Cross-cultural Negotiation

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To be a Winner in Cross-cultural Negotiation

As a form of communication, negotiation exists everywhere in the world. Wherever there are people, there are communications. People have various kinds of negotiations related to different aspects, such as politics, business or society, and the discussions of approaches and skills of negotiation have never stopped. Following the globalization process, cross-cultural negotiation has becoming more and more popular; therefore, how to achieve a successful cross-cultural negotiation is discussed more and more heatedly. This essay will explain the major factors related to a successful cross-cultural negotiation and help the cross-cultural negotiators to know some cross-cultural differences, which should be considered. It focuses on the following topics building relationships, ¡®face work¡¯, time and goal orientation.

To begin with, it is necessary to know what negotiation is. Negotiation is a two-way communicating activity in order to reach an agreement with each other. To achieve a successful negotiation, both parties should have a shared understanding first, and cooperate with each other to reach a mutual goal (Putnis &Petelin, 001). Negotiation is more than a bargain; it is a kind of art of communication to result in a mutual benefit by processing an agreement with each other (Donohue & Ramesh, 1). Consequently, negotiations are likely to proceed more smoothly if the negotiators have a shared principle. It involves the ability of understanding both parties¡¯ demand as well as their negotiating characters that is closely related to their background, so that a proper orientation can be made. Studies have suggested that people from different cultures use different negotiation styles, because their awareness of the decision-making situation are influenced by the features of the national culture from which they come (Chang, 00). As Waldman (000) states, the three important elements to achieve a successful cross-cultural negotiations are realizing how the foreign negotiator is different, being culturally impartial, and being careful of their cultural norms, habits, and taboos. So a real winner in a cross-cultural negotiation knows clearly the value of the knowledge of the related culture situation. If understanding of the cultural background is disregarded, the result of any cross-cultural negotiation could be a failure (Putnis &Petelin, 001).

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Firstly, building up relationships is a basic preparation of a cross-cultural negotiation. Building up a good relationship enlarges the trust between the cooperators so that the cross-culture negotiation can be processed smoothly and successfully (Olk and Elvira, 001). Trust is a vital factor in negotiations because this is the basic condition of starting or continuing the negotiation. Concession could be easier when negotiators trust each other, consequently, the process of the negotiation can be more effective and time saving, and vice versa. For example, Li and Labig (001) cite strong research indicating that forming relationships in negotiation is essential in the East Asian context, as a result, this can directly determine whether the negotiation can be successful. Li and Labig (001) also point out that some international companies use relationship-oriented strategies in China because Chinese people emphasize relationship in all activities. Negotiation can hardly develop if it is ignored when doing business with Chinese. Americans negotiate less-successfully in China because they are not patient enough with building relationship and begin to compromise too early (Gulbro & Herbig, 1). Another example is that the negotiators from Brazil and many other Latin American countries also pay much attention to relationship building and spend quite a long time at the preparation for a trusting based negotiation (Volkema & Fleury, 00).

¡®Face work¡¯ is the second area of difference in cross-cultural negotiations. Issues of self-concept or ¡®face¡¯ could be as important in shaping the progress of negotiations as the basic theme of the negotiation (Putnis &Petelin, 001). Negotiators are afraid of losing face when their actions or events failed to fulfill a desired character seen by others, especially the other party or their own party. Sometimes they are more concerned to be considered as ¡®tough¡¯ than they are interested in the negotiations themselves (Putnis &Petelin, 001). If there is a signal showing disrespect by one party, this may cause the other party to feel the loss of their face, then a defensive behaviour may be performed as a return, which definitely damages the negotiation (Putnis &Petelin, 001). In collectivist cultures such as China and Japan, for example, there is a greater concern with protecting external concord and saving face in negotiations. Confrontation is avoided and the dignity of all parties must be maintained. Evidence also can be found, according to Chang (00), in high context countries, the deep meaning of simple messages is widely shared and people are extremely involved with each other. To openly disagree with someone in public is to cause a loss of face, which is considered as a big insult leading to an unpleasant result. As China has become one of the largest markets in the world, it is necessary to acknowledge this feature and be sensitive at ¡®keeping face¡¯ when negotiate with Chinese people (Bartels & Pass, 000). On the other hand, for American and Australian negotiators who influenced by western culture, ¡®face work¡¯ is still important, but much less important than it is found in collectivist cultures (Wilson, 1).

Thirdly, the value and concept of the time in cross-cultural negotiations is different. The process of the negotiation itself is detailed and emphasised. It is found that time pressure can increase the frequency of debatable situations caused by negotiators, thus the negotiation is affected negatively. The higher the time pressure is the less valuable the outcomes are (Conlon & Hunt, 00). Accordingly, understanding and being patient to the different consideration toward time in cross-cultural negotiations may reduce the possibility of disagreement. In many cross-cultural negotiations, the negotiators have different sense of the value and concept of the time. Misunderstanding or conflict may occur as a result of this. So cooperation over time may be needed to avoid misunderstanding. To be worse, the trusting basis could be destroyed if the awareness of time is not well shared or understood by both parties. For example, Americans are described as ugly Americans by opposite parties who come from the cultures that disagree time is money, because the Americans often get down to business before even getting know someone. In some areas such as Latin America, Middle East, and Asia, the negotiators take time to socialize more than dealing the ¡®business¡¯ itself. In these parts of the world, the social bonds are more important than legal bonds. Managers from the U.S. often miss the opportunity to develop these social bonds because they believe it is not part of business (Bates, 001). A further example is that, compared to Brazilians, United States negotiators are more likely to make promises when they face with a time deadline, while the Brazilian negotiators have more flexible attitude towards time (Volkema & Fleury, 00). Another example is that, ¡®the Chinese negotiating style is traditionally time consuming. The need to take time in negotiations has been linked to the Chinese need to construct a firm relationship with the other party¡¯. Chinese negotiators also have a long range view of things and are therefore in less of a hurry; they want to be exactly sure of everything and avoid all possible mistakes; and they distrust fast talkers who want to make quick deals (Davies and Clarke, 14 8).

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Translation

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Overwhelmed by the terror of a deserted inheritance, the young Ygnacio renounced his love, and subjected himself to his fathers will. To him, (the father) it wasnt enough to sacrifice his love, and imposed on him the testamentary sentence of marrying with the heiress of someone big in Spain. It was like this how he married doña Olalla Mendoza, a very beautiful woman with great and many talents, to whom he kept a virgin so as he couldnt allow her to have a child. Otherwise, he kept living as he was living since he was born, a useless single man.

Doña (miss) Olalla de Mendoza brought him back to the world. They went to the important mass, more to show themselves, than to participate, her with large black skirts of many layers, and beautiful robes, and the high cornet (type of crown worn by Spanish nobility, and/or important people for special occasions) with the white of Castilla, and with a group of (female) slaves dressed in silk, and covered in gold. Instead of the walking shoes worn at home that even the more fussy wore at church, she wore cordovan boots of high heels and pearl ornaments. Contrary to some other important people that used anachronistic wigs, and emerald buttons, the marquis wore full length cotton clothes, and white _________(judges cap). Nevertheless he always attended obligatoringly to the public events because he could never beat the fright of social life.

Doña Olalla had been the alumna of Scarlatti Domenico in Segovia (Spain), and had obtained the license to teach music, and song in the schools, and the convents. She arrived from there with a clavichord of loose pieces, that she herself furnished, and diverse string instruments that she played and taught to play with great virtue. She formed a group of novices that sacrificed the afternoons (of Ygnacio) with winds (airs) of Italy, of France, of Spain, and of which it came to be said that it was inspired by the holy spirit.

The marquis seemed inept for the music. It was said, after a French fashion, that he had hands of an artist, and ears of an artilleryman. But from the day they fired their instruments, he fixed his sight on the Italian tiorba, for the rarity of its double clavier, the size of its diapason, the number of its nitride voice. Doña Olalla pledged that they would play as well as her. They passed the mornings __________(concaneando) exercises under the trees in the orchard, her with patience and love, and he with ____________(stone breaker) stubbornness, until the sorry madrigal gave itself up to them without a hurt?

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The music made better the conjugal harmony that Doña Olalla dared to take the final step. A stormy night, possibly faking being scared which se didnt feel, she went to the room of her untouched husband.

Im the owner of half this bed, she told him, And I come to get it!

He kept himself alert. Sure of convincing him either through reason or through force, she kept trying. Life did not give them much time. A November th they were playing a duet under the orange trees, because the air was pure, and the high cloudless sky, when a thunder blinded, and shock them, and Doña Olalla fell because of death.

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Business Plan for Small Business

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Description of Business

Kwick and Clean is a professional service company that cleans windows, polishes floors, and shampoos commercial carpets. Dozens of companies overcharge Metro consumers for poor quality and care-free cleaning. Kwick and Clean is committed to professionalism, quality, and customer satisfaction.

Market Potential

Halifax Metro area has approximately ten thousand commercial buildings that contract their cleaning services. These would include most restaurants and retail stores. On average, businesses spend $7,500 (estimate) per year on cleaning services. Large companies like Superstore, or Staples would spend more than the annual average in one month. Smaller retail stores and professional clinics spend much less than the annual average. A medical center may have a late night cleaner that comes in a few times per week or a hired staff member responsible for general cleaning. The potential market in Metro Halifax is $75,000,000. There is also a lucrative residential market with its own market potential. Thousands of new homes and condos are being built every year. Every new home needs professional cleaning after construction. People generally have their carpets cleaned when moving into or out of a home. On average homes are cleaned professionally every three years. According to the 001 census there were 15,8 single family dwellings in Halifax. If the average is every three years then 51,10 dwellings per year would require cleaning. The average cost to a residential customer is $50 (estimate). The potential for this target market is approximately $1,800,000.

Market Share

The market for commercial cleaning in Metro Halifax is approximately $75,000,000 per year. There are nine-teen companies listed in the yellow pages that do commercial cleaning. If everything is equal I can plan on having gross sales of $,750,000. This is not reasonable. Some of the existing companies are large. They have contracts with giant corporations and carry many staff members. Kwick and Clean will start year one with five employees. Our goal for year one is $00,000 in sales. This is only one quarter of a percent of the potential market. There is lots of room for growth and expansion in this lucrative market.

Target Markets

There are two distinct target markets that Kwick and Clean will focus on. The largest market is commercial buildings. Approximately ten thousand businesses in Halifax require building and office maintenance. The average customer in this market will be 10,000 ft. Many will be located in Plaza's or Malls. The storefront windows of this target market are too high for employees to clean easily. Examples of companies in this market are SportChek, Pets Unlimited, Sobeys, and Canadian Tire. This market can be divided into two outside storefronts versus inside storefronts. Many retailers are located within malls while many others have their own building or plaza space. The cleaning requirements are slightly different for these two groups.

The second market that Kwick and Clean will target is the residential market. Thousands of single family dwellings in Metro Halifax are professionally cleaned every year. This market will consist mainly of boomers that are purchasing or selling homes. Apartments make up a large portion of the single family dwellings. Lease requirements generally hold tenants responsible for having their floors professionally cleaned upon te

Description of Management Team

I will be the first president of Kwick and Clean. For the first few years the management team will be small. My wife will help with the bookkeeping and I will look after our customers. In year two we will hire a marketing manager who will be responsible for negotiating contracts with new clients. The marketing manager's job will primarily be solicitation of large chain stores like Tim Horton's, McDonalds, and Wal-Marts. Contracts with large retail chains will stabilize company sales and allow for successful expansion. In year one I will hire a couple of labourers to help me. We will work together at different job sites. Working directly with my employees should reduce the risk of poor quality of work and also reduce the risk of theft. In year two I will add two more crews. Hopefully in year one I have found a few interested employees that are looking to grow with the company. These first year employees will be prime candidates for crew supervisor. In year three we will add three more crews. With six crews working I will have to tend to more administrative and management activities. In the third year the management team should be two levels; myself at the top as president, six crew supervisors that answer to the president, and one sales manager that answers to the president.

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The Grimm Truths About Society and Joe Christmas

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The Grimm Truths About Society and Joe Christmas

In the novel, A Light in August, William Faulkner introduces us to a wide range of characters of various backgrounds and personalities. Common to all of them is the fact that each is type cast into a certain role in the novel and in society. Lena is the poor, white trash southern girl who serves to weave the story together. Hightower is the fanatic preacher who is the dark, shameful secret of Jefferson. Joanna Burden is the middle-aged maiden from the north who is often accused of being a nigger-lover. And Joe Christmas is the epitome of an outsider. None of them are conventional, everyday people. They are all in some way disjointed from society they do not fit in with the crowd. That is what makes them intriguing and that is why Faulkner documents their story. Percy Grimm is another such character and he plays a vital role in the novel. He is the one to finally terminate Joe Christmas, who has been suffering his entire life. Grimm is the enforcer, the one man who will uphold American pride at all costs. He also stands for everything in the world that has held Christmas back. He is the prototype of the ruthless enemy who is the source of all of Christmas¹ struggles. And Christmas can never escape him. He can run, as he has been doing all his life and as he does in his desperate attempt to escape. But he can never hide, as he tries to do at Hightower¹s and as he has been hiding his true self from the world he hates so much. Percy Grimm represents the unmerciful society that has restrained and persecuted Joe Christmas it is only fitting that he should be the one to finally bring him down in the end.

Percy Grimm was born into the American south and grew up to be a symbol and backbone of the environment he was raised in. His only regret in life is being born too late. He feels that his sole purpose in life would be to fight in World War I and defend the country to which he is completely and utterly devoted. But the war happened to occur in the time period where he should have been a man instead of a child (Faulkner, p.450). So when he grows to be a man, he joins the National Guard, which is the closest thing to an army he can find. But instead of protecting the country from foreign enemies, his job with the National Guard entails protecting the country from certain things within itself. Joe Christmas and the situation he has created is a direct threat to Percy Grimm and the establishment he represents. Although Grimm¹s primary objective is to protect Christmas from hostile crowds, Grimm is imprinted with a sort of primitive and instinctive hatred for who Joe Christmas is, what he is, and what he has done. Grimm sees him as a dangerous, unknown and more importantly nigger-blooded criminal. He had the nerve to violate and savagely murder a white woman who happened to be part of Grimm¹s specifically drawn definition of American. He has adopted, adheres to, and enforces the belief that the white race is superior to any and all other races and that the American is superior to all other white races and that the American uniform is superior to all men, and that all that would ever be required of him in payment for this belief, this privilege, would be his own life (Faulkner, p.451).

Percy Grimm is a tough, humorless, and forceful individual who commands the respect of others. He is always on some sort of mission involving the preservation of order and he is determined to use all of his resources to accomplish his goal. Grimm is referred to by Faulkner as the Player. His main purpose in the novel is to play the part of the executioner. Christmas does not stand much of a chance. Joe Christmas has always been hampered by a society that shuns him, alienates him, disgraces him and chases him away. Percy Grimm is the human representation of this society. The climactic chase scene between Grimm and Christmas is symbolic of how Christmas has been running from people and places all his life. He was on the road all the time and was never able to settle down in one place for a significant time period. Society never accepted his heritage and personality and so he was always running away from it. But there comes a point where he can run no longer. But there was too much running with him, stride for stride with him. Not pursuers but himself years, acts, deeds omitted and committed (Faulkner, p.448). The handcuffs which hinder his speed and mobility represent the burden he has carried throughout his life. This burden includes his ancestry, his childhood, the people he has encountered, acts he has committed, and the experiences he has had. Eventually this all catches up to him as Grimm finally tracks him down and shoots him. It is almost as if fate has decreed that there could be no other end to the troubled life of Joe Christmas.

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The name Grimm is also quite significant. Faulkner has a tendency to name his characters in such a way that their role in the story is foretold at first glance. Percy Grimm is symbolic of the Grim Reaper. This man is relentless in his pursuit of Joe Christmas, as is the fabled messenger of death in his pursuit of a soul. The name Grimm inspires fear in the reader¹s immediate reaction towards him. And his actions back it up. The presence he radiates intimidates everyone he encounters to submission. Eventually Joe Christmas succumbs to him amid a climactic inner struggle involving his own perception of himself. As he lay dying, he feels the evil, dark, and black part of himself withering away. the pent black blood seemed to rush like a released breath. It seemed to rush out of his pale body (Faulkner, p. 465). His soul has vanished and only his pale, clean, white body is left behind. This may be the reason that at the time that Grimm is castrating him (one of the worst scenarios imaginable to most men), he is at peace with himself. He has always hated the black side of himself because that is what everyone else hates about him. Since everyone else is against him, he has turned against himself as well. Grimm, who is a representation of southern society, is racist and intolerant of Joe Christmas and what he has done. He shows no mercy in finishing off his miserable, confused, and troubled life. And this is no different from the way society has always treated him.

Although the actual character of Percy Grimm is only covered in a few pages of the novel, the society he represents exists as the stage on which the entire story is set. All of the main characters are intertwined as they struggle to make a life in the post- Civil War American South. No character has more trouble dealing with his identity in the cruel world than Joe Christmas. He cannot continue to run and hide forever. He has never been able to deal with who he truly is and what that means to the people surrounding him. So he is constantly running away, literally and figuratively. But when he tries to hide is when he is finally caught. This occurrence has repeated itself time and time again throughout his life. Whenever he remained in one place for too long, trying his best to make a home, it comes to a crashing end and his on the run again. He leaves the orphanage after he has sabotaged his existence there. He kills McEachern and runs away from home. He gets beaten and robbed on his final night with Bobbie. And he finally snaps and kills Joanna Burden and runs away for the last time. As he runs through the woods during his final few moments on earth, he is relentlessly chased by Percy Grimm, his enemy and torturer. In one last desperate attempt to escape, he hides at Hightower¹s and is subsequently discovered and executed without mercy. But by this time, he is at peace with himself, knowing that he will no longer be forced to run and hide from anything. The society that holds him with such disdain has finally won their eternal battle. But he just does not care anymore. Joe Christmas surrenders to Percy Grimm with apathetic contentment.

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Macbeth

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In the play Macbeth, a symbol of blood is portrayed often

(and with different meanings), and developed until it is

the dominating theme of the play. The word blood, or

different forms of it, occurs forty-two times and the word

Buy Macbeth term paper

fear is used forty-two times. The symbol of blood changes

throughout the play, as Macbeths character changes. First

he is a brave honoured soldier, but as the play progresses,

he becomes a treacherous person who has become identified

with death and bloodshed and shows his guilt in different

forms.

The first reference of blood is one of honour, and occurs

when Duncan sees the injured sergeant and says What bloody

man is that?. This is symbolic of the brave fighter who

been injured in a valiant battle for his country. In the

next passage, in which the sergeant says Which smokd with

bloody execution, he is referring to Macbeths braveness

in which his sword is covered in the hot blood of the enemy.

After these few references to honour, the symbol of blood

now changes to show a theme of treachery and treason. Lady

Macbeth starts this off when she asks the spirits to make

thick my blood,. What she is saying by this, is that she

wants to make herself insensitive and remorseless for the

deeds which she is about to commit. Lady Macbeth knows that

the evidence of blood is a treacherous symbol, and knows it

will deflect the guilt from her and Macbeth to the servants

when she says smear the sleepy grooms with blood., and

If he do bleed, Ill gild the faces of the grooms withal,

for it must seem their guilt. When Banquo states and

question this most bloody piece of work, and Ross says

ist known who did this more than bloody deed?, they are

both inquiring as to who performed the treacherous acts

upon Duncan. When Macbeth is speaking about Malcolm and

Donalbain, he refers to them as bloody cousins

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Canterbury Tales: The Knight's Tale. Unrequited love

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Geoffrey Chaucer's The Knight's Tale section of his classic, The Canterbury Tales portrays a certain aspect of love. There are various types of love but the worst one is courtly love, which is when one loves someone he/she cannot have. Chaucer portrays unrequited love in the Knights tale through the characters Palamon and Arcite both knights, cousins and prisoners, who fantasize about the beautiful Emily.

Firstly, Palamon sees Emily walking in the garden and thinks, Rose and arrayed her beauty was right (1), instantly falling in love with her. She does not see him and therefore, it is impossible for her to love him in return. This courtly love is further proven because Palamon shows his aggravation when he Was pacing round his chamber to and fro/Lamenting to himself in all his woe (). In addition, his love for Emily is so strong that he looks deadly pale (), caused by lovesickness. He explains his appearance to his cousin, Arcite, from a moment through the eye,/Into [his] heart (); Palamon implies that he has fallen love with Emily and he "ever shall, till death cut [his] heart's nerve." He also argues that he sees her before Arcite does, making it only fair for Emily to be his. As a result, Palamon experiences courtly love in the chamber for a time, since Emily is not aware of him until later in the tale.

In addition to Palamon obsessing over Emily, Arcite falls in love with her as well. He is "chanced to see/This lady as she roamed there to and fro,/And, at that sight, [of] her beauty" he said

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'The freshness of her beauty strikes me dead,

'Hers that I see, roaming in yonder place!

Unless I gained the mercy of her grace,

Unless at least I see her day by day,

I am but dead. There is no more to say.'

This exemplifies how Arcite's love for Emily is also at first sight. Moreover, the woman never sees Acrite either; hence, he loves her unrequitedly. However, Arcite is soon taken out of prison to return to Thebes. Because of his departure, "He felt the stroke of death upon his heart,/He wept, he wailed. How piteously he cried/And secretly he thought of suicide." He additionally tells Palamon that he is "an exile and outcast (6)" and nothing can "do [him] ease (6)". He finally states, "Farewell my life, my joy, my happiness (6)!" These descriptions prove that Arcite thinks of Emily as his complete life, which is a true aspect of true love. Also, while he lives in Thebes, he continues to fancy her even though he is aware that she does not even know he exists. In all, it is amazing how a man can love a woman as distantly as Arcite does, knowing she does not love him in return.

In essence, the cousins are so infatuated with Emily that they become enemies and battle one another. Both characters experience lovesickness and stress from unrequited love. Consequently, passion can take over one's entire life, especially courtly love. Geoffrey Chaucer,Canterbury Tales.

Please note that this sample paper on Canterbury Tales: The Knight's Tale. Unrequited love is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on Canterbury Tales: The Knight's Tale. Unrequited love, we are here to assist you. Your persuasive essay on Canterbury Tales: The Knight's Tale. Unrequited love will be written from scratch, so you do not have to worry about its originality.

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Westfield

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Globalisation Report ¡V Westfield Holdings

Westfield Holdings Limited is an Australian publicly listed company that continues to experience extraordinary growth in the international marketplace. This report will incorporate the company¡¦s reasons for expansion onto the international stage, its methods of expansion and its strategies used to manage its operations that envelop 87 shopping centers in four countries.

Reasons for Expansion

In critically examining Westfield¡¦s global strategies, it is important to reflect on the broader reasons why many Australian businesses are increasingly pursuing a global strategy. The reasons for their expanding overseas include

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„Ï To find new markets and increase sales

„Ï To achieve economies of scale from a larger operation

„Ï To cushion the effects of fluctuations in the domestic economic cycle

„Ï To take advantage of regulatory differences, or

„Ï To minimise tax

Although not all of the above reasons are significant in Westfield¡¦s strategies to expand globally, some certainly can be considered significant. For example, Australia¡¦s comparatively small market (with a population of less than 0 million) represents limited opportunities for Westfield to expand its shopping centre creation or management domestically. By limiting itself to Australia, Westfield would have missed the opportunities to take advantage of changing demand in new and emerging markets and thereby increase its sales that would flow from successful entry into overseas markets.

Westfield¡¦s global expansion strategy also expands their income generating potential. For example, with each additional development, Westfield commands development fees of % of total development cost, leasing fees of 10% of the first year¡¦s income of each specialty store and property management fees of 5% of gross income.

Expanding was also essential to Westfield in order to remain competitive. By operating solely in Australia, it would be unable to achieve the economies of scale that are typically enjoyed by oversea competitors. The nature of many businesses means that the bigger their scale of operations, the more they can spread the costs in order to achieve higher profits.

Methods of Expansion

Westfield management has continued to employ a combination of acquisition and joint ventures (both coming under foreign direct investment) as a means of pursuing its growth and expansion strategy overseas. For example, in the United States, and in New Zealand, Westfield purchased a number of existing shopping centres whilst in the United Kingdom, it has entered into a joint venture, holding nine British shopping centres.

Westfield management has discovered that there are no Greenfield site opportunities in the United Kingdom due to zoning policies of the British government. Greenfield expansion occurs when a domestic business builds a new facility in a foreign country. The UK government is restricting such development of out-of-town centres and encouraging the redevelopment of existing town centres. Westfield has not been deterred by such a policy, as much of its expertise lies in the redevelopment of sites.

Managing Global Operations

„ Financial

When an Australian business decides to expand overseas, there are a number of financial risks. In particular currency fluctuations, overseas borrowing and interest rates. One of the main risks is exchange rate fluctuations. Westfield is not in the business of exporting or importing physical goods. Rather, management has chosen to invest and manage operations in the countries in which they have created shopping centres. Whilst this has reduced their exposure to this type of risk, it has not eliminated it. Westfield uses interest rate swaps to hedge against the risk of fluctuations on their borrowings. Management also makes good use of cross currency swaps and forward exchange contracts to hedge against losses when transferring foreign denominated assets, liabilities, income or expenses. Westfield does not trade in these derivative instruments but uses them only to the extent necessary to protect their interests.

By operating in a number of countries, Westfield has minimised the impact of fluctuations in the economic cycle of any one country on their overall profits. This is of particular interest to shareholders who could therefore expect to maintain a steady or increasing return on their investment.

„ Marketing

Westfield is very much a one-brand company. All shopping centre complexes, both in Australia and overseas, carry the Westfield logo. Westfield has found that branding works to increase market penetration and sales, and consequently rental income. By using a single brand name, Westfield is able to leverage their marketing expenditure, driving home the message to consumers that to shop at Westfield is a worthwhile shopping experience. The success of the brand allows Westfield to create an emotional bond with consumers, giving it a competitive edge is much the same way as McDonalds has done with their fast food outlets.

Westfield is the first shopping centre owner and operator in the United Sates to consistently brand all its shopping centres. Although the United States is an enormous market, Westfield is having success in achieving brand recognition because its shopping centres are clustered in many of the areas in which they do business.

Another marketing tactic Westfield have employed is the introduction of entertainment and leisure precincts (¡§ELPs¡¨) that integrate state-of-the-art cinemas with cafes, restaurants and lifestyle retailers such as stores selling books, music, sporting goods or youth fashion. The ELPs have proved extremely popular and an excellent driver of customer traffic.

„ Operations

Westfield has taken its successful domestic retailing formula and applied it to selected global markets with considerable success. However, management has had to adapt the operations of the business to the regulatory requirements of the different countries. For example, Westfield management has established that government policy in Britain favours the re-development of existing shopping centre sites, whereas in the United States government is typically in favour of seeing new shopping centre sites created.

Westfield does not spread its operations throughout the target countries, but develops clusters in particular cities or regions, all branded with the Westfield logo. These clusters allow Westfield to achieve significant efficiencies in operations, marketing and leasing. In 1, Westfield management also established a team with a strategic brief to develop Internet Shoppingtown in line with the global movement towards this type of retailing.

„ Employment relations

Whilst Westfield manages their global operations primarily using Australian senior executives, i.e. an ethnocentric approach, staffing at lower levels in the organisation is very much polycentric. This of course means that Westfield is providing an employment in the areas within which it operates. Westfield currently employs more than 650 employees globally and it is mindful of differences in labour laws between countries. These laws tend not to be an issue with senior executives whose employment contracts are determined in Australia using Australian rules.

Stakeholders

Westfield¡¦s search for global remedies, while increasing the global potential of its business operations, has consequences for its stakeholders. For example, Westfield¡¦s senior executives have been increasingly stretched by the expanded pace of business operations. While senior executives would typically have improved career prospects, it is perhaps shareholders who stand out to be the biggest winners.

Shareholders have watched their wealth grow with Westfield¡¦s global expansion strategies and remedies. A consequence for shareholders of the global strategy is the increased profitability from offshore operations, they are provided with a tax-effective income stream.

Competitors are also affected as Westfield adopts an aggressive approach in their expansion into foreign markets, taking their opposition and in the process, acquiring some of them. Westfield¡¦s policy of consistently branding all of its shopping centres is also having an impact on their brand recognition, market share and behaviour by competitors.

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