BRAZIL:

Over the past few years, Brazil has moved from a country with great promise 'some time in the future' to being seen as one of the hottest investment opportunities in the world. A more stable political system and currency, coupled with vast mineral wealth of the country make Brazil a 'must' for all companies with truly global ambitions.
With a population of 194 million, Brazil represents the fifth largest market opportunity in the world — after China, India, Indonesia and the USA. It is also the fifth largest country in the world by geographic size. An IMF (International Monetary Fund) report indicates that Brazil leads all other South American countries in terms of infrastructure and technological development. Combine these facts with the stabilising economic and political landscape — (the twin nightmares of corruption and hyper-inflation ravaged the country for decades) — and it is easy to see why Brazil attracts a higher percentage of total global foreign direct investment year on year.

However, anybody wishing to do business with Brazil and the Brazilians should be aware of the various cultural and structural barriers which might confront them. Probably the most pervasive barrier encountered by the unwary traveller would be the 'Custo Basil' or the 'Brazil Cost'. This term refers to the very real extra costs of doing business in Brazil — corruption, governmental inefficiency, legal and bureaucratic complications, excessive taxation, poor infrastructure, inflation etc. Although this 'costa' is difficult to define and has lessened in recent years, it remains real and the cause of great frustration for international business people.

Due to this 'Custo Brasil', it is important to work closely with local lawyers and accountants. Many people have found the services of local middlemen (despachante) extremely useful in overcoming many of the unfathomable local complexities.
So, as with many countries, the opportunites are there and they are real but it essential to understand the local business landscape if you are to reap the rewards - rgardless of whether your sector is banking and finance, computing or pharmaceuticals, local knowledge is vital.

Brazilian Business Structures

As with most South American countries, Brazilian companies will tend to be organised along strictly hierarchical lines with information flowing in a very structured way up and down the various chains of command. As in most structured hierarchies, most key decisions will be made at the most senior levels of an organisation and all international negotiators are well advised to try to develop a good understanding of the corporate structure of any potential partner - as a great deal of time and resource could potentially be wasted by trying to get a decision out of somebody who does not really have the requisite level of authority.

Try to find out the exact structure of the organisation, people's position within a department relative to their colleagues etc., but be aware of an added complication. The organisation chart you are shown may not reflect the way in which power actually flows within the organisation due to the complicating factor of the power of personal relationships. Business organisations are riddled with internal politics where one's allegiance to an individual may be considered of greater importance than any reporting lines on an organisation chart. (Trying to understand the intricacies of these internal relationships could be another example of where the use of a local middleman or despachante could prove invaluable.)

Brazilian Management Style
A manager's personal style is considered to be of great significance and it could almost be said that his or her bearing is viewed as of great an importance as their technical abilities. The respect, which is afforded the manager by subordinates, is directly proportionate to the personality of the boss. Relationships are of key importance in this Latin culture and the boss and subordinates work hard to foster a relationship based on trust and respect for personal dignity.

First and foremost, managers are expected to manage. The boss is expected to give direct instructions and it is expected that these instructions will be carried out without too much discussion or debate (if there is debate it should be done in private to avoid showing public disrespect to the hierarchy).

If giving instructions to Brazilian subordinates, try to be as clear, precise and comprehensive as possible. If tasks remain undone after having asked for them to be done, start by questioning yourself. Were my instructions given clearly? Was I too vague? If you only give partial instructions, only part of the task will be performed. (As in most strongly hierarchical cultures, subordinates will undertake the exact tasks they are given but no more — to do more might be seen as disobeying the boss!)

Brazilian Meetings
Brazil:
Initial meetings can be somewhat formal - where you are expected to shake hands with everybody present on arrival, but any subsequent meetings are likely to become much more informal. There is likely to be a great deal of small talk before the meeting proper starts. Do not be in too much of a hurry to end this initial part of the meeting as the tone you set here could be important in the relationship development cycle. Do not make yourself appear impatient or overly pushy.

Although non-confrontational, Brazilians have a Latin temperament and will often appear extremely emotional during meetings (especially to those cultures who have a more reserved approach). Emotion is merely an expression of commitment and interest and does not indicate a lack of control or anger.

Less emphasis is placed on the importance of absolute punctuality than in some Anglo and Asian cultures and you should not be surprised if meetings start late and finish even later. Again it is important that you do not become obviously frustrated by this flexible attitude to time. The relationship is seen of far greater importance than time-related issues.

If an agenda is produced, do not expect it to be followed. All the issues on the agenda will be covered, but not necessarily in the order they appear on the written document. In a country which is severely hampered by red-tape and bureaucracy, this flexible approach ('jeito') is of real importance and may prove to be your greatest asset.

Don't be in too much of a hurry to rush off at the end of a meeting, even if the meeting is running late. Take the time to seem relaxed and easy-going as these are qualities much admired in Brazil.

Brazilian Teams In order to ensure good, collaborative team-working within Brazil or from Brazilian colleagues working in international teams, it is important that everybody has the opportunity to get to know each other well and form those all-important relationship bonds. This might mean that it takes longer to mould a Brazilian team than it would a similar team in the USA or the UK.

Team members will be very keen to fully understand their exact role and responsibilities within the team — as well as the roles and responsibilities of all the other team members. People do not like to be seen encroaching onto somebody else's area of responsibility. It is also seen as difficult to know if you have done a good job if your role is ill-defined.

Each team member will expect to see a chain of command within the team (as befits a hierarchical culture) and if no such chain of command exists, the team leader can expect that every small problem will be brought to them directly — it is difficult to get inter-team communication on such matters.

Brazilian Communication Styles

Many senior and middle ranking Brazilian business executives speak excellent English and in fact many of them may have studied abroad in the USA or Europe. However, English is by no means universally spoken and when dealing with people outside the major commercial centres, an ability to speak Brazilian Portuguese is extremely useful. (Try to avoid using Spanish as this can be seen as culturally insensitive. Brazilians are proud of their uniqueness in South America as non-Spanish speakers.) If doing business in Brazil for the first time, check out whether you will need a translator or not.

As with many Latin countries, communication tends to be predominantly oral rather than through the written word. Brazilians tend to put the spoken before the written word. When sending something in a written format it is usually a good idea to follow it up with a phone call or a visit.

Verbal communication in Brazil can often be viewed as being theatrical and over-emotional by those cultures which place a great significance on the maintenance of professional reserve in all situations. In a country like Brazil, if you feel something strongly, you show it. Overt signs of emotion definitely do not imply lack of conviction and should be taken as the deeply felt belief of the speaker.

The use of significant amounts of exaggerated body language (by the standards of less tactile cultures) plays a significant role in normal communication. Brazilians are very tactile — even across the sexes — and work at very close proximity. They also exhibit strong levels of eye contact when speaking to people. This combination of tactility, proximity and a steady gaze can be intimidating for some culture (many Asian cultures for example), but it is important that you adapt to these issues as quickly as possible otherwise your own reserve could be misinterpreted as unfriendliness.

Be careful when using humour in very serious situations as it can be viewed as lacking in gravitas. However, in everyday situations it is important to be seen as good company and entertaining. Life is to be lived and enjoyed.

Women in Business in Brazil
Brazil:
Foreign business women are treated fairly and with respect which reflects a trend in Brazil which sees women increasingly joining the business world and making significant advances. However, despite this trend, it is still fairly unusual to find senior female managers at the very highest levels of Brazilian owned organizations.

This does not mean however that Brazilian men will forget 'old world' traditions and may mean, for example, that they may not allow a woman to pay for a lunch or dinner and that women can expect to be complemented on their looks, appearance and dress sense.
Brazilian Dress Code
Brazil:
Appearance is extremely important in Brazil and it is vital that you look your smartest. First impressions count for a lot in the early stages of the relationship building process.
Men are best advised to wear conservative dark suits and traditionally, three-piece suits have indicated an executive position whereas two-piece suits have indicated office worker status.
Women tend to be less conservative in their dress sense at the office than women from many other countries. They ‘dress to impress’ and are more flamboyant that in many other countries.

Brazil:
Tip 1
Brazil offers a wealth of opportunities to prospective investors but is also a country beset with bureaucratic and cultural difficulties - it is imperative to do your homework in advance.
Tip 2
Due to the various cultural and administrative complexities of the country, local advice and expertise is imperative in the early stages of business development.
Tip 3
Companies tend to be organised along strictly hierarchical lines (although this may vary if dealing with the subsidiary of a multi-national).
Tip 4
If possible, make sure you are dealing with the decision-maker rather than an influencer of the decision-maker.
Tip 5
Managers are expected to manage - don't be afraid to give clear, precise instructions.
Tip 6
Organisational hierarchy can be complicated by an intricate web of political alliances and relationships. Who is the real decision maker?
Tip 7
Relationships come first, second and third in Brazil. Time spent working on the development of long-term friendly relations is never a waste of resource.
Tip 8
It is always a good idea to stress long-term commitment to Brazil and your Brazilian contacts. Try to keep in touch between contracts or projects. Your relationship with your Brazilian counterparts is not purely transactional. It is personal as well.
Tip 9
Although first meetings can be more formal. They are generally quite informal and relaxed.
Tip 10
Punctuality is a variable commodity in Brazil. Meetings often start and finish late. It can be difficult to schedule more than one or two meetings per day.
Brazil:
Tip 11
Meetings usually start and finish with quite a lot of small talk - this is an important section of the meeting and should not be rushed.
Tip 12
Agendas are not always used and if present may be ignored by everybody except you.
Tip 13
Effort needs to be put into the process of melding a team together. Provide time space and opportunity for the all-important relationship-building process.
Tip 14
Although many Brazilians speak very good English, it is not universally spoken. When dealing with people outside the major cities, you may need to check if translation to Brazilian Portuguese is necessary.
Tip 15
Great emphasis is placed on the value of verbal communication. The things that people say are often given greater weight than anything in a written format.
Tip 16
Don't simply rely on emails to give information. Follow things up with a phone call or a meeting to discuss the matter.
Tip 17
The use of emotion in communication should be seen as a sign of enthusiasm and emphasis rather than as anger or loss of control.
Tip 18
Brazilians use a great deal of body language, stand at relatively close proximity and have strong levels of eye contact. Try to become comfortable with these - don't act in a reserved fashion.
Tip 19
Although it is important to give the impression of being an easy-going lover of life, humour is best avoided in serious situations.
Tip 20
Appearance is very important for both men and women. Your appearance should reflect your level of importance.

Successful Entertaining in Brazil
Brazil:
Business entertaining forms an integral part of business life in Brazil and business meals can be lengthy affairs. Do not be surprised to spend two hours over lunch and three hours or more over dinner. If you are entertaining business guests, make sure that you do it in style — do not be tempted to cut corners.

Business meals are really about getting to know each other as people so don't be tempted to try to use the meal as an extension of a meeting. Keep the conversation at the social level and if business is to be discussed, wait until the coffee is served.

Brazilians tend to use their knife to cut up the food and then place it against the plate whilst continuing to eat using only the fork. All food is eaten with a fork — don't use your fingers as this is considered bad form.

Although most social events will start much later than the official start time, it is good idea to arrive at any business functions on time — you may find that you are the first person their, but then again, you may not.

Most restaurants will automatically add a 10% service charge on to the bill, but it is still a good idea to leave a further tip of between 5 — 10%.

Brazil: Brazil in Figures | Land Area | 8, 511,965 sq. km | Population: | 194m | Population density: | 23 sq km | Life expectancy: | Men 70yrs
Women 77yrs | Adult literacy: | 90% | Average per household | 3.7 | Divorces per1,000 : | 0.8 | The Economy | Currency: | Real | GDP: | US$ 1,595bn | GDP per heads: | US$ 8,230 | Employment (% of total): | Agriculture 19%
Industry 21%
Services 69%
Unemployed 8% | Main Exports:Type: | Primary goods
Semi-manufactured goods
Manufactured products | Destinations: (% total) | China 12%
USA 10%
Argentina 8%
Netherlands 5% | Main Imports:Type: | Intermediate products
Raw materials
Capital goods
Consumer goods | Main countries of origin: | USA 18%
China 14%
Argentina 10%
Germany 8% |

INDIA:
Doing Business in India
For the last couple of decades India has largely been viewed as an outsourcing destination where organisations from many countries could reduce their cost-base through transferring work to a country with a large number of highly educated graduates who spoke good English but whose wage demands were considerably lower than in the West.

This approach to India is, however, rapidly changing and the country is increasingly recognised for what it will soon become – the world’s largest potential market for goods and services. With a rapidly growing middle class comes the need for all those commodities that have been lacking in India in the past – not only consumer goods but also infrastructure development and financial and legal services.

India, therefore, represents a huge business opportunity but it also undoubtedly presents risks and significant barriers to entry. Whilst the government is trying to open up the country to foreign investment, many sectors remain stubbornly closed and there is considerable internal pressure to keep these entry barriers strong. Combine these Foreign Direct Investment barriers with a bewilderingly complex combination of central and states-based governmental systems and it is not difficult to see why many organisations are wary of entering the India market space.

As painful as these political and bureaucratic barriers might seem, India is definitely open for business and those companies and organisations who approach the India market with the right mindset, having done the requisite amount of due diligence can be extremely successful and secure a bright future.

One of the biggest obstacles to overcome when entering the India market or doing business with India is definitely the cultural differences you will undoubtedly encounter. They do things differently in India. Indian business culture and etiquette is the product of thousands of years of the influence of Hinduism with an overlay of Islam, the British Raj and more recent Western business systems. Understanding the impact of a hierarchical mindset, the complex communication patterns and a myriad of other subtleties can help you refine your approach and hugely improve your chances of success.

Many organisations think they can simply transplant their normal ways of doing things into India and expect it to work – it probably won’t! Understanding the Indian mindset, adapting how your offering fits into Indian needs and keeping your eyes open to the rapid changes that are happening in India on a daily basis – these are the keys to success in India.

This India country profile is designed as a starting point to help you begin to wrestle with the way things are done in India – but it is only a starting point. When you have read this country profile, why not invest in one of the books suggested in the reading list or, better still, talk to Global Business Culture at info@globalbusinessculture.com. Global Business Culture are world leaders in the field of the impact of cultural differences on international business performance and have assisted a large number of companies who are working with or wish to work with India.
Background To Business in India
India:
As a country, India covers a land area greater than that of Europe. Its inhabitants speak a bewildering array of languages (16 official languages as well as innumerable local dialects and patois) The people live in twenty-eight states and seven union territories. It is hardly surprising, therefore, that India is a country about which it is very difficult to make sweeping generalisations.

Yet India presents a massive market opportunity for companies who wish to expand their markets internationally. With a population approaching 1.2billion - many millions of whom are reasonably affluent and possess large disposable incomes - the sub-continent is widely tipped to be the second or third largest economy in the world within the next 20 years. (it is already the 3rd largest economy by GDP Purchasing Power Parity).
People often forget that business in India (growing at about 9% per annum GDP in 2011) is powered by a very strong domestic market which has seen strong performances in all three sectors or agriculture, industry and services and that these sectors, couple with high savings rates and a very favourable demographic trend, make India much more than merely a 'low-cost' option.
Any business organisation that wishes to profit from India's rise, would do well to spend a little time studying the cultural norms which drive the thinking of the Indian people.

Although it is difficult to generalise about approach to business in India, there are certain factors which would seem to be almost universal in their applicability and which need to be borne in mind when working with Indian contacts. These issues include the fact that India is a country in which relationships are placed before business and thus the relationship phase of the business cycle could be considered to be the most important.

In addition, the legacy of the caste system ensures that businesses are extremely hierarchically structured and that the boss is very definitely the boss.

These issues will be looked at in more detail later in this country briefing.
Indian Business Structures
India:
In many ways, business structures mirror Indian society. Both are extremely hierarchical in nature, where people have an allotted position which they do not attempt to overturn. It is absolutely essential to understand how deeply these hierarchical thought-processes impact on Indian attitudes to business. if overlooked, this simple fact can make working into India much more costly and inefficient.

Thus, companies tend to be run by one very strong individual (especially in the ubiquitous family companies) who will issue direct instructions down the chain of command. Everybody expects that these instructions will be given in a fairly authoritarian manner and that they will be followed unquestioningly by those further down the chain. People do not question either their position within the organisation or the validity of decisions taken - greater forces (karma and dharma) prescribe all of these.
As the boss is respected, his instructions must be correct and it is unlikely that they will be questioned even if it might appear that the instructions are wrong. Even raising a 'red flag' could be seen as disrespectful behaviour.

This hierarchical approach means that when doing business in India it usually necessary to liaise as near to the top as possible. A great deal of time can be wasted dealing with middle management who may have very little impact on the final decision. If dealing in the middle, try to deal with those who have some influence over the real decision-maker.

Many MNC's try to introduce a flatter, more egalitarian structure to their Indian subsidiary in order to align it with other offices in the group. This may prove difficult in a country where hierarchy is unquestioningly accepted. It may not be impossible to take this approach but it is certain to require a great deal of explanation, retraining and patience.
Indian Management Style
India:
As has already been stated, India is an enormously hierarchical society (arguably the most hierarchical in the world) and this, obviously, has an impact on management style. It is imperative that there is a boss and that the manager acts like a boss. The position of manager demands a certain amount of role-playing from the boss and a certain amount of deferential behaviour from his subordinates. The boss is definitely not expected to perform any seemingly 'menial' tasks such as making coffee for everybody or moving chairs in a meeting room! Anglo-Saxon concepts of egalitarianism where the boss is the primus inter pares are virtually incomprehensible in a society still dominated by the historical conventions of the caste system.

Therefore, the boss is expected to give explicit instructions which will be followed to the letter - even if everybody knows full well that the instruction is incorrect. Vague requests for action, with the expectation that staff will show the necessary level of initiative are likely to end in inaction, as staff will be left confused as to the wishes of the manager. Managing people in India requires a level of micro-management which many western business people feel extremely uncomfortable with but, which is likely to bring the best results.
It is also worth bearing in mind that many off-shore centres in India are staffed by recent graduates who, although highly educated, intelligent and motivated, will lack basic commercial experience. Any office where all the managers are 25 years old and the team-members are 23 years-old will lack a degree of experience. Inexperience does not equate to incompetence and this needs to be borne in mind at all times.

Indian Meetings
India:
Meeting styles will be heavily dependent upon the type of organisation with which you are engaged in business. Many of the emergent and highly successful hi-tech, naking and bio-science industries are actively pursuing western-style business methodology and this will result in meetings following familiar patterns with agendas, a chairperson and reasonable time keeping. More traditional Indian companies will, however, retain more local approaches to meetings and these may cause the international business traveller more concerns.

Meetings with more traditional Indian organisations are likely to seem very informal with the possibility of interruptions where unknown people enter the room and start to converse about other, disconnected issues or where your contact breaks off to answer the phone. Do not show irritation should you find yourself in this situation - just accept it as part of the nature of life on the sub-continent.

As a heavily relationship-oriented society, meetings may initially centre around seemingly non-business-focused discussions. This is an important part of the cycle of business and should not be rushed or dismissed as time wasting. Show that you are a person to be taken seriously by engaging in the necessary small talk. Only when you have convinced your contacts of your personal worthiness, is business likely to flow smoothly.

Gift Giving
Gift giving is an endemic part of life in India and it is thought that the gift giver is the one who should thank the receiver. (The gifts given during life being an aid to a better after-life.)

Gifts need not be large or expensive but should always be wrapped. Traditionally, gifts are wrapped and not opened in front of the giver. When wrapping gifts, avoid black or white paper which is considered unlucky.

Try to be thoughtful about the religious conventions and sensitivities of the receiver - do not give alcohol to a Muslim or beef to a Hindu.
Indian Teams
India:
Team working, as understood in the Anglo-Saxon world is alien to the Indian approach to business. A team expects to be given exact and complete instructions by the team-leader or boss and then to follow those instructions exactly. Team members would not be expected to query the instructions passed down to them and would expect to follow them even when it became apparent that things were going wrong.

Therefore, the team leader takes complete responsibility for the success or failure of a project and needs to be constantly on top of progress and looking out for problems. If anything goes awry, the team leader is expected to sort it out personally. Once again, micro-management is the key.
Indian team-members love to get positive feedback on work done (especially if that feedback is cc'd to the boss) but find negative feedback very difficult to handle. Negative feedback can be seen as detrimental to future promotion prospects and the western concept of welcoming mistakes as a positive learning experience is a non-Indian reaction.
At the extreme, over-use of negative feedback can increase attrition rates within off-shore centres (attrition rates which are already usually very high.
Indian Communication Styles
India:
English is one of the fifteen official languages in India and is the only one which is universally spoken by the educated sections of society. English is deemed to be neutral and does not carry any of the regional connotations which cause so much friction in Indian political life. Therefore, many Indians speak excellent, almost perfect English and it would be unusual to meet any business person engaged in international trade who was unable to converse in the language.

As with many Asians, Indians find it very difficult to say 'no' - feeling that to do so would be offensive and lead to difficult ongoing relationships. Thus, when faced with disagreement, you are likely to encounter vagueness and lack of commitment. Answers such as, 'We'll try' or 'Yes, but it may prove difficult' should be viewed with great suspicion and will probably mean 'no'. The danger is that you will be told what people think you want to hear, rather than any unpalatable truths. Do not attempt to force your Indian contacts to be more direct and forthright than they feel comfortable with otherwise you may frighten them away.
Always try to be specific in your question -asking. If you ask the question 'We are OK for the deadline on Friday, aren't we?', the answer will probably be 'yes'. A beter questions would be, Can you tell me eaxctly wher we are in the process right now.'

As Indians are highly family-oriented, do not be surprised if many meetings begin with questions about your family. Such small talk is considered to be highly civilised behaviour and a good way to establish meaningful dialogue later in the proceedings. Do not be over-eager to move things onto an empirical business basis too quickly.
Women in Business in India
India:
Foreign women seem to have little difficulty being accepted in an Indian organisation. It would appear that the rank of an individual supersedes any notions of gender inequality which may be inherent in Indian society. If a woman has the position of manager, she must be there for a reason and her instructions will be followed just as diligently as those of a male manager.
Although the vast majority of senior managers in India are men, there is a growing cadre of women who are working their way up the corporate ladder and this trend is expected to grow along with the increasing levels of women's education and the influence of western MNCs in the business landscape of the country

It is important that women managers act at all times in a formal manner with male subordinates, as any overt signs of friendship or affection could be misconstrued.
India:
Tip 1
India is one of the most diverse countries in the world and therefore all generalisations about Indian culture should be treated with caution. Try to research each client thoroughly before entering into any negotiations. Is it a traditional, family-run business or a more modern hi-tech operation working with western business methodology?
Tip 2
India, more than most other countries, places great value on the quality of inter-personal relationships. Do not try to push things along too quickly in the early stages - take the time to develop relationships.
Tip 3
Both society and business are extremely hierarchically arranged and many Indians find it extremely difficult to work in a non-hierarchical structure.
Tip 4
Trying to introduce a flatter, more egalitarian approach into a society in which the caste system still flourishes can prove extremely difficult and painful for all concerned.
Tip 5
Most decisions are made at the top of an organisation and it can, therefore, be a waste of time and resource to spend too much time negotiating at the middle levels of a company if top level approval has not already been given.
Tip 6
The boss is definitely the boss in India and is expected to 'play the part.' Senior managers are not expected to engage in work which could be undertaken by somebody lower down the organisation.
Tip 7
Managers are expected to give direct and specific instructions to subordinates - and subordinates are expected to carry out the instructions unquestioningly.
Tip 8
Do not expect too much initiative from subordinates, contractors etc. Plan in great detail and explain exactly what needs to be done.
Tip 9
Meetings can seem very informal and it is possible for several meetings to be conducted by one person at the same time and in the same room. Try not to become irritated by this informal approach.
Tip 10
Time is fairly fluid. Be prepared for meetings to start and finish late and for interruptions to occur on a regular basis.
India:
Tip 11
As relationships are important, many meetings will begin with fairly lengthy small talk. Take the time to engage in this process - it is very important to the development of solid, long-term relationships.
Tip 12
Contracts should be viewed as a starting point rather than as fixed agreements. A contract is a statement of the best set of circumstances at a given point in time.
Tip 13
Teams expect to perform closely defined tasks under the strong control of a leader. It is not considered intrusive for the leader to take a detailed interest in the work of individuals within the team.
Tip 14
English language levels are, on the whole, very high in India and amongst the educated classes, several other (non-Indian) languages might also be spoken.
Tip 15
Do not be surprised if people seem ready to agree to most things - it is difficult for Indians to show direct disagreement. People will tend to tell you what they think you want to hear. Always seek detailed clarification of any agreements reached.
Tip 16
Small gifts are often given and received - this is usually part of the relationship building process and should not be taken as attempted bribery.
Tip 17
Gifts should be wrapped and not opened in front of the giver.
Tip 18
Women will be respected in business situations if they have a position of authority. People show respect to the hierarchical level rather than being affected by any gender issues.
Tip 19
Try to be sensitive to local religious conventions. Don't offer alcohol to a Muslim or beef to a Hindu.
Tip 20
Before travelling to India on business check the calendar for local festivals, public holidays etc. - there are lots of them.
Successful Entertaining in India
India:
As in all relationship-driven cultures, business entertaining is an important part of the whole commercial process. Take every opportunity to eat with your Indian colleagues and clients.

Business entertaining would rarely occur at a breakfast meeting as the working day starts in a more leisurely way than with a high-powered business meeting. - and people often have a long commute in difficult conditions. Therefore, you are more likely to be invited out for lunch or dinner.

Food in India is invariably spicy and if you don't like spicy food, you have to look quite hard for milder alternatives (often an omelette.) Food is usually offered as vegetarian or non-vegetarian options with the vegetarian dishes being in greater supply. It is perfectly acceptable to choose a non-vegetarian dish even if your host chooses vegetarian.

Remember that Hindus don't eat beef and Muslims don't eat pork (or drink alcohol)

Eating in India can seem an informal affair where the use of the hands for eating is perfectly permissible — often even in the most expensive of restaurants. (If you find this difficult, eating implements will almost always be available.) It is always more polite to eat with the right hand than the left hand. People tend to start to eat as soon as their meal arrives rather than waiting for everybody to be served.

It is usual to leave a tip of around 10% when settling the bill.
India:
India in Figures | Land Area | 3, 287,263 sq km | Population: | 1.198m | Population density: | 372 sq km | Life expectancy: | Men 64 yrs
Women 67 yrs | Adult literacy: | 63% | Average per household | 5.3 | Divorces per1,000 : | Unknown | The Economy | Currency: | Indian Rupee | GDP: | US$ 1,377bn | GDP per heads: | US$ 1,190 | Employment (% of total): | Agriculture 60%
Industry 17%
Services 23%
Unemployed 4% | Main Exports:Type: | Engineering goods
Jewellery & gems
Petroleum
Chemicals
Agricultural goods | Destinations: (% total) | United Arab Emirates 12%
USA 11%
China 6% | Main Imports:Type: | Petroleum & product
Electronic goods
Gold and silver
Machinery
Gems | Main countries of origin: | China 10%
USA 6%
UAE 5%
Saudi Arabia5% |

1. PLANNING PRACTICES IN JAPAN AND UNITED STATES Planning in Japan Planning in United States Decision Making in Japan Decision Making in United States 2. COMPARISON OF JAPANESE AND UNITED STATES Japanese United States 1.Long term orientation 1.Primarily short term Orientation 2.Collective decision making with consensus 2.Individual decision making 3.Involvement of many people in preparing and 3. Involvement of a few people in making the making the decision decision and selling it to persons with divergent values. 4. Flow of critical decisions from top to bottom and 4. Decisions initiated at the top, flowing down. back to top; flow of no critical decisions often from bottom to top. 5.Slow decision making; fast implementation of the 5.Fast decisions making; slow implementation decision requiring compromise, often resulting in suboptimal decisions 3. ORGANIZING PRACTICES IN JAPAN AND UNITED STATES Organizing in Japan Organizing in the United States Staffing in Japan Staffing in United States 4. COMPARISON OF JAPANESE AND UNITED STATES Japanese United States 1.Collective responsibility 1.Individual responsibility and accountability 2.Ambigious decision responsibility 2.Clear and specific decision responsibility 3.Informal organization structure 3. Formal, bureaucratic organization structure 4. Well-known common organization culture and 4.Lack of common organization culture; philosophy; competitive spirit toward other identification with profession rather than with enterprise company 5. LEADING PRACTICES IN JAPAN AND U.S Leading in Japan Leading in United States 6. COMPARISON OF JAPANESE AND UNITED STATES Japanese United States 1.Young people hired out of school; hardly any 1.People hired out of schools and from other mobility of people among companies companies; frequent company changes 2.Show promotion through the ranks 2.Rapid advancement highly desired and demanded 3.Loyalty to the company 3. Loyalty to the profession 4. Performance appraisal once or twice a year 4.Comprehensive performance evaluation, usually common once a year 5.Appraisal of long-term performance 5.Appraisal of short term results 6.Promotion based on long-term performance and 6. Promotion based primarily on individual other criteria performance and often on relatively short-term performance. 7.Training and development considered a long-term 7.Triaing and development undertaken with investment hesitation( employee may switch to another firm) 8.Lifetime employment common in companies 8.Job insecurity prevailing 7. CONTROLLING PRACTICES IN JAPAN AND U.S Controlling in Japan Controlling in United States 8. COMPARISON OF JAPANESE AND UNITED STATES Japanese United States 1.Leader acting as social facilitator and group 1.Leader acting at the decision maker and head of member the group 2.Paternalistic style 2.Directive style) strong, firm, determined) 3.Common values facilitating cooperation 3. Often divergent values; individualism sometimes hindering cooperation 4.Avoidance of confrontation, sometimes leading to 4.Face-to-face confrontation common; emphasis on ambiguities; emphasis on harmony clarity 5.Critical communication top-down and bottom – 5.Communication primarily top-down up; noncritical communication often bottom -up 9. THANK YOU

USA

Doing Business in The USA
As the USA moves into the twenty-first century, it finds itself at a cross-road – assailed by problems both internally and externally. Its unassailable position as the global super-power is under increasing threat from the re-emerging economies of the Far East and its domestic electorate is polarised as never before leading to a state of political stasis. How will the USA respond to these challenges and will it be able to re-invent itself as successfully as it always has in the past when confronted with major dilemmas?

These questions are critical to, not only the future of the USA, but the world. The eyes of the world are on the USA as almost never before and many people are hoping that the US can mend its ailing economy and give the impetus for a more general global economic recovery.

Yet despite the current economic difficulties, the USA remains the largest global economy and many of its citizens enjoy a standard of living unimaginable to large sections of the world’s population. It is still an economic power-house and cannot be ignored as a market or as a centre for business innovation and excellence. The rest of the world has to understand the USA and how it operates in the business arena – and US business culture is not as straightforward as many Americans would like to have you believe.

If you want to operate successfully in the US market or with American colleagues or other stakeholders, it is essential to get a really good understanding of how business works in the US and how Americans interact in the work-place. Why are people in the US so time-pressured and why do they expect you to be available 24/7? Are they really as positive and ‘can-do’ as they seem or might that just an act?

Don’t assume either that if you are a native English speaker (British or Australian for example) that the language similarity equates to business culture similarities. Many British business people say that nothing makes them feel more European than when they are doing business in the USA – it really is a very different place with its own distinct business etiquette and norms.

This USA country profile is designed as a starting point to help you begin to wrestle with the way things are done in the USA – but it is only a starting point. When you have read this country profile, why not invest in one of the books suggested in the reading list or, better still, talk to Global Business Culture at info@globalbusinessculture.com. Global Business Culture are world leaders in the field of the impact of cultural differences on international business performance and have assisted a large number of companies who are working with, or wish to work with, the USA.
Background To Business in The USA
USA:
As the US tries to drag itself out of the economic malaise triggered by the fall of Lehman Brothers in 2008, it finds itself at defining moment in its history. How can the country maintain its pre-eminence politically in the face of growing pressure from China and India? How can it leverage its intellectual capital so that it continues to be the entrepreneurial world hub and centre of innovation and excellence. US-business ideas and approaches are being scrutinised as never before - is the country ready for the challenge of what many see as the 'Asian' century?
For a century or more the US has led the way in banking and finance, high-tech, computing and pharmaceuticals. US business methodologies have led growth and innovation in a way rarely seen in the history of the world and an understanding of how things work in the States is essential for anybody who works internationally.
More than any other industrialised country, the United States has adopted what could be labelled a 'scientific' approach to business. Every aspect of commercial life is studied and analysed and this scientific approach is both respected and acted upon. Far more resource is available in the US for the study of the methodology of business than in any other country and most new management theory and doctrines have their origins in the States.

In the States everything is quantified and assessed. All processes, even down to such issues as HR and Training are analysed in a detailed manner and the results of this analysis carry weight with decision makers.

This 'scientific' approach - the constant search for better, more effective methods - has led to a business environment typified by the presence of change as a constant factor. The most common response to a changing environment is realignment of the organisation and this, in turn, has produced a work force in a state of constant flux. People leave, are fired or made redundant and then reappear in another organisation. This sense of employee mobility should not, however, be equated with a lack of loyalty to the employer for whom you are currently working. Whilst working for the company you put everything into the job and are totally committed.
American Business Structures
USA:
Business structures in the USA are incredibly varied but tend to have several characteristics in common.

Firstly, the company is an entity in its own right and exists independently from its employees. Members come and go, perform necessary tasks at particular points in the life cycle of the company and then leave when no longer required for the wellbeing of the organisation. The relationship between employer and employee is a transactional one — where relationship and sentiment are a luxury which cannot be justified. Current economic conditions and the increasing influence of technology-based communication methodologies have only increased this disconnect between the employee and long-term, stable employment conditions. In a country where job-mobility and virtual working are increasing, transferable skills become the key to future success.

Secondly, the CEO of an American organisation holds great sway within the company. Senior management is more embedded in the personality at the top than in some other countries, such as Germany, where senior management is collegiate in approach. Although the company will have a Board of Directors, the Board is highly unlikely to have any input on the day-to-day running of the company which is left very much in the hands of the CEO who stands or falls on results. This can be seen as a high risk, high reward approach - it can bring great success but also spectacular failure.

Thirdly, accountability within the company tends to be vertical and easily observable. Americans like to know exactly where they stand, what are their responsibilities and to whom they report. If job security is weak, I'd like to understand the extent of my liability on any particular issue.
American Management Style
USA:
American management style can be described as individualistic in approach, in so far as managers are accountable for the decisions made within their areas of responsibility. Although important decisions might be discussed in open forum, the ultimate responsibility for the consequences of the decision lies with the boss — support or seeming consensus will evaporate when things go wrong. The up side of this accountability is, of course, the American dream that outstanding success will inevitably bring outstanding rewards.

Therefore, American managers are more likely to disregard the opinions of subordinates than managers in other, more consensus or compromise- oriented cultures. This can obviously lead to frustrations, which can sometimes seem to boil over in meeting situations. (See 'Approach to meetings' below.)

Titles can be very confusing within American organisations with a bewildering array of enormously important-sounding job descriptors on offer (Executive Vice-President etc.). Titles, in any case, tend to be a poor reflection of the relative importance of an individual within a company. Importance is linked to power, which could be determined by a number of factors such as head-count responsibility, profitability of sector or strategic importance to the organisation at that point in time.
A distinction is often made between management style (around organisation and process) and leadership style (more strategic and inspirational.) Great leadership is expected at the top of an organisation ratrher than competent management but it can be difficult to define what 'great leadership' actually is.
American Meetings
USA:
When asked to describe meetings in the USA, a word which Americans often use is 'aggressive'. This 'confrontational' approach, (where openly and directly debating all the relevant issues even at the expense of personal relationships is valued) is very alien to those cultures who always put diplomacy and harmony at the heart of their approach to meetings.

Of course, many cultures mistakenly see this direct approach between colleagues as a sign of bitter, personal animosity — which it always invariably is not. It is endemic in the American approach to communication in meetings and is seen as a positive step towards addressing whatever the vital and pressing issues might be. Time pressured, ambitious American business executives do not have time for the vagueness, diplomacy and lack of focus which they perceive as typifying meeting situations in such diverse cultures as the UK and Japan.

Meetings often include formal presentations by one or more of the participants and these presentations are a vital element in the demonstration of professional competence. Thus, presentations should not only be relevant and well researched but also delivered in a positive, enthusiastic and committed manner. The meeting and especially one in which a presentation has to be made, is seen as an opportunity to impress — important if personal success is to be achieved.
Meetings are increasingly virtual with one or more participants joing from a completely separate location by either conference call all video link. These meetings can often prove less successful than face-to-face meetings due to communication dificulties (especially if some participants are non-native English speakers) and it is possible that the right skill-sets are not always in place to make the most of these difficult meeting types.
American Teams
USA:
In the States, teams are groups of individuals brought together for the moment to complete a given task or project. During the period that the group is together, everybody is expected to be fully committed to the common goals and to work with dedication and purpose to ensure that those goals are achieved. It is important to show enthusiasm for the project and to show belief in the ultimate achievement of the objectives. 'Old World' cynicism is not really appreciated or understood.

When the project is complete, the team will rapidly dissipate, its members moving on the next task with equanimity. To break up a team in the fluid employment environment of the USA is less traumatic than in other group-oriented cultures where identity is subsumed to the group. In the States, teams are expected to be transitory in nature. American Communication Styles
USA:
Communication styles in business in the States are determined by many of the approaches to business we have already described above. The desire to debate issues directly and openly leads Americans to be seen by some cultures as aggressive and even rude. Coded speech and verbosity is often seen as time wasting and in time pressured corporate USA, that is a crime.

Thus, when an impasse is reached in meeting situations, the reaction is often to address it directly and 'with feeling.' This direct, robust debate can often be viewed by more harmony seeking cultures as signalling the breakdown of meaningful discussions and as the signal to try to abandon the interaction - whereas in the States it is seen positively and as a sign of definite progress.

Paradoxically, on first introductions, American can seem very friendly, polite and solicitous of your well being which seems to be at odds with the verbal behaviour exhibited half an hour later in the meeting. This overt friendliness (Have nice day!, Hi, how are you doing? etc.) should be taken for what it is — part of the protocol of the language and not as an attempt at establishing a life-long friendship.

Although coded speech and over-verbosity are frowned upon, the latest 'management speak' is often to the fore in business dealings which can make Americans sound extremely jargonistic — almost to the point of obscuring the real message.

Americans are much more open in conversation about private affairs than many European cultures and the converse of this is that Americans will often, quite naively, ask very personal questions at an early stage in a relationship which may be perceived by some people as intrusive. ('What do you make?')
Technology is incresingly relied on and email is the normal methodology of communication. Email messages are expected to be short and to the point - often ommiting both the greeting line and the closing line. Do not misinterpret this short form communication as rudeness or annoyance - its just a quick and efficient approach.
Women in Business in The USA
USA:
Women play an active part in business in the US and have done so for many years. Although progress to the boardroom might still be more difficult than for a man, a large percentage of American executives are women and this percentage is rising year on year.

It is important to be seen to be ‘politically correct' on gender issues in the workplace. Treat a woman as you would a man in all business dealings — any perceived stereotyping would be regarded very badly.
American Dress Code
USA:
Describing dress codes for men travelling on business in the States can be a risky business. It is far more difficult to generalise on this subject than for just about any other major industrialised nation. Dress will vary from the formal, dark business suit, shirt and tie to literally T-shirt and shorts.

One general dictum could be that the further West you are doing business, the more likely you are to encounter informal dress in business - but this is not always the case.

The best advice would always be to check before departure with others who have visited your particular destination - failing that, take a variety of types of clothes to meet all eventualities.

Dress code for women is as varied as that for men and the above advice would hold true.
USA:
Tip 1
Americans value straight talking and 'getting to the point'.
Tip 2
Respect is earned through conspicuous achievement rather than through age or background.
Tip 3
Self-deprecation is often misunderstood by Americans as a sign of weakness. Sell your plus points.
Tip 4
Humour is frequently used in business situations but is unlikely to be appreciated when matters become very tense.
Tip 5
Remember that time is money in the States - wasting people's time through vagueness is lack of a sense of purpose which will not produce good results.
Tip 6
Compromise is often sought - at the brink. This can often equate to the end of a quarter or financial year.
Tip 7
Do not be offended by seemingly overly personal questions.
Tip 8
Dress code in the States is very variable - check on the appropriate mode before departure.
Tip 9
Short-termism is endemic. Structure proposals to emphasise quick wins rather than long-term objectives (although these should also be included.)
Tip 10
You may encounter an 'American is best' view to doing things - be prepared to counter this with quantitative and qualitative counter- arguments.
USA:
Tip 11
Many Americans never leave the States. Be prepared for a parochially American view of the world.
Tip 12
Enthusiasm is endemic in business. Join in. Do not exhibit a jaundiced, 'old world' approach as this will be interpreted as defeatist.
Tip 13
New is good. Change is ever present in American corporate life and therefore so is the easy acceptance of new ideas, new models etc.
Tip 14
Gift giving is unusual in the States and many companies have policies to restrict or forbid the acceptance of presents.
Tip 15
Americans tend to work longer hours and take fewer days of vacation than their European counterparts.
Tip 16
Try to be punctual for meetings - if you are late apologise.
Tip 17
Despite the seeming lack of hierarchy within an American organisation, the boss is the boss and is expected to make decisions and is held accountable for those decisions.
Tip 18
Americans often socialise with work colleagues outside the office - and this often includes the family.
Tip 19
Titles are an unreliable guide to relative importance within an organisation due to their proliferation.
Tip 20
Business is a serious thing in the States and it is important that you are seen to be serious in your intent and commitment.
Successful Entertaining in The USA
USA:
The timing of business meals in the USA can often come as a surprise to first time visitors. Firstly, it is not uncommon to be invited to a breakfast meeting which might start as early as 7:00am and secondly, if invited for dinner, this may be scheduled for as early as 5:30 — 6:00pm. You can also, of course, be invited for lunch and this is probably the favoured time for business entertaining.

US business people have few qualms about discussing concrete commercial issues over a meal. The idea that the mealtime is set apart from business and that it is unmannerly to raise the subject of commerce over food is an alien concept in the States. Therefore, it is acceptable to view a business meal as an extension of the business meeting. (This does not mean that other, non-business issues, cannot be discussed at these events.)

North Americans tend to only use the knife to cut food items. After the food has been cut, the knife is usually laid down and only the fork is then used. Some foods may be eaten by hand, with both the knife and fork laid to rest. Most restaurant staff rely heavily on tips to supplement their basic salary and tipping is therefore virtually mandatory. It is not uncommon for tips of between 10% - 20% to be left for good service provision — and the service is usually very good.

USA: The USA in Figures | Land Area | 9, 372,600 sq km | Population: | 315m | Population density: | 32 sq km | Life expectancy: | Men 77 yrs
Women 82 yrs | Adult literacy: | 99% | Average per household | 2.6 | Divorces per1,000 : | 3.2 | The Economy | Currency: | US dollar | GDP: | US$14,119bn | GDP per heads: | US$45,990 | Employment (% of total): | Agriculture 1%
Industry 21%
Services 78%
Unemployed 9.3% | Main Exports:Type: | Capital goods exculding vehicles
Industrial supplies
Consumer goods exculding vehicles
Vehicles & products | Destinations: (% total) | Canada 19%
Mexico 12%
China 7%
Japan 6%
EU27 21% | Main Imports:Type: | Industrial supplies
Consumer goods exculding vehicles
Capital goods exculding vehicles
Industrial supplies | Main countries of origin: | China 19%
Canada 15%
Mexico 11%
Japan 6%
Germany 5%
EU27 18% |

BRITAIN

Doing Business in Britain
This country-specific section gives a comprehensive description of British business culture which will help you to interact more effectively with your British clients and colleagues. Although each sub-section on the right focuses on one particular area of business culture in Britain, it is recommended that all of the sections are studied in the order they are shown.

When you have completed the British business culture profile, you may feel you need to learn more about some of the other business cultures you deal with - if so go back to the Countries Home Page and pick another country to study.
Background To Business in Britain
UK:
As in many other industrialised countries, the last couple of decades have seen a major restructuring of British industry away from the more traditional heavy engineering and primary sectors towards the service and high-tech fields. This process has also coincided with radical shifts in approach to management and company structure. Many of the hierarchy and class issues which were so much a feature of the British industrial landscape have been replaced by more modern business models - often heavily influenced by US thinking.

Ideas of 'jobs for life' have largely been overtaken by an expectation of rapid change in work patterns and prospects. Many current British managers no longer expect to spend most of their careers with one or two companies, but rather looks for progression through moving from employer to employer. One result of this could be the much talked of British short-termism associated by many continental European business people with UK companies.

Generalisation, rather than specialisation, tends to typify the British approach - with less merit being placed on pure technical ability than in some other countries. Some commentators have quoted this tendency as one of the reasons for the demise of manufacturing in the UK over the last three decades.
As with many other European countries, the UK (with a heavy relaince on the Banking and Finance sector) was badly hit by the financial crisis of 2008 and faces a painful journey back to growth and prosperity.
British Business Structures
UK:
The board of directors is the real power broker of a British company with all key decisions being made at this level. All plc's (quoted companies) must have at least two directors who are appointed by and accountable to the shareholders. The chairperson or the CEO leads the board.

Many of the UK's larger companies have 'non-executive' directors who act as outside, impartial experts, as well as often providing links with government and the civil service. This usage of 'non-executive' directors has some parallels with the continental European two-tier system of senior management but is not as all-pervasive and 'non-execs' can be resented by the executive directors.

Although traditionally hierarchical in structure, many British firms have moved towards a flatter, less bureaucratic approach. This has also resulted in a certain lack of shape, with boundaries and responsibilities being blurred. It can be difficult to get a clear picture of the structure of a British company, with even employees being unclear as to the exact remit of their jobs. As a result, job descriptions tend to be somewhat vague and imprecise with little clear guidance on specific tasks to be undertaken.
British Management Style
UK:
As has already been pointed out, British managers tend more towards generalisation than specialisation. The proposition that the manager needs to be the most technically competent person would receive little support in the UK. Therefore, pure academic education is afforded much less respect than in other countries (notably Germany and France) and the emphasis is on relevant experience and a 'hands-on', pragmatic approach. Titles such as doctor or professor are rarely used outside academic circles and can even be seen a sign of affectation.

Much more emphasis is placed on the man-management skills needed to produce the best results from the team. A manager is expected to have the interpersonal skills to meld a team together and it is this ability as a 'fixer' which is highly regarded. Modern managers often want to appear as a primus inter pares, cultivating a close, often humorous and overtly soft relationship with subordinates. This seeming closeness should not, however, be mistaken for weakness on the part of the boss - when difficult decisions need to be taken, they will be taken.

The British find it difficult to be direct and British managers often give instructions to subordinates in a very indirect way, preferring to request assistance than to be explicit. This use of language can be very confusing for the non-British (see 'Communication Styles' later.)
British Meetings
UK:
One thing that can be said of meetings in the UK is that they are frequent. They are often also inconclusive, with the decision of the meeting being that another meeting should be held. The British themselves often complain about the frequency and length of meetings they must attend.

In comparison with many other cultures, relatively little preparation is done for meetings (with the exception of client-facing meetings). This is because meetings are often viewed as the forum for the open debate of an issue and that, during that open debate, a route forward will be found. When the route forward is agreed, then the detailed work schedule will be implemented. Being 'over-prepared' for meetings in the UK can result in certain negative feelings towards those who have prepared in advance. "There is no point having a meeting with the Germans (for example) because they have already decided the outcome prior to the meeting."

Agendas will be produced and followed loosely. If something important arises during the open debate it will not be excluded simply because it does not occur on the agenda.

The British consider themselves to be punctual, but when pressed will admit to rarely arriving on time. It is now fairly common for people to arrive five to ten minutes late for meetings.

British Teams
UK:
The British like decisions to be made in a team environment and a good manager will work hard to ensure 'buy-in' from his or her team. The team environment aspires to being friendly and companionable with individuals within the team being seen to be supportive and helpful of each other.
If, however, something goes wrong, it is not uncommon for the team to look for an individual within the team to blame. ('Blame culture' is something that seems to permeate working life and many organisations work hard to try to change this type of mentality.)

Team members often bring with them into the team a certain level of specialisation, but are expected to take a generalist view of the project and their role within the project team. Being seen as a 'good all-rounder' is definitely positive.

British Communication Styles
UK:
The British are almost Asian in their use of diplomatic language. Almost alone in Europe, (with the possible exception of the Belgians), they strongly place diplomacy before directness in communication. Being very non-confrontational in business situations, the British equate directness with open confrontation and fear that bluntness will offend the other party. This can often lead the British to seem evasive in meeting situations when they are really searching for a way of saying something negative in a positive way.

In addition to being diplomatic, the British also use language in a coded manner preferring to say unpalatable things using more acceptable, positive phrases. Thus, "I disagree" becomes "I think you have made several excellent points there but have you ever considered...." And a lack of interest in an idea is often greeted with,"Hmm, that's an interesting point."

Humour is virtually all-pervasive in business situations. Indeed, the more tense and difficult a situation is, the more likely the British are to use humour. This does not imply that the British are not taking the situation seriously - it is merely that humour is used as a tension release mechanism in the UK and helps to keep situations calm, reserved and non-emotional. Never underestimate a British businessperson because he or she uses humour in a seemingly inappropriate situation. Humour is a very important and respected communication tool at all levels and in all contexts.

It is better to be self-deprecating than self-promotional in the UK. People who are verbally positive about themselves and their abilities may be disbelieved and will, almost definitely, be disliked.
Women in Business in Britain
UK:
Women make up a large percentage of the workforce - almost 50% - but are often found in low paid and part-time jobs. Statistics show that women are, on the whole, still paid less for performing the same tasks as male colleagues.

On the other hand, women are more frequently found in managerial positions than in most other European countries and more and more women are reaching the very highest echelons of British business life.
More female managers will be found in service and hi-tech industries than in the more traditional engineering sectors - this is largely due to the small number of women in the UK who graduate with technical degrees.
British Dress Code
UK:
Traditional dark grey and dark blue suits are less in evidence then in the past - except for sectors such as the law and banking and finance. if suits are worn, white, blue or pink shirts and reasonably sober ties are typical. In the more senior circles in the 'City', men will often wear cufflinks.

Women in management positions often mirror male attire in so far as dark suits and blouses are worn - with little in the way of more flamboyant accessories being seen.

There has, however, been a recent move away from this sober, formal appearance and many organisations have introduced a 'dress down' policy which allows employees to wear 'smart casual', as long as there are no clients to be met on that day. 'Smart casual' is difficult to describe but still tends to be on the conservative side.

The climate in the UK can be very rainy, so it is always a good idea to carry a raincoat and/or an umbrella when visiting.
UK:
Tip 1
British companies tend to develop managers to be 'generalists' rather than 'specialists' and managers are expected to be interested in, and take a view on, a wide number of topic areas.
Tip 2
Recent years have seen a change in working patterns with many people moving job and employer on a reasonably frequent basis.
Tip 3
British organisations have moved away from the traditional hierarchical models of the past towards a much flatter system. In the process, many layers of management have been removed.
Tip 4
Job descriptions in the UK are often very unclear and imprecise leaving a potential vacuum in ownership of task and decision.
Tip 5
Managers try to develop a close, friendly relationship with staff and like to be seen as part of the team rather than removed from the team.
Tip 6
The value of pure academic education is viewed with some suspicion. Respect is earned through experience rather than qualification. It is rare to see a professor or doctor on the senior management committee of a large UK company.
Tip 7
Managers find it difficult to articulate direct instructions and will often couch instructions in very diplomatic language.
Tip 8
There are a lot of meetings in the UK and they often fail to produce the desired decision.
Tip 9
The British do less empirical preparation for meetings than other nationalities - seeing the meeting as a forum for debating potential solutions.
Tip 10
Meetings are reasonably formally structured, roughly following a predetermined agenda and keeping more or less to time.
UK:
Tip 11
The British like to be part of a team and like the team to have a companionable atmosphere.
Tip 12
Members of a team are expected to take an holistic interest in the project, rather than confining themselves to their allocated role only.
Tip 13
The British place diplomacy firmly before directness and will try to avoid engendering negative emotions in meeting situations etc.
Tip 14
The British can misinterpret direct speech as rudeness, aggression and arrogance.
Tip 15
Humour is acceptable and expected in virtually all business situations. Humour is not seen as unprofessional, even when used in tense and difficult meetings.
Tip 16
Self-promotion is not appreciated in the UK. It is far better to self-deprecate. It is, of course, acceptable to be positive about your company and products.
Tip 17
Meetings will often begin with a good amount of seemingly meaningless small talk. This is seen as a good way to start the meeting in a harmonious manner.
Tip 18
Women play an increasingly prominent role in business life - especially in service industries.
Tip 19
Formal dress codes of dark blue and grey suits are still predominant although changes are starting to occur in this area.
Tip 20
Colleagues will virtually always use first names amongst themselves. It is considered very formal and distancing to use surnames.
Successful Entertaining in Britain
UK:
It is reasonably common to be invited out for lunch by a business contact in the UK, but more unusual to be asked to go for dinner. Business lunches are often seen as an extension of the meeting and it is usually acceptable to discuss business matters over the food. If in doubt over this matter, follow the lead of your host.The person who invites will invariably pay and there is no real need to offer to contribute to the cost. If you have invited a guest and they offer to contribute, they are probably doing so out of politeness and do not necessarily expect to be taken up on their offer.

Lunches can vary in style from a very informal pub meal to a much more elaborate formal meal at an expensive restaurant. The choice of venue can depend on a number of factors such as location, importance placed on the business opportunity (or guest), market sectors etc. If you are unsure where to take somebody it is best to err on the side of caution and go to a good quality restaurant.

Alcohol will usually be offered at lunch and some British business people will accept whilst others prefer to stick to soft drinks — this is an entirely personal decision and you will not be under pressure to drink alcohol in this situation. It is much more common for larger amounts of alcohol to be drunk at dinner and on these occasions you may find that you are placed under a small amount of pressure to join in the 'drinking culture'.

Most restaurants add a service charge to the bill automatically, but it is still customary to give an additional tip of around 10% directly to the waiter.
UK:
Britain in Figures | Land Area | 242,534 sq km | Population: | 62m | Population density: | 255 sq km | Life expectancy: | Men 78 yrs
Women 82 yrs | Adult literacy: | 99% | Average per household | 2.4 | Divorces per1,000 : | 3 | The Economy | Currency: | Pounds Sterling | GDP: | $2,175bn | GDP per heads: | $35,170 | Employment (% of total): | Agriculture 1%
Industry 21%
Services 78%
Unemployment 8% | Main Exports:Type: | Machinery & transport equip
Chemicals
Mineral fuels
Food,beverages & tobacco | Destinations: (% total) | United States 15%
Germany 11%
Netherlands 8%
France 8%
Ireland 7%
EU27 55% | Main Imports:Type: | Machinery & transport equip
Chemicals
Mineral fuels
Food,beverages & tobacco | Main countries of origin: | Germany 13%
USA 10%
China 9%
France 7%
Netherlands 7%
Belgium 6%
EU27 53% |

Doing Business in Russia
Russia is not just a country of contrasts; it is a country of outright contradictions. A country where free-reign market capitalism in some sectors meets absolute state interference in others. A country where foreign direct investment is actively sought in some areas; whilst made virtually impossible in others. Half the population yearn for a more open, democratic society whilst the other half admires the autocratic approach of the current regime.

Periods of fast, aggressive growth in GDP and individual earnings are followed by sharp recessions – often allied to the demand for, and price of, the petroleum products upon which the country is heavily dependent. Massive displays of conspicuous wealth and consumption are contrasted with the deprivation that can still be found in many second cities and rural areas. The great metropolitan cities of Moscow and St Petersburg continue to grow and develop but the roads 30 kilometres outside those cities are in a parlous state.

So Russia remains a transitional economy moving from its Soviet past to an unknown and uncertain future. Over 50 percent of Russians depend on the state for either their livelihood or handouts and a crippling lack of investment in both infrastructure and plant and machinery shackle the countries push for a brighter economic future.

In addition to this array of contradictions there is another, possibly bigger issue – generational tensions. Older Russians who were born, educated and programmed during the Soviet era have an attitude and approach to life and business which is in sharp contrast to the younger generation who have been raised in a slightly freer, more liberal environment. These tensions can be seen in the macro-Russian issues such as politics and economics but also in more micro issues – such as internal and external relations within a business context. This is just one example of the many, many cultural issues that need to be factored into any business relationships you are engaged in or contemplating with Russia. The Russian approach to business is very heavily influenced by Russian cultural characteristics and the impact of the Soviet past. In fact, Russia ranks fairly high on the World Bank Group’s index of difficult places to do business.

Before starting any business dealings with Russia or Russian companies, it is strongly advised that you do some serious research into the way in which business is executed in the country and gain a thorough understanding of Russian business culture and Russian business etiquette. Look at, and understand, Russian communication styles and their approach to meetings and leadership – this can help you steer your way through the choppy waters of Russian business practice.

This Russia country profile is designed as a starting point to help you begin to wrestle with the way things are done in Russia and gain an understanding of Russian business culture – but it is only a starting point. When you have read this country profile, why not invest in one of the books suggested in the reading list or, better still, talk to Global Business Culture at info@globalbusinessculture.com. Global Business Culture are world leaders in the field of the impact of cultural differences on international business performance and have assisted a large number of companies who are working with, or wish to work with, Russia.
Background To Business in Russia
Russia:
Russia has emerged from a decade of post-Soviet chaos and disintegration to reassert itself as a major player on the world stage - both politically and economically. President Putin and his successor President Medvedev have restored public confidence in the country and vast oil and gas reserves have resulted in growing political and economic influence. Russia cannot be ignored - it needs to be understood.
As an enormous geographic area, it is dangerous to ever generalise about Russia but certain universal truths do, however, typify the Russian approach to business and life in general. Firstly, it is always worth bearing in mind that for centuries (long before the advent of the Soviet system), the state has always been seen as an organ of oppression and repression. Laws and statutes are therefore seen as the 'enemy' and to be avoided and evaded at all costs. Contracts are valid only if supported by a close personal friendship and taxes are left unpaid on both a corporate and personal level.

Secondly, the only things that can be relied upon are close personal relationships within the business environment. Networking and extended interpersonal allegiances are essential to successful business and the importance of resource allocation to ensure the development of good quality relationships should not be underestimated.

Thirdly, the legal status of many things in Russia is very dubious. Who actually owns what assets? The laws are being rewritten constantly and are, in any case, often unenforceable without the right level of political influence. Thus, most agreements have to be made on a trust basis - a strong element of which has to be clearly identifiable self-interest. The legal basis of any arrangement will probably mean very little once the relationship breaks down.
Despite these issues, Russia has been identified as a high-growth potential market with opportunites in market sectors as varied as banking and finance, technology and computing, infrastructure development and education.
Russian Business Structures
Russia:
Autocracy and centralised decision-making are synonymous with the Soviet system in many people's eyes and this approach can certainly be seen to be manifested within large Russian business organisations. Russian companies tend to be driven by one strong central figure who will make strategic decisions with little or no consultation with anyone other than a handful of close trusted advisors. (Indeed this centralised decision-making process can be most clearly seen in the approach of recent Russian presidents.)

Therefore, when dealing with potential clients or joint-venture partners in Russia, it is absolutely essential to make sure that the right person is being dealt with. Western companies who attempt to interface at inappropriate levels within an organisation waste massive amounts of time and resource. Nowhere is the advice, 'Go straight to the top', more pertinent.

The headlong rush from communism to capitalism has made people into entrepreneurs and centralised decision-making enables organisations to grab an opportunity when it arises. Thus, as in most developing economies, companies tend to have a short-term view of business activities and it is imperative that any potential partner can see the short-term benefits of collaboration.
Russian Management Style
Russia:
As has been stated, management tends to be centralised and directive. The boss - especially the 'big boss' - is expected to issue direct instructions for subordinates to follow. Little consultation will be expected from people lower down the company hierarchy. Indeed too much consultation from a senior manager could be seen as a sign of weakness and lack of decisiveness.

Middle managers have little power over strategy or input in significant strategic decisions. The most powerful middle managers are the ones who have the most immediate entree to the decision-maker at the top of the organisation. There is little point in wasting time debating with middle managers who do not have an easy access to the top. The most significant reason for delay in reaching a decision in Russia is that the decision has not been put in front of the real decision-maker.

Delegation is usually in terms of managers giving precise instructions to subordinates who are expected to perform their allocated tasks with little or no discussion. Many westerners complain of a lack of initiative from local Russian staff, whilst Russian staff often bemoan the lack of clear, unambiguous advice from expatriate managers.
It is also important to take age into consideration - younger managers, who have developed in the post-Soviet era, may be much more heavily influenced by wetern management theory than their older counterparts.

Russian Meetings
Russia:
As might be expected in a country where managers are autocratic in style, meetings are often for the purpose of information dissemination, rather than for the open debate of current business issues. Formal meetings are often held to ratify decisions which have been made elsewhere and to give clear instruction on key tasks to be performed.

Any open debate on the issues in hand will have been undertaken elsewhere in either one-to-one meetings or in smaller groups. It is in these 'background' meetings where much of the real debate is undertaken. Without access to these meetings, it can be very difficult to influence the flow of events and it is only through cultivating very close relationships that an outsider will ever be invited into these inner cabals.

Formal meetings tend to be very structural and serious. The dour image associated with many Russian negotiators stems from the belief that a formal meeting is a serious affair and should be treated accordingly. Humour is seldom used in such serious situations.

Russian Teams
Russia:
Teams work best together when the relationships amongst the group are close. There remains a general suspicion of strangers in Russian society and any attempt to bring together teams from different strands of an organisation can be problematic. Once a team has been established and is working well together it is probably best to keep the team intact for as long as possible. Move the team wholesale from project to project rather than developing a fresh team for every situation.

The team leader is expected to play a domineering role and to issue precise detailed instructions and then supervise ongoing progress. Those western managers who are more used to a 'hands off' approach will undoubtedly confuse local staff who will feel unsure of what is expected of them. An expatriate team leader needs to establish credibility through being decisive, clear and visibly in control.
As different age groups display different attitudes and approaches (pre & post Soviet change generations), it is often thought best to keep teams quite aligned in ages.
Russian Communication Styles
Russia:
English language levels vary enormously in Russia. Many younger entrepreneurs (especially in the cosmopolitan centres like Moscow and St Petersburg) have a fluent command of, not only English, but often several other European languages. Yet in other more provincial centres it is not unusual to meet business people who have little or no foreign language skills. Always check in advance whether interpretation is needed. If in any doubt about the comprehension levels encountered in meeting situations, be sure to check and recheck by asking relevant 'open' questions at regular intervals.

(Outside Moscow and St Petersburg most signs are written exclusively in the Cyrillic script and knowledge of this will go a long way on a trip to the more remote areas of Russia.)

As with many other cultures (Mediterranean and Middle Eastern for example) much more emphasis is placed upon the spoken than the written word. People believe things when they have heard them from someone with whom they have a trusting relationship. Therefore, it is often much more efficient to hold face-to-face meetings at which issues can be fully explained, rather than sending information in a written format only.

There tends to be very little visual or verbal feedback during meetings in Russia. People listen silently and with little obvious body language being displayed. This does not, however, mean that the listener is disinterested or does not understand - it is merely a cultural characteristic which Russians share with, amongst others, the Finns and the Japanese. Russians will tend to wait and think before responding to a point made to them - do not be impatient. Allow the Russians the time and space needed to take part fully in the conversation (and remember that they are probably struggling with foreign language as well.)

Women in Business in Russia
Russia:
The communist system of Russia preached equality of the sexes but had far less success in achieving the objective than their counterparts in the People's Republic of China. Thus, although a high percentage of the Russian workforce is female, there are very, very few women in senior management positions. This situation shows little sign of changing other than in some of the offices of major MNCs stationed in the country.

Western women working in Russia will be showered with old-fashioned courtesies but may find themselves being less respected in meetings and treated as inferior in rank to male colleagues - whether they are or not!

Russian Dress Code
Russia:
Russians tend to dress as well as their salaries will allow. Men would tend to wear either a dark suit or jacket and trousers with a tie and women mainly wear business suits or blouses and skirts.

It is important, for westerners to look smart and appear to be expensively dressed as this enhances credibility. From the safety standpoint, it is probably not advisable to wear very expensive watches or jewellery.

The winters can be extreme (as can the summers) so ensure suitable clothing to meet whatever the prevailing conditions. Be sure to remember a hat, gloves and scarf in winter.
Russia:
Tip 1
With the country in a state of total flux, Russian attitudes to business can vary widely from sector to sector and from region to region. Are you dealing with a new-style entrepreneur or an old-school Soviet bureaucrat?
Tip 2
Law-breaking and rule avoidance have been promoted to an art-form in a country where the state has, for centuries, been seen as the enemy.
Tip 3
In a country where the rule of law has all but broken down, the only thing that can be relied upon in a business context is the strength of the relationships upon which the business is based. Do not underestimate the importance of relationship building - or the time taken in the process.
Tip 4
Contracts are only as valid as a combination of your ability to enforce the law and the importance placed upon the relationship. Trying to enforce an unpopular clause in a contract could prove virtually impossible.
Tip 5
Russian companies are often driven and directed by one strong, central character. Without the approval of this individual, very few decisions will be taken and any that are would probably prove invalid.
Tip 6
Don't waste time trying to get decisions out of middle and junior managers - go straight to the top if possible.
Tip 7
Companies tend to take a short-term view of any given business opportunity. In a country as volatile and uncertain as Russia, who knows what lies around the corner?
Tip 8
Managers are expected to manage and this means giving precise and detailed instructions to subordinates. Inclusive, 'caring' management styles might be viewed as weak.
Tip 9
Meetings tend to be used to disseminate information or to give direct instruction - do not expect a great deal of open debate or disagreements in front of senior managers.
Tip 10
Smaller, more informal meetings often occur behind closed doors where senior management might canvas opinion or seek other opinions.
Russia:
Tip 11
Formal meetings are serious occasions and should not be treated lightly. Any overly informal behaviour could be construed as lack of respect for senior management, the company or even the country.
Tip 12
Once teams have been established and the internal relationships seem to be working well, it is important to keep the team together if possible. Russians can be wary of strangers and the relationship-building process can be long.
Tip 13
Do not assume a good level of fluency in foreign languages in any cities other than possibly Moscow and St Petersburg. Always try to ascertain language levels before a meeting.
Tip 14
People have a tendency to believe what they have heard over what they have read - so say it as well as putting it in writing.
Tip 15
Body language is minimal in meetings (unless being overly theatrical during an impasse in a negotiation situation) which can lead to mistaken impressions of disinterest.
Tip 16
Russians like to think in silence before answering a question. Do not be embarrassed by the silence. Allow sufficient time for the response to be formulated before breaking the pause.
Tip 17
Women play little part in business at the senior levels and on the whole Russian businessmen are more comfortable dealing with other men.
Tip 18
It is important to dress smartly and to try to look important. If you do not appear to be a decision-maker people will quickly lose interest.
Tip 19
Many senior Russian businessmen have backgrounds in academia and have only entered the world of commerce since the collapse of the Soviet system.
Tip 20
Do not underestimate the importance of entertaining in the business world. A good meal will help cement relationships and, although, reports of the amount of drinking involved in a trip to Russia may be exaggerated, a few vodkas will also help things along.
Successful Entertaining in Russia
Russia:
It is difficult to know what to expect when invited out to lunch or dinner in Russia. The event could simply be a relationship building exercise where little if any actual business is discussed but on the other hand you can find yourself in very detailed negotiations, with pressure being applied to complete a deal.

Whatever issues are discussed, the meal is very likely to be a fairly lavish and lengthy affair with more than enough food to keep you going for the rest of the day. Try to eat heartily and express your appreciation of the food on offer, as this reflects well on the host.

Russia has always had a reputation for being a hard drinking culture and this has traditionally been true. Many Russians insist that heavy drinking sessions at business dinners are becoming a thing of the past, but you have to expect that a good deal of strong alcohol is likely to be consumed — very often during the elaborate toasting sessions that take place. Favourite drinks are vodka and Russian champagne, although beer and wine are now more common than a few years ago.

Service charges are invariably added to the bill but it is customary to leave an additional tip of around 10%.

Russia: Russia in Figures | Land Area | 17, 075,500 sq km | Population: | 141m | Population density: | 8.4 sq km | Life expectancy: | Men 62 yrs
Women 74 yrs | Adult literacy: | 99% | Average per household | 2.7 | Divorces per1,000 : | 4 | The Economy | Currency: | Rouble | GDP: | US$1,232bn | GDP per heads: | US$8,680 | Employment (% of total): | Agriculture 5%
Industry 33%
Services 62%
Unemployed 8% | Main Exports:Type: | Fuels
Metals
Machinery & equipment
Chemicals | Destinations: (% total) | Netherlands 12%
Italy 7%
China 5%
Germany 4% | Main Imports:Type: | Machinery & equipment
Food products
Chemicals
Metals food & drink | Main countries of origin: | USA 14%
China 13%
Germany 5%
Ukraine 5% |

CHINA

Doing Business in China
The new seven-man politburo which was invested in November 2012 is charged with the task of overseeing the future of China for the next ten years. They come to power after decades of miraculous economic growth with a mandate to continue the country’s upward trajectory whilst at the same time ensuring continued social and political cohesion. This will undoubtedly be a challenge but the track record of their predecessors points to a positive future.

As China moves into the ‘Asian Century’ it needs to continue to develop its infrastructure, educate the whole of the population, manage mass-urbanisation on an unprecedented scale and balance a growth agenda with the need to improve its environmental credentials. The rapidity of change in China has been miraculous but also brings challenges in its wake.

China will continue to expand economically and its political and cultural influence will also grow – especially within the Asian region. China will also, however, be of incredible economic significance for both the US and Europe as the old economies continue to stagnate and the ‘emerging’ economies take on the responsibility of delivering global growth. Whereas, for the last couple of decades China has been a market of interest for the larger corporations, mid-size companies now have to consider expansion into geographic areas of which they have little, if any, knowledge.

Whilst many things in China are in a state of constant flux, some things remain deeply rooted in the millennia-old culture of the country and one of the things which changes most slowly in any country is culture. Chinese business culture is not suddenly going to become a clone of western business culture. China will cling on to its own approaches and ways of doing things and as China becomes increasingly economically powerful any pressure for change will probably diminish.

This is why – if you really want to succeed in the China market – you have to invest time and effort into understanding how the Chinese think and how they approach any specific business situation. Assuming that they will accommodate you or understand the ‘western’ way will get you nowhere with any but the most well-travelled and cosmopolitan of Chinese business contacts.

You really do need to get an understanding of Chinese business culture and business etiquette in China.

This country profile is a starting point to understanding some of the key concepts you will need to factor into your dealings with any Chinese counterparts – but it is only a starting point. When you have read this profile, why not purchase one of the books suggested on the China pages or, better still, contact info@globalbusinessculture.com to discuss corporate training and development on this topic.
Background To Business in China
China:
At the begining of the 21st century, the People's Republic of China finds itself in the midst of social, economic and cultural transition (some might even say turmoil). The old certainties, which epitomised the iron-tight grip of the Communist Party during the reign of Mao Zedong, have long since been replaced by the more liberal but unclear policies instituted by Mao's great reforming successor, Deng Xiaoping and continued by subsequent regimes.

The pursuit of profit is no longer 'counter-revolutionary' and business people have long since ceased being viewed as enemies of the people. Yet the Communist Party is still in power and shows little appetite for any of the political reform so much clamoured for by the West. Deng himself best described this seemingly paradoxical situation (rampant capitalism in the midst of a communist country) in two oft-quoted maxims:

'It doesn't matter whether a cat is black or white so long as it catches mice.' and 'To get rich is glorious.'

Thus in the new order of the PRC, what business rules apply? How do you re-invent a business culture in a country where commerce was outlawed for over thirty years? Where does a country find the rules by which to play? The answer is, of course, to fall back on traditional cultural drivers and in China, that means a return to Confucian values (see below.) This does not imply that modern business systems and approaches are ignored - more that they are given a Confucian twist to enable them to lie happily alongside the mainstream Chinese world view.
And new contradictions continue to emerge - a burgeoning middle class brings a massive new internal consumer market and both local and international companies struggle with the best ways to capitalise on that new market. The growing middle class wants higher wages which puts strain on China's traditional cost-advantages which could impact on its balance of payments surpluses in the coming years.
The increased expectations of the growing middle-classes puts pressure on the government to continue to effectively manage the growth of the economy. The latest 5 Year Plan has identified seven Strategic Industries which it wishes to concentrate on and these 7 industries (including alternative energy, biotechnology, new-generation information tachnology, high-end equipment manufacturing, alternative-fuel cars and eco-friendly technology) will recieve central investment to the tune of $1.5 trillion.
Chinese Business Structures
China:
Whilst the tradional Moaist approaces are long gone, and understanding of past approaches can be helpful when dealing with the new China which has emerged. Under the Communist regime the most important structure to which an individual was linked was his or her work group or dan wei. In the past, the dan wei guaranteed workers security throughout their lives in a 'cradle to grave' arrangement and the dan wei mentality still lingers on in large measure. It was extremely risky for a worker to leave the security of the dan wei as this meant the automatic forfeit of the rights and privileges associated with membership - and those were such basics as food, accommodation and medical assistance. In order to maintain the security blanket afforded by the dan wei and at the same time take advantage of the new opportunities arising in the 'new order', many people have taken on two jobs until new opportunities are viable enough to risk losing the traditional support mechanisms.

Many overseas companies who set up operations in the PRC do so in the form of a joint-venture with a Chinese organisation and there certainly seem to be manifold benefits to be accrued from doing so. Probably the biggest benefit from the joint-venture approach is that it helps the overseas entity to establish relations - via the Chinese part of the venture - into a complex network of Chinese relationships. Guanxi, or personal connections, are the all-important weapon in all business situations in the PRC. As has often been said, 'In China, if you don't have Guanxi, you don't have anything.' Forming a joint-venture company would seem to be the quickest and most effective way of developing good quality relationships in a country such as China. This, however, puts enormous pressure on an overseas company to ensure they have selected the 'right' joint-venture partner. It is a mistake to rush this process or to fall-in with the first potential partner who comes along. Think out of the box. Product compatibility may be less important than connections; cost may be less important than access to a skilled workforce.

As would be expected in a Confucian society, operational structures, chains of command, management style etc. tend to be hierarchical and the introduction of more matrix-oriented approaches are bound to lead to conflict with local expectations. Never undersestimate how important it is to understand, and work with, a Chinese hierarchy. Trying to circumvent the hierarchy will almost always slow a process down rather than speeding it up.
Chinese Management Style
China:
In Confucian philosophy, all relationships are deemed to be unequal. Ethical behaviour demands that these inequalities are respected. Thus, the older person should automatically receive respect from the younger, the senior from the subordinate. This Confucian approach should be seen as the cornerstone of all management thinking and issues such as empowerment and open access to all information are viewed by the Chinese as, at best, bizarre Western notions.

(It should be borne in mind that many people in China - as well as in many other Asian countries - see the lack of observance of hierarchical values as the root cause of the 'problems of the West.' These problems include the twin Western diseases of moral degeneration and the anarchic idea that an individual is more important than the group to which they belong.)

Thus, in China, management style tends towards the directive, with the senior manager giving instructions to their direct reports who in turn pass on the instructions down the line. It is not expected that subordinates will question the decisions of superiors - that would be to show disrespect and be the direct cause of loss of face (mianzi) for all concerned.

The manager should be seen as a type of father figure who expects and receives loyalty and obedience from colleagues. In return, the manager is expected to take an holistic interest in the well-being of those colleagues. It is a mutually beneficial two-way relationship.

Senior managers will often have close relations to the Communist Party and many business decisions are likely to be scrutinised by the party which is often the unseen force behind many situations.
It is often said that China has a lack of good-quality, experienced managers - this is typical of a rapidly growing and modernising economy - and that the good managers who are available are very expensive (even by Western standards.) This places enormous emphasis on any company's recruitment and retention policies - you have to be able to recruit the best and then keep them.
Chinese Meetings
China:
It is important to show respect to those to whom respect is due - this is one of the ways in which you can show yourself to be honourable and in turn worthy of respect. Respect should be shown to age, seniority, party membership, the history and traditions of China, political sensitivities, the company, the region....... the list is almost endless. Stand up when a senior person enters the room, offer the seat of honour and be attentive even if the key person's English is weak.

Business cards are always exchanged on first meeting a new contact. Cards are held in both hands when exchanging and then scrutinised in detail. It is best to have your card printed in Chinese on the reverse and always offer it Chinese-side up. Treat the card with great respect as the card is the man.

Handshaking is the norm but a Chinese handshake will tend to be light and lingering. As it is considered impolite to look people straight in the eye, it is customary to look down, lowering the eyes as a mark of respect.

It is common to be involved in a series of meetings rather than one big meeting at which all major issues are disclosed and assessed. Meetings are about building relationships and exchanging information - it is rare for a decision to be made within the meeting. Decisions will be made elsewhere in consensus-style discussions, which involve all the relevant people (including possibly the Party.) As a result of this approach to meetings and their serial nature, patience is very definitely a virtue. Impatience will achieve nothing other than delaying things even more.

Gift Giving
Although there is a large amount of well-documented corruption which takes place within the Chinese business environment, the giving of gifts is endemic to Chinese culture and has been for thousands of years. The giving and receiving of gifts is part of the ritual of business relationship development - and in a country where relations are placed firmly before business, gifts are therefore an important business tool. A mere 'thank you' for a favour done is considered rude by the Chinese.

Avoid expensive gifts, as this could be mistaken for bribery (a serious criminal offence) and always wrap the gift. If visiting an organisation, take one gift to present to the whole group. Gifts are often refused two or three times before being accepted and, if wrapped, rarely opened in front of the giver.
Chinese Teams
China:
Despite being highly hierarchical in approach to structure and organisations, the Chinese remain consensus-oriented and it goes without saying that consensus players make good team members. The whole cultural emphasis is on group orientation with individual needs and desires being sublimated to the greater good of the whole. People belong to a number of groups but the ones with the strongest pull would be the family, the dan wei and the Party.

One of the downsides (from a Western perspective) of this strong group orientation is a perceived lack of individual initiative. It would be unusual for an individual to act unilaterally without involving other members of the group. Standing out from the crowd can be viewed as very negative and result in personal difficulties.
Always try to give detailed and complete instructions. In a culture where the boss is the boss, people tend to do what they are asked to do, seeing anything beyond that as possible insubordination. If things don't happen that you wanted to happen, start by reviewing your own instructional style - if your instructions were a bit vague, it is likely that there will be a degree of confusion.
Chinese Communication Styles
China:
Unless you speak Chinese, (Mandarin being the most common as well as the official dialect), it can be difficult to do business in many parts of China without the aid of a translator. English language levels are very patchy and although a layer of fluent English speakers exists, the layer is quite thin and levels fall away very quickly. Communicating in China can, therefore, be a slow, laborious activity and fraught with constant dangers in terms of misunderstanding and mistranslation. Don't assume comprehension. Cover the same ground several times and constantly check for understanding.

One of the reasons that communication can be such a problem in China is that along with many other Asians, the Chinese find it extremely difficult to say 'no'. Saying 'no' causes both embarrassment and loss of face and it is therefore better to agree with things in a less than direct manner. Thus anything other than an unequivocal 'yes' probably means 'no'. Be very wary of phrases such as 'Yes but it might be difficult' and 'Yes, probably'.

It is also difficult to deliver bad news and this is often done through the use of an intermediary who can soften the blow and try to preserve as much good-will within the relationship as possible.

The Chinese have a reputation for 'impassiveness' and this is largely based on Western misinterpretation of Chinese body language. As with the Japanese, the Chinese use a very limited amount of visual body language and Westerners interpret this rigidity as a lack of responsiveness and emotion. Lack of overt body language does not mean that the Chinese do not show their reactions - more that westerners are not skilled at reading it across the cultural divide.
Finally, don't always assume that just because somebody happens to speak 'good' English that they will automatically more competent than soembody who doesnt. Unles frequent interface into the West is tantamount, fluency in English should be seen as an added extra.
Women in Business in China
China:
Officially, women have the same rights as men in the workplace and the party has promoted this sense of equality over the past thirty years or so. However, traditional Confucian thinking does not sit easily with this notion of gender equality and it is somewhat ironic that the liberalisation policies of the last decade might have reversed many of the advances made by women in Chinese society under the previous hard-line regimes.
Foreign businesswomen will be treated with great respect and courtesy. They may find that, within a delegation, the Chinese defer to male colleagues regardless of the actual seniority of the western party - the Chinese assumption being that the male will naturally be the decision-maker.
Having said that, it is now more and more common to encounter woment in reasonably senior roles in large Chinese organisations - especially in the larger, more modern cities. Chinese women are highly succesful within the education city and are actively managing their careers.
Chinese Dress Code
China:
One of the most visible changes to the human landscape of China over the past few decades has been the change in dress code.
Gone is the standard unisex Mao jacket and trousers in blue or green and these have been replaced by a much more western style of dress - especially in the commercial and urban areas. Many men now wear suits and ties and women tend to wear skirts and blouses of a modest cut.It is advisable to have smart business attire with you when visiting.
Appearance is important within Chinese business circles. Successful people are expected to look successful. Wealth is admired, so wear good quality clothes, watches etc. if you want to impress - but don't be overly ostentatious.
Be aware of the vagaries of the Chinese climate, which veer from sub-tropical to freezing and dress appropriately for the weather conditions. Make sure you check the weather conditions before you travel and check the climatic zone of the city you are visiting - China is a big place.
China:
Tip 1
Guanxi, or personal relationships are of vital importance when doing business in China. Do not underestimate the importance of the relationship building process.
Tip 2
People are comfortable building relationships with honourable people who show respect to those to whom respect is due.
Tip 3
As all relationships are unequal it is important, if you wish to appear honourable, to show respect to age, seniority and educational background.
Tip 4
Managers tend to be directive, which reflects basic Confucian concepts of the hierarchical nature of society.
Tip 5
In return for loyalty, the boss is expected to show consideration and interest in all aspects of a subordinates' life.
Tip 6
There are often close relationships between senior management of a company and local party officials.
Tip 7
It is important that you do not make people 'lose face' in front of their group. Always respect seniority and do not openly disagree with people.
Tip 8
Do as many favours for people as possible - debts must always be repaid.
Tip 9
Business cards should be formally exchanged at the beginning of meetings. Treat the business card with great respect, as the card is the man.
Tip 10
Meetings are often long and seemingly without clear objectives. Very often the meeting is an exercise in relationship-building and the aim of the meeting is to move the relationship, rather than any specific business task, forward.
China:
Tip 11
It can take several, very long meetings before any tangible progress is made. Patience is essential if you wish to capitalise on the situation.
Tip 12
The Chinese are very interested in long-term commitment. Build long-term goals and objectives into your proposals.
Tip 13
Do not be too direct. Strive for diplomacy, consensus and harmony. Remember that this takes time to achieve.
Tip 14
Do not assume comprehension. It is often useful to go over the same point several times from different angles in order to aid comprehension.
Tip 15
It is difficult for the Chinese to say 'no' directly. Anything other than a direct 'yes' could mean 'no'. Be circumspect and reflect on seeming agreements reached. Has an agreement actually been reached?
Tip 16
It is difficult to read body language as, by western standards, it is somewhat muted in China. Be very alive to any changes of posture, animation etc.
Tip 17
Gift giving is an everyday part of Chinese business culture. Giving and receiving gifts helps to cement relationships. Take gifts with you when visiting and put some thought and effort into the gift selection process.
Tip 18
Always wrap gifts before giving them. Gifts are rarely opened in front of the giver.
Tip 19
The Chinese are an intensely patriotic race. Do not make disparaging remarks about China, the political situation, human rights etc.
Tip 20
Entertaining is very important in the relationship building process. If entertaining, do it well. If being entertained at a banquet, take you lead from your hosts - they will enjoy taking you through the process.
Successful Entertaining in China
China:
If you are invited to a banquet in China, prepare yourself for a meal to remember. The banquet can consist of up to thirty dishes being served over a period of time and it is therefore wise to pace yourself. Try to eat a little of each dish rather than sticking to the one you recognize. It is traditional to leave some food — if you finish everything, this can be taken as a sign that you are still hungry!

The seating arrangements at a banquet are very complex and linked to perceptions of hierarchy and status. If you are invited, you will be shown where to sit. However if you are the host it is probably best to get some local advice on the best seating plan if you want to avoid insulting anybody.

The meal is usually coming to an end when the fruit is served and the hot towels given out. It is possible to leave after this stage of the proceedings — although the host is unlikely to initiate your departure.

Meals can be accompanied by a great deal of smoking — even during the courses. The idea of no-smoking restaurants hasn't really taken off in China. It is acceptable to belch and slurp during the meal as this is taken as a sign of appreciation.

Alcohol will in invariably be consumed in quite large quantities during a formal banquet — mainly either beer or local clear alcohols which can be very potent. Although it is not really a problem if you drink a little too much, it is probably safest to be wary of unknown local liquors.

Traditionally, tipping was unusual in China, although it is starting to become more common in newer westernised establishments.

China: China in Figures | Land Area | 9, 560,900 | Population: | 1,346m | Population density: | 140 sq km | Life expectancy: | Men 72 yrs
Women 76 yrs | Adult literacy: | 94% | Average per household | 3.4 | Divorces per1,000 : | 1.6 | The Economy | Currency: | Yuan | GDP: | US$1,932bn | GDP per heads: | US$1,470 | Employment (% of total): | Agriculture 41%
Industry 46%
Services 43%
Unemployed 4% | Main Exports:Type: | Office equipment
Clothing
Telecoms equipment
Electrical machinery | Destinations: (% total) | USA 18%
Hong Kong 14%
Japan 8%
South Korea 4.5%
EU27 19% | Main Imports:Type: | Electrical machinery
Petroleum products
Professional & instruments
Metal ores & scrap | Main countries of origin: | Japan 13%
South Korea 10%
Taiwan 8%
USA 8%
EU27 13% |

GERMANY

Doing Business in Germany
This country-specific section gives a comprehensive description of German business culture which will help you to interact more effectively with your German clients and colleagues. Although each sub-section on the right focuses on one particular area of business culture in Germany, it is recommended that all of the sections are studied in the order they are shown.

When you have completed the German business culture profile, you may feel you need to learn more about some of the other business cultures you deal with - if so go back to the Countries Home Page and pick another country to study.

Background To Business in Germany
Germany:
The fact that Germany has survived the post 2008 recession well is a testimony to the underlying strength of the German economy and, more interestingly, the strength of its much-vaunted manufacturing base. Interestingly, unemployment rates in Germany are now lower than they were pre-2008 an exports are considerably higher.
For a number of years people were warning that the German model was unsustainable - both labour an social costs were said to be way too high - and that the country would need to make radical policy changes to withstand the growing competion from low-wage economies such as China and India. Yest, despite these challenges and despite the cost of the post 'cold-war' integration of the former East Germany, the country's economy seems in rude health.
It is, therefore, worth reassessing the German business model to see what can be learnt from it - especially as post war German success was achieved without too much attention being given to the 'science' of business management which had been the vogue in the U.K. and even more so in the U.S.A.

In Germany, much greater attention has been paid to academic, technical education and its value to business in general. Therefore, companies tend to be run by technical experts rather than lawyers and accountants and this is reflected in the high regard in which engineers are held by other Germans.

Diligence and competence are characteristics which are held in high esteem by colleagues and are seen as the key indicators of performance. Appraisal systems based on the softer competencies as favoured by many U.K. and U.S. firms are still not common in traditional German companies.
German Business Structures
Germany:
Most of the power in German companies is vested in the hands of a few senior managers. Larger companies (AG & GmbH) have a Supervisory Board (Aufsichtsrat) which appoints the Management Board (Vorstand). The management board is the final decision-maker on policy matters which affect management.

The members of the Vorstand have shared responsibility for the overall management of the company and this means that the chairman of a company has considerably less personal power than in certain other countries — management at the top could be said to be collegiate.

However below Vorstand level, companies tend to have a strictly hierarchical approach within which individual's specific roles and responsibilities are tightly defined and compartmentalised. This results in a methodical approach to most business issues where procedures and adherence to well-defined rules are respected.
This methodical approach has both good and bad points. On the plus side, everybody knows what is expected of them and has a process to help them achieve clearly identifiable goals. On the other hand, a criticism that is often levelled at German industry as a whole and at German business people individually is that they are inflexible and slow to change to new situations.
German Management Style
Germany:
Managers in Germany are expected to be technically capable in their respective areas and to show strong, clear leadership. Although disagreement with a superior will rarely be seen in public this does not mean that Germans are 'Yes' men. Subordinates tend to respect the technical abilities of their superiors and this will impact on their willingness to implement instructions. (The interesting corollary of this is that when less technically proficient non-Germans are asked to manage a team of Germans, the non-German can sometimes be seen as lacking the key prerequisite for developing the team's respect.)

Responsibility is expected to be delegated by the manager to the member of the team who is technically competent to carry out a particular task. The team member then expects to be left to perform the task without undue interference or supervision. Thus instructions need to be clear, precise and above all unambiguous.

People from cultures where managers are expected to develop a closer, more intimate ambience can see the German manager-subordinate relationship as distant and cold. The higher up the organisation people rise the more a sense of the 'dignity of the position' becomes apparent. Socialising tends to be at peer group level rather than up and down a hierarchy.
German Meetings
Germany:
As in all cultures there are various types of meetings which people will approach in different ways. On the whole though, Germans could be described as 'pre-planners' who like to attend meetings having done a considerable amount of preparation in order to help them debate their point of view with conviction. This sense of conviction, coupled with the often very direct nature of debate, can be mistaken by people from other cultures as intransigence, pedanticism and even arrogance. Some people charge that German's have always made up their minds on an issue before arriving at a meeting but this is not necesarily the case. They just want to argue their view point thoroughly and support it with well-researched data.

As German companies tend towards the development of specialists, rather than generalists, meetings are often large with a designated specialist from each area involved in the matter under discussion. People are expected to contribute to the debate when discussions touch their area of expertise but are not necessarily expected to have an opinion on everything.

As direct, often strong, debate is expected and encouraged in order to promote the development of the 'right' answer, meetings can sometimes seem to be quite heated. People from those cultures whose communication style is rather more diplomatic than direct can often misinterpret these discussions as overt, deliberate confrontation.
German Teams
Germany:
Teamwork in Germany could probably be best described as a group of individuals working to a specific leader towards a recognisable goal. Within the team, each member has a set, well-defined role which is adhered to. Lines tend not to be crossed as this could promote confusion. Team members are respected for their technical ability and functional knowledge and are allowed to peform their tasks without too much supervision (which can be seen as unnecessary intrusion.)

Cross-departmental teams can often prove very difficult to manage, as people are asked to make decisions in a vacuum which might adversely affect their area of the hierarchy. Thus decisions made at cross-departmental project group level are often revisited after group members have reported back to their superiors.
German Communication Styles
Germany:
Germans put truth and directness before diplomacy, believing that the fact is the important issue and that personal emotions should not deflect the truth from being spoken. This directness can be interpreted by certain cultures (U.K, Japan, Korea etc.) as rudeness. It should be noted, however, that direct speaking is seen in Germany as a sign of respect and a fundamental in the search for the correct answer to a particular problem.

This directness in communication style also manifests itself in a lack of self-deprecation and coded language. A charge of arrogance is sometimes levelled at German businessmen and, although there is great pride taken in German achievements, this perceived arrogance is more a misinterpretation of direct speech. Germans will give a factual rendition of their own capabilities, which is not the same as arrogance. You can generally take a German at his word on these matters whereas certain other cultures will be far more vague in their use of language.

Much is made of the lack of humour in evidence in Germany. It is certainly not true to say that Germans lack a sense of humour. As with all cultures they have a highly developed sense of humour. The differences lie in positioning and style. There is a time and a place for humour in Germany and its place is not so much during the serious business of business. The more serious a situation, the more seriousness is called for. It is also important to remember that humour does not always, or even very often travel successfully. What is funny in one culture can come across as nonsense in another.
Presentations are expected to be suported with a lot more specific detail than might be felt necessary in countries such as the US or the UK. Lack of supporting detail can severly weaken the credibility of an argument.
Women in Business in Germany
Germany:
Although more and more women are making inroads into more senior positions in German companies, it is noted that Germany lags behind many other European countries in its progress in this issue. The preponderance of engineers in senior positions in German companies and the traditional lack of women studying these disciplines possibly accentuate this lack of progress.

Many commentators would say that the introduction of European statutes on workplace diversity, coupled with Germany's changing demographics, will quicken the pace of change in this area.

German Dress Code
Germany:
On the whole, Germans dress smartly for business but do not restrict themselves to the dark blue and dark grey suits favoured by many U.K. and Asian business people.
It is common for men to wear sports jackets and trousers with a shirt and tie in business situations and for women to wear smart casual clothes. Trousers for women are commonplace.
In some of the new technology industries, dress is more casual - with jeans being seen as acceptable attire.It is always best to check on dress code before meeting a new company.
Germany:
Tip 1
Germans are uneasy with uncertainty and ambiguity. They like to analyse problems in great depth before reaching a conclusion and are uncomfortable with 'feelings' or 'hunches' in the business setting.
Tip 2
In-depth, long-term planning is both expected and respected. Such planning helps, in large measure, to shape the future.
Tip 3
The greatest amount of respect is due to the person with the greatest depth of technical merit. Therefore, education is highly prized.
Tip 4
Once decisions have been made, everybody is expected to carry them out without question, regardless of their agreement or disagreement with the original decision.
Tip 5
The boss is expected to know his/her subject and give clear leadership. As there is a strong respect for authority, subordinates will rarely contradict the boss in public.
Tip 6
Outbursts of emotion in the workplace (anger, frustration etc.) are seen as signs of weakness and lack of professionalism.
Tip 7
Employees expect to be given precise, detailed instructions regarding specific tasks, but then expect to be left to carry them out without undue interference or supervision.
Tip 8
Relationships between bosses and subordinates tend to appear somewhat formal.
Tip 9
Appraisal systems are difficult to implement. Germans are expected to perform their tasks professionally and correctly. Why should positive feedback be necessary?
Tip 10
German companies tend to be hierarchical and departmentalised. Each department seems to guard its power base and information is expected to flow through proper channels.
Germany:
Tip 11
Teams built across hierarchical lines tend to be difficult to arrange and manage as they interfere with the normal structures and rules.
Tip 12
Meetings tend to be formal, unless on a one-to-one basis. If you want to find out opinions, possible trends of thinking etc., it is often more successfully done in an informal one-to-one meeting.
Tip 13
Germans usually arrive extremely well prepared-for meetings with all the facts and figures at their disposal. The idea of attending an important meeting with no firm opinion would be quite unusual.
Tip 14
The truth does not lie in a compromise or middle ground between two conflicting ideas. Compromising can be seen as weakness, diffidence or uncertainty.
Tip 15
It is better to say nothing than to comment on topics about which you have no particular knowledge or expertise.
Tip 16
Internal information flow is top-down on a need-to-know basis. It is expected that superiors are better informed than others are.
Tip 17
More reliance is placed on the printed than the spoken word and it is always important, therefore, to put information, decisions etc. in writing.
Tip 18
Humour is generally out of place in the work place. You should certainly avoid humour in all difficult or important business situations. However, when socialising with Germans you will find that they are as keen to enjoy themselves as you are.
Tip 19
Punctuality is important - do not be guilty of stealing time.
Tip 20
Germans may seem extremely formal - even amongst themselves. This over-formality is a sign of respect as is using the formal Sie and Herr or Frau with people they may have known for many years.
Successful Entertaining in Germany
Germany:
As Germans tend to make quite a strong separation between work and their private life, it is fairly unusual to be taken out for dinner and even rarer to be invited to someone's home. Most business entertaining is done over lunch — either in a restaurant or, at larger companies, in company facilities.

It is not unknown to talk about business during the meal, although it is probably a good idea to try to introduce a few non-work related topics. (Sport is often a good option.)

If invited out for a meal, the host will always expect to pay. Similarly, if you invite someone for a business lunch, you will be expected to pick up the bill. In Germany, the knife is used throughout the meal. Eating with only one hand, with the other hand placed on one's lap under the table, (as is common in North America) is not considered particularly good table etiquette.

Although alcohol may be offered at a business lunch, many Germans will refrain from drinking during the working day — take the lead from your host.

It is usual to leave a tip of around 10% at the end of a meal.

Germany: Germany in Figures | Land Area | 357,858 sq.km | Population: | 82m | Population density: | 230 sq.km | Life expectancy: | Men 78 yrs
Women 83 yrs | Adult literacy: | 99% | Average per household | 2.1 | Divorces per1,000 : | 3 | The Economy | Currency: | Euro | GDP: | $3,330bn | GDP per heads: | $40,670 | Employment (% of total): | Agriculture 1%
Industry 26%
Services 73%
Unemployed 6% | Main Exports:Type: | Machinery & transport equipment
Chemicals
Food & drink
Mineral fuels & lubricants | Destinations: (% total) | France 10%
USA 7%
Netherlands 7%
Italy 6%
EU27 63% | Main Imports:Type: | Machinery & transport equipment
Chemicals
Food & drink
Mineral fuels & lubricants | Main countries of origin: | Netherlands 13%
France 8%
Belgium 7%
China 7%
EU27 65% |

FRANCE

Doing Business in France
This country-specific section gives a comprehensive description of French business culture which will help you to interact more effectively with your French clients and colleagues. Although each sub-section on the right focuses on one particular area of business culture in France, it is recommended that all of the sections are studied in the order they are shown.

When you have completed the French business culture profile, you may feel you need to learn more about some of the other business cultures you deal with - if so go back to the Countries Home Page and pick another country to study.
Background To Business in France
France:
France finds itself at a difficult crossroads as the cold economic climate post-2008 challenges the viability of the country's traditional social models. With unemployement running around the 10% mark and many people calling for even further pro-market reforms, the modernisers find themselves at odds with tradional vested interests - and these vested interests have been historically highly influencing in shaping both internal policy and approach to business.
It could be said that two particular elements play a greater role in approach to business in France than in any other industrialised economy (other than possibly Japan). These two essential ingredients are the role of the government and the importance of a certain type of education.

The French government has played a central and vital role in the shaping and direction of French companies ever since the end of the Second World War. Indeed the government, even in the late eighties, was actively fostering the development of a number of 'national champion' companies which would be large enough to face up to global competition. One of the interesting aspects of these interventionist policies is that they have been largely accepted by mainstream business, which has worked hand in hand with senior civil servants in the ministries.

This level of co-operation between the government and industry has been aided by the influence of the French education system, which pushes the brightest pupils through a system of elite schools known as the Grandes Ecoles. Graduates of the Grandes Ecoles tend to enter either large commercial organisations or the civil service and this educational brotherhood has created an affinity of thinking across the senior echelons of French business society. It has even been said that the best way to become a PDG (CEO) of a major French company is through a senior position in an important ministry.
France remains the 5th largest economy in the world and boasts world leading organisations in banking and finance, aeronautics and many hi-tech fields.
French Business Structures
France:
French companies tend towards rigid hierarchy and functionality within which system the PDG (CEO) holds great sway. The PDG determines in a singular way the future direction of the company. This vision is then disseminated down the line for implementation by more junior management. Senior management, therefore, tends towards the directive, rather than the collaborative, as might be found in such countries as the Netherlands or Sweden.

The power often vested in the hands of the PDG obviously adds impetus to a centralist approach, which is already discernible in many other aspects of French life. Below the PDG will be found a strict hierarchy of managers, organised along rigidly functional lines of responsibility. (All reporting lines leading eventually to the PDG.)

To those from a less hierarchical background, this approach often seems to be eminently well suited for operations which are performing well and producing results. The weaknesses of the system may only become apparent when problems arise and quick responses are called for. With little buy-in having been sought lower down the line, a sense of personal responsibility could be found lacking.

French Management Style
France:
Most senior management in most French companies were educated at the Grandes Ecoles which are the elite schools of France. These colleges champion an intellectual rigour in their students, which is rarely matched elsewhere in the world. This produces a highly educated management population, which approaches leadership with an unusual degree of academic precision. 'Intellectualism' is something to be cherished rather than sneered at and a comment once attributed to French management was that 'this idea seems alright in practice but will it work in theory?'

Thus, management is an intellectual task to be mastered and thought about in terms of detailed analysis, the complete mastery of complex concepts and information and the eventual application of rational decisions. More pragmatic issues of buy-in, motivating staff etc. (in the Anglo-Saxon understanding of these terms) are not as prominent in French management thinking.

Decisions, once taken at senior levels, will be passed down the chain to lower management for implementation. This directive approach can be seen, especially by those from a consensus oriented, non-hierarchical background, as being overly authoritative and lacking in the necessary team-building elements.
French Meetings
France:
As management style tends towards the directive, meetings can often be more for the dissemination of information of decisions previously arrived at than for the open debate of perceived difficulties. They will often be chaired by the boss and follow a set agenda as determined by the boss. In such formal meetings it would be rare to contradict the boss openly - this will have been done elsewhere, prior to the meeting in more informal lobbying sessions. If meetings sometimes appear to be a rubber-stamping exercise, it is because that is what they often are. In such an environment, it is vital to be actively involved in the pre-meeting lobbying if any influence is to be brought to bear.

Meetings, which take place between peers without the presence of a senior figure, will be more open and less rigid. Open debate will often be seen in such situations and this debate can often become heated - especially when people are defending the validity of their own cherished logic. In such meetings, strong confrontations can often occur which reflect the sense of competition often found just below the surface at peer group levels in large organisations.
Cartesian logic is at the heart of French thinking and this process introduces the thesis - counterthesis approach where adversarial debate around a topic is seen as very healthy. This can be seen as disagreeing for disagreeing's sake through the eyes of more consensus-minded cultures.
French Teams
France:
The education system fosters a sense of rivalry and competition from an early age, with peers competing to pass entrance examinations to gain entry into the elite Grandes Ecoles. A sense of team working is not encouraged in this process and does not therefore come naturally in later working life. People prefer to have definable, personal sets of objectives rather than to work in more general team roles. Thus teams are often defined as sets of specialists working on single issues for a strong leader.

Teams arranged between functional lines for the purpose of promoting one particular project (as found in the USA) are often difficult to implement, with loyalties being divided between the project team and the 'home base' of the team member.
French Communication Styles
France:
The way in which you say something in France is almost as important as what is actually said. There is a great love of and respect for elegance in the use of language and the sophisticated presentation of ideas is raised to an art form. A sense of national pride makes it difficult to listen to the language being spoken badly (or even worse to have to read poorly constructed French!) If you speak poor French, it may these days be better to do it in English.

Debate in France can often be seen as highly confrontational by those from a non-confrontational background. In France, the drawing of distinction is almost an intellectual goal - a goal which will help to move the process forward. Building on similarities is not seen as such a positive.

During discussions, interruptions will often occur, with other parties in the conversation joining in and emotions can seem to be running high. This animated, somewhat theatrical style is, again, viewed as conducive to reaching the end results.

The French admire the logical exposition of well defined ideas and when listening can be heard making such comments as - 'it's not logical', which is a good indication that problems lie ahead. Such a comment might be more accurately interpreted as ' I don't see the logic of your argument, therefore I can't buy it.'

Written business French is extremely protocolistic and formal with an etiquette which can seem anachronistic in translation. However, it is important that anything sent in writing is rigorously checked, as the ability to produce correct written language is seen as a sign of intelligence and good education.
Women in Business in France
France:
Women are gaining an increasingly prominent position in French business life - with particularly strong representation in retail and service industries. Once again, the prerequisite for success as a woman is to have achieved a suitable level of education.

Some evidence points to less progress having been made in the more engineering-based industries and that they are less accepted in senior positions outside Paris.
Ex-patriate women working in France should feel little gender bias towards them and will be judged on their intellect, verbal skills and technical ability.
French Dress Code
France:
Dress codes vary with position within the company, industrial sector and region in France.
The higher the position within a larger organisation, the more formal will be the dress code with formal suit and tie being worn.The further south one travels, the more informal business dress becomes, with open shirt and slacks being the norm.
One thing that is common to all areas and all positions however is the need to appear well-presented. Casual does not mean scruffy. Appearances are important at all times in France.
France:
Tip 1
Educational background and intellectual dexterity are important commodities in France.
Tip 2
French government and industry have traditionally had a closer relationship than has been in evidence in many other industrialised nations and this has resulted in many senior civil servants taking senior roles in industry.
Tip 3
Long-term planning has been a central tenet of the French approach for many decades and leads to detailed forward planning by companies.
Tip 4
In keeping with the centralist tendencies apparent in France, most major French companies have their HQ in Paris - where most major decisions will be made.
Tip 5
The CEO (or PDG) of a French company is usually a highly charismatic leader who guides the general direction of the company in an authoritative manner.
Tip 6
French companies tend towards rigid hierarchies with clear upward reporting and decision making lines.
Tip 7
Socialising across hierarchical lines is quite unusual.
Tip 8
Promotion is gained through a combination of seniority, educational achievement and demonstrated competence.
Tip 9
Management style is often directive with instructions being given to subordinates in information style meetings.
Tip 10
Little open dissension with the boss will be witnessed in open, formal meetings. Any such disagreements will be aired in pre-meeting lobbying sessions.
France:
Tip 11
Peer-group competitiveness can make cross functional project teams difficult to manage.
Tip 12
Logic is expected and respected. Any lack of discernible logic could be interpreted as sloppy thinking or lack of intelligence (or both).
Tip 13
There is less job-hopping than in some other countries. The French have traditionally been one-company focussed in their professional life.
Tip 14
First names are often used amongst peers (especially amongst the younger generation), although surnames are often reverted to in more formal situations or when dealing with superiors.
Tip 15
Eloquence is an important attribute and French managers will often try to dominate people through the force of their rhetoric.
Tip 16
It is important that any written communication is produced in a grammatically correct format.
Tip 17
Humour is based on wit and the intelligent use of satire - neither of which translate very well. The French are less likely to use humour in very serious situations in business than some other nationalities.
Tip 18
A strong separation is made between business life and private life and between business time and family time.
Tip 19
Business lunches can be long and not necessarily for the discussion of business. They are more a relationship building occasion than a place to discuss the finer points of a contract.
Tip 20
Punctuality is variable - possibly better in Paris than in the provinces.
Successful Entertaining in France
France:
It is a truism to say that food is important to the French and that business entertaining should be considered a matter of great importance. Business lunches are the most common form of entertaining business contacts with breakfast or evening events being much rarer.

Lunch is usually quite a grand affair and will usually comprise of starter, main course and desert followed by coffee. Wine will also often be served.

The quality of French food is a matter of great national pride and therefore talking about food is a national obsession. On the whole, you are much better advised talking about the food or other social issues during a business lunch than talking about business. The meal is a time for cementing relationships and learning more about each other. Business matters should only be raised during the coffee.

If inviting French contacts out to lunch, make sure you take them to a good quality restaurant and, unless you are an expert, let them chose the wine.

Restaurants usually include a 15% service charge but it is still customary to leave a small tip as well. Tipping is not compulsory in France but is recommended. (10% would be adequate.)

France: France in Figures | Land Area | 543,965 sq km | Population: | 62.3m | Population density: | 114 sq km | Life expectancy: | Men 79 yrs
Women 85 yrs | Adult literacy: | 99% | Average per household | 2.3 | Divorces per1,000 : | 2.3 | The Economy | Currency: | Euro | GDP: | $2,649bn | GDP per heads: | $41,050 | Employment (% of total): | Agriculture 3%
Industry 23%
Services 74%
Unemployed 10% | Main Exports:Type: | Machinery & transport eqip
Chemicals
Food & drink
Mineral fuels | Destinations: (% total) | Germany 16%
Italy 8%
Spain 8%
Belgium 8%
EU 27 62% | Main Imports:Type: | Machinery & transport eqip
Chemicals
Food & drink
Mineral fuels
Raw materials | Main countries of origin: | Germany 19%
Belgium 12%
Italy 8%
EU27 69% |

JAPAN

Doing Business in Japan
Japan is a bit of anomaly, being not part of the Western world but being on an economic par with most Western countries, not only in terms of Global Domestic Product but also in levels of individual prosperity. Japan is not an emerging market – it emerged a long time ago – but it finds itself surrounded by some of the world’s largest emerging markets and as a result is finding its position as Asia’s leading economy under threat. China and India continue their relentless economic rise and South Korea has become the predominant cultural influence in the region.

So what is the future for Japan? It is still the home of some of the world’s largest corporations and boasts a whole range of globally recognised and respected brands – from Toyota to Nintendo – and has business links in every corner of the world. Can Japan maintain its influence and position as one of the world’s true economic superpowers or will its influence and prosperity wane over the coming decades? The answer to the question lies with the Japanese and their ability to adapt and more effectively co-operate on a global stage. Until now, however, adaptation and change are not words which have sat easily in the Japanese mindset.

Japan remains stubbornly Japanese and many business visitors will observe that Japan is like no other business destination. In India, you may be assailed by the crowds and the noise, in Nigeria you will be faced with bureaucratic and potential corruption issues but in Japan you are faced by the fact that it is just very different. The infrastructure works, the hotels are great, the food is now commonly eaten around the world but the approach to business is – just very different.

Old Japanese rules of business engagement are still the norm in all reasonably-sized Japanese organisations and without a knowledge of how things work in Japan, you will undoubtedly struggle. In a country where face and hierarchy are of paramount importance and where the importance of long-term relationships are of far greater value than any specific business opportunity you may be keen to push through but things take time. Patience is a virtue and the ability to remain calm and hide any frustrations is paramount.

Things may well change in Japan but at the moment, Japan is still Japan and it is important – if you are dealing with the Japanese –to have a really good understanding of how the Japanese think and operate. Trying to do things your own way and assuming that the Japanese will ‘understand where I am coming from’ invariably fails. Do you homework on Japanese business culture and then do some more.

This country profile is a starting point to understanding some of the key concepts you will need to factor into your dealings with any Japanese counterparts – but it is only a starting point. When you have read this profile, why not purchase one of the books suggested on the Japan pages or, better still, contact info@globalbusinessculture.com to discuss corporate training and development on this topic.

Background To Business in Japan
Japan:
Despite the recent growth of China and India as both regional amd global economic super-powers, Japan remains a major force in world commerce with leading players in such diverse sectors as banking and finance, computing, software, automotive and pharmaceuticals and it would be unwise to switch attention away from this potentially lucrative market.
May people find Japan both fascinating and difficult as a business destination and often leave the country more confused than when they arrived. The Japanese approach to business is determined by history and as such is a reflection of Japanese society as a whole. In order to work and interact successfully with your contacts in Japan, a basic understanding of some of the underlying concepts governing business life is essential.

Some of these underlying concepts are so fundamentally different from western models that adjustment can be difficult and complete comprehension almost impossible. The most important concept to grasp is that of the overwhelming importance of personal relationships within the business cycle. Of all the business cultures of the world, Japan is one of those most strongly rooted in the concept that relationships should come before business, rather than business being more important than personal considerations.

This means that in order to achieve success in Japan, it is important to put the maximum amount of time and resource into the early stages of relationship-building — even when eventual results may seem a long way off.

Business models in Japan have been under enormous strain for more than a decade and there is massive pressure (both internal and external) for reform. Yet change comes slowly to Japan and old traditions and loyalties linger. Expect changes to happen, but do not expect an easy or quick transition - and do not assume that any changes will result in business models that will be immediately or easily understood by outsiders. apanese Business Structures
Japan:
Up until World War Two, Japan was dominated by a small number of very large companies, the zaibatsu, and these companies had massive influence on the economy. However, in recent years the Japanese economy has become much more varied in terms of the size and structure of its companies, producing a complex web of inter-locking relationships between large and small firms. Competition amongst these smaller firms is very strong which results in a great number of bankruptcies in this sector — therefore the concept of life-time employment enjoyed by the total workforce is, and has been for some time, a myth.

Japanese companies, like Japanese society, are hierarchically organised with individuals knowing their position within a group and with regard to each other. It is this sense of belonging to the group that gives Japanese companies their strength and purpose. Group orientation and team working are not merely concepts and phrases in Japan but a way of life which permeates all aspects of corporate life at all levels.

Japanese hierarchy is based on consensus and co-operation rather than the top-down decision making process which often typifies western models of hierarchy. This means that people feel actively involved and committed. It can also mean that decisions are slow and have to be based on deep analysis or large amounts of information. 'How can we get the Japanese to make their decisions more quickly' is a question often asked by western businessme. The answer is probably, 'you can't!'
Japanese Management Style
Japan:
Japanese management emphasises the need for information flow from the bottom of the company to the top. This results in senior management having a largely supervisory rather than 'hands-on' approach. As a result, it has been noted that policy is often originated at the middle-levels of a company before being passed upwards for ratification. The strength of this approach is obviously that those tasked with the implementation of decisions have been actively involved in the shaping of policy.

The higher a Japanese manager rises within an organisation, the more important it is that he appears unassuming and unambitious. Individual personality and forcefulness are not seen as the prerequisites for effective leadership.

The key task for a Japanese manager is to provide the environment in which the group can flourish. In order to achieve this he must be accessible at all times and willing to share knowledge within the group. In return for this open approach, he expects team members to keep him fully informed of developments. This reciprocity of relationship forms the basis of good management and teamwork.

Instructions from managers can seem extremely vague to western ears and this often causes confusion and frustration. This difficulty is caused, in no short measure, by problems around styles of communication. As users of coded-speech (where what one says does not necessarily correspond to what one actually means), direct, clear instructions are not needed. The Japanese subordinate will second-guess the boss 'wishes' to happen and react accordingly. It is, therefore, often necessary to ask for clarification if tasks seem vague or unclear. It is better to seek clear understanding at the outset that to allow misunderstandings to produce poor results or tensions in the relationship. Japanese Meetings
Japan:
Punctuality is important — it shows respect for the attendees. However, due to the consensus nature of decision making in Japan, it can very often be difficult to determine a finish time. Always allow slightly more time than you think might be necessary to achieve your goals.

Meetings are often preceded by long, non-business polite conversation which could cover such topics as mutual contacts, the merits of your company, Japanese food etc. Do not become exasperated by this use of your time, as it is an essential element of the relationship-building process. Show your impatience at your peril.

The concept of Wa, which is probably best described by the English word harmony, lies at the heart of the Japanese approach to meetings. Although it is important to search for a solution, this must not be achieved at the expense of disturbing the peace. No individual will wish to proffer a strong opinion, which might cause some form of confrontation and therefore affect Wa.

Japanese decisions are reached through a process of consensus-building meetings, each of which is concerned with the preservation of Wa. This means that the decision-making process can seem very long and drawn out. Patience is essential in these situations, as to show impatience could have an adverse effect on the all-important Wa.

Business Cards
It is important, when doing business in Japan, that you have a plentiful supply of business cards — with information printed on the back in Japanese.

Cards are presented at an early stage in a formal manner. Present and receive the card with two hands. (Present your card Japanese side up.)

Treat your Japanese contact's card with respect — the card is the man. Don't write on it or leave it behind, as this would show disrespect. During the meeting, place the cards carefully on the table in front of you with the senior person's card on the top.

Gift Giving
Gift giving is an endemic part of Japanese business life and should not be confused with notions of bribery and corruption. Gifts should not be too lavish but should always be of good quality. It is important to take a number of small gifts to Japan to distribute to new and existing contacts.

Gifts should always be wrapped. Avoid giving gifts in quantities of four or nine as these are unlucky numbers. Anything sharp could signify the desire to end a relationship.

Alcohol, especially good single malt whiskey, is always an appreciated gift. Japanese Teams
Japan:
The Japanese do not really undertake training sessions on teambuilding — they are naturally group-oriented which underlies the need for a truly consensus approach to issues. The consensus-building process or Nemawashi (literally 'root binding') determines that agreement is sought before a formal meeting in order to avoid any direct confrontation. Thus arriving at a meeting expecting issues to be thrashed out in a direct and forthright manner will almost always lead to disappointment.

It is also important that group members maintain 'face' in front of other group members, which amongst other things means that people must be seen to be modest and humble. Self-promotion in the western sense is seen as childish and embarrassing behaviour.
The group or groups to which a person belongs are a life-defining set of relationships and the importance of these group relationships should never be underestimated. Therefore, Japanese businessmen (and women) will often socialise in teams after work. Dinner and drinks are an important work and social function and should be encouraged.
Japanese Communication Styles
Japan:
Of all the aspects of dealing with the Japanese, the ones which probably cause the biggest dilemmas concern communication difficulties. Japanese communications are epitomised by subtlety and nuance, where how one appears and what one publicly states (tatemae) and what one really thinks (honne) are often poles apart. There is often a huge distance between the expressed 'tatemae' and the felt 'honne' — they can often even be contradictory.

The development of relationships in Japan is often dependent on people's ability to read the underlying truth which may underpin the spoken rhetoric. It can, of course, be very difficult for the non-Japanese to navigate these very confusing paradoxes. It is probably best to say that everything should be questioned in order to ensure that clear understanding has been achieved. Check back several times for clarification of anything that remains unclear.

Communication difficulties are further compounded by the fact that few foreigners speak good Japanese and that levels of English in Japan are at best very patchy. Much of what is said by English speaking businessmen in cross-national meetings is simply not understood — or more worryingly misunderstood. The need for the clear and precise use of language is never greater than in such situations. The combination of Japanese vagueness and lack of comprehension leads to enormous problems which make problem-solving and decision-making very tortuous.
In times of stress or difficulty during a meeting, the Japanese will often resort to silence in order to release the tension in the room and allow people to move away from the area of difficulty (to preserve harmony which is tantamount). Unfortunately many westerners are extremely uncomfortable with silence in meetings and feel the need to fill the silence with more discussion over the issue the Japanese would rather avoid.

In addition, Japanese body language is very minimal, making it difficult for the untrained observer to read. The Japanese seem to be very still in meetings, sitting in a formal upright posture. It is rare for any reaction or emotion to be visible.
Women in Business in Japan
Japan:
The average annual income for women in Japan stands at around 30% - 40% below their male lequivalents — which is a powerful statistic. Although women have reached a largely equal footing with men in terms of legal rights, there remains a strong unspoken discrimination towards women in the workplace.
Women are largely expected to perform lower grade tasks and to leave employment upon marriage or the birth of children. Although there has been a slight shift in this trend over recent years, the changes are negligible. This issue is hotly debated within Japan with more pressure being brought to bear on employers to improve the situation but change has been slow.

Western women working in Japan will probably only encounter difficulties when trying to manage Japanese male colleagues - especially if they are older. Otherwise they will be accepted as an 'honorary man'.
Japanese Dress Code
Japan:
Appearance is vitally important in Japan and people are often judged on the way they are dressed.
The business convention of dark suit, shirt and tie is very much the norm in Japanese mainstream business and although other colours are seen more often nowadays than in the past, it is probably safest to maintain a conservative approach.
For women, business dress should be restrained and formal – women do not commonly wear trousers in business in Japan. Accessories should be upmarket but not ostentatious.
Bear in mind that the climate in Japan is very varied through the seasons, so take appropriate wear for the season – overcoats/raincoats may be needed in the winter. apan: Tip 1
Relationships drive business in Japan. Without the right depth of relationships with the right people, it can be very difficult to achieve anything.
Tip 2
It is important to show respect appropriately. Age brings its own dignity and should be respected. It is probable, therefore, that more will be achieved with a delegation that contains some older members.
Tip 3
Try to be polite and diplomatic at all times. Avoid showing irritation, annoyance or impatience. These negative emotions could put a strain on the development of the relationship.
Tip 4
Avoid putting the Japanese in situations where they might be forced to lose 'face'. Do not try to push for decisions or deadlines.
Tip 5
Decisions are arrived at through a lengthy consensus-building process. As it is almost impossible to speed up this process, patience is needed.
Tip 6
Perform as many favours for people as possible. Favours must always be repaid.
Tip 7
Be humble and apologetic rather than arrogant and brash. Modesty is a characteristic much admired whereas forwardness and being overly self-confident can be seen as childish behaviour.
Tip 8
As the Japanese are loath to say 'no' or disagree, it can be very difficult to be completely confident that a decision or agreement has been reached.
Tip 9
Do not overestimate the levels of comprehension when speaking English in Japan. There are many fluent speakers of English but many people do not understand even when they indicate that they have.
Tip 10
Go over the same point several times from different angles to check the situation. Ask lots of open questions to test for understanding.
Japan:
Tip 11
Oral agreements carry as much weight as written contracts. In a relationship-driven society, it is the quality of relationships which will determine events rather than legal niceties.
Tip 12
Do not speak well of yourself but be very positive about your organisation and the department or team to which you belong. Never make disparaging comments about your own company - even in jest.
Tip 13
Humour should be avoided during serious business meetings where it will be viewed as out of place. Humour will, in any case, probably not be comprehensible.
Tip 14
Avoid strong eye contact which can be seen as threatening or hostile behaviour.
Tip 15
Body language is minimal and it can be very difficult to gauge progress made or the general sentiment of a meeting.
Tip 16
Show an interest in your contact as a person. An interest in family, hobbies, health etc. can help to cement a relationship.
Tip 17
Always take gifts to give to key contacts. Gifts need not be too expensive but should always be wrapped.
Tip 18
Dress well, but conservatively. Appearance is very important and you are likely to be judged on how you look.
Tip 19
If entertaining, entertain as well as possible. Remember that a good deal of the relationship-building process takes place over meals.
Tip 20
If confused or in doubt when working in Japan, try not to react immediately. Try to buy some time and reflect on the situation overnight or seek advice from colleagues or other Japanese contacts.
Successful Entertaining in Japan
Japan:
Business meals form an integral part of commercial life in Japan and should be seen as an important facet of the all-important relationship building process. Therefore, if you are invited out for lunch or dinner (rarely breakfast), it is important to accept. The person who invites will invariably pick up the bill. Do not offend by offering to pay if you have been invited by them.

When using chop-sticks, never point them at anybody and do not leave them sticking into your rice. When not in use, rest your chop-sticks on the holder which will be provided on the table.

It is considered polite to leave some food on your plate (or in the bowl) at the end of the meal to show that you have eaten a sufficiency.

When taken to a traditional Japanese restaurant, it is customary to remove your shoes when entering. (This is not, however, the case in other types of restaurants.) A Japanese host will take great delight in choosing the food and explaining to you the different types of dishes on offer. Japan has a rich and varied cuisine — it is not all raw fish and pickles.

If you invite a Japanese guest for dinner, take them to a restaurant which reflects your own culinary heritage and you can then explain your own culture and customs to them.

Tipping is not customary in Japan, as this cost is usually included in the bill. apan: Japan in Figures | Land Area | 377,727 sq km | Population: | 127m | Population density: | 33 5sq km | Life expectancy: | Men 80 yrs
Women 87 yrs | Adult literacy: | 99% | Average per household | 2.5 | Divorces per1,000 : | 1.9 | The Economy | Currency: | Yen | GDP: | US$ 5,069bn | GDP per heads: | US$ 39,740 | Employment (% of total): | Agriculture 45%
Industry 28%
Services 68%
Unemployed 5% | Main Exports:Type: | Capital equipment
Industrial supplies
Consumer durable goods | Destinations: (% total) | China 19%
USA 16%
South Korea 8%
Hong Kong 6% | Main Imports:Type: | Industrial supplies
Capital equipment
Food
Consumer durable goods | Main countries of origin: | China 22%
USA 11%
Australia 6%
Saudi Arabia 5% |