Question:
Discuss about the Business Culture Environment of Thailand.
The purpose of this report is to offer a detail as well as sound description of the business culture environment of Thailand. Thailand is a well-known and renowned nation famous for its rapid development and innovative technologies. There is a rigorous welcome of the multinational corporations and the foreign direct investments to have huge investments in the various industries of the country (Santandertrade, 2017). The report is developed to offer information in respect with the several unique cultural aspects of Thailand which attracts the foreign companies to have their business roots in Thailand. The report will also present the various cultural differences which are their between the societies of Myanmar and Thailand. The next part of the report will offer a detailed cultural analysis of Thailand through the Hofstede’s cultural lenses by taking sue of the cultural dimension theory.
Thailand is recognized as the 2nd largest economy in the Southeast Asia. There is approximately a total of 1,554 million USD FDI inward flows in Thailand in the year 2016. There are around 171 Greenfield investments which have been there in 2016. The country possess a number of attractive and fascinating factors which help in fetching the attention of the foreign companies to successfully invest and perform businesses in the various regions of Thailand (Santandertrade, 2017). One more significant factor which attracts the companies of Myanmar to have their businesses in Thailand is the safe as well as opportunistic business environment of Thailand which helps the companies to become successful and flourish. There are high opportunities for growth, innovation and development of the organisations that are performing their business in Thailand. Thailand is a nation who extremely follows Buddhism. There is a Theravada Buddhism practice which is practiced at the highest level with some part of the country following Hinduism too. In the old eras, there was military dictatorship in Thailand but in the phase after 1973, the nation was keeping a step ahead towards the developing phase where there was an end to the rule of military dictatorship (Iskander, 2013).
The Thailand culture is rich and diverse in nature. The country is well-known for its famous traditional as well as for its modern culture. Thailand is a famous tourist place as there are number of places and things to visit comprising of contemporary culture, masked dance dramas, delicious cuisines, visual arts and the various social norms. Thailand possesses the culture of nuclear family. The male members of the societies are wholly responsible working and bearing all the expenses of ten families. The ratio of the women who are working is comparatively very less in respect with the percentage of the male members of the society. The maximum percentages of females are busy in household work only nation (Taras, Steel and Kirkman, 2012). The major percentage of the entire population of Thailand which is approximately ninety percent follows Buddhism only and the left percentage comprises of various other ethnicities and races such as Hinduism, Christians and few other cultures (Everyculture, 2017).
Education
From the education perspective, in Thailand, it is necessary that the children must have the education which is offered in the elementary schools and then have a compulsory education of one to three years offered in the elementary schools for the children of age group seven to nine. Then after the elementary school, there is a course of next three years which is second level education and that course is in respect with the carrying on with a course of next three years for the children of age group 13 to 15. After that there are two different streams i.e. vocational and academic which the children can opt for according to them. In comparison with the female and the male members passing the university course, there are a high percentage of male members rather than female. To take admission in the colleges, university course, high schools and elementary schools, the children are required to clear the entrance tests. In the education sector of the country, there has been realized increased completion (Tiranasar, 2004).
Attitudes and Values
There are particular attitudes are values which are possessed by the people of Thailand and there are specific rules and customs on the basis of which the people of Thailand work and so there takes place an increased level of homogeneity between the various social customs. The relationships and associations with the people are given huge importance. In Thailand, the business practices and operations are conducted with utmost flexibility and so there is rapid change in the functioning and the strategies according the demand off the market. There is high significance of silence and as a result there are faster decision making and fewer discussions made among individuals (commisceo-global, 2017).
Aesthetics
The Thailand aesthetics is a broad set of the ancient arts. It includes prominent art forms which have a long history. There are various art forms that influence Thai culture such as Westerners, Chinese, the Indian, the Mons, etc. The uniqueness of Thailand lies in it art forms comprising handicraft, painting and sculpture. Thailand, there maintains a strong balance among the age-old tradition i.e. the heritage and modernity. Thailand also comprises of harmonious fashion in respect with buildings, people, garden, train stations, displays, shops, products, food and advertisements and all the things which are eye-catching and fascinating (Expatfocus, 2017).
Personal Communication
The individuals of Thailand have their faith and believe in dealing with harmony and thus maximum of the communication are in the form of expressions only (Everyculture, 2017). There is increased use of the facial expressions but in respect with the eye contact there is very less use of eye-contact at the time of communication. In business conversations, there is taken use only of the formal language. There is maintained an adequate distance of one meter while having communication with strangers with a formal approach (Vailati, 2014).
Religion
Buddhism is the culture or religion which is highly followed in Thailand. The maximum of the percentage of the individuals follows Buddhism.
Manners and Custom
In Thailand, there is a casual aspect of offering greetings among the people. There are greetings shared by the means of raising hands, palms and keeping a posture of prayer. In the various professional meetings, there is taken use of a formal approach at the time of interactions and communications (Iskander, 2013). In respect with the female members in professional meetings, there is avoidance of hand shaking and there is use of smile for greeting purpose. There are homogenous societies in Thailand where there is increased level of unity in the families. There are also possesses features of collectivism where firstly their want and the needs of the societies are accomplished and then the individual needs are considered. The business societies in Thailand follow a vertical structure and it is essential to offer respect to the high executives and authorities both in the business societies and the families (Justlanded, 2017).
In the business culture environment of Thailand, the people are usually polite in nature and effectively work on their minds. The people are extremely compatible with the various colleagues of the organisation and not aggressive in nature while dealing with other employees and the organisational situations (Shang,2015). On the other hand, in the business culture environment of Myanmar, there is a huge impact pose by the western culture on the business and the interpersonal associations. There are increased level of discussions and arguments are done in respect with the business communications and thus the chances of controversies increased because of huge arguments (Everyculture, 2017). In the organisations, the Myanmar people give priority and importance towards the attainment of the organisational goals and objectives. On the other hand, in the Thai business culture, the organisational individuals are more aggressive towards attainment of the individuals’ needs and requirements (Hamamura, et al., 2009).
Negotiations
In respect with the business meeting and business negotiations, the people of Thailand have a custom and tendency to share all the information with the business parties. At the time of business negotiations, the Thai people usually remain very relaxed and calm as they give huge importance to the personal relationships. And so, the overall process of business negotiations is bit faster (Everyculture, 2017). On the other hand, in Myanmar, the process of business negotiation is a bit slow because of the reason that there are followed strict regulations, processes and rules at the time of negotiating and business meetings. When it comes to prices, quotations and deadlines, the Myanmar people are tough and hard to deal with (Leony and Rudito, n.d.).
Business meeting etiquette
In respect with the business meeting etiquettes, in Thai business culture, there is a long process and time gap so that all the things can be effectively scheduled, lined up and planned (Everyculture, 2017). On the other hand, in Myanmar, there are scheduled business meeting and appointments in a very short notice period too and no need of long time gaps are required for conducting the business meets (Rarick and Nickerson, 2006).
Gift giving etiquette
In respect with the etiquette of gift giving, in Thailand, the sharing of the gifts is considered as a major protocol. At the time of business associations and meetings, the business associates as well as the colleagues, share various gifts among each other as a token of greet. This demonstrates increased level of respect towards the business parties. Sharing gifts with each other is a kind of ritual in Thailand (Everyculture, 2017). Whereas, on the other hand, in Myanmar, the sharing of gifts is also a ritual and at the time of business meetings, there is practice of sharing gifts. In Myanmar, the sharing and acceptance of the gifts is also considered as a token of respect (Factsanddetails, 2017).
Dress Code
In the business culture environment of Thailand, the individuals at the time of business meeting prefer wearing dark colour trousers, a formal tie with a full sleeves shirt of light colour and with a dark coloured formal business coat. In respect with the attire wore by women, there are used formal dress or business suits (Everyculture, 2017). On the other hand, in Myanmar, the men usually prefer wearing shirts with no collar and longyi and sometimes there are sued business suits which are of dark colours and the women usually prefer wearing longyi and blouse irrespective of the various weather conditions and seasons (Go-Myanmar, 2017).
Following is the analysis of the culture of Thailand on the basis of the Hofstede’s cultural dimension theory by taking use of Hofstede’s cultural dimension theory.
Power distance
The power distance dimension is used to understand the aspect of human equality and inequality. The high level of power distance denotes autocratic power relationship which shows there is an unequal distribution of power. On the other hand, the low level of power distance denotes that there is increased level of questioning and have an expectation that there will involvement of the individuals in the process of decision making in the companies (Hofstede, 2011).
The power distance of Thailand is 64 which are very high in comparison with Myanmar. It demonstrates that the managers and the executives do not expect to have increased level of involvement in the decision making (WordPress, 2014). And if the company of Myanmar plans to have business in Thailand, then there is a need to have restriction towards the delegation of authorities and involvement of the employees in planning and decision making (Rarick and Nickerson, 2006).
Individualism
The individual cultural dimension demonstrates the interpersonal relationship. The high level of individualism shows that there is an individualistic culture where the concerned is in regards with oneself and families (Newman, 2014). The low level of individualism shows increase collectivism where the concern is in respect with the societal members and the organisation.
The individualism level of Thailand is 20 which shows low level and represents that there is unequal focus on personal and group objectives (WordPress, 2014). In Myanmar, the level of individualism is moderate and thus if the company wants to have business in Thailand they must restrict offering self-recognition and individual opportunities to the people to work (Rarick and Nickerson, 2006).
Uncertainty avoidance index
The uncertainty avoidance dimension shows the society’s or nation’s tolerance in respect with the occurrence of uncertainties (Steel and Taras, 2010).
The uncertainty avoidance index of Thailand is 64 that reflect there is upsurge level of uncertainty avoidance. There are efficient practices for the avoidance of the impact of uncertainties (WordPress, 2014). In comparison with Myanmar, the index of Thailand is a bit low and it becomes easy to bring any change in Thailand. Thus, for performing business in Thailand it is necessary to have deep understanding of regulations and culture to avoid uncertainties (Rarick and Nickerson, 2006).
Masculinity
The masculinity dimension is in relation with the value posed by ambitions, power and other material things. The high level shows increased difference in respect with genders and there is more importance over materialistic things and the low level shows presence of feminine culture and high importance to relations (Tang and Koveos, 2008).
The masculinity index of Thailand is 95 that show high value to materialistic things (WordPress, 2014). Whereas it is very low in Myanmar, therefore, to have business in Thailand, it is necessary to have more dependence on male members and materialistic things (Rarick and Nickerson, 2006).
Long-term orientation
It reflects the extent of dealing with present and future issues by linking with past situations. Increased level of orientation shows the individuals are concerned with future and are goal oriented and the decreased level shows there is a level of stability (Shi, and Wang, 2011).
The index of Thailand is 32 which show there is non-descriptive cultural society. And there is a moderate commitment towards goal (WordPress, 2014). In Myanmar scores a bit low index as and thus company is required to make a little additional efforts or any kind of change in respect with the long term orientations dimension (Rarick and Nickerson, 2006).
Indulgence
The indulgence dimension demonstrates that the nation is optimistic and there is freedom in aspect with speech and communication. The low level shows there is restraint culture and rigidity in behaviours (McSweeney, 2002).
The indulgence level in Thailand is 45 that reflect there is less control on individuals or moderate control and also dominance of male members (WordPress, 2014). But the indulgence index of Myanmar is high which shows there is a need that there must be given more freedom to eth employees so that they can work effectively in Thailand (Rarick and Nickerson, 2006).
Conclusion
The report concludes that, the business culture environment of Thailand is extremely affluent and rich and is much impacted by the western culture that comprises of moderate level of indulgence, high level of uncertainty avoidance, low level of long term orientations and masculinity index, individualism and high level of power distance. The cultural dimension framework of Hofstede help in analysing and understanding the business culture of Thailand as well as also supported in understanding what cultural practices must be consider while performing business in Thailand. This supports in better decision making in respect with the business expansion in the foreign nation. It can also be concluded that there are number of dissimilarities and similarities among the business cultures of both the nations. Therefore, it is necessary for the company of Myanmar to first develop an in-depth understanding of the various cultural aspects of Thailand before commencing the business operations. The info presented in the paper can offer several advantages to number of companies while performing business in Thailand and can also support in avoiding various cultural issues.
References
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