Cross Cultural Report on South Africa


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Cross Cultural Report on South Africa

  1. 1. 11/7/2011SCHOOL OF South Africa: A Cross CulturalPETROLEUMMANAGEMENT Approach Managing Cross Cultural Issue (MCCI) | ABHIK TUSHAR DAS (EMBA10), NITIRAJ RAJPUT (PGP10), VIRAL NORIYA (PGP10)
  2. 2. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural Issues Contents: 1. Population of the country; its influence in terms of PPP (Purchasing Power Parity) and GDP (Gross Domestic Product) 2. Political turmoil history and tribal culture: Nelson Mandela and other national leaders formed the policy of the nation and white and black population, opposition to apartheid and racial discrimination 3. Resource rich country: Endowed with natural resources and also strategic location from rags to riches, opportunities in sea trade serves as link to the history of Cape Town 4. Kimberley the capital of the Northern Cape: Diamond mining, trading, roots of DeBeers 5. Colour of flag reasons significance, agricultural produce long sea coast promote air ways and international investment and tourist spot. 6. Start of Satyagrah from Gandhiji’s movement after the infamous train journey to Pretoria; now the administrative capital 7. Sports: Rugby, cricket and football, hosting of FIFA World Cup as well as Cricket World Cup 8. Music and dance forms, diversity, homogeneity and heterogeneity among the culture 9. Dress and nature of people, gender issues patriarchal or matriarchal society 10. Crime rate, law and order, civil society status 11. Business sentiment, etiquette and environment: promotional activities to attract foreign businesses 12. Indian business houses foray into African businesses with Airtel, Reliance and Vodafone’s bid to acquire MTN 13. Cultural similarities and disparities between India and South Africa 14. ConclusionAA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 2
  3. 3. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesA Brief Country History: The Republic of South Africa (also referred to as South Africa, SA or RSA) is a country insouthern part of the African continent. Located at the southern tip of Africa, it is divided into nineprovinces, with 2,798 kilometres of coastline on the Atlantic and Indian oceans. To the north of thecountry lie the neighbouring territories of Namibia, Botswana and Zimbabwe; to the east areMozambique and Swaziland; while Lesotho is an enclave surrounded by South African territory South Africa contains some of the oldest archaeological and human fossil sites in the world;suggesting that various HOMININ (Human ancestral species) existed in South Africa from aboutthree million years ago. Today, South Africa has one of the most progressive constitutions in theworld, which guarantees both civil and socio-economic rights and the political environment isconducive to political debate, dialogue and contestation. South Africa’s 1994 transition fromapartheid to constitutional democracy remains one of the most important and impressive politicaltransitions of our time. It is a powerful demonstration of the proposition that a peaceful,negotiated path from conflict and injustice to cooperation and reconciliation is possible; despite thecomplex history of oppression, institutionalized violence, and diverse social fabric that has definedSouth Africa. In 1487, the Portuguese explorer Bartolomeu Dias became the first European knownto have reached southern Africa, in 1652, a century and a half after the discovery of the Cape SeaRoute; Dutch East India Company established a refreshment station at the Cape of Good Hope, atwhat would become Cape Town for transporting slaves from Indonesia, Madagascar, and India asAA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 3
  4. 4. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural Issueslabour for the colonists in Cape Town. The discovery of diamonds and later gold triggered the 19th-century conflict known as the Anglo-Boer War, as the Boers (Dutch, Flemish, German, and Frenchsettlers) and the British fought for the control of the South African mineral wealth resulting in CapeTown becoming a British colony in 1806 after Great Britain took over the Cape of Good Hope areain 1795, to prevent it from falling under control of the French First Republic, which had invaded theDutch Republic. In the Boer republics from as early as the Pretoria Convention (chapter XXVI) andsubsequent South African governments, the legislature passed legally institutionalised segregation,later known as apartheid by established three racial classes: white, coloured (people of Asian ormixed racial ancestry), and black, with rights and restrictions for each. In 1931 the union waseffectively granted independence from the United Kingdom but the Nationalist Governmentclassified all peoples into three races, developed rights and limitations for each, such as pass lawsand residential restrictions. The White minority enjoyed the highest standard of living, the Blackmajority remained disadvantaged by almost every standard, including income, education, housing,and life expectancy. On 31 May 1961, following whites-only referendum, the country became arepublic and left the Commonwealth. The Mahlabatini Declaration of Faith enshrined the principlesof peaceful transition of power and equality for all flowing which in 1990 the National Partygovernment took the first step towards dismantling discrimination when it lifted the ban on theAfrican National Congress and other political organisations by releasing Nelson Mandela fromprison after twenty-seven years serving a sentence for sabotage. The government repealedapartheid legislation, destroyed its nuclear arsenal, acceded to the Nuclear Non-Proliferation Treatyand rejoined the Commonwealth of Nations. South Africa held its first universal elections in 1994,which the ANC won by an overwhelming majority.Population of the country; its influence in terms of PPP (Purchasing Power Parity) and GDP (GrossDomestic Product):South Africa is increasingly gaining prominence on the international stage where it is becoming amore active participant in events such as the Annual Meetings of the International Monetary Fundand the World Bank, the G-20, G-24, and strategic alliances with emerging economies and alliancessuch as BRIC and IBSA. Robust economic growth in the post-apartheid period has enabled ameasurable decline in income poverty. However, inequality has increased and as measured by theGini coefficient, inequality rose from 0.64 to 0.67 in the period 1995 to 2008 complemented withthe unemployment rate of over 25 percent, a disappointingly low life expectancy of 51 years,having the largest number of people living with HIV/AIDS in the world (over 5.5 million). The globaleconomic downturn forced South Africa’s first recession in 17 years but a turnaround supported bya revival in the automobile industry as well as increased demand for chemical products in theeconomy has prompted a 3 percent annual growth rate driven primarily by renewed global demandfor commodities and spending related to the World Cup 2010.AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 4
  5. 5. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesPopulation facts:Province Capital Largest city Area (km²) PopulationEastern Cape Bhisho Port Elizabeth 168,966 6,829,958Free State Bloemfontein Bloemfontein 129,825 2,759,644Gauteng Johannesburg Johannesburg 18,178 11,328,203KwaZulu-Natal Pietermaritzburg Durban 94,361 10,819,130Limpopo Polokwane Polokwane 125,754 5,554,657Mpumalanga Nelspruit Nelspruit 76,495 3,657,181North West Mafikeng Rustenburg 104,882 3,253,390Northern Cape Kimberley Kimberley 372,889 1,096,731Western Cape Cape Town Cape Town 129,462 5,287,863Ethnic groups: a. 79.5% Black b. 9.0% White c. 9.0% Coloured d. 2.5% AsianFacts: a. Total area 1,221,037 km2 (ranks 25th in world) b. Population 50,586,757 (ranks 24th in world) c. Total GDP $505.214 billion (ranks 26th in world) – in Purchasing Power Parity d. Per capita GDP $10,243 (ranks 71st in world) – in Purchasing Power Parity e. HDI Index: Ranks 123rd in the world (India ranks 134th) f. Currency: RandAA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 5
  6. 6. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesLanguages:South Africa has eleven official languages: Afrikaans, English, Ndebele, Northern Sotho, Sotho, Swazi,Tswana, Tsonga, Venda, Xhosa, and Zulu.Religion:Christians accounted for 79.7% of the population, members of other Christian churches accounted foranother 36% of the population, Muslims accounted for 1.5% of the population, Hindus about 1.3%, andJudaism 0.2%. 15.1% had no religious affiliation, 2.3% were other and 1.4% was unspecified.Food:South African cuisine is heavily meat-based where beef was considered the absolutely most important andhigh status meat, with some of the best vineyards to complement the meal. Black South Africans enjoy notonly beef, but mutton, goat, chicken and other meats as a centrepiece of a meal. On weekends, many BlackSouth African families, like white South Africans, have a "braai," and the meal usually consists of "pap andvleis," which is maize porridge and grilled meat. Eating meat even has a ritual significance in both traditionaland modern Black South African culture. For weddings, initiations, the arrival of family members after a longtrip and other special occasions, families will buy a live animal and slaughter it at home, and then prepare alarge meal for the community or neighbourhood. Participants often say that spilling the blood of the animalon the ground pleases deceased ancestors who invisibly gather around the carcass. On holiday weekends,entrepreneurs will set up pens of live animals along the main roads of Black townships -- mostly sheep andgoats -- for families to purchase, slaughter, cook and eat. Beef being the most prized meat, for weddings,affluent Black families often purchase a live steer for slaughter at home. Vegetarianism is generally met withpuzzlement among Black South Africans, although most meals are served with vegetables such as pumpkin,beans and cabbage. Foreign visitors to South Africa should be aware that South Africans are so carnivorousthat inviting South Africans to dinner and serving a vegetarian meal may be interpreted as an insult even bysophisticated urban people.AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 6
  7. 7. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesClimate:The climatic zones vary, from the extreme desert of the southern Namib in the farthest northwest to thelush subtropical climate in the east along the Mozambique border and the Indian Ocean. From the east, theland quickly rises over a mountainous escarpment towards the interior plateau known as the Highveld. Eventhough South Africa is classified as semi-arid, there is considerable variation in climate as well as topographywith an annual rainfall of 760 mm (29.9 in), Winters are cold, although snow is rare with temperatures aslow as −15 °C and summers have hottest temperatures of 50 °C maximum.Political turmoil history and tribal culture: Nelson Mandela and other national leaders formed thepolicy of the nation and white and black population, opposition to apartheid and racialdiscrimination:Identity pass for blacks:With the enactment of apartheid laws in 1948, racial discrimination was institutionalized. Race lawstouched every aspect of social life, including a prohibition of marriage between non-whites andwhites, and the sanctioning of ``white-only jobs. In 1950, the Population Registration Act requiredthat all South Africans be racially classified into one of three categories: white, black (African), orcoloured (of mixed decent). The coloured category included major subgroups of Indians and Asians.Classification into these categories was based on appearance, social acceptance, and descent. Forexample, a white person was defined as ``in appearance obviously a white person or generallyaccepted as a white person. A person could not be considered white if one of his or her parentswere non-white. The determination that a person was ``obviously white would take into account``his habits, education, and speech and deportment and demeanour. A black person would be ofor accepted as a member of an African tribe or race, and a coloured person is one that is not blackAA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 7
  8. 8. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural Issuesor white. The Department of Home Affairs was responsible for the classification of the citizenry.Non-compliance with the race laws were dealt with harshly. All blacks were required to carry ``passbooks containing fingerprints, photo and information on access to non-black areas.In post-apartheid South Africa, unemployment has been extremely high as the country hasstruggled with many changes. While many blacks have risen to middle or upper classes, the overallunemployment rate of blacks worsened and poverty among whites, previously rare, increased.Idea of homogeneity is paramount for South Africa because it remembers lost accounts of identity,shaped by a common heritage of suffering. The African National Congress (ANC) is the newdominance in post-apartheid South Africa and its ideological aim is to find a way to represent itsentire people, both black and white equally, while correcting the racial inequalities of the past.Having set the stage for creating a discourse of sameness through its “building a rainbow nation”campaign, it must now find the means to generate this Culture while simultaneously providingspaces for differences in culture (not just race, but ethnicity, religion etc). “The Rainbow Nation”campaign therefore celebrates the numerous cultures, ethnicities and religions of the peoples ofSouth Africa.Tribal Dance:AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 8
  9. 9. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesResource rich country: Endowed with natural resources and also strategic location from rags toriches, opportunities in sea trade serves as link to the history of Cape Town:In terms of biological diversity, South Africa ranks third in the world. The country has 68 vegetationtypes classified into 7 biomes, from semi desert areas to and alpine forests. Two internationallyrecognised biodiversity "hot-spots" are located in South Africa: the Cape Floristic Kingdom and theSucculent Karoo. South African coast has over 10,000 species of plants and animals.Originally, the whole economy was built on mining; approximately 55 different minerals areproduced from more than 700 mines, with gold, platinum, coal and diamonds dominating exportsand revenue earnings. There are also important deposits of iron and copper, while the Midlandsand KwaZulu-Natal have vast plantations of timber that are the basis for a multi-billion dollarindustry.Only about 13 percent of South African soil is suitable for cultivation, of which 22 percent can beclassified as high-potential land with some 1.3 million hectares are under irrigation. Still, thecountry is not only self-sufficient in almost all major agricultural products, but in a normal year it isalso a net food exporter, thanks to well-developed commercial farming. Exports include raw sugar,fresh grapes, citrus, nectarines, wine, avocados, plums, maize, black tea, groundnuts, meat,pineapples, tobacco, wool and cotton. Maize is the largest locally produced field crop and mostimportant source of carbohydrates for human and animal consumption.The most immediate challenge to utilising South Africa’s natural resources and consequently to thecountry’s economy as a whole is the lack of energy. The main local source of energy is coal. Otherlocal sources include biomass (such as wood and dung), natural gas, hydropower, nuclear power,solar power and wind power. South Africa has very little oil reserves and most of its crude oil isimported.It is believed that water will increasingly become the limiting natural resource. South Africa islooking towards other southern African countries for its water, but the risks of internationaldependency on such a priority resource are high. South Africa was once a global leader in goldmining and gold constituted well over fifty percent of South African exports, but the country hasbeen overtaken by China as the worlds number one gold producer. Today, it is a misnomer to callJohannesburg the city of gold: there is no more gold mining in the city other than the reprocessingof mine dumps.In the 1870s and 1880s Kimberley, encompassing the mines that produced 95% of the worldsdiamonds, was home to great wealth and fierce rivalries, most notably that between Rhodes andBarnato, English immigrants who consolidated early 31-foot-square prospects into ever largerholdings and mining companies. In 1888, Rhodes prevailed and merged the holdings of both meninto De Beers Consolidated Mines Ltd., a company that is still synonymous with diamonds. TodaySouth Africa is third in production in terms of value and is likely to stay that way for the foreseeablefuture.AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 9
  10. 10. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesColour of flag reasons significance, long sea coast promote air ways and tourist spot:The national flag was designed by a former South African State Herald, Mr Fred Brownell, and wasfirst used on 27 April 1994. The design and colours are a synopsis of principal elements of thecountrys flag history. Individual colours, or colour combinations represent different meanings fordifferent people and therefore no universal symbolism should be attached to any of the colours.The only symbolism in the flag is the V or Y shape, which can be interpreted as the convergence ofdiverse elements within South African society, taking the road ahead in unity.Coastline:South Africa occupies the southern tip of Africa, its coastline stretching more than 2,500 km (1,553mi) from the desert border with Namibia on the Atlantic (western) coast southwards around the tipof Africa and then north to the border with Mozambique on the Indian Ocean . South Africaslandscape is dominated by a high plateau in the interior, surrounded by a narrow strip of coastallowlands comprising the signature open grasslands and hill country of the south coast, with deepcut ravines peppered with groves of aloe, and deep tidal estuaries cloaked on either bank with richand unsullied riparian forest.AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 10
  11. 11. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesTop 10 Attractions in South Africa: 1. KRUGER NATIONAL PARK: Experience the bushveld and romance of real Africa 2. CAPE TOWN: Table Mountain, the Waterfront, Cape Point, Robben Island, Beaches, the Winelands 3. DURBAN: An invigorating blend of India 4. BEACHES: Beautiful, long, lonely beaches on the West Coast or the sultry North Coast to the most hip and hot in Cape Town 5. GARDEN ROUTE: Gorgeous beaches, rocky headlands, leafy forests and dramatic river cut gorges, world class golf resorts 6. WINELANDS: A World Heritage Cultural Landscape, the classic Winelands of Paarl 7. EASTERN CAPE: Golden beaches, the Garden Route, Port Elizabeth, East London 8. THE KALAHARI & NAMAQUALAND: Bright carpets of wild flowers in Namaqualand, the black maned lion of the Kgalagadi Transfrontier Park 9. CULTURAL VILLAGES & TOWNSHIPS: Fascinating and colourful cultural villages 10. DRAKENSBERG: Dramatic mountain range is an awesome scenic destination with beautiful rock artStart of SATYAGRAH from Gandhiji’s movement after the infamous train journey to Pretoria; nowthe administrative capital:While travelling by train to Pretoria, Gandhiji experienced his first taste of racial discrimination.Inspite of carrying first class ticket, he was indiscriminately thrown out of the train by theauthorities on the instigation of a white man. Instead of fleeing from the scene, Gandhiji stayedback for 21 years to fight for rights of the Indians in South Africa. By May 1894, he had organizedthe Natal Indian Congress. In 1896, he returned to India and enlisted support from some prominentIndian leaders. He then returned to South Africa with 800 free Indians. Gandhiji exercised `self-AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 11
  12. 12. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural Issuesrestraint. His philosophy of SATYAGRAHA by winning the detractors with the peaceful restraint hadbegun which ultimately culminated into India achieving Independence from British after aprolonged freedom struggle. The places he touched are like a museum without walls, from thethatch-roofed house he shared in Orchards to the home in TROYEVILLE (he lived here with his wife,Kasturba and their three sons, Manilal, Ramdas and Devdas), from LINKSFIELD RIDGE (between1909 and 1914, Gandhi stayed on and off with Kallenbach in The Tents) to TOLSTOY FARM (foundedin 1910 and disbanded in 1913 proved to be an ideal laboratory for Gandhis educationalexperiments; Gandhis objective in this context was to inculcate the ideals of social service andcitizenship through all the activities of children from the earlier formative years) and of course,around the law courts and Newtown in the inner city, the original “COOLIE LOCATION”. GANDHISQUARE; known as Government Square during Gandhi’s time, today it is a major bus terminus anda prime example of urban regeneration houses statue of Gandhi as a young lawyer on the square,and information panels about his connection with the area as he appeared here both as counseland accused.Although the movement started by Gandhiji culminated into the union being effectively grantedindependence from the United Kingdom in 1931, but the conditions of racial apartheid continuedfor ages and was finally disbanded before the turn of the century in 1990. The attributes of apeaceful freedom struggle can be bestowed on Gandhijis preaching of non-violent ways of protest.Sports: Rugby, cricket and football, hosting of FIFA World Cup as well as Cricket World Cup:AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 12
  13. 13. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesFootball: The right to host the 2010 FIFA World Cup brings South Africa a unique opportunity thatextends well beyond football. One of the biggest impacts will come from the phenomenalmarketing and communication opportunity it will offer the country and the continent. As worldattention focuses on the first African Word Cup, this is an opportunity for Africans to tell their ownstories and to showcase South Africa and the continent in informing the world that they have muchto offer, that their people are ready to receive the world, ready to host those who come to theWorld Cup and that when they come they would receive a wonderfully unforgettable Africanexperience. The FIFA World Cup was held between 11 June and 11 July (31 days) after Africa waschosen as the host for the 2010 World Cup as part of a short-lived policy to rotate the event amongfootball confederations. The bids from African continent were from Egypt, Morocco, South Africaand a joint bid from Libya and Tunisia, though South Africa had narrowly failed to win the right tohost the 2006 event. The economy got a boost as five new stadiums were built for the tournament,and five of the existing venues were upgraded, construction costs were expected to be just overUS$1 billion. It also improved its public transport infrastructure within the host cities, includingJohannesburgs Gautrain and other metro systems, and major road networks. The 2010 World Cupcontributed approximately US$5.5 billion to the SA economy and created 415 000 new jobs.Cricket:In 1970, the ICC voted to suspend South Africa from international cricket indefinitely because of itsgovernments policy of apartheid, an overtly racist policy, which led them to play only against thewhite nations (England, Australia, New Zealand), and field only white players. This decisionexcluded players such as Graeme Pollock, Barry Richards and Mike Procter from partaking ininternational Test Cricket. The ICC reinstated South Africa as a Test nation in 1991 after thedeconstruction of apartheid, and the team played its first sanctioned match since 1970 (and its firstever One-Day International) against India in Calcutta on 10 November 1991.Dazzle, official mascot of 2003 World Cup:AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 13
  14. 14. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesRugby:The 1995 Rugby World Cup was the third Rugby World Cup and the first major sporting event totake place in South Africa following the end of apartheid. It was hosted and won by South Africa,and was the first Rugby World Cup in which every match was held in one country. The InternationalRugby Football Board (IRFB, now the International Rugby Board) had only readmitted South Africato international rugby in 1992, following negotiations to end apartheid. When the Springboks wonthe Rugby World Cup on home turf in 1995, Nelson Mandela donned the No 6 shirt of the teamscaptain Francois Pienaar, a white Afrikaner, and the two embraced in a spontaneous gesture ofracial reconciliation that melted hearts around the country. A single moment, and 400 years ofcolonial strife and bitterness suddenly seemed so petty.Music and dance forms, diversity, homogeneity and heterogeneity among the culture:Music and Dance:The South African music includes both popular (jive) and folk forms. Pop styles are based on fourmajor sources, Zulu ISICATHAMIYA singing and harmonic MBAQANGA. South Africa is very diverse,with many native African Ethnic groups as well as European and Indian peoples. The KHOI-KHOI, forinstance, developed the RAMKIE, a guitar with three or four strings, based on that of Malabarslaves, and used it to blend KHOI and Western folk songs. The MAMOKHORONG was a single-stringviolin that was used by the KHOI in their music-making and dances of the colonial centre, CapeTown, which rapidly became a melting pot of cultural influences from all over the world. Thepenetration of missionaries into the interior over the succeeding centuries also had a profoundinfluence on South African musical styles plus the later influence of American spirituals, spurred agospel movement that is still very strong in South Africa today. UMOJAS dancers have no formaltraining, they are drawn from communities, and many of them would have had their performingexperience in companies like that of Gibson KENTE. In 1897, Enoch SONTONGA, then a teacher,composed the hymn NKOSI SIKELEL IAFRIKA (God Bless Africa), which was later adopted by theliberation movement and ultimately became the National Anthem of a democratic South Africa.JAZZART, the oldest modern dance company in the country, has long been actively involved inperforming and teaching workshops and classes in disadvantaged communities. Artists like SYLVIAGLASSER, TOSSIE VAN TONDER, CARLY DIBOKWANE, ADELE BLANK, ROBYN ORLIN, created a newvocabulary of dance, working with their own companies, directing at FUBA (Federated Union ofBlack Artists), and inspiring and nurturing local talent. South Africas black townships were held inthrall by what came to be called "BUBBLEGUM" - bright, light dance pop influenced by Americandisco as much as by the heritage of MBAQANGA. In the two decades since rock stars such as PaulSimon and Peter Gabriel enlivened their music with an African tinge, a stereotype has formed,created by those crossover hits, many charity concerts and "THE LION KING": an ethnographicallyrich pageant, politically relevant but somehow separate from the rest of pop.AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 14
  15. 15. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesSouth Africa has produced world-famous jazz musicians, notably HUGH MASEKELA, JONASGWANGWA, ABDULLAH IBRAHIM, MIRIAM MAKEBA, JONATHAN BUTLER, CHRIS MCGREGOR, andSATHIMA BEA BENJAMIN. Afrikaans music covers multiple genres, such as the contemporary STEVEHOFMEYR and the punk rock band FOKOFPOLISIEKAR. Crossover artists such as VERITY and JOHNNYCLEGG and his bands JULUKA and SAVUKA have enjoyed various success underground, publicly, andabroad.Dress and nature of people, gender issues patriarchal or matriarchal society:Dress:AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 15
  16. 16. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesSouth African clothing is the traditional clothing, often vibrantly coloured, worn by the indigenouspeoples of Africa. In some instances these traditional garments have been replaced by westernclothing introduced by European colonialists though distinctive shirts are worn for instance, SouthAfrica is known for the MADIBA shirt.Cultural diversity patriarchal and heterogeneous society:The South African black majority still has a substantial number of rural inhabitants who lead largelyimpoverished lives. It is among these people, however, that cultural traditions survive moststrongly; as blacks have become increasingly urbanised and Westernised, aspects of traditionalculture have declined. Urban blacks usually speak English or Afrikaans in addition to their nativetongue. There are smaller but still significant groups of speakers of KHOISAN languages who are notincluded in the eleven official languages, but are one of the eight other officially recognisedlanguages. There are small groups of speakers of endangered languages, most of which are fromthe KHOI-SAN family, that receive no official status; however, some groups within South Africaattempting to promote their use and revival.Members of middle class, who are predominantly white but whose ranks include growing numbersof black, coloured and Indian people have lifestyles similar in many respects to that of people foundin Western Europe, North America and Australasia. Members of the middle class often study andwork abroad for greater exposure to the markets of the world.AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 16
  17. 17. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesGender roles diversity:In general, all racial and ethnic groups in South Africa have long-standing beliefs concerning genderroles, and most are based on the premise that women are less important, or less deserving ofpower, than men. Most African traditional social organisations are male centred and maledominated. Even in the 1990s, in some rural areas of South Africa, for example, wives walk a fewpaces behind their husbands in keeping with traditional practices. A minority of ultra-conservativeAfrikaners religious beliefs, too, include a strong emphasis on the theoretically biblically basednotion that womens contributions to society should normally be approved by, or be on behalf of,men. English speaking whites tend to be the most liberal group, including on issues pertaining togender roles.20th century economic and political developments presented South African women with both newobstacles and new opportunities to wield influence. For example, labour force requirements incities and mining areas have often drawn men away from their homes for months at a time, and, asa result, women have borne many traditionally male responsibilities in the village and home.Women have had to guarantee the day-to-day survival of their families and to carry out financialand legal transactions that otherwise would have been reserved for the patriarchal society.Crime rate, law and order, civil society status:Crime rate:Crime rates in South Africa is among the highest in the world, each day an average of nearly 50people are murdered. In addition to these 18,000 murders each year, there are another 18,000attempted murders. There are extremely high a rate of unemployment in some areas which leadsto a large element of frustration often this sparks violence. The gap between rich and poor is stillwidening and it leads to what is seen as relative deprivation where people in the very, very poorcommunities, they see wealth which spurs crime. In view of increasing crime, there are junctionssignposted as carjacking black-spots, and there are areas where drivers will avoid stopping at redlights, particularly at night, preferring the risk of a fine to the risk of hijack. Some of the violence canAA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 17
  18. 18. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural Issuesbe attributed to the fact that many foreign national work in South Africa where locals faceunemployment and hence attack foreigners, known as Xenophobia.Law and Order:The South African Police Service (SAPS) is the national police force of the Republic of South Africawith 1116 police stations in South Africa is divided according to the provincial borders, and aProvincial Commissioner is appointed in each province. The 9 Provincial Commissioners reportdirectly to the National Commissioner. The Constitution of South Africa lays down that the SouthAfrican Police Service has a responsibility to prevent, combat and investigate crime, maintain publicorder, protect and secure the inhabitants of the Republic and their property, uphold and enforcethe law, create a safe and secure environment for all people in South Africa.Civil Society:The South African Constitution is written in plain language. It is also written in gender neutrallanguage. But perhaps the most notable aspect of the South African Constitution is that it aims totransform society and respond to our history of inequality and oppression. It is often described asone of the most advanced and progressive Constitutions in the world. the content of theConstitution was influenced in a large measure by both the public input as well as the deepinvolvement of civil society in the negotiation process. The Constitution also attempts to protectthe continued involvement of the public and civil society in governance in various ways.Legislatures at national and provincial level are also constitutionally required to facilitate publicinvolvement in their processes. This relationship is premised on civil society having a crucial role toplay in service delivery and policy-making with the State. Where civil society and governmentappear to be committed to the same goals, and where government is largely made up oflongstanding political allies, a relationship of cooperation appears natural. Civil society also has animportant role to play in relation to the work of State institutions supporting constitutionaldemocracy, such as the South African Human Rights Commission. One of the most difficult issuesfacing civil society in post-apartheid South Africa is how to maintain the delicate balance betweensupports for the new Government while maintaining sufficient independence from it. Strategies likecollaboration, monitoring, assistance, and even policing of the State are appropriate for civil societyin South Africa if they are needed to achieve that goal.AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 18
  19. 19. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesBusiness sentiment, etiquette and environment: promotional activities to attract foreignbusinesses:Business Sentiments:The industrial sector (which includes manufacturing, construction, agriculture, mining etc.) haswitnessed an increase of business confidence. South African currency was the worst performerglobally among Emerging Market Currencies so far this year, and all because of happening in China.Asia has replaced Europe as South Africa’s biggest export market, and China now accounts foralmost 30 percent of the country’s exports to the continent.South African GDP Trend:Currency Trend (RAND vs USD):AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 19
  20. 20. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesSouth African manufacturing production accounts for around 15 percent of the total economy,which is ranked as an upper-middle income economy by the World Bank. Advanced development issignificantly localised around four areas: Cape Town, Port Elizabeth, Durban, and Pretoria–Johannesburg, beyond these four economic centres, development is marginal and poverty is stillprevalent. The South African rand is the most actively traded emerging market currency in theworld and was the best-performing currency against the United States dollar (USD) between 2002and 2005, according to the Bloomberg Currency Scorecard. Main industries can be classified asmining (worlds largest producer of platinum, gold, chromium), automobile assembly, metalworking, machinery, textiles, iron and steel, chemicals, fertiliser, foodstuffs, commercial ship repair.The industrial centre of Africa, South Africas abundant supply of natural resources has helped togenerate the largest and best developed economy on the African continent. GDP per capita(purchasing power parity) ranks the country as one of the 50 wealthiest in the world. South Africahas immense potential as an investment destination, with a highly developed economicinfrastructure and one of the most promising and vibrant emerging market economies across theglobe.Working practices in South Africa; 1. Schedule business appointments as far in advance as possible, preferably a month or two before the intended visit. Always confirm the appointment by calling the day before. 2. Formal meetings and appointments usually begin and end on time. However, you may be kept waiting a few minutes by certain groups of South Africans who more relaxed in their time are keeping. Whichever the case, you should always aim to arrive promptly. 3. Generally, working hours in South Africa are Monday to Friday; 8-8.30 am to 5pm. South Africans very rarely work on Saturdays and Sundays.Business practices in South Africa; 1. On the whole, titles are not used in South African business settings. However, some honorary doctorates may wish to be addressed in this way. When addressing a female colleague, it is advised to avoid using the term ‘Miss’ in business conversations. If the female’s marital status is not known, it is best to leave those terms out as they may cause offense. 2. Greeting styles in South Africa vary depending on the ethnic heritage of the South African. For example, English-speaking South Africans tend to adopt a rather polite and formal manner of address. Black South Africans are generally less informal and more personal when greeting those they do not know. The common practice in most cases for an initial gesture of communication however, is to offer a firm handshake. For female associates, it is advised to wait for the woman to offer their hand first. 3. Initial meetings for South African companies are about establishing personal rapport and developing mutual trust, two vital elements in South African business culture. At this stage, judgments are made before any further business negotiations are conducted. In order to secure long term business success in South Africa, relationship building and networking are paramount.AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 20
  21. 21. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural Issues 4. The overall aim during business negotiations in South Africa is to reach a general consensus. South Africans prefer to see a fair, win-win situation where all sides gain something from the deal, and for this reason, confrontations and aggressive bartering over prices should be avoided.Structure and hierarchy in South African companies; 1. Despite being a somewhat egalitarian society, business people in South Africa have a lot of respect for senior executives and colleagues who have obtained their position through diligence and perseverance. 2. In South African companies, decision-making power typically lies with the most senior person at the top of the company. However, in accordance with African culture, final decisions are often made following consultation with subordinates.Working relationships in South Africa; 1. For the most part, South Africans prefer to do business with those they have met previously. Consequently, formal letters of introduction from a known third party may help you to reach key decision-makers easily and therefore speed up the business process. 2. A vital part of African culture is respect for one’s ancestors and elders. It is deemed highly offensive to most South Africans if the proper respect for an elder is not shown, especially in more rural areas.AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 21
  22. 22. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesSouth African Business Etiquette (Do’s and Don’ts); Do’s Don’tsInclude deadline dates in contracts, as the South Raise your voice or interrupt whilst your South AfricanAfrican approach to deadlines is particularly casual counterparts are speaking. Both actions lack theand firm commitments are not often made. personal approach to a business relationship and therefore may be interpreted as an insult.Maintain eye-contact at all times, especially when Surprised if your South African business colleaguesshaking hands with your South African business ask what may seem to be personal questions aboutcolleagues. This is an essential part of developing your way of life after a relatively brief period of Characteristically, South Africans tend to be warm and friendly people.Dress conservatively, particularly for initial meetings Show impatience towards decision making. Forcingwith new business associates. deadlines or rushing deals may prove counterproductive since the pace of business in South Africa is reasonably slow and protracted.Indian business houses foray into African businesses with Airtel, Reliance and Vodafone’s bid toacquire MTN:South Africa is Indias second largest trading partner. Trade between the two countries was $10.6billion in 2010-11. To boost the country’s trade with the Sub-Saharan African region, theGovernment of India launched the “Focus: Africa” programme under the EXIM Policy 2002-07 topromote bilateral and regional commercial relations with the COMESA Region. Tata Motors and itsrival, Indian car giant Mahindra & Mahindra have made inroads into the South African motorindustry with the recent launch of new vehicles. Tata Africa Holdings, a subsidiary of the TataGroup, is vying for a controlling stake in South Africas second telephone network operator worthmore than RANDS 4 billion. Total bilateral trade between India and South Africa is approachingRAND 6.5 billion, with imports from India at RAND 3.12 billion and exports to India at RAND 3.35billion. Indian investment in South Africa is estimated at US$100 million.Africa’s telecom environment has become hugely active in recent years. This activity has beenlargely triggered by the rapid take up of mobile services in many African countries. A rapid growthin mobile subscribers has led to a flurry of interest in the acquisition of African mobile assets byvarious operators, both from within and without Africa, as they perceive the region to be one oflast remaining big potential telecom markets. A $22.7 billion deal between Indias Bharti Airtel Ltd.and South Africas MTN Group Ltd. alone represents about 25 percent of the total telecom M&Aactivity in the first half of 2009. The idea is for BHARTI to take a 49 percent stake in MTN, and MTNto take a 36 percent stake in BHARTI, with a full merger as the ultimate goal. Another very big nameto plunge into the region’s consolidation is Vodafone Group plc which in May 2009 achieved itslong-held ambition of acquiring a controlling stake in South Africa’s largest mobile operator,Vodacom, previously an equal joint venture with the country’s former incumbent, Telkom. Tatatook a controlling stake in South Africas second national operator NEOTEL (PTY) LTD in January2009.AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 22
  23. 23. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesCultural similarities between India and South Africa:South African Indian culture began in 1860 when the first immigrants arrived on board the Truro as indenturedlabourers to work on sugar-cane farms in present day KwaZulu-Natal. During the period of British rule, Indianimmigrants brought with them to South Africa the heritage of an ancient caste system. Each caste was adistinct, exclusive social entity that bound a member from birth to death. The caste system was characterisedby a strict hierarchy and contact between the different castes brought unforgivable disgrace. That those on thelower rungs of the hierarchy emigrated as indentured labourers is understandable; that any one of elevatedposition should choose to do so, despite this involving social contact with those of low caste, even sharingamenities, is remarkable and indicates how compelling the economic and other factors were. It also reflectsthe cultural similarities between Untouchability and Apartheid. Indian culture in South Africa faced struggles inthe face of discrimination until 1994 with the abolition of the Apartheid.The national dress of India, the SAREE (six yards of unstitched cloth draped to impart grace and elegance) isto be found on South African street. Indian cuisine is hugely popular with Indian restaurants all over thecountry. And the fever for cricket that grips India is very much in evidence in KWA ZULU NATAL, where thefirst Indians were introduced.There are many aspects of cultural similarity between India and South Africa and hence many companies whofeel that as Indian Markets saturate, it is a wise decision scout for niche markets such as South Africa.AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 23
  24. 24. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesConclusion:When working in the global commercial environment, knowledge of the impact of culturaldifferences is one of the keys to international business success. Regardless of the sector in whichyou operate finance, technology, or computers and consumer electronics; global culturaldifferences will directly impact on you and the profitability of your business. Improving levels ofcultural awareness can help companies build international competencies and enable individuals tobecome more globally sensitive. This culture-focused study of South Africa would help students inacquiring international business expertise through cultural interpretation of a different culture.This country-specific report on gives a comprehensive description of South African business culturewhich will help you to interact more effectively with your South African clients and colleagues. Fewother countries offer the business visitor the number of apparent contradictions that can be foundin South Africa. It is difficult to think of another country, anywhere in the world, which containssuch a diverse mixture of first world economic infrastructure and third world poverty. For a countrywhich is undergoing rapid and unprecedented changes, where many of the old structures (botheconomic and social) have been swept away in a maelstrom of post-apartheid adjustments, what istrue in South African business today may not be true tomorrow. By far the biggest change to havehit South Africa has, of course, been the abolition of the apartheid system and the integration ofthe majority black population into the mainstream political system. Although the transition fromapartheid to the current RAINBOW NATION status appears from the outside to have been achievedrelatively smoothly, it would be nice to believe that there are no longer enormous racial tensionswithin the country.Hence to conclude, South Africa provides huge business opportunities to global business but owingto its unique culture not many businesses are successful in African markets with wide social andcultural disparities. Hence for a business graduate it is of umpteen importance to know about crosscultural issues so as to effectively deal with local markets.AA Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 24
  25. 25. School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat, India. Managing Cross Cultural IssuesBibliography: a. b. c. d. e. f. g. h. i. j. k. johannesburg l. m. n. o. p. 00000bb42f00aRCRD.htm q. r. s. in/Doing%20Business%20in%20South%20Africa.pdf t. u. v. w. x. Abhik (EMBA10), Nitiraj (PGP10), Viral (PGP10) Page 25