Report on Business Expansion Project

Report on Business Expansion Project


Business expansion is a natural tendency on the part of any company in any industry as it is the most conventional and evidence-based practice in respect of ensuring a steady inflow of revenue perennially. Penetrating new markets and expanding markets are strategies that have been used by business organizations for a long and the result has been the growth, expansion, and prosperity of multinational companies (MNCs). The report will also discuss specific strategies that the company should apply to address the concerned challenges, overcome them, and eventually start penetrating the new market. 

Identification of the three most significant cultural challenges that Airways will face in attempting to penetrate the Malaysian market

The Challenge of Intermingling Culture

The Malaysian business culture does differ a lot from the business culture of Australia in many different ways. Though cultural differences are common and unique points to be addressed while composing a report on new market expansion for any business entity, it must be remembered that the differences between the concerned business’s home culture and the culture of the host country where the business is striving to spread can bring about some specific stiff challenges (Aggarwal & Zhan, 2017). 
The Challenge of Differences in Business Cultures 
It should be noted that the plan of entering the new market in Malaysia on the part of Airways is viable because the Malaysian business environment is a budding one having large customer segments with large diversities (“Malaysia: Doing Business in Malaysia”, 2020). Being a high technology, knowledge-based and capital-intensive country, Malaysia is very much open to foreign direct investment (FDI) and that is the reason why there are ample opportunities to do business in Malaysia (Musa & Chinniah, 2016). But the business culture and the indigenous culture of the country which differ quite larger from the Western and European business cultures can offer certain resistances and hindrances to large scale foreign companies to penetrate the Malaysian market so easily (Rajiani & Buyong, 2013). Quite distinctively, Malaysia may offer three specific cultural challenges to Airways as it is an Australian company and the business culture of Australia and Malaysia differs greatly. Even though the two countries have good international and business relations, there are still some significant barriers that the Airways might face while trying to penetrate the Malaysian market. For instance, the Australian company Airways will first face the challenge of overcoming the cultural boundaries of Malaysia that have been constituted of three main cultural groups, viz. the Malays, the Chinese, and the Indian (“Top 10 challenges of doing business in Malaysia”, 2019). Quite noticeably all the three cultures are Asian and are quite different from the culture that characterizes foreign countries like Australia. 

The Challenge of the Culture of Corruption

It has been observed that among the primary obstacle that a competent and ambitious company like Airways might face while attempting to enter the Malaysian market is corruption (“Malaysia: Doing Business in Malaysia”, 2020). The business environment in Malaysia is infested with corruption. This can be argued by citing the fact that the nation is ranked among the top three countries in the Corruption Perception Index which suggest any business attempting to enter the new market of Malaysia to do a thorough background study and research on how to overcome the official red tapes infused with corruption from the root level in the Malaysian business context (Kapeli & Mohamed, 2015). Another difficult proposition in terms of entering the Malaysian market is that there is a tendency of talented Malaysian individuals to leave the mother country to venture into other foreign countries with greater opportunities (Azman, Sirat & Pang, 2016). This exodus of talent can be a challenge for any business that is willing to penetrate the market in Malaysia (Yarnall, 2011). The dearth of talent pool may put any new business at stake in Malaysia and that is the reason why, before making any decision to penetrate the new Malaysian market, the top management of Airways and its HR department must conduct a thorough study on the talent resource, availability and procurement in Malaysia (“Doing Business in Malaysia”, 2018). 

Three most important success factors that the company must consider while overcoming the challenges

Thorough Background Research on the Country and its Business Opportunities 

The first challenge of overcoming the complicated business culture of Malaysia constituted of the Malay, Chinese, and Indian cultures To enter and prosper in the new market in Malaysia the top management and the HR department of Airways must carry on a thorough research study on the complicated business culture of Malaysia that becomes quirky because there are Malayan, Chinese, and Indian business culture influences on many industries in Malaysia. In this respect, one of the crucial strategies that could be implemented by Airways is to form a marketing and research team composed of employees belonging to the Malayan, Chinese and Indian ethnicities to predict the cultural risk factors of doing business in Malaysia and overcome the same by developing a business culture separately for Malaysia that would be imposed primarily on the divisions and units of Airways operating in Malaysia. Moreover, at the initial stages of business and government negotiations, the company must employ effective and diplomatic translators to bridge the culture gap between the Malaysian business culture and the Australian business culture. 

Lobbying for Overcoming the Barriers of Corruption 

Besides, to overcome the levels of corruption that the Malaysian business sphere is known for, Airways must employ diplomatic social innovators who might help the HR department and the marketing department of the company in compiling reports and eventually lobbying for transparency and accountability that can compel the governmental authorities in Malaysia to give a fair chance to Airways to break through the web of corruption and establish its business according to its ethical codes and codes of conduct (Amaeshi, Rajwani & Adegbite, 2015). 

Keeping in Reserve the Talent Pool 

Finally, Airways must be well aware of the shortage of talent in Malaysia because most Malaysian talents tend to move to other foreign countries to experience a better quality of life. Hence, Airways should be equipped with substantial manpower and talent resource to overcome this scarcity thoroughly and explicitly. 


There are certain opportunities and obstacles to doing business in Malaysia. That is one primary reason why while attempting to enter the new market in Malaysia, Airways’ top management should develop some specific strategies to overcome the cultural barriers, the corruption, and the scarcity of talent in Malaysia.