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W	
  
INTERCULTURAL
CHALLENGES
HOW TO COME TO AN
AGREEMENT
For Asian companies
in partnering with
European companies
Christian Hofer
DINNER at home
like a case study on
intercultural differences
•  American wife
•  Trilingual Children: speaking
German at dinner, English
with my wife and French
with each other
How did I learn about cultural differences ?
BUSINESS TRAVEL CONSULTING
Germany, Hungary, Czech Republic,
Poland, Russia, Denmark, Sweden,
Finland, England, France, Italy, Spain,
Switzerland, US, Pakistan, Thailand, South
Korea, China, Thailand, Japan, Hong
Kong, Singapore
Worked in different
countries and in different
corporate cultures.
Necessity to manage
differences between
companies, Divisions and
even teams
ABOUT ME
Personal info
and background
WHY?
Importance of
understanding differences
HOW?
Understanding the concept
of cultural differnces
OH NO!
Corporate
„bloopers“
PERSONAL
Examples of
interpersonal
nature
BUSINESS
Examples of
corporate nature
MACRO
Examples of
rules & regulations
AHA!
How to
prepare
FULL CIRCLE
Understanding
and applying
What is the road that we are going to travel together today
and where will it take us?	
  
Despite the Euro
we cannot see
Europe as one
homogenous
zone – vast
differences exist
Cultural
differences may
not be as visual as
in the picture but
in daily life you will
find them quickly
They effect everything
from personal
interactions to how
people think and act
and finally to laws und
regulations
Not knowing them or
ignoring them
exposes you to the
risk of failed relations
and missed business
opportunities
Doing business in “Europe” ?
Treat Europe as one homogeneous market at your own risk!
Stereotype
or
truth?
SEEMINGLY
SMALL THINGS
CAN CREATE
SIGNIFICANT
ISSUES
Businesses are
becoming
increasingly global
exposing them to
new cultures/issues
Some people, even
corporations are
ignorant to the cultural
differences and the
impact they can have
We must not judge from
our own perspective,
but rather think how
other people might
perceive our behavior
Ignorance can easily
destroy your personal and
corporate image in the
eyes of your business
partner
Why is the knowledge of intercultural differences
so important for today’s business ?
Ignorance
You have no knowledge
that any differences exist
at all “Bad surprises”
Limited awareness
You know that differences exist but
have very limited knowledge – you
just know that there is an issue but
cannot quite understand it
Limited	
  competence
You know some of the differences and
try to adjust your behavior. It does not
come naturally yet. You have a feeling
for how you come across
Subconscious competence
Cultural appropriate behavior is
second nature to you. You can trust
your instincts
The 4 stages of intercultural awareness
What aspects of business are cultural differences affecting ?
Long vs. short term
thinking
Table manners
Personal space
Greeting people
and saying goodbye
Body language
and eye contact
Communication style
Language barriers
Negotiation tactics
How to motivate
people
Feedback and
coaching
Target setting
Meetings and
presentations
Corporate cultures
The role of government
Sexual harassment
Environmental laws
Labor laws and unions
Data protection
Buying and selling
businesses
Regulations
Accounting standards
Macro levelBusinessPersonal
When to sit down?
Protocol on who sits where?
Wait to be seated?
Men besides women?
How to use knife and fork?
Finish everything on plate?
Asking for more?
•  Wait for the host’s toast before drinking
•  Lady of the house puts napkin in lap first
•  Place bread on tablecloth or bread plate
but not on normal plate
•  Tear bread into bite sized pieces
•  Leave your hands above the table
•  Pour wine glasses only ¾ full
FRANCE	
  
•  Remain standing until told where to sit
•  Look people in the eyes when toasting
•  Do not begin eating before the host
•  Everything on plate should be eaten
•  Fork in left hand and knife in right hand
without switching like in US
GERMANY	
  
Elbows on Table?
Hands above or below table?
Placing your napkin in lap?
Conversation during dinner?
Business during dinner?
How animated?
Cross cultural dining etiquette
Personal
Carrying yourself and body language
•  Ok to give and receive
things with whichever hand is
available (right is better)
•  Stand straight up - bowing is
not necessary
•  When you greet someone
look them in the eyes
•  When you speak with
someone look them in the
eyes
•  When you toast someone
look them in the eyes
•  This is irrespective of status
and seniority
•  Otherwise you appear
insecure and insincere
EUROPE
GENERAL
•  Very animated while
speaking
•  People will judge you on
how you carry yourself
(“Bella figura”)
•  Appearances are very
important
•  Smaller personal space
ITALIANS
•  Appearances are very
important
•  Fashion conscious like the
Italians
•  Smaller personal space
•  Language and logic is
very important
FRENCH
•  Quite reserved/private and not very animated
•  Don’t show emotions - “stiff upper lip”
•  Bigger personal space
BRITISH
Personal
Greeting & saying Good Bye Shaking hands vs. kissing
•  Handshake is quick and firm
•  Generally rather formal
•  Last name and title
•  Slight bow of the head
•  Wait for host(s) to introduce
you
•  Some kissing on cheeks for
younger generation
•  Differences between South
and North
GERMANY	
  
•  Handshake is light
•  Generally rather formal
•  Last name and title
•  Even casual acquaintances
kiss on cheeks
•  Usually 2x but 3x in Provence,
4x in Nantes and only 1x in
Finistere
•  Good male friends kiss on
cheeks as well
•  Old fashioned – kissing a
woman’s hand
FRANCE	
  
•  Firm Handshake
•  “How do you do?” as
question and answer
•  In business highest rank
meets others in order of
their position
•  No touching and kissing
•  First name basis is more
common – like in the US
UK	
  
Personal
Importance of food
•  Business lunches are preferred
to dinner; if dinner then
relatively late
•  Eating (well) is a priority in
France
•  Business is not supposed to be
discussed – establish a personal
relationship
•  Several courses
•  Wine served with lunch
•  The person inviting is expected
to pay
•  Be careful about adding salt,
pepper and ketchup
FRANCE	
  
•  Dinner discussion often turns to
business – not much small talk
in Germany
•  No business decisions made
during meals
•  Don‘t expect to be taken out
every night – Germans clearly
separate business & private life
•  Entertaining is not often at
peoples homes
•  The person inviting is supposed
to pay
•  For private invitations don‘t
expect to be served
GERMANY	
  
•  Food scene is one of
extremes
•  High likely hood to be invited
to a private dinner party
•  Dinner is mostly for sociable
or celebratory entertaining
•  Business entertaining in
restaurants, pubs and cafes
•  Invite people of the same
background /professional
level
•  Business culture is informal –
often socializing in pubs
UK	
  
cultural
differences 	
  
BRITAIN, AUSTRALIA,
NEW ZEALAND, MALTA: Up yours!
USA: Two
GERMANY: Victory
FRANCE: Peace
WESTERN COUNTRIES: Number 5
EVERYWHERE: Stop!
GREECE AND TURKEY: Go to hell!
EUROPE: Two
BRITAIN, AUSTRALIA, NEW ZEALAND: One
USA: Waiter!
EUROPE AND NORTH AMERICA: OK
MEDITERRANEAN, RUSSIA, BRAZIL, TURKEY:
insult; sexual insult
TUNISIA, FRANCE, BELGIUM:
Zero; worthless
Be careful signalling with your hands
or you will run into troubles Personal
Alcohol and Tobacco
•  Wine is the most widely drunk
alcoholic beverage
•  You can expect to be served
wine at business lunches
•  The French drink responsibly
•  If bringing wine to a dinner
party it should be foreign
•  Many French smoke
•  Smoking is illegal in all enclosed
work places
FRANCE	
  
•  Alcohol consumption is
amongst the highest
•  Drinking culture includes also
business (dinners)
•  Hard liquor (Vodka) is one of
the favorite drinks
•  There is considerable peer
pressure to join drinking
•  A limited smoking ban was just
introduced
RUSSIA	
  
•  Beer is the most widely
consumed drink
•  Alcohol consumption is
amongst the highest
•  No need to drink during
lunch but at dinner there is
some “pressure” to join in
•  When invited to a pub buy a
round of drinks
•  Smoking is illegal in all
enclosed work places
UK	
  
Differences in communication style
•  Direct and factual
•  Not much small talk
•  Put truth and directness before
diplomacy
•  Speak up
•  Get straight to the point
•  Not much humor in business –
there is a place and time for
everything
•  Very diplomatic language
•  Non confrontational
•  Use of first names
•  Equate directness with open
confrontation
•  Humor is persuasive in business;
especially to diffuse tensions
•  Better to be self deprecating
then self promotional
GERMANY	
  
•  Form is very important
•  Love for elegant use of
language
•  Moving process forward by
drawing distinctions – might
appear controversial
•  Interruptions are accepted
part of business etiquette
•  Admire logical, well defined
ideas
UK	
  FRANCE	
  
I	
  
Sales people were embarrassed
to learn that “Fresca” is slang for
"lesbian.”
REASON
Animals are considered to be a form
of low life and no self respecting Thai
would wear anything worn by
animals
“Matador” meant “Killer” which was
a bad omen considering the
country’s treacherous streets
It had to be mixed with water, needed
to be sterilized, poor mothers where
using less then prescribed – leading to
malnutrition and poor health
SOFT DRINKS
The soft drink Fresca led to lots of laughter in
Mexico.
EYE GLASSES
An international manufacturer failed trying to
promote its products in Thailand by advertising
featuring cute animals wearing glasses.
CARS
American Motors failed with its new car called
“Matador” in Puerto Rico.
IMPACT OF CULTURAL DIFFERENCES
Examples of companies that got into trouble
because they did not consider cultural differences (1 of 2)
INFANT FORMULA
Nestle was boycotted for promoting it’s infant
formula in Africa.
Women in Business
•  Men earn about 40% more then
women (20% pay/hour and 20%
more hours)
•  Many women work (80%)
•  France is a much more „flirty“
culture including kissing on
cheeks and generally
appreciating the other gender
•  Business women may invite a
french man for lunch or dinner
and have no problem picking
up the bill
FRANCE	
  
•  Women should extend their
hand first when greeting
•  Men should hold a door for a
women and stand when a
woman enters the room
•  British like their personal space
•  Hugging, kissing and touching
is reserved for family and very
close friends
•  For women: Don’t be insulted if
called love, dearie, or darling.
These are commonly used
UK	
  
•  More traditional picture of
women in society
•  When introduced to a
women wait if she extends
her hand
•  Men should walk to the left of
a women
•  Traditionally a men should go
ahead of a woman when
entering a public space
•  Don‘t be offended when
„he“ or „she“ corrects your
behaviour – policing each
other is a social duty
GERMANY
Business
Differences in feedback and coaching
•  Society is factual and very to
the point
•  Feedback is tough, critical and
to the point
•  You don’t single out specific
accomplishments or offer
praise unless it is truly
extraordinary
•  German professionals expect
high-level, expert performance
GERMANY
•  Feedback is difficult since it is
a diplomatic and non-
confrontational culture
•  Almost a third of employees
never get feedback
•  Almost 50% give their bosses
low people management skills
•  Feedback is hidden in
diplomatic language
UK	
  
•  Steep hierarchies make 360°
and upward feedback
ineffective
•  If it is part of a performance
appraisal system the system
must be approved by the
works council
•  High number of French
employees are disengaged
•  Recognition, praise and
caring is not natural to the
(business) culture
FRANCE
Business
Disgruntled employees
Loss of key staff (Head of R&D)
Delayed product launches
Layers of bureaucracy
Cost overruns and inefficiencies
Ouster of CEO
PROBLEM
IMPACT
Case
Study 01
WHAT DID UPJOHN DO?
SITUATION
•  Upjohn Company of the US and Pharmacia AB
of Sweden (ops in Italy) merged in 1995
•  Upjohn more dominant
•  US scheduled meetings in the summer
•  Implemented non-smoking, testing policies
•  Command and control management system
•  Strict reporting, budget controls, staffing updates
•  Very centralized, top down management
•  R&D HQ in London
PROBLEM
NATIONAL CULTURE CLASH
Swedes :
•  Take off July
•  Open, team based
management
•  Consensus behind
decisions
Italian's:
•  Take off August
•  Workers (unions) vs.
managers
•  Value on Family
(childcare, sick relatives)
Motivating in different cultures
•  Competence is highly valued –
superiors must understand what
employee is doing
•  Dedication by superiors
•  Motivation does not always
translate into productive action
– hierarchical culture
•  Social events brings together
and motivate people
•  Starting to use US style loyalty
programs
FRANCE
•  Many people are self
motivated – commitment and
loyalty are important
•  Money is important but not all
•  Good working conditions are
expected
•  Factual culture: being clear
and giving understandable
targets is important
•  Praise is only expected for
extraordinary things
GERMANY
•  Education, experience and
ability to maintain good
office climate is valued in
boss
•  Ability to communicate and
interact is important
•  Concept of punctuality is
rather relaxed
•  Subtle approaches are
important – feedback in
private
•  Social events are
appreciated
ITALY
Business
Long term versus short term thinking
•  Prefer to build up long term
relationships
•  Don’t like a “hard sell”
•  Don’t like people going after a
quick deal
•  Appreciate businesses that
have grown over time
•  Younger generation is
changing quickly though
•  Quite some public discussion
about more short term thinking
(cutting funds, financial
institutions)
UK
•  Generally very short term
•  Chasing next quarters profits
•  Pulling in sales from the next
period to make this periods
numbers and bonus
•  Sometimes short time profit
taking on the expense of long
term sustainable success
•  “Throw away culture”
•  Houses are bought to build
equity or flipped for a profit
USA
•  Germans have a planning
culture so things are rather
long term
•  The planning with several
options should something
happen and Plan B’s give a
sense of security
•  High pressure tactics to get a
deal quickly are counter
productive
•  Houses are (often) bought for
a life time
GERMANY
Business
PROBLEM
Chrysler key executives resigned
or replaced
Conflicting values, goals, orders
Departments heading in different
directions
Share price collapsed in 4 years
from 95 to 40
IMPACT
PROBLEM
SITUATION
Merger of German Daimler with US Chrysler
Was at its time one of the biggest and most
famous mergers
German “engineering company” together with
a company with a huge distribution network
IMMENSE CORPORATE CULTURAL CLASH
Daimler:
•  Hierarchical, chain of command, authority
•  Conservative, efficient, safe
•  Reliability, highest quality
•  Dominant and imposing
Chrysler:
•  Team oriented, egalitarian
•  Daring, diverse and creative
•  Catchy designs, competitive prices
Case
Study 02
1998
Daimler payed
$ 38 Billion
2007
Cerberus payed
$ 7.4 Billion
Language barriers and how to overcome them
•  Be conscious about areas
where small differences are
important (negotiations,
contracts etc.).
•  Hiring of a local service
provider (attorney, translator)
may be the safest route
•  A lot of people in management
positions speak very good
English BUT there are
exceptions!
•  Avoid colloquialism and jokes –
they often don’t “travel well”
GENERAL
•  English language skills are
generally very good
•  German communication is
formal and people are
suspicious of hyperbole
•  As the culture is direct you
should answer yes or no –
ambiguities are disliked
•  Be careful of jargon
•  Be specific
GERMANY
•  While many managers speak
English it tends to be weaker
then in other countries and
sometimes non existent!
•  Don’t use slang, colloquialism
and difficult vocabulary
•  Speak slowly not louder
•  Learn at least a few words
and key phrases and people
will appreciate your effort
ITALY
Business
Importance of hierarchy in different countries
•  Most of the power is in the hands
of a few managers
•  Large companies have a
supervisory board which appoints
the management board
•  The management board is the
final decision maker on policy
matters that affects management
•  Below the board strict hierarchical
approach with roles and
responsibilities tightly defined
GERMANY
•  Very flat organizations
•  Non hierarchical
•  Collaborative decision making
•  Pay differentials between
levels are very low
•  Structures defined to be
pragmatic and to reduce
interruption
•  Matrix management works
well in Sweden
SWEDEN
•  Rigid hierarchy and
functionality with lots of
power for PDG (CEO)
•  The PDG determines the
future direction of the
company
•  Vision is disseminated across
the organization for
implementation
•  Management style is
directive and top down
FRANCE
Business
When problems arise and flexibility, speed and quick
changes are needed
Openness of communication and freedom
of information might look anarchic to you
WEAKNESS	
   LOOK OUT
IMPACT
PROBLEM
Japanese reluctant to take
orders from “guests”
Negative impact on overall
efficiency
Cross department
communication was very weak
Daimler refused to make any
more investments
IMPACT
PROBLEM
SITUATION
•  Daimler wanted foothold in Asia
•  Created an alliance with Mitsubishi
•  Ignored local practises and principles
•  Imposed their own terms
MAIN DIFFERENCE WAS IN NATIONAL CULTURE
German:
•  Strictly fact based, pragmatic, dry
•  Hierarchical, structured, clear authority
•  Giving orders
•  Dominant and imposing
Japan:
•  Value personal relationships
•  Long term oriented
•  Were seeing German managers as guests
Case
Study 03
Differences in presentation styles and techniques
•  Very factual and numbers
oriented
•  Supporting details are very
important – if not enough it
weakens your argument
•  Putting truth and directness
above all
•  Directness is seen as sign of
respect and fundamental to
finding correct solutions
GERMANY
•  Formal presentations less used
than in other countries
•  Presentations can seem stiff
and academic
•  Usually smaller less formal
meetings
•  Showing a lot of emotion and
being theatrical gives
importance to the issue
•  Being reserved can be
misinterpreted as disinterest
ITALY
•  Very important to start with
details to show audience
that you have mastered the
subject – building credibility
•  Love and respect for
elegance of language and
sophisticated presentation of
ideas
•  Admire logical well defined
ideas
•  Drawing of distinctions is
almost an intellectual goal
FRANCE
Business
Unfortunately it sounded a lot like a
VERY vulgar word in several countries
The firm received complaints from
many organizations and individuals
as it was the name of the gas used
by the Nazi regime to murder millions
of Jews in concentration camps
CARS
Honda had to rename a car called “FIT” in
Nordic countries
VACUUMS
Electrolux, a Scandinavian manufacturer failed
by promoting his product in the US with the
slogan: “Nothing sucks like an Electrolux”
FURNITURE
Ikea, a Swedish furniture company advertised
one of its workbenches in Canada as “Fartfull”
Customers had a lot of fun embarrassing the
sales people
SNEAKERS
Umbro the UK sports manufacturer had to
withdraw its new sneakers called the Zyklon.
Examples of companies that got into trouble
because they did not consider cultural differences (2 of 2)
REASONIMPACT OF CULTURAL DIFFERENCES
Deal making in - don’t try to negotiate with a German like with a French
•  Small talk and building
relationships are not priorities
•  Negotiations have to be
supported by detailed
evidence backing up your
case
•  Decisions are not made based
on sales technique or charm –
cold hard facts!
•  Decisions are formed
methodically
•  Do not try to rush or apply
pressure
GERMANY
•  Italians prefer to do business
with someone they know –
introductions are key to
success
•  Negotiations are slow
•  Showing a sense of urgency is
seen as a sign of weakness!
•  A typical tactic is to
dramatically change
demands at the very end to
unsettle partners or test heir
flexibility
ITALY
•  More emphasis on
relationship building
•  Direct, probing questioning
•  Negotiations can become
passionate
•  Argumentation is a means to
analyse your case
•  Avoid exaggeration
•  In a stalemate French will just
re-state their position – it is up
to you to take apart their
argument
FRANCE
Business
Business etiquette
•  Good manners and courtesy
are prized in Italy
•  15 minutes delay is normal
•  Small talk is important
•  Your conduct and the
presentation of yourself has to
be polished at all times
•  There are etiquettes and
protocols for many situations
•  However, Italians rate
considerateness above
behavioral formulas
•  Dress to impress
ITALY
•  Punctuality is important
•  Humour is sometimes part of
business
•  Business is rather formal
•  Like to be rather understated
in their communication
•  Feel most comfortable
interacting at their hierarchical
level
•  Older statesmen are very well
respected for their aura
authority
UK
•  Punctuality is a serious issue
•  Don’t “waste peoples time” –
be direct, short and to the
point
•  Emotions and unnecessary
content have no place in
conversations
•  Small talk is to be avoided
•  Humour has generally no
place in business
•  Meetings are functional and
stick to an agenda with start
and finish times
GERMANY
Business
The role of Government in daily life and how it can impact your business
•  Government is heavily involved
in many aspects of life
•  Nutrition for schoolchildren and
vending of junk food is
regulated
•  National mandatory
healthcare of very high quality
•  24 months unemployment
insurance
•  Stepping in when firms want to
close plants
•  Stepping in for mergers/take
overs of or with French firms
FRANCE
•  German federal Government
plays a crucial role in the
economy
•  Several ministries are involved
(like Bundeskartellamt)
•  Government policies have
wide ranging effects
•  National mandated
healthcare supplemented by
private insurance
GERMANY
•  Government involvement is in
between continental Europe
and the US
•  It has mandatory national
healthcare
•  Very limited unemployment
benefits
•  Government is sometimes
stepping in when there are
takeovers of firms
UK
macro
Data protection standards in different countries
•  The collection, processing and
use of personal data are strictly
regulated
•  Takes data protection
extremely serious
•  Many organizations appoint a
Data Protection Officer
•  German law is unfortunately
not always clear
•  Failure to comply with the law
can have significant
ramifications
GERMANY
•  Subject needs to give
permission to the usage of
data
•  Subjects can request to review
and correct held data
•  Subjects can require that
information may not be used
for direct marketing
•  Data must not be transferred
out of the EU unless country
ensures protection for the
rights and freedoms of data
subjects
UK
•  Allow users to understand the
processing/use of their
personal data
•  Define how long personal
data will be retained
•  French authority launched
enforcement action against
Google (June 2013)
•  Increased inspections of
organizations transferring
data into and out of France
•  Coordinated action with 6
other countries
FRANCE
macro
PROBLEM
Key personal stayed in JLR
High motivation level
Trust between the companies
JLR was well integrated
IMPACT
WHAT DID TATA DO DIFFERENTLY?
SITUATION
Indian TATA acquired Jaguar Landrover (JLR)
•  Despite being acquirer it did not impose itself
•  Respected corporate and national culture
•  Left existing management structure in place
•  Motivated managers by giving goals and
challenging them but also working with them
•  Help was given when requested
•  Statements that it was Tata’s responsibility to take
care of JLR
•  Willing to make investments if needed
•  Tata visited JLR locations and requested feedback
Case
Study 04
Accounting Systems
•  Somewhat closer to the US
model but still stricter
•  Reports are geared toward
sophisticated users rather then
regulatory bodies
•  The auditors judge whether the
statements demonstrate a "true
and fair view”
•  “True and fair view” concept is
broader then US GAAP
UK
•  Banks heavily influence the
accounting rules as they are
the main investors
•  Accounting system is
extremely conservative
•  Reporting system is geared
toward workers and investors
•  Dividends are constrained
because of strict requirements
for significant reserves
•  Disclosure of vast amounts of
information about firms (social
reporting)
GERMANY
•  The government is involved in
the standard setting for
accounting
•  Requirements for auditors are
quite stringent
•  Executives can be held
accountable for a firms
bankruptcy
•  Accounting rules are very
conservative
•  Apply the "true and fair view"
like the British
FRANCE
macro
Cost of doing business
45%
66%
(up to)
47.5%
UK GERMANYFRANCE
24%-20%
(21% IN ‘14)
34% 30%
UK GERMANYFRANCE
5.6 weeks
(incl. Bank
holidays)
9.5 weeks
(worst case)
5 weeks
(plus 9 public
holidays)
UK GERMANYFRANCE
21.9%
34.9% 31%
UK GERMANYFRANCE
Corporate Tax
INCOME Tax
VACATION
LABOR COST
Cop	
  
What kind of due diligence should you do
before any business trip?
Research company and people you will meet. Opportunity to:
•  ask informed questions and amaze people
•  build good relationships
Do you need a translator?
Do you need specialized service firms (attorney, bank, consultans etc)?
Business
What is of interest to you?
What do you want to get out of it?
Be in control:
•  show your hosts that you are interested
•  tell them of personal time needed
Think of loved ones at home
Personal
Visa required?
Vaccination needed? Not needed for Europe!
Weather - clothing
Formality of culture
General web research on peculiarities of culture „Look-outs“Basics
Every trip is an opportunity to
expand our horizon and learn
something new!
INTERNET
Research
GOVERNMENT
OTHER
SOURCES
•  Expatriate organisations
•  People having lived in that country for some time (info via Embassy)
Where can you get information about specific countries
and the peculiar differences in culture between them?
Bringing it full circle
How you can succeed in a different environment
•  At first glance terribly complicated
und frustrating
•  Difficulty of remembering behavior
that go against who we are
•  Fear of making a mistake
•  Danger of appearing either
uneasy, low on self confidence or
fake
SUMMING IT UP
Treating Europe
as one culture?
Why knowing culture
is important
Stages of
awareness
Companies that
got into trouble
Case
studies
Details on country specific
differences in many
different categories
How to use your knowledge of cultural
differences to your advantage?
•  Age old truth: People prefer to do
business with people they like
•  Being sensitive to their “quirks” will help
you to be accepted as a trusted
business partner
•  Since people like you it will be easier to
meet outside of business and gain
inside knowledge
•  You can understand people and know
how to approach difficult topics
•  Where your competitors will give up
you will persevere
•  You know how to succeed in the long
term because you know how to make
it work with local people
GENERAL BUSINESS
How to use your knowledge of cultural
differences to your advantage?
•  Understanding people gives you the
power to look through posturing
•  Knowing what to expect will prevent
surprises
•  Understanding culturally ingrained
behavior will prevent you from falling
into negotiation traps
•  You suddenly have the power to fine
tune your offer/presentation to make it
more appealing to your counterpart
•  Do you have to be introduced via a
business partner or does your offer stand
on its own because of facts and figures?
•  Should you take it slow or try high
pressure tactics?
NEGOTIATIONS
Is there a magic bullet to help you solve this
complicated understanding of differences?
There is no magic bullet or
secret recipe you can follow
Accept that you will make some
mistakes/ avoid the big ones
Learn as much as you can
about the country you will
do business in
Realize that things that appear
bizarre to you will be just that
way the other way around
Pick out the things that interest you
personally and show interest about it to
your host – everyone loves to show off
something about their own country
Get trusted local help
Show passion about the business
rather then the money
CHRISTIAN HOFER	
  
If	
  you	
  have	
  any	
  ques.ons	
  please	
  feel	
  free	
  to	
  contact	
  me!	
  
You	
  can	
  download	
  this	
  presenta.on	
  on	
  slideshare	
  	
  
THANK YOU!
E-­‐mail:	
  	
  	
  	
  hofer.chris5an@gmail.com	
  
Blog: 	
  	
  	
  	
  www.produc5vity-­‐toolkit.com	
  
Mobile:	
  	
  	
  +33	
  615	
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Intercultural challenges BioKorea 2013

  • 1. W   INTERCULTURAL CHALLENGES HOW TO COME TO AN AGREEMENT For Asian companies in partnering with European companies Christian Hofer
  • 2. DINNER at home like a case study on intercultural differences •  American wife •  Trilingual Children: speaking German at dinner, English with my wife and French with each other How did I learn about cultural differences ? BUSINESS TRAVEL CONSULTING Germany, Hungary, Czech Republic, Poland, Russia, Denmark, Sweden, Finland, England, France, Italy, Spain, Switzerland, US, Pakistan, Thailand, South Korea, China, Thailand, Japan, Hong Kong, Singapore Worked in different countries and in different corporate cultures. Necessity to manage differences between companies, Divisions and even teams
  • 3. ABOUT ME Personal info and background WHY? Importance of understanding differences HOW? Understanding the concept of cultural differnces OH NO! Corporate „bloopers“ PERSONAL Examples of interpersonal nature BUSINESS Examples of corporate nature MACRO Examples of rules & regulations AHA! How to prepare FULL CIRCLE Understanding and applying What is the road that we are going to travel together today and where will it take us?  
  • 4. Despite the Euro we cannot see Europe as one homogenous zone – vast differences exist Cultural differences may not be as visual as in the picture but in daily life you will find them quickly They effect everything from personal interactions to how people think and act and finally to laws und regulations Not knowing them or ignoring them exposes you to the risk of failed relations and missed business opportunities Doing business in “Europe” ? Treat Europe as one homogeneous market at your own risk! Stereotype or truth?
  • 5. SEEMINGLY SMALL THINGS CAN CREATE SIGNIFICANT ISSUES Businesses are becoming increasingly global exposing them to new cultures/issues Some people, even corporations are ignorant to the cultural differences and the impact they can have We must not judge from our own perspective, but rather think how other people might perceive our behavior Ignorance can easily destroy your personal and corporate image in the eyes of your business partner Why is the knowledge of intercultural differences so important for today’s business ?
  • 6. Ignorance You have no knowledge that any differences exist at all “Bad surprises” Limited awareness You know that differences exist but have very limited knowledge – you just know that there is an issue but cannot quite understand it Limited  competence You know some of the differences and try to adjust your behavior. It does not come naturally yet. You have a feeling for how you come across Subconscious competence Cultural appropriate behavior is second nature to you. You can trust your instincts The 4 stages of intercultural awareness
  • 7. What aspects of business are cultural differences affecting ? Long vs. short term thinking Table manners Personal space Greeting people and saying goodbye Body language and eye contact Communication style Language barriers Negotiation tactics How to motivate people Feedback and coaching Target setting Meetings and presentations Corporate cultures The role of government Sexual harassment Environmental laws Labor laws and unions Data protection Buying and selling businesses Regulations Accounting standards Macro levelBusinessPersonal
  • 8. When to sit down? Protocol on who sits where? Wait to be seated? Men besides women? How to use knife and fork? Finish everything on plate? Asking for more? •  Wait for the host’s toast before drinking •  Lady of the house puts napkin in lap first •  Place bread on tablecloth or bread plate but not on normal plate •  Tear bread into bite sized pieces •  Leave your hands above the table •  Pour wine glasses only ¾ full FRANCE   •  Remain standing until told where to sit •  Look people in the eyes when toasting •  Do not begin eating before the host •  Everything on plate should be eaten •  Fork in left hand and knife in right hand without switching like in US GERMANY   Elbows on Table? Hands above or below table? Placing your napkin in lap? Conversation during dinner? Business during dinner? How animated? Cross cultural dining etiquette Personal
  • 9. Carrying yourself and body language •  Ok to give and receive things with whichever hand is available (right is better) •  Stand straight up - bowing is not necessary •  When you greet someone look them in the eyes •  When you speak with someone look them in the eyes •  When you toast someone look them in the eyes •  This is irrespective of status and seniority •  Otherwise you appear insecure and insincere EUROPE GENERAL •  Very animated while speaking •  People will judge you on how you carry yourself (“Bella figura”) •  Appearances are very important •  Smaller personal space ITALIANS •  Appearances are very important •  Fashion conscious like the Italians •  Smaller personal space •  Language and logic is very important FRENCH •  Quite reserved/private and not very animated •  Don’t show emotions - “stiff upper lip” •  Bigger personal space BRITISH Personal
  • 10. Greeting & saying Good Bye Shaking hands vs. kissing •  Handshake is quick and firm •  Generally rather formal •  Last name and title •  Slight bow of the head •  Wait for host(s) to introduce you •  Some kissing on cheeks for younger generation •  Differences between South and North GERMANY   •  Handshake is light •  Generally rather formal •  Last name and title •  Even casual acquaintances kiss on cheeks •  Usually 2x but 3x in Provence, 4x in Nantes and only 1x in Finistere •  Good male friends kiss on cheeks as well •  Old fashioned – kissing a woman’s hand FRANCE   •  Firm Handshake •  “How do you do?” as question and answer •  In business highest rank meets others in order of their position •  No touching and kissing •  First name basis is more common – like in the US UK   Personal
  • 11. Importance of food •  Business lunches are preferred to dinner; if dinner then relatively late •  Eating (well) is a priority in France •  Business is not supposed to be discussed – establish a personal relationship •  Several courses •  Wine served with lunch •  The person inviting is expected to pay •  Be careful about adding salt, pepper and ketchup FRANCE   •  Dinner discussion often turns to business – not much small talk in Germany •  No business decisions made during meals •  Don‘t expect to be taken out every night – Germans clearly separate business & private life •  Entertaining is not often at peoples homes •  The person inviting is supposed to pay •  For private invitations don‘t expect to be served GERMANY   •  Food scene is one of extremes •  High likely hood to be invited to a private dinner party •  Dinner is mostly for sociable or celebratory entertaining •  Business entertaining in restaurants, pubs and cafes •  Invite people of the same background /professional level •  Business culture is informal – often socializing in pubs UK  
  • 12. cultural differences   BRITAIN, AUSTRALIA, NEW ZEALAND, MALTA: Up yours! USA: Two GERMANY: Victory FRANCE: Peace WESTERN COUNTRIES: Number 5 EVERYWHERE: Stop! GREECE AND TURKEY: Go to hell! EUROPE: Two BRITAIN, AUSTRALIA, NEW ZEALAND: One USA: Waiter! EUROPE AND NORTH AMERICA: OK MEDITERRANEAN, RUSSIA, BRAZIL, TURKEY: insult; sexual insult TUNISIA, FRANCE, BELGIUM: Zero; worthless Be careful signalling with your hands or you will run into troubles Personal
  • 13. Alcohol and Tobacco •  Wine is the most widely drunk alcoholic beverage •  You can expect to be served wine at business lunches •  The French drink responsibly •  If bringing wine to a dinner party it should be foreign •  Many French smoke •  Smoking is illegal in all enclosed work places FRANCE   •  Alcohol consumption is amongst the highest •  Drinking culture includes also business (dinners) •  Hard liquor (Vodka) is one of the favorite drinks •  There is considerable peer pressure to join drinking •  A limited smoking ban was just introduced RUSSIA   •  Beer is the most widely consumed drink •  Alcohol consumption is amongst the highest •  No need to drink during lunch but at dinner there is some “pressure” to join in •  When invited to a pub buy a round of drinks •  Smoking is illegal in all enclosed work places UK  
  • 14. Differences in communication style •  Direct and factual •  Not much small talk •  Put truth and directness before diplomacy •  Speak up •  Get straight to the point •  Not much humor in business – there is a place and time for everything •  Very diplomatic language •  Non confrontational •  Use of first names •  Equate directness with open confrontation •  Humor is persuasive in business; especially to diffuse tensions •  Better to be self deprecating then self promotional GERMANY   •  Form is very important •  Love for elegant use of language •  Moving process forward by drawing distinctions – might appear controversial •  Interruptions are accepted part of business etiquette •  Admire logical, well defined ideas UK  FRANCE  
  • 15. I   Sales people were embarrassed to learn that “Fresca” is slang for "lesbian.” REASON Animals are considered to be a form of low life and no self respecting Thai would wear anything worn by animals “Matador” meant “Killer” which was a bad omen considering the country’s treacherous streets It had to be mixed with water, needed to be sterilized, poor mothers where using less then prescribed – leading to malnutrition and poor health SOFT DRINKS The soft drink Fresca led to lots of laughter in Mexico. EYE GLASSES An international manufacturer failed trying to promote its products in Thailand by advertising featuring cute animals wearing glasses. CARS American Motors failed with its new car called “Matador” in Puerto Rico. IMPACT OF CULTURAL DIFFERENCES Examples of companies that got into trouble because they did not consider cultural differences (1 of 2) INFANT FORMULA Nestle was boycotted for promoting it’s infant formula in Africa.
  • 16. Women in Business •  Men earn about 40% more then women (20% pay/hour and 20% more hours) •  Many women work (80%) •  France is a much more „flirty“ culture including kissing on cheeks and generally appreciating the other gender •  Business women may invite a french man for lunch or dinner and have no problem picking up the bill FRANCE   •  Women should extend their hand first when greeting •  Men should hold a door for a women and stand when a woman enters the room •  British like their personal space •  Hugging, kissing and touching is reserved for family and very close friends •  For women: Don’t be insulted if called love, dearie, or darling. These are commonly used UK   •  More traditional picture of women in society •  When introduced to a women wait if she extends her hand •  Men should walk to the left of a women •  Traditionally a men should go ahead of a woman when entering a public space •  Don‘t be offended when „he“ or „she“ corrects your behaviour – policing each other is a social duty GERMANY Business
  • 17. Differences in feedback and coaching •  Society is factual and very to the point •  Feedback is tough, critical and to the point •  You don’t single out specific accomplishments or offer praise unless it is truly extraordinary •  German professionals expect high-level, expert performance GERMANY •  Feedback is difficult since it is a diplomatic and non- confrontational culture •  Almost a third of employees never get feedback •  Almost 50% give their bosses low people management skills •  Feedback is hidden in diplomatic language UK   •  Steep hierarchies make 360° and upward feedback ineffective •  If it is part of a performance appraisal system the system must be approved by the works council •  High number of French employees are disengaged •  Recognition, praise and caring is not natural to the (business) culture FRANCE Business
  • 18. Disgruntled employees Loss of key staff (Head of R&D) Delayed product launches Layers of bureaucracy Cost overruns and inefficiencies Ouster of CEO PROBLEM IMPACT Case Study 01 WHAT DID UPJOHN DO? SITUATION •  Upjohn Company of the US and Pharmacia AB of Sweden (ops in Italy) merged in 1995 •  Upjohn more dominant •  US scheduled meetings in the summer •  Implemented non-smoking, testing policies •  Command and control management system •  Strict reporting, budget controls, staffing updates •  Very centralized, top down management •  R&D HQ in London PROBLEM NATIONAL CULTURE CLASH Swedes : •  Take off July •  Open, team based management •  Consensus behind decisions Italian's: •  Take off August •  Workers (unions) vs. managers •  Value on Family (childcare, sick relatives)
  • 19. Motivating in different cultures •  Competence is highly valued – superiors must understand what employee is doing •  Dedication by superiors •  Motivation does not always translate into productive action – hierarchical culture •  Social events brings together and motivate people •  Starting to use US style loyalty programs FRANCE •  Many people are self motivated – commitment and loyalty are important •  Money is important but not all •  Good working conditions are expected •  Factual culture: being clear and giving understandable targets is important •  Praise is only expected for extraordinary things GERMANY •  Education, experience and ability to maintain good office climate is valued in boss •  Ability to communicate and interact is important •  Concept of punctuality is rather relaxed •  Subtle approaches are important – feedback in private •  Social events are appreciated ITALY Business
  • 20. Long term versus short term thinking •  Prefer to build up long term relationships •  Don’t like a “hard sell” •  Don’t like people going after a quick deal •  Appreciate businesses that have grown over time •  Younger generation is changing quickly though •  Quite some public discussion about more short term thinking (cutting funds, financial institutions) UK •  Generally very short term •  Chasing next quarters profits •  Pulling in sales from the next period to make this periods numbers and bonus •  Sometimes short time profit taking on the expense of long term sustainable success •  “Throw away culture” •  Houses are bought to build equity or flipped for a profit USA •  Germans have a planning culture so things are rather long term •  The planning with several options should something happen and Plan B’s give a sense of security •  High pressure tactics to get a deal quickly are counter productive •  Houses are (often) bought for a life time GERMANY Business
  • 21. PROBLEM Chrysler key executives resigned or replaced Conflicting values, goals, orders Departments heading in different directions Share price collapsed in 4 years from 95 to 40 IMPACT PROBLEM SITUATION Merger of German Daimler with US Chrysler Was at its time one of the biggest and most famous mergers German “engineering company” together with a company with a huge distribution network IMMENSE CORPORATE CULTURAL CLASH Daimler: •  Hierarchical, chain of command, authority •  Conservative, efficient, safe •  Reliability, highest quality •  Dominant and imposing Chrysler: •  Team oriented, egalitarian •  Daring, diverse and creative •  Catchy designs, competitive prices Case Study 02 1998 Daimler payed $ 38 Billion 2007 Cerberus payed $ 7.4 Billion
  • 22. Language barriers and how to overcome them •  Be conscious about areas where small differences are important (negotiations, contracts etc.). •  Hiring of a local service provider (attorney, translator) may be the safest route •  A lot of people in management positions speak very good English BUT there are exceptions! •  Avoid colloquialism and jokes – they often don’t “travel well” GENERAL •  English language skills are generally very good •  German communication is formal and people are suspicious of hyperbole •  As the culture is direct you should answer yes or no – ambiguities are disliked •  Be careful of jargon •  Be specific GERMANY •  While many managers speak English it tends to be weaker then in other countries and sometimes non existent! •  Don’t use slang, colloquialism and difficult vocabulary •  Speak slowly not louder •  Learn at least a few words and key phrases and people will appreciate your effort ITALY Business
  • 23. Importance of hierarchy in different countries •  Most of the power is in the hands of a few managers •  Large companies have a supervisory board which appoints the management board •  The management board is the final decision maker on policy matters that affects management •  Below the board strict hierarchical approach with roles and responsibilities tightly defined GERMANY •  Very flat organizations •  Non hierarchical •  Collaborative decision making •  Pay differentials between levels are very low •  Structures defined to be pragmatic and to reduce interruption •  Matrix management works well in Sweden SWEDEN •  Rigid hierarchy and functionality with lots of power for PDG (CEO) •  The PDG determines the future direction of the company •  Vision is disseminated across the organization for implementation •  Management style is directive and top down FRANCE Business When problems arise and flexibility, speed and quick changes are needed Openness of communication and freedom of information might look anarchic to you WEAKNESS   LOOK OUT
  • 24. IMPACT PROBLEM Japanese reluctant to take orders from “guests” Negative impact on overall efficiency Cross department communication was very weak Daimler refused to make any more investments IMPACT PROBLEM SITUATION •  Daimler wanted foothold in Asia •  Created an alliance with Mitsubishi •  Ignored local practises and principles •  Imposed their own terms MAIN DIFFERENCE WAS IN NATIONAL CULTURE German: •  Strictly fact based, pragmatic, dry •  Hierarchical, structured, clear authority •  Giving orders •  Dominant and imposing Japan: •  Value personal relationships •  Long term oriented •  Were seeing German managers as guests Case Study 03
  • 25. Differences in presentation styles and techniques •  Very factual and numbers oriented •  Supporting details are very important – if not enough it weakens your argument •  Putting truth and directness above all •  Directness is seen as sign of respect and fundamental to finding correct solutions GERMANY •  Formal presentations less used than in other countries •  Presentations can seem stiff and academic •  Usually smaller less formal meetings •  Showing a lot of emotion and being theatrical gives importance to the issue •  Being reserved can be misinterpreted as disinterest ITALY •  Very important to start with details to show audience that you have mastered the subject – building credibility •  Love and respect for elegance of language and sophisticated presentation of ideas •  Admire logical well defined ideas •  Drawing of distinctions is almost an intellectual goal FRANCE Business
  • 26. Unfortunately it sounded a lot like a VERY vulgar word in several countries The firm received complaints from many organizations and individuals as it was the name of the gas used by the Nazi regime to murder millions of Jews in concentration camps CARS Honda had to rename a car called “FIT” in Nordic countries VACUUMS Electrolux, a Scandinavian manufacturer failed by promoting his product in the US with the slogan: “Nothing sucks like an Electrolux” FURNITURE Ikea, a Swedish furniture company advertised one of its workbenches in Canada as “Fartfull” Customers had a lot of fun embarrassing the sales people SNEAKERS Umbro the UK sports manufacturer had to withdraw its new sneakers called the Zyklon. Examples of companies that got into trouble because they did not consider cultural differences (2 of 2) REASONIMPACT OF CULTURAL DIFFERENCES
  • 27. Deal making in - don’t try to negotiate with a German like with a French •  Small talk and building relationships are not priorities •  Negotiations have to be supported by detailed evidence backing up your case •  Decisions are not made based on sales technique or charm – cold hard facts! •  Decisions are formed methodically •  Do not try to rush or apply pressure GERMANY •  Italians prefer to do business with someone they know – introductions are key to success •  Negotiations are slow •  Showing a sense of urgency is seen as a sign of weakness! •  A typical tactic is to dramatically change demands at the very end to unsettle partners or test heir flexibility ITALY •  More emphasis on relationship building •  Direct, probing questioning •  Negotiations can become passionate •  Argumentation is a means to analyse your case •  Avoid exaggeration •  In a stalemate French will just re-state their position – it is up to you to take apart their argument FRANCE Business
  • 28. Business etiquette •  Good manners and courtesy are prized in Italy •  15 minutes delay is normal •  Small talk is important •  Your conduct and the presentation of yourself has to be polished at all times •  There are etiquettes and protocols for many situations •  However, Italians rate considerateness above behavioral formulas •  Dress to impress ITALY •  Punctuality is important •  Humour is sometimes part of business •  Business is rather formal •  Like to be rather understated in their communication •  Feel most comfortable interacting at their hierarchical level •  Older statesmen are very well respected for their aura authority UK •  Punctuality is a serious issue •  Don’t “waste peoples time” – be direct, short and to the point •  Emotions and unnecessary content have no place in conversations •  Small talk is to be avoided •  Humour has generally no place in business •  Meetings are functional and stick to an agenda with start and finish times GERMANY Business
  • 29. The role of Government in daily life and how it can impact your business •  Government is heavily involved in many aspects of life •  Nutrition for schoolchildren and vending of junk food is regulated •  National mandatory healthcare of very high quality •  24 months unemployment insurance •  Stepping in when firms want to close plants •  Stepping in for mergers/take overs of or with French firms FRANCE •  German federal Government plays a crucial role in the economy •  Several ministries are involved (like Bundeskartellamt) •  Government policies have wide ranging effects •  National mandated healthcare supplemented by private insurance GERMANY •  Government involvement is in between continental Europe and the US •  It has mandatory national healthcare •  Very limited unemployment benefits •  Government is sometimes stepping in when there are takeovers of firms UK macro
  • 30. Data protection standards in different countries •  The collection, processing and use of personal data are strictly regulated •  Takes data protection extremely serious •  Many organizations appoint a Data Protection Officer •  German law is unfortunately not always clear •  Failure to comply with the law can have significant ramifications GERMANY •  Subject needs to give permission to the usage of data •  Subjects can request to review and correct held data •  Subjects can require that information may not be used for direct marketing •  Data must not be transferred out of the EU unless country ensures protection for the rights and freedoms of data subjects UK •  Allow users to understand the processing/use of their personal data •  Define how long personal data will be retained •  French authority launched enforcement action against Google (June 2013) •  Increased inspections of organizations transferring data into and out of France •  Coordinated action with 6 other countries FRANCE macro
  • 31. PROBLEM Key personal stayed in JLR High motivation level Trust between the companies JLR was well integrated IMPACT WHAT DID TATA DO DIFFERENTLY? SITUATION Indian TATA acquired Jaguar Landrover (JLR) •  Despite being acquirer it did not impose itself •  Respected corporate and national culture •  Left existing management structure in place •  Motivated managers by giving goals and challenging them but also working with them •  Help was given when requested •  Statements that it was Tata’s responsibility to take care of JLR •  Willing to make investments if needed •  Tata visited JLR locations and requested feedback Case Study 04
  • 32. Accounting Systems •  Somewhat closer to the US model but still stricter •  Reports are geared toward sophisticated users rather then regulatory bodies •  The auditors judge whether the statements demonstrate a "true and fair view” •  “True and fair view” concept is broader then US GAAP UK •  Banks heavily influence the accounting rules as they are the main investors •  Accounting system is extremely conservative •  Reporting system is geared toward workers and investors •  Dividends are constrained because of strict requirements for significant reserves •  Disclosure of vast amounts of information about firms (social reporting) GERMANY •  The government is involved in the standard setting for accounting •  Requirements for auditors are quite stringent •  Executives can be held accountable for a firms bankruptcy •  Accounting rules are very conservative •  Apply the "true and fair view" like the British FRANCE macro
  • 33. Cost of doing business 45% 66% (up to) 47.5% UK GERMANYFRANCE 24%-20% (21% IN ‘14) 34% 30% UK GERMANYFRANCE 5.6 weeks (incl. Bank holidays) 9.5 weeks (worst case) 5 weeks (plus 9 public holidays) UK GERMANYFRANCE 21.9% 34.9% 31% UK GERMANYFRANCE Corporate Tax INCOME Tax VACATION LABOR COST
  • 34. Cop   What kind of due diligence should you do before any business trip? Research company and people you will meet. Opportunity to: •  ask informed questions and amaze people •  build good relationships Do you need a translator? Do you need specialized service firms (attorney, bank, consultans etc)? Business What is of interest to you? What do you want to get out of it? Be in control: •  show your hosts that you are interested •  tell them of personal time needed Think of loved ones at home Personal Visa required? Vaccination needed? Not needed for Europe! Weather - clothing Formality of culture General web research on peculiarities of culture „Look-outs“Basics Every trip is an opportunity to expand our horizon and learn something new!
  • 35. INTERNET Research GOVERNMENT OTHER SOURCES •  Expatriate organisations •  People having lived in that country for some time (info via Embassy) Where can you get information about specific countries and the peculiar differences in culture between them?
  • 36. Bringing it full circle How you can succeed in a different environment •  At first glance terribly complicated und frustrating •  Difficulty of remembering behavior that go against who we are •  Fear of making a mistake •  Danger of appearing either uneasy, low on self confidence or fake SUMMING IT UP Treating Europe as one culture? Why knowing culture is important Stages of awareness Companies that got into trouble Case studies Details on country specific differences in many different categories
  • 37. How to use your knowledge of cultural differences to your advantage? •  Age old truth: People prefer to do business with people they like •  Being sensitive to their “quirks” will help you to be accepted as a trusted business partner •  Since people like you it will be easier to meet outside of business and gain inside knowledge •  You can understand people and know how to approach difficult topics •  Where your competitors will give up you will persevere •  You know how to succeed in the long term because you know how to make it work with local people GENERAL BUSINESS
  • 38. How to use your knowledge of cultural differences to your advantage? •  Understanding people gives you the power to look through posturing •  Knowing what to expect will prevent surprises •  Understanding culturally ingrained behavior will prevent you from falling into negotiation traps •  You suddenly have the power to fine tune your offer/presentation to make it more appealing to your counterpart •  Do you have to be introduced via a business partner or does your offer stand on its own because of facts and figures? •  Should you take it slow or try high pressure tactics? NEGOTIATIONS
  • 39. Is there a magic bullet to help you solve this complicated understanding of differences? There is no magic bullet or secret recipe you can follow Accept that you will make some mistakes/ avoid the big ones Learn as much as you can about the country you will do business in Realize that things that appear bizarre to you will be just that way the other way around Pick out the things that interest you personally and show interest about it to your host – everyone loves to show off something about their own country Get trusted local help Show passion about the business rather then the money
  • 40. CHRISTIAN HOFER   If  you  have  any  ques.ons  please  feel  free  to  contact  me!   You  can  download  this  presenta.on  on  slideshare     THANK YOU! E-­‐mail:        hofer.chris5an@gmail.com   Blog:        www.produc5vity-­‐toolkit.com   Mobile:      +33  615  689  624