The Important of Culture for Air New Zealand in Germany Essay

Submitted By Charlotte-Knowles
Words: 2199
Pages: 9

“Despite the various patterns and processes of globalisation, cultural differences still remain important… Cultures vary and these variations lead to real and significant differences in the way that companies operate and people work. Moreover because of globalisation more and more firms are coming head to head with the added complexity of doing business globally” (Collison & Rugman, 2009). It is important for any MNC entering into a foreign market to understand the local environment in order to successfully implement an entry strategy.

Previously known as Tasman Empire Airways Limited, Air New Zealand (Air NZ) began representing themselves in international markets from the 1960s in various ways such as information and sales offices. Air NZ merged with New Zealand National Airways in 1978 to form the newly limited liability Air NZ. It has many alliances and partnerships with other airlines and organisations around the world allowing them to keep expanding their horizons in the global market; most recently they signed an alliance with Singapore Airlines. Air NZ flies to all major continents and throughout by using their own airlines and various alliances and codeshare agreement. In 1992, Air NZ opened a multi-lingual Euroline reservations centre in Antwerp, which allowed them to take phone reservations from major European countries. Air NZ keeps growing and expanding with the global market.
Germany has a strong relationship with New Zealand. Air NZ first signed a marketing agreement with Lufttransport-Unternenem GmbH (LTU) in 1996, and then a code share alliance with Lufthansa in 1998. Germany has a growing economy and is an important hub in the Eurozone. According to BBC News, Germany is the envy of most Eurozone countries. Most Germans are taught English as a second language from a young age. This allows for a more effective communication style without the hindrance of severe language barriers. There are still cultural differences which many affect any internationalisation between the two countries. New Zealanders tend to have a more relaxed attitutde towards business, whereas Germany have a more strict approach to business, this will be seen later on in the cultural comparisons between the two countries using Hofstede's cultural dimensions . Tourism New Zealand and Air New Zealand ran an innovative training session in Germany. It targeted German travel agents and product managers. It was a night in which the participants “got to sample classic New Zealand cuisine” and were quizzed about New Zealand. Tourism NZ’s Regional Manager –UK and Europe said “We’re always looking for fun and different ways to engage with travel sellers in market” (Tourism New Zealand, 2013). This is an effective way for New Zealand to represent New Zealand culture in Germany.
New Zealanders and Germans share a similar culture in a broad sense, however using Hofstede’s four dimensions of culture “…that help explain how and why people from various cultures behave as they do” (116), the similarities and differences can be evaluated.

The first cultural dimension power distance "deals with the fact that all individuals in societies are not equal" it is defined as "the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally" (Hofstede, 2001). Both New Zealand and Germany have a low power distance, according to the Hofstede Centre, New Zealand sits at 22, and Germany a bit higher at 35. In both Germany and New Zealand there are few restrictions permitting employees to contact the high level managers, making them easily accessible at all times. Germany has a more directive and participative style of communication, where as communication in New Zealand is also participative and direct, however it is more informal than Germany. It is acceptable in New Zealand culture to turn up to a meeting on time, however Germans are more prudent and are likely to turn up to a…