DOING BUSINESS IN DIFFERENT CULTURES -presented by Shyam Prasad MIB-1113-007 1
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DOING BUSINESS IN DIFFERENT CULTURES
-presented by Shyam PrasadMIB-1113-007
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Need to know about different business cultures?
You are not the only one in this world
“World is a local village”
MNCs are increasingly active in all parts of the world
Business expansion to emerging nations
International businessman’s point of view
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Doing business in China
Chinese may become a power in world economy
Chinese Business Culture Time : Chinese are punctual Nodding usually means that
they are being polite and understand
Guanxi – good connections “ who you know is more
important than what you know”
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Doing business in China
Listening is more important in Chinese culture
Chinese are a collective society Chinese place values and principles
above money
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Doing business in India
Factors lead to do business in India
Production location, cheap labour, unripen consumer markets
English speaking business people.
Culture : Important to be on time for
meeting Personal questions restricted Titles are more important
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Doing business in India
Right hand while accepting thing
Bargaining Indians are tolerant and
patient, we understand that they don’t know our culture
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Doing business in Russia
Friendship matters Use local consultants (rules have
changed in recent years) Business ethics (greet with Gifts) Be patient in order to get
something done Stress exclusivity - Negotiations
– one firm at a time. Face-to-face interaction is
important, letters and faxes are discouraged.
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Doing business in Russia
Financial information Settling things too
quickly – X on it. Written agreements –
best when shown as they are beneficial when they stick to the deal.
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Doing business in Europe (France)
Social class plays important role Aristocracy, the upper bourgeoisie
(upper class of capitalist society) Upper-middle bourgeoisie, middle,
lower middle, lower. Social interactions are affected by
stereotypic people. Signs of status – knowledge of
literature and arts, decorated houses and high level of education
Friendly, humorous and sarcastic, Often sarcastic.
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Doing business in Europe
They attract people who disagree with them unlike Indians and Americans who attract those who agree with them.
Trustworthiness French organisations are
centralised.
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Insight into French culture follows….
1 When shaking hands with a French person, use a quick shake with some pressure in the grip. A firm, pumping handshake, which is so common in the United States, is considered to be
uncultured 2. It is extremely important to be on time for
meetings and social occasions. Being “fashionably late” is frowned on.
3. During a meal, it is acceptable to engage in pleasant conversation, but personal questions and the subject of money are
never brought up 4. Great importance is placed on neatness and taste.
Therefore, visiting businesspeople should try very hard to be cultured and sophisticated.
5. The French tend to be suspicious of early friendliness in the discussion and dislike first names.
Doing business in Europe
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6. 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.
7. The French do not like being rushed into making a decision(unlike Americans), and they rarely make important decisions inside the meeting. In fact, the person who is ultimately responsible for making the decision is often not present.
Doing business in Europe
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Doing business in Arab countries.
War, terrorist actions and continuing conflicts (Arabic countries scene.)
Its often hard to do business in Arab countries.
“Bukra Insha Allah” in contrast to Americans “ time is money”
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1. It is important never to display feelings of
superiority, because this makes the other party feel inferior. No matter how well someone does something, the individual should let the action speak for itself and not brag or put on a show of self-importance.
2. One should not take credit for joint efforts. A great deal of what is accomplished is a result of group work, and to indicate that one accomplished something alone is a mistake.
3. Connections are extremely important in conducting business. Well-connected businesspeople can get things done much faster than their counterparts who do not know the ins and outs of the system.
Doing business in Arab countries
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4. Patience is critical to the success of business transactions. This time consideration should be built into all negotiations, thus preventing one from giving away too much in an effort to reach a quick settlement.
5. Important decisions usually are made in person, not by correspondence or telephone.
Doing business in Arab countries
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Doing Business in Americas (Brazil)
Brazil is Latin American country but its different from other.
Colony of Portugal till 1865. Relaxed work ethic Physical contacts of greetings Face to face interaction is acceptable, other
than pre-calling or emailing. Having strong relations ships is must as they
don’t trust soon. Appearance plays a major role. Patience is the key Presentations should be informative and
expressive.
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Conclusion
Cultures affect the business Different culture has different view of
doing business Its important to understand those
differences Do the business according to their
cultures
“Price yourself the Most Valuable Businessman in the World!”
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Questions?
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Thank You!