuation in Australia." Wikipedia, the Free Encyclopedia. Web. 11 Oct. 2010. .
9. Terry, By. Sephora: Beauty, Skin Care, Makeup, Hair, & Fragrance. Web. 12 Oct. 2010. .