Cultural Traits of Greece and International Business

Sumit Kumar Sharma (09PT2-99)

Objectives

Why it is essential to know the cultural traits before entering a foreign market?

Cultural traits of Greece

How cultural traits of Greece affect International Business?

How these cultural traits affect management practices and negotiating procedures?

Snapshot of Greek Economy

Why is it essential to know the cultural traits before entering a foreign market? World economy is shifting to a world where trade and investment barriers

decline. Globalization gives the chance to businesses to expand their revenues and reduce their costs

It is of great importance for an international business to investigate how the society’s culture affects the values found in the workplace

While doing business internationally, it is essential to consider a number of national culture elements which have an impact on consumers, employees, managers and partners

A company in order to benefits from globalization needs to deeply understand and integrate the culture of local market. Management processes, procedures, and supply chain policies should vary based on the culturally determined work-related values

Knowing the culture dimensions, managers can adjust their negotiation behavior and effectively achieve their goals

Geographic information

Geographic Information:Locations

Location: Southern Europe

Capital: Athens

Borders:West: Ionian Sea (Italy)South: Mediterranean SeaEast: TurkeyNorth: Albania, FYROM,Bulgaria

General Information

Population 11,216,708

GDP per capital $33,434

Member of United Nations since 1945

Member of European Union since 1981

Member of the Economic and Monetary Union of EU since 2001

Hofstede’s Cultural Dimensions and the Greek Culture Power distance: Greece’s power distance index is 60 with a

world average of 55 In Greece the relationships among top managers, middle level

managers, low level managers, and employees are not very close or personal

Subordinates expect guidance from upper level managers and they are not given important work

Greeks expect and accept that managers are right and their skills and abilities should not be questioned

Employees do not participate in decision making and there is more centralized pyramidal power structure

There is no motivation for subordinates to discuss problems of the producing progress or suggest more effective ways of producing

There is gap between wealthy and poor citizens Exact apposite of Switzerland, the country with lowest power distance

index score

Hofstede’s Cultural Dimensions and the Greek Culture Individualism versus Collectivism: Greece’s index in

individualism is 35 Greece is a collective society People are loyal and protective to each other, they tend to protect each

other from what we call face lost Greeks value group unity and harmony more than individual success They retain tight family relationships, bonds, and moral values are

stronger than contacts Group achievement are important than personal goals Regarding cooperation, people are highly collaborative and not

competitive with each other Exact apposite of USA where people are more self-centered and

emphasize on their individual goals

Hofstede’s Cultural Dimensions and the Greek Culture Masculinity versus Femininity: Greece’s index is 57 with a

world average of 50 In Greece there is gender differentiation of roles Sex roles are differentiated, money and material goods are highly

valued and an acquisition of wealth is on high priority Family structure is traditional and fathers “govern’ the families In working environment the male dominates a significant portion of the

society and power structure There are only few women in the upper and middle level management

positions and there is a large gender wage gap Exact apposite of Netherlands where females are treated almost equally

to males in every aspect of social life

Hofstede’s Cultural Dimensions and the Greek Culture Uncertainty avoidance: Greece’s index is 112, which is the

highest of all countries People in Greece follow career paths that provide job security and

retirement benefits They expect clear instructions, rules and regulations Very common to start and end their careers in the same organizations They hardly ever change job or career paths People in Greece and in other countries that score high in Uncertainty

Avoidance such as Austria, Belgium, France and Germany are conservative, xenophobic and the gender roles are traditional

People want to maintain long term relationships with partners they know and trust

They don't feel comfortable in creating relationships with foreign partners; hence, they face difficulties in surviving in the complex and International Business environment

Exact apposite of USA, where people are comfortable with changes, flexible and stimulate innovative ideas

Hofstede’s Cultural Dimensions and the Greek Culture Long-Term versus Short-Term Orientation: No data available

for Greece. However going by Greek history and mentality, it would be appropriate to assume that Greek society is short-term oriented Greek society values steadiness and stability People respect traditions, hesitate to implement new technologies,

evolve and change strategies These characteristics can be a barrier in fast moving markets and keep

countries from being innovative and competitive Steadiness and stability are not adequate in fast growing markets

Cultural Dimensions of Greece Compared to Cultural Dimensions of the USA

PDI: Power Distance Index

IDV: Individualism

MAS: Masculinity

UAI: Uncertainty Avoidance Index

LTO – Long Term Orientation

Negotiating with Greeks

Greeks prefer trading with friends, so it is very important to build friendships and relationships. Networking and becoming an insider is necessary for a successful trade

Gatherings and Hospitality are highly valued in business relationships. Such occasions include gift-giving, drinking and toasting

During negotiations, hand-shakes and introduction are key elements. It is important not to rush into the actual negotiation, since Greeks like to get to know the apposite party, their background and body language

It is essential for foreign partners to “read non-verbal massages”

Greeks tend to take time to respond to a proposal, delay their response, and need to check with the headquarters often. They appreciate business partners that are persistent and do not give up easily

Prior to the negotiations it is important to know the hierarchy in the company and who is the decision maker. In addition, establishing third party connections and common friends, as well as having a local consultant is extremely helpful

Snapshot of Greek Economy

Snapshot of Greek Economy

Snapshot of Greek Economy

Snapshot of Greek Economy

Thank YOU