Running Head: BUSINESS ENVIRONMENT ANALYSIS REPORT 1
Business Environment Analysis Report
Liberty University
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 2
Abstract
This paper is going to focus on the business environment of Singapore. Singapore is one
of the most developed country in South Asia. It is surprised that Singapore can achieve such high
economic standard in small area. This paper is going to state natural resources and environmental
sustainability of Singapore, then will focus on economic and socioeconomic forces. Next, this
paper will introduce political forces, legal forces, financial forces, and labor forces of Singapore.
This paper will also provide some helpful instructions and theory for US managers who want to
do business in Singapore. Last, this paper will state five important things for Christian managers
to do business with foreign culture and five things that Christian managers must avoid.
Key point: Natural resources, Environmental sustainability, Political Forces, Legal forces,
financial forces, Labor forces, US managers, Christian managers
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 3
Introduction
Singapore is a modern city-state and island country in Southeast Asia. It is located in the
southern side of the Malay Peninsula. The country’s territory consists of the main island and 63
smaller islets. Singapore is one of the largest economic in Southeast Asia; Singapore and Japan
are only two developed country in East Asia; Singapore also is world’s major commercial hubs,
one of the fourth financial center and one of the five busiest airports. Because of there is not
natural resources in the Singapore, so its globalized economy depends heavily on trade,
especially manufacturing, which accounted for around 30 percent of Singapore's GDP in 2013.
Singapore places at higher place ranking in education, healthcare, and economic
competitiveness. National University of Singapore (NUS) belongs to top 50 best university
around the world. There are nearly 5.5 million people live in Singapore, 75 percent of the
population is Chinese with significant minorities of Malay and Indians. There are four official
languages in Singapore; they are English, Malay, Mandarin, and Tamil.
Singapore is a place of many paradoxes: a society of First World living standard, yet it is
rules by harsh state measures and pragmatic policies reminding one more of the practices of
Third World nations; a society with an advance economy, yet its liberal-democratic standards fall
short of similar development (Yao, S, 2006, p. 7). Singapore is the host of the Asia-Pacific
Economic Cooperation (APEC) Secretariat. Singapore’s rapid development has given it
significant influence in global affairs. Singapore is similar to another developed country in East
Asia-Japan, they both stand in a small land area and both lack of natural resources and raw
material, but they both have become the strongest nation in East and South Asia.
Natural resources and Environmental Sustainability. It is important to evaluate
Singapore’s geography in four major points: location, topography, climates, and natural
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 4
resources; they can a profound impact on the way people organize their activities (Ball, et al,
2013, p. 120). Singapore is located on a very small territory, it lies off the southern tip of the
Malay Peninsula and it is only 220 square miles at high tide and 225 square miles at low tight
(Rollow, J, 1974). Singapore, the second smallest country in Asia, located in place that between
South China Sea and Indian Ocean. Total area of Singapore is 250 square miles. Singapore has a
humid, rainy, and tropical zone maritime climate. Temperatures are stable during the year,
averaging 77°F in January and 81°F in June. Singapore is very humid, with heavy rainfall all
year. Annual rainfall averages 93 inches (Joyce, A, 2001, p. 1813). There is no natural resources
in Singapore, so all natural resources, raw material and consumer goods such as food, vegetables,
and water rely on import. Singapore’s location is its one of the main advantage. The country is
located in the heart of Southeast Asia. This fact gives an opportunity for the business to have an
access to a market of 2.8 billion people within a few hour flight. Singapore stands in the same
time zone with China and West part of Australia.
Ball, et al (2013) defines characteristic of environmentally sustainability as, “economic
state in which the demands placed upon the environment by people and commerce can be met
without reducing the capacity of the environment to provide for future generations” (p. 145).
There are three characteristics of environmentally sustainable business: limits, interdependence,
and equity. Limits address the reality that environmental resources are exhaustible, it is necessary
to use clean energy to reduce the use of fossil energy. Interdependence states the relationship
among ecological, social and economic system, interdependence focus on the development of
social should not affect the regular development of economic system, each system should keep
independent. Equity addresses that all stakeholders must has same benefits (Ball, et al, 2013, p.
146). Limit: Singapore government implements many new innovative technology to manage
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water, waste, and energy resource. Because of there are no natural resources in Singapore, all
resource and raw material for country rely on import, so waters are extreme precious in
Singapore. The government build a long-term water supply strategy in order to achieve
sustainable supply of water for people; the government also introduce new technology that will
carry out large scale of use water recycling to produce new water. Singapore government also set
blueprint to face challenge of climate change, government implements new strategy to reduce
energy intensity, improve water conservation, and recycling rate. Government also set plan that
would reduce greenhouse gas emissions by 16 percent by 2020. Government also planning to
introduce new plan coastal protection, increasing resilience of water supply and protecting
natural biodiversity (Brain, 2009, p. 183). Interdependence: Singapore government provide plans
that would keep interdependence of ecological and social. Government encourage people to take
public transportation, because public transportation is a more effective and also environmentally-
friendly way to travel as compared to cars. Government also focus on decentralization, which
would reduce peak hour congestion from traffic flowing in and out the city center. The
government will build three major hubs, which contains offices, retail, entertainment, and
commercial facilities in North, West, and East of city center. In order to achieve sustaining
growth, the government would also enhance infrastructure for manufacturing and service sectors
and continue creating new employment to maintain competitiveness (Brain, 2009, p. 180).
Equity in Singapore: in order to achieve environmental sustainability in Singapore, Singapore
government provides three major routines: compact city, quality living, and housing for all.
Compact city focus on to build more homes and amenities around major MRT stations, so people
can benefits from greater convenience to public transportation and ready amenities nearly.
Housing for all strategy focus on to provide affordable and quality high rise public housing for
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 6
over 80 percent of the population lives, this plan will provide residents with private housing that
includes landed properties. Quality living focus on to creating a total good quality living
environmental around where people live; furthermore, the government will provide necessary
support and care service for elders (Brain J, 2009, p. 179).
Economic and Socioeconomic Forces. Singapore is one of the most developed nations
in Southeast Asia. The country has one of the lowest unemployment rates in the world. The
unemployment rate is 2% and the country has 14th smallest unemployment rate in the world.
Besides, the country’s GDP per capital is $60900 and it is the 6th biggest in the world.
Singapore’s economy relies on export. According to statistics of 1999, the world's top exporters
among emerging economies are all in Asia. Singapore, Malaysia and Hong Kong top the list: in
each of these trading entre ports, exports reached more than 100% of GDP in 1998. And in each,
exports to the United States alone were worth around 25% Of GDP (Emerging-market indicators,
1999). Singaporean GDP equals to $3267 billion. The companies which are starting their
business in Singapore can enjoy its economic strength. Singapore is in the third place on the list
of the richest countries according to its GDP per capital. Besides, Singapore has a large current
account surplus, balanced fiscal budge, high savings rates and zero foreign debt. In recent years
Singapore has established itself as a major center for regional banking and company
headquarters, as well as a significant manufacturing base. It has also developed into a major
tourist destination (Ingall, M, 2003, p. 13). Singapore’s economy will continue keep strong in the
future if the global economic recovery unfolds as expected. Singapore located in the center of a
region that is enjoying a dramatic economic transformation so it has a reason to believe
Singapore economy would continue develop in the near future. Even if China’s growth slow, but
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 7
the growth in India and ASEAN will add further vibrancy to Singapore’s regional hub
(Bhaskaran, M, 2014, p. 290).
Singapore is an Asia country, 75% population of Singapore is Chinese. Even Singapore is
developed country, but the different in sociocultural between Singapore and Western countries
such as United States still need to be pay attention for foreigners. The companies and people that
will be working in Singapore will need to know Singapore’s culture, social culture, and business
etiquette. Ball, et al (2013) states sociocultural as, “description of the social world through which
we observe the effects of culture” (p. 94). Hall offers a classification of culture based upon
communication styles and specifically on the role that context plays in the communication
patterns. The world context means the relevant environment, it can be divided into two parts:
high context culture and low context culture. In high context culture, the communication tends to
be implicit and indirect; but in low context culture, the communication tends to be direct and to-
the-point (Ball, et al, 2013, p. 98). Many developed countries in Western such as United States,
Canada, United Kingdom, and so on tend to be low context culture, but many developed country
in Asia tend to be high context culture, even for Singapore. Singapore has high context culture, it
means the communication between people is usually indirect, and this is one of the significant
difference between Singapore and United States, and it is one of the hardest part for foreigners to
adapt (Matsumoto, D, 2007, p. 1290).
Hofstede, a Dutch business researcher, developed five dimensions of culture:
individualism-collectivism, power distance, uncertainty avoidance, masculinity-femininity, and
long-term orientation/Confucian dynamism (Ball, et al, 2013, p. 100). Ball, et al (2013)
described the concept of the power distance as “the extent to which members of a society expect
and accept power to be distributed unequally” (p. 100). According to the table that was made by
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Hofstede for 50 countries and three regions, Singapore has 13th place, it means Singapore has
relatively high power distance (Hofstede, 2001). In Singapore, superiors and subordinates
consider each other as unequal and subordinates are expected to be told what to do (Low, S. P., &
Yuquan, S, 2002, p. 10).
Ball, et al (2013) states uncertainty avoidance as “a society’s comfort with uncertainty”
(p. 100). According to the table that was made by Hofstede for 50 countries and three regions,
Singapore has last 53th place (Hofstede, 2001). Low uncertainty avoidance means that people
usually feel comfortable in unstructured situations, the society and culture of Singapore see
conflict as having positive aspects, expect innovation, encourage risk taking, and reward career
change (Ball, et al, 2013, p. 100).
Ball, et al (2013) describes individualism-collectivism as “the degree to which people in
the culture are integrated into group” (p. 100). According to the table that was made by Hofstede
for 50 countries and three regions, Singapore has place number of 39 and has an index of 20
(Hofstede, 2001). People in collectivism cultures belong to strong, cohesive in-groups that look
after them in exchange for loyalty. However, people in individualism culture usually tends to be
more loosely connected and look after themselves (Ball, et al, 2013, p. 100). Singapore has a
medium score, so it means the culture of Singapore stand in the middle place between
individualism and collectivism.
Ball, et al (2013) defines masculinity-femininity as “the distribution of roles between the
genders” (p. 100). According to the table that was made by Hofstede for 50 countries and three
regions, Singapore is the 28th, besides the index of Singapore is 48, the first place in Japan with
score of 98, and Sweden has the lowest score of 5 (Hofstede, 2001). United States has an index
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 9
of 62 (Ball, et al, 2013, p. 102). It means that Singapore has lower index of masculinity-
femininity index than United States.
Ball, et al (2013) points long-term orientation/Confucian dynamism as “level to which
people in the culture will persevere to overcome obstacles they cannot overcome with will or
strength” (p. 101). In long-term orientation, people values action that affect the future, while in
Confucian dynamism, people usually valued thing based on current situation or past experience
(Ball, et al, 2013, p. 101). In the table of characteristics of long-term and short-term orientation,
Singapore has long-term orientation characteristic, but United States tends to has short-term
characteristics (Ball, et al, 2013, p. 101).
Political Forces. Political forces of a country usually reflects on unfair competition form
nationalized company, government protection, terrorism, and government stability (Ball, et al,
2013, p. 162). Huang and Wong (2010) describe the history of Singapore Government,
“Singapore was directly controlled by the British colonial government as a crown colony until
1959, when it was granted limited self-government. It subsequently merged with Malaysia in
1963 but was expelled from the federation in 1965, at which point it became an independent
state” (p. 523). One of advantages for Singapore is the political stability and least corruption.
Singapore has been one of the most outstandingly stubborn cases of authoritarianism, Singapore
seems to contradict the widely shared view in the West that the best form of government is a
liberal democracy (Huang, X., & Wong, B, 2010, p. 523). The success of the Singapore
government in adapting to changing geopolitical and economic conditions to sustain growth and
to moderate criticisms of its authoritarianism has been attributed to the intellectual ability and
integrity of the political and administrative leadership. With regards to domestic politics, the
system of elite governance was not designed to be total or absolute but to enable the government
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 10
to have comprehensive control of the major avenues of information, wealth, and power in both
state and society. This strategy allows for and even encourages constructive criticism that would
lead to improvements and refinements in the system of governance (Huang, X., & Wong, B,
2010, p. 528). Terrorism and corruption are two major problems that most country in the world
may face. Simpson, M (2014) states that “corruption is the abuse of entrusted power for private
gain, terrorism and political violence such as corruption share inherent characteristics of the
illegitimating use of forces and the goal of changing dominant societal norms and behavior” (p.
89). Singapore is the 5th least corrupt country in the world. Corruption is a fact of life rather than
a way of life in Singapore, corruption is still exists in Singapore, but Singapore is not a corrupt
society; corruption in Singapore is most likely an example of individual corruption rather than
systemic corruption (John, ST, 1988, p. 81). Political will is a key ingredient in the
transformation effort from Singapore’s corruption infested past as it forms that all important sub-
structure, upon which all the super-structures of anti-corruption work rest. It provides the soil
and the nutrient which allows the seeds of anti-corruption work to germinate and grow. The
government has matched its words with deeds - it mobilized the public, and the entire civil
service to fight corruption. The anti-corruption political system in Singapore consist of four
pillars, they are effective anti-corruption acts, effective anti-corruption agency, effective
adjudication and efficient government administration (Shang, Y, 2003).
Legal Forces. Singapore was British colony, so Singapore’s legal system and law are
based on British legal system and law. However, legislation system is Singapore contains many
fines and very strict rules, which makes foreign investors much harder to adapt Singapore’s
business environment. This section will introduce personal data protection act, trading
legislation, and intellectual property law. Singapore implements a new personal data protection
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 11
act in 2013, which focus on a balance between personal data protection rights with business
interests and Singapore’s economic needs. The act implements compliance policies, practices,
and standards relating to consumer data and any corporate that violent the act would be consider
to penalties of up to 1 million US dollars; the result of the act would cause increased costs and
additional administrative burdens for companies, this is especially so for small and medium
enterprises (Leng, K. T, 2013, p. 265). In the past, the most striking gap in Singapore’s insider
trading legislation has been the lack of effective civil remedies for insider trading, but Singapore
implements new act in 2000, which will provide the a civil penalty for an insider trading
contravention. Anyone who violence this act will need to pay a sum of up to three times the
amount of the profit that the person gained that he or she avoided as a result of the contravention
and may force to criminal proceeding if that person or corporate’s action is critical (Ravi, C,
2000, p. 178). Intellectual property is a serious problem in most country around the world.
Singapore had a reputation as a city of intellectual property pirates until the late 1980s, when
several milestones were put in place. The most significant milestone in the enforcement and
protection of intellectual property rights was the enactment of the Copyright Act 1987. The
Copyright Act, together with the Copyright Regulations made under it, extends protection to
copyright materials connected with the US, the UK, and Australia, and their colonies and
protectorates (Lim, J., & Thomas, C, 1992, p. 20). Singapore government also implements new
trademarks act, which include several new penalties. Lim, J., & Thomas, C (1992) describe
several recent amendments to the new Trademark acts, including “1) a provision for the
registration of service marks, and 2) the enhancement of criminal penalties raising fines up to
S$10,000 per counterfeit article subject to a maximum of S$100,000, or imprisonment up to 5
years, or both” (p. 20).
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Financial Forces. This section will introduce financial forces of business environment in
Singapore. Financial forces include currency value, foreign exchange, taxation, inflation and
interest rate (Ball, et al, 2013, p. 210). Singapore has an AAA rating which is important for
capital-intensive businesses. It features a strong legal system, and is at the center of the world's
fastest-growing aviation and financial markets. Singapore's official corporate tax rate stands at
17%, significantly higher than Ireland's 12.5% rate, but can generally be reduced to between 5%
and 10% through exemptions available to leasing companies (The limits of Singapore's tax
appeal, 2013). The general income tax rate for resident and non-resident corporations (including
branches of foreign companies) is 26%. A one-time tax rebate of 10% is available on income
(excluding Singapore dividend income and passive income derived by non-residents) earned by
corporations in the 1999 year of assessment. Singapore also has the Goods and Services Tax
(GST) rate at 3%; Singapore imposes stamp duty on documents relating to the transfer of shares
(at a rate of 0.2%) and transfers of real estate (at ad valorem rates of up to 3%) (Toh, D, 1999, p.
50). By early November of 2009, the Singapore dollar was trading at around S$1.39: US$1,
compared with S$1.54: US$1 in mid-March. For the remainder of this year the Singapore dollar
will be relatively strong against the US dollar, the exchange rate to average around S$1.45: US$1
in 2009 as a whole. Amid continued US dollar weakness in 2010-11, the Singapore dollar will
remain on an upward trend against the US currency, rising to an average of S$1.39: US$1 in
2010 and S$1.36: US$1 in 2011 (Singapore: Currency forecast, 2009). According to 2007 report,
Singapore has the consumer price index hit a 12-year high in August at 2.9 per cent and
consumer prices will increase by 1.5 to 2 per cent this year and 2 to 3 per cent in 2008, Inflation
is also expected to pick up as a tight labour market results in bigger wage rises over the next
year, while a recent increase in the sales tax to 7 per cent from 5 percent has added to
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 13
inflationary pressure (Burton, J, 2007). Even though Singapore's economic growth has slowed,
but is still expected to be positive this year and next; the economy will grow 1 per cent to 3 per
cent in 2013 after expanding about 1.5 per cent this year, the Trade Ministry said earlier this
month. It had previously forecast growth of as much as 2.5 per cent in 2012. Singapore has
increased its interest rate for home loans, Mabank’s rates now start at 1.25 percent for the first
year and average out to around 1.4 percent over three years, which are among the lowest in the
market, while ANZ’s two-year rate rose from 1.48 percent to 1.65 percent. The increase rate in
home loan means that buyers need to pay extra 50 dollars per months for 30 years and 1 million
Singapore dollar payments (Singapore banks raise interest rates, 2013). The three-month
Singapore-dollar Sibor has dipped less than 0.01 per cent to 0.382 per cent in 2002, while the
three-month Singapore-dollar SOR has risen slightly to 0.344 per cent (Yap, E, 2012).
Labor Forces. Labor forces play an important role in business environment, it can help
company to decide whether or not to invest in that country. Singapore has relatively high rate on
labor force participation comparable to those of developed countries such as United States,
Canada, and United Kingdom. The unemployment rate is Singapore is at very low rate, but the
demand for labour is still strong in Singapore include a large component of foreign guest
workers. One of the most important reason that cause the need for foreign workers continuing
increase in recent years in because the low fertility rate. The low fertility rate in Singapore would
lead to an ageing labour force and the declining in population would cause decline in workforce
size. So, foreign workers have become a major part of Singapore’s workforce. It is one of the
major different in labor between Singapore and other Western countries (Koh Eng, C, 2007, p.
207).
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 14
According to Labor force participation rates (LFPRs) data, males and females have
increased over the last two and a half decades for all age group. But for those who are below age
25 years old, they decided to delay entering the labor market in order to pursue higher education.
Currently, women has become more acceptable in labor market, and women also encourage to
continuing work after age 40, so the workforce supply of Singapore labor market may slightly
increase in the future. In Singapore, workers usually have high levels of work hour, Singapore
workforces have an average 47 hours, about four hours of which comes from over time work. It
is significant higher than other developed countries, compared to Japan at 42.2 hours and United
States at 43.4 hours (Koh Eng, C, 2007, p. 209).
Because of low fertility rate in Singapore, the current workforces tend to be elder in
upcoming years. An elder workforce is generally unlikely to be as vibrant, motivated, adaptable,
or risk taking as young workforce. Business costs also may increase and these workforce may
become top management team of the company; so, at that time, these workers may become an
obstacle to the company’s future development because it may not easy to take these older
workers out to make positions available to young workers (Koh Eng, C, 2007, p. 211).
The low fertility rate in Singapore cause the shortage of workforce supply, so Singapore
government decided to attractive foreign workforce in last century. Holders of professional
passes are those whose skills are in great demand in Singapore, and whose salaries are high by
international standard. Those foreign qualified workers can marry in Singapore, they also can
bring their dependents to Singapore. Singapore government encouraged those immigrant labor
who are granted permanent residency to take root in Singapore. Today, foreign workforce has
become major part of Singapore workforce. In 1994, there are total number of 300000 foreign
workers of 1680000 total employed workers, and the number of foreign workers continuing
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 15
growth in future. These foreign workers came to Singapore with their own culture, it could be a
serious problem for international organizations must consider carefully (Chew S. B, and
Rosaling, C, 1995, pp. 195).
Implications for US managers. There are some barriers in Singapore that can stop US
companies to start business in there and there are some obstacles in business environment that
US managers need to specially pay attention to. This section will provide some helpful
instructions for US managers who plan to do business in Singapore.
According to analysis in previous section, 75% percent of Singapore population is
Chinese, so the social culture of Singapore tends to be high context culture. For US managers, it
would be difficult to adapt a totally different culture, so it is necessary to seek information before
doing business in new country. Studying would be extremely important for US managers. The
best way in here is to find some managers who have enough foreign experience, especially
experiences with Asia workers. Another option is to find someone who has worked in human
resources, marketing, or management, because these jobs tend to high context, people use
indirect communication frequently (Ball, et al, 2013, p. 99). It would be easier for experienced
people to adapt high context culture. US managers should and develop empathy. Empathy means
to consider what the other person may be feeling (Belzung, C, 2014, p. 178). US managers
should not only focusing on their own ideas or emotions and they need to care about the
emotional meaning of messages.
Singapore has relatively high power distance compared to United States. US managers
need to know that workers in Singapore are expected that managers tell them what to do.
Singapore workers usually trust authority of top managers, so US managers need to provide clear
direction and orders for his or her subordinates.
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 16
The culture of Singapore tends to be long-term orientation, compare to short-term
orientation in United States. Long-term orientation means that Singapore workers care about
social order, hierarchical relationship, and long-term planning and outcomes, while in United
States, people usually care about their personal security and usually plan for short-medium-term.
For US managers, they must know to adapt these kind of culture, because it can help managers to
build strong relationship with local people; a strong relationship is always helpful in high context
culture and relationship sometime may be more useful than knowledge and skills. US managers
need to become other-oriented, they need to put themselves in the other person’s mental and
emotional frame of mind and develop social decenter. Social decentering means to view the
world from another person’s point of view (Decentering the individual and centering community,
2013). US managers should have ability to consider what someone may be thinking based on the
previous experience associate with him or her.
Singapore legal system is based on British legal system, it contains many fines and
restrict rules. So for US managers, it is valuable to have knowledge about local law and
knowledge about law would help the company to save time, money and avoid many unnecessary
legal troubles. Because of significant amount of Singapore workforce is foreign guest workers,
so US managers need to have knowledge about their employee’s culture. US managers must
respect their employee’s culture and religious habit. US managers need to be consciously aware
of cultural differences, rather than ignoring the differences.
Integration of Faith and Learning. Globalization has contributed to increase
international business negotiation in 21th century. As a Christian manager, it is important to have
knowledge about negotiation style with business partners who have different religion
background. Singapore has multinational society background, people in there usually has
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 17
different background and different belief. VAISH, V (2008) describe Singapore religion as,
“Within the Chinese community the Buddhist population has increased from 34.3 per cent in
1980 to 39.4 per cent in 1990 and finally to nearly half the Chinese population, i.e. 53.6 per cent,
in 2000” (p. 451). There have also been modest increases in the Chinese community for
Christianity and ‘No religion’. The Malay community remains homogeneously Muslim (Vaush
V, 2008, p. 451).
There are five important aspects that a success Christian manager must consider when
negotiation business with people who have belief in Buddhist, Muslim, and no religion. They are
confidence, patient, faithful, respect, and knowledge. One major handle for success Christian
managers can be finding the confidence to negotiate in the first. Confidence is extreme important
when negotiate with international partners. Philippians 4:13 states “I can do all thing through
him who strengthens me” (NIV). As a Christian, with the belief in God, Christian managers must
have confidence in negotiation, because the Lord is the one who goes with his followers and he
will never forsake his children (Deuteronomy 31:6, NIV). The second aspect for Christian
managers is be patient. The single most important word that a negotiator needs to remember is
the one that it is the hardest to hear-patience (Trocchio, C. M, 1994, p. 46). As Christian
managers, it is important to remember what the Bible say about patience; Romans 12:12 states
“rejoice in hope, be patient in tribulation, be constant in prayer” (ESV). If anyone who want to
be successful in business negotiation, they need to be wait for it with patience, only the patience
can provide best result (Romans 8:25, ESV). The third valuable aspect for Christian managers
would be faithful. Christian managers should never give it up in negotiation, and Christian
managers should never forgive what they have learned in the Bible. Revelation 2:10 states about
faith can be important in one’s live, especially when people have troubles. Revelation 2:10 said,
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 18
“do not fear what you are about to suffer. Behold, the devil is about to throw some of you into
prison…Be faithful unto death, and I will give you the crown of life” (ESV). The fourth point is
about respect, as a Christian manager, when they are in business negotiation with rivals that have
different religion background, it is important to respect their culture. Christian must respect to
others because it is required by the law and the prophets (Matthew 7:12, ESV). The last aspect
for Christian managers is knowledge. Cross cultural negotiations are more complex due to
cultural factors, environments, languages, ideologies, and customs; because of many negotiators
may lack of understanding of these cross cultural differences, they are often unsuccessful at
reaching an agreement (Tu, Y., & Chih, H, 2011, p. 245). Negotiating partners usually have
conflict because of the differences in perception, preference, and behavioral styles; and
negotiators who have different cultural background usually have different negotiation styles
(Nina R, Antonis S, & Efi, V, 2003, p. 245). Cultural aspect may contains more obstacles than
legal and economic factor, as a success cross cultural Christian managers, it is necessary to fully
understand the cultural values and assumptions of both parties (Tu, Y., & Chih, H, 2011, p. 246).
There are five things that Christian managers should avoid when negotiating business
with people who have different religion background. They are fear, poor planning, failure to
listen, culturally insensitive, and no beliefs. The first and one of the most fundamental thing that
Christian managers must avoid is fear. No matter how much knowledge or how much experience
they have, if Christian managers missing courage, determination and discipline to act in face of
risk and uncertainty, the negotiation will definitely fail (Adler, R. S., Rosen, B. and Silverstein,
E. M, 1998, 9. 162). Christian managers should always remember that fear is not what the God
give his children; God will always strengthen, help, uphold his people with his righteous right
hand (Isaiah 41:10, ESV). The second thing that a Christian manager must avoid is poor
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 19
planning. Planning played an important role in negotiation process, planning helps negotiators to
gather information, understand difference strategies and tactical, and do analysis to rivals
(Souter, G, 2013, p. 4). The plan not only help managers to prepare business negotiation but also
provide them a future and a hope because the plan was declared by God and is prepared for
welfare and not for evil by God (Jeremiah 29:11, ESV). The third aspect is about failure to listen
during negotiation process. There is an old Chinese proverb that cited the importance of listen,
“To listen well is as powerful a means of influence as to talk well and is as essential to all true
conversation” (Green, J, 2010, p. 24). The Proverbs 1:5 also states, “Let the wise hear and
increase in learning, and the one who understands obtain guidance” (ESV). As a Christian
managers, listen effectively is a necessary course for all who are interested in international
business negotiation; failure to listen must be avoided. The fourth one is about culturally
insensitive. A successful Christian managers must avoid culturally insensitive, it is necessary to
have knowledge and sensitive about other party’s culture and even personal preferences. In
China, negotiators need to be patience and never show anger or frustration and negotiators also
need to show the best poke face before negotiations meeting (Keating, B., & Kriz, A, 2009).
Since Singapore has a major percent of population is Chinese, so the advice for people doing
business in China may still helpful in Singapore for US managers. The last point that Christian
managers must avoid is about no belief. This is the most important thing for Christian managers.
Faith and belief also are the most important aspect that every Christian managers must have.
John 14:12-14 clearly pointes out the importance of keeping belief in Lord, “whoever believes in
me will also do the works that I do… that the Father may be glorifies in the Son. If you asking
me anything in my name, I will do” (ESV).
Conclusion
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 20
In conclusion, this paper first introduce natural resources and environmental
sustainability in Singapore. Then, this paper lists six major forces in international business
environment: economic, sociocultural, legal, financial, labor, and political forces of Singapore.
One of the major purpose of the paper is to provide a specific instruction for the business
environment in Singapore. The study also discovery cultural differences between Singapore and
other Western countries and compare and contrast Hofstede’s five cultural dimension with United
States. At last, the paper focus on business environment in Singapore and provide necessary
information for US managers who want to do business in Singapore. Furthermore, the most
important is the paper focus on the Christian faith in international business and classify what a
Christian should do in global competition and fast changing international market. For future
studies it can be explained how US companies enter Singapore market with deeper analysis on
customer behavior and legal system when establishing a company in Singapore. Further studies
may also focus on how to start business in Singapore as a foreigners.
BUSINESS ENVIRONMENTAL ANALYSIS REPORT 21
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