"1.0.5 Porter’s Diamond Theory analysis of the country AustraliaFirm strategy structure and rivalryLankem Developments PLC is a subsidiary of Lankem Ceylon PLC. Lankem Ceylon PLC or themother company is establishing a well-diversified portfolio among its daughter companies.Lankem Developments PLC is providing construction solutions for its customers. The companyis expecting to get profits by focusing on the area of Paint and chemicals. They are offering thosesolutions to its customers such as road construction, waterproofing and industrial flooring.The company focuses on the Chemical industry. It is following the best cost provider strategy.Road construction, industrial flooring and water proofing are segments within the company.Each of the area is following Focused Differentiation strategy. The company has realized that theindustry is big enough to be profitable and offers good growth potential for them.of the United States of America, to market "Deco turf" resurfacing products. Through thisrelationship, the Company is aggressively targeting the market for pool decks and tennis &squash courts, within the hospitality industry.Demand conditionsEach segment is a niche segment, where most of the companies would not look at as a core areato diversify their businesses. Most of the industry leaders do not see that having a presence in theniche is crucial to their own success. So, Lankem has decided that if the company can performwell in these segments, that would give them higher profits and a better competitive position inthe industry. Lankem Developments is trying hard to be profitable in the industry, since theywere incurring losses over the last few years. They were looking at strategic alliances that willhelp them to grow up in the industry. So, they have recently tied up with the California ProductCorporation due to seasonal demand pattern.11 Factor conditionsLankem employees can be studies by below given statement.“The company has established a truly meritocratic work culture at Lankem, guaranteeing ouremployees the professional freedom they need to reach their fullest potential. Their open doorpolicy ensures that there are ample opportunities in knowledge sharing and mentorship. Thecompany invests heavily in our professional program because we understand the importance ofdevelopment. The company is dedicated to developing the „whole individual?. We understand that bysupporting our employees various endeavor and interests, the company able to enhance theirprofessional lives and reach the community at large.” (www.lankem.lk)Related and supporting industriesLankem Developments PLC has recently tied up with the California Product Corporation of theUnited States of America, to market "Deco turf" resurfacing products. Through this relationship,the Company is aggressively targeting the market for pool decks and tennis & squash courts,within the hospitality industry. This partnership will be helpful the company to expand theirproduct range.Suppliers and partner companies in here the raw materials been ordered as a bulk and in order toimprove the product the quality should also be high.12 2.0 Critically examine and discuss culture theories and how cultural aspects such as powerdistance may affect international trade such as contractual obligations, management styles,human resource management and organizational structure.2.0.1 Culture vs.contractual obligations, management styles, human resource managementand organizational structure.Culture can be defined as the way things are done culture varies one country to another or it canbe one city to another or one race to another.Therefore, the issue of cultural sensitivityneeds tobe taken in to consideration prior to international business initiatives.Elements of cultureWork ethicsEconomicPolitical systemsDevelopmentCommunicationComponents ofArtistic culturecultureLanguageSocialstructuremobility &ReligionValuesstatusattitudesbeliefsFigure02: Elements of the culture13 2.0.2 KLUCKHOHN AND STRODTBECK (1961) According to Kluckhohn and Strodtbeck, the cultures can be described using universalcategories, which provide some orientation towards those cultures mentioned. Nature of the people - Good, Eviler or both The persons? relationship to nature - Harmony, Dominant or fatalistic The inter-person relationship- Individualist or Collectivist Mode of human activity - Being, Doing or Containing The temporal focus- Past, Present or Future The space conception- Public or PrivateSo the cultural aspects such as contractual obligations affect the culture of the Lankem Plc asmost of the multinational companies already decided to launch more on foreign brands inAustralia, by introducing more on „national? brands. From that, the attitudes in Australiansincrease due to the rising popularity in these local chemical based brands. These national brandsincrease the customer attitude and perceptions towards these brands due to its quality levels.By using this strategy, international manufacturers can compete with Australian local brands.Due to the increase of Australian income level, more customers are now changed their mindtowards the foreign brands.2.0.3 HALL (1976)According to the Halls approach, people can be well-known into high and low main contexts.These can be explained about the share information as well as how they communicate. High context – The shared experiences are indirectly communicated. The relationships are keptin long term by use of non-verbal communication. Also banding is a shared code. All theagreements are more verbal than the written agreements according to this approach. Theoutsiders are highly renowned. There are slowly changing and inquired cultural patterns. Low context – There are shorter relationships and also lack of personal involvement.Themessages must be explicit one. There is a lack of non-verbal communication in low context.In14 here, the authority is varied and also the written agreements are more like to used. The insidersand outsiders are less known.2.0.4 HOFSTEDE (1980)HOFSTEDE?S work is revolved around 05 dimensions namely;? High Power Distance Vs Low power? Uncertainty Avoidance Vs Uncertainty Acceptance? Individualism vs. Collectivism?Masculity VS Feminity? Short Term orientation Vs Long term orientationAnalysis of HOFSTEDE Theory Related to Australia? Power Distance – The power distance is very important for the communication society inAustralia, because of the extreme centralization of the country to Melbourne. In thatmost of the foreign direct investments (FDIs) go into Melbourne, which is moreeconomic, financial and cultural city in Australia? Individualism – There is high collectivism and communism in Australia Individualism iscensored. Family and also friends are very important for Australia life. Also personalobjectives of the Australian get prioritized.? Masculinity – The Australia society indicates less quality of life as the measure of thesuccess. According to previous studies, goods, cars, big apartment or houses are fullyfurnished.? Uncertainty Avoidance – There is high uncertainty avoidance in Australia comparedwith most of the western countries. This is because of the historical events, wars, orinsecurity due to terrorism, etc.? Long Term Orientation – This is unavailable or very minimum level in Australia. TheAustralian society is more now-oriented and they do not keep enough attention aboutlong term. 15 "