Managing Across Cultures - PowerPoint by r1STcj


									Managing Across Cultures

Chapter 5, pages 140 - 149
         Cultural Aspects of
        Doing Business Abroad
   China
   Russia
   India
   France
   Brazil
   Arab countries
   Poland
               Doing Business in China
   Technical competence is the primary criterion for
    doing business in China ***
   Time is a major cultural difference between many
    Western countries and China – Chinese are patient
    negotiators and may take advantage of American
    impatience or time constraints.
   Guanxi :Good connections that result in lower costs,
    increased business, and better business
                 Negotiating in China
   Realize that China is a collective society. Older
    Chinese may place values and principles above
    money and expediency. They value the good of their
    country or group.
   Age and rank are respected in China. Your
    negotiating team should be composed of mid-level
    and senior executives, middle aged or older.
   Early negotiations are likely to focus on general
    principles. The Chinese will be reluctant to change
    those later.
               Negotiating in China (2)
   Understand that Chinese are slow to decide on a
    course of action, but stick to the decision once it is
   Chinese negotiators expect concessions but do not
    always make a concession in return.
   China is a neutral culture. Do not display emotions
    during negotiations.
   Take a long-term perspective toward business
             Negotiating in Russia
   Build personal relationships with partners
   Be careful to uphold your own business ethics
    and the policies of your company
   Be patient
   Stress exclusivity
      Deal with just one firm at a time

   Do not share your company's financial
           Negotiating in Russia (2)
   Stress mutual gain
   Clarify terminology
   Be careful about compromising or settling things
    quickly – most concessions should be made at the
   Russians believe that contracts are binding only if
    they are mutually beneficial. Continue to stress the
    benefits of the deal to them.
                Doing Business in India
   Many business people speak English.
   When dealing with people from India, one
       Be on time for meetings
       Avoid asking personal questions
       Use formal titles when addressing others
       Avoid public displays of affection
               Doing Business in France
   Social class and status are more important in
    France than in the United States
   In contrast to Americans, the French are:
       More tolerant of different points of view
       More inclined to determine a person’s
        trustworthiness on the basis of personal
        characteristics rather than accomplishments
       Less ambitious and competitive
          Doing Business in France (2)
   French workers are highly productive and do
    quality work. They value quality of life, and
    most do not like to work overtime.
   Power distance is moderately high in France.
    Companies usually have highly centralized
    organizations. Top executives are usually
    autocratic. Their decisions are seldom
         Negotiating in France
   In negotiations the French try to find out what all of
    the other side’s aims and demands are at the
    beginning, but they reveal their own hand only late in
    the negotiations.
   The French do not like being rushed into making a
    decision. They rarely make important decisions
    during a meeting.
   The French tend to be very precise and logical in
    their approach to things, and will often not make
    concessions in negotiations unless their logic has
    been defeated.
        Doing Business in Brazil
   Form strong relationships before discussing
   Face-to-face meetings are essential
   Presentations should be informative,
    accurate, and expressive.
   Be patient. Negotiations can be lengthy.
   Appearance is important.
                Doing Business in
                 Arab Countries
   There are cultural differences among different
    Arab countries.
   In most Arab countries, people gain status by
    family and social connections. Connections are
    very important in doing business.
   Dignity and respect are very important. Do not
    display feelings of superiority or self-importance.
    Show even more respect to older people.
   Power distance is high.
              Doing Business in
              Arab Countries (2)
   Do not take credit for joint efforts. The importance of
    group efforts is emphasized.
   Go through the necessary government channels to
    get approval for what you want to do.
   Develop strong business relationships.
   Stress the mutual benefits of doing business.
   Important decisions are usually made in person.
   Be patient. Do not make too many concessions in
    an effort to speed up negotiations.
            Doing Business in Poland
   Design products for Poland and use a Polish
    advertising agency.
   Do your homework. Poles are often shrewd
   Be prepared to provide data. People are not
    impressed by "sales talk".
   Be prepared to make a long-term commitment.
   Take time to build relationships and gain trust.
   Be willing to "give something back" to the
           Doing Business in Poland (2)
   Local governments have a large role in business
    regulation. Some areas are more conducive to
    business than others.
   When dealing with older Poles, use professional titles
    (example: engineer), and do not call people by their
    first names until you are invited to do so.
   Business entertainment is less elaborate than in the
    U. S. Entertainment should be reciprocated.

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