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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!