Jul 30

BP has a New CEO: Did Culture Play a Role?

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

BP recently announced the appointment of a new CEO: Robert Dudley, an American citizen who will take the helm of the oil company. Dudley will replace British national Tony Hayward who had been in charge of one of the world’s largest organisations for the last three years.

This decision did not come as a big surprise. Hayward is paying for the Mexican Gulf disaster which is considered one of the worst ecological disasters ever seen. Hayward’s very public role as CEO combined with several PR gaffes in the days that followed the platform incident have all played a role in him being replaced.

Most US journalists and communication specialists have pointed out a lack of commitment, concern and apologies from BP’s CEO during the oil spill. Hayward was also described as distant and not really interested in the events occurring in the Mexican Gulf.

Oil Platform Nick Cook i1 BP has a New CEO: Did Culture Play a Role?

© istockphoto.com/ Nick Cook

 

These accusations seem somewhat strange, however, if we look at the bigger picture. How could a CEO remain unconcerned when his company is responsible for a massive oil spill that will harm the brand’s image and potentially market value for decades? As emotions run high in the US and particularly in the Gulf of Mexico States it is easy for Americans to accuse the besieged BP Chief of being a callous polluter.

One of the key elements of this case is the nationality and culture of Hayward. As a British national, his communication style and core cultural values are different from those which you typically find in Americans. More precisely, Hayward is less likely to show his emotions openly. Brits are renowned for their reserve, straight face and lack of emotional display, even in tense and dire situations. Foreigners often perceive this to be quite cold and a sign of disinterest – hence the reaction from the American public.

Although much of Hayward’s communication style could be influenced by his national culture and values, much of his communication strategy was poor and things he said were inappropriate. This is where cultural awareness training can be really helpful. If he had known what kind of audience he was communicating to, what expectations they had of him and the style of communication they preferred, he could have adapted his approach to be more positively received.

A better understanding and awareness of US culture and communication styles could have helped Hayward to adapt and choose a better strategy to deal with this crisis. Americans are known to be more open and direct and tend to expect their leaders, businesspeople and celebrities to openly apologise in public when they have done wrong. Recent American history is full of incidents where famous “wrongdoers” have publicly apologised and been “rehabilitated” by the American public. After all, “To Err Is Human, to Forgive Divine” (Alexander Pope).

BP will have a new CEO in October. His primary objective will be to mend the image of the company around the world but particularly in the US. The fact that he his American will probably help him to find the right tone and style to accomplish this difficult task. Hopefully, his previous experience in other countries will also help him to adapt to other cultures as BP continues to work and expand in other international markets over the next few years.

Cross cultural awareness training programmessuch as Communicaid’s Doing Business in the US or Managing International Mergers and Acquisitions can help organisations to deal with such cultural differences and react more effectively to crisis such as this one. Understanding the key differences in communication styles as well as cross cultural perceptions and business practices is essential for any organisation working in the international arena.

© Communicaid Group Ltd. 2010

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Jul 29

Avoiding Cultural Faux Pas in an International Context: Perceptions of Touching

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Touching is perhaps one of the most dangerous aspects of non-verbal communication and one that is often misinterpreted. While touching someone on the arm or shoulder during a conversation can be accepted and encouraged in some cultures, it can be regarded as highly inappropriate and nearing sexual harassment in other cultures.

Business Woman shaking hands i Avoiding Cultural Faux Pas in an International Context: Perceptions of Touching

© istockphoto.com/ Neustockimages

 

The vast majority of cultures however have a complex approach to this particular question. In most Islamic countries for instance, touching a woman can be completely taboo but it can be perfectly acceptable for men to hold hands in public as this is regarded as a sign of friendship. When and who you can touch, whether a handshake or an encouraging touch on the shoulder, can be hard to understand if you are not familiar with cultures where Islam plays an important role.

Another good example of where touch can be misinterpreted or confusing is in France. When doing business in France you may find that your counterparts maintain a high level of formality and will not have very much physical contact. The only time French tend to have any physical contact at work is when they greet and say goodbye, typically with a firm handshake or kisses on each cheek between close colleagues.

In more informal situations the French will usually greet other with a kiss on both cheeks, sometimes twice and sometimes four times depending on the region and relationship. Even men can be seen greeting other men with kisses on the cheek provided they are close relatives or friends. Once again, this kind of behaviour can be puzzling for anyone doing business in an unfamiliar culture, leading to critical incidents or awkward situations that may prevent them from effectively working in that culture.

Knowing and deciphering different non-verbal behaviours and gestures is crucial for anyone working across cultures, whether as an international assignee, global manager or project team leader. Cross cultural awareness training courses like Doing Business in France or Living and Working in Saudi Arabia can increase your understanding of non-verbal communication and other cultural differences to ensure you have the most relevant cultural tools and strategies for a successful international experience.

© Communcaid Group Ltd. 2010

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Jul 27

How Politeness Impacts International Business

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »
Business People 9 Jacob Wackerhausen i2 How Politeness Impacts International Business

© istockphoto.com/ Jacob Wackerhausen

Each culture has a set of unique idiosyncrasies. In other words, behavioural traits which have grown out of historical experience. These traits are so engrained in the psyche of the culture that it can be difficult to explain their origins or why they are still followed years, decades or even centuries later.

Outsiders or international assignees entering a new culture may be perplexed by what they perceive as strange or unnatural behaviour. Without proper pre-departure cross cultural training and support which gives international assignees an understanding of the culture, these cultural idiosyncrasies will remain distant, unexplained oddities that can prevent the assignee from having a successful expatriation in the new country.

 

A good example of where cultural idiosyncrasies often baffle foreigners is the UK. People who are not from Britain often say that the country is obsessed with courtesy and good manners. The British way of communicating is peppered with politeness markers and their behaviour can sometimes be perceived as too conciliatory.

In fact, in the UK the most minor omission of a politeness marker such as ‘please’ or ‘thank you’ or the wrong word order in a sentence can cause offence. Failing to observe the queuing culture or asking a question too directly can leave people with the impression that you are rude or disrespectful. International assignees living and working in the UK must therefore have an understanding of the culture and these unique politeness traits if they want to communicate effectively with their British counterparts.

The intricacies of politeness in the UK are complex and mostly subconscious behaviours that are considered the norm. Politeness markers are often used with complete sincerity or pre-thought. Let’s look at an example where a man and woman approach each other in a busy corridor both carrying papers. As they pass in the corridor, the man bumps into the woman and knocks her, causing her to drop some of her documents. The man says ‘sorry’, which would be considered quite normal for many as he is the one who knocked into her. However the woman also apologises. This happens frequently in the UK, and often confuses those who are unaware of the culture of politeness.

Another example often cited by non-natives revolves around taking the bus. Most British have the habit of thanking the bus driver as they get off the bus. There is no real reason for doing this as the bus driver has to stop at the bus stop and let them off anyway, and most of the time the driver is behind a window which makes it difficult to hear them. Nevertheless, most British adhere to this cultural norm on a daily basis. In many cultures, people believe that because the bus driver’s job is to drive the bus and to let you off, they have not done anything special for you and therefore do not deserve a thank you.

These differences in expected courtesy also affect the way people convey certain messages in business. Being unaware of such discrepancies between what it is said and what it is meant can cause some problems, especially in the workplace. One common example of this is how British people often request tasks to be completed.

For instance, your manager might ask you ‘Would you mind finishing this piece of work by the end of today please?’. This can be perceived as a request to complete the job without much urgency while in fact your manager could really be trying to say: ‘Get on with it and finish it by the end of the day!’. This misunderstanding can often cause the employee to take a longer time than required. If this pattern persists it may well cause frustrations between manager and employees.

These are just a few simple examples of how politeness in the UK can be a confusing thing for many foreigners and how it can impact international business. By attending a cross cultural awareness training course such as Communicaid’s Living and Working in the UK or Doing Business in the UK, business travellers and international assignees can gain the cultural understanding they need to successfully communicate, build relationships and adapt to life in the UK.

© Communicaid Group Ltd. 2010

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Jul 26

Global Leadership: What Makes the Perfect Leader?

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

 

Many anthropologists and intercultural specialists like Geert Hofstede and Fons Trompenaars have developed cross-cultural comparative models showing the main cultural differences between cultures. Their contributions as well as those of many other interculturalists such as Edward T. Hall are recognised as foundation models in the field of intercultural communication.

Although comprehensive, most of the work in the field to date is comparative, country-specific and focuses on elements of interaction and communication. Only of few cultural studies have focused specifically on how culture affects leaders and managers around the world. Even fewer studies have analysed the required set of skills and leadership capabilities managers need when working in a cross cultural environment.

Business People 4 Neustockimages i Global Leadership: What Makes the Perfect Leader?

© istockphoto.com/ Neustockimages

The GLOBE project is one research programme that looks to determine what qualities and characteristics the ideal leader should have in different cultures and what impact these cultural values and qualities have on global leadership, organisational culture and processes. Initiated by Robert J. House in 1991 and managed at Thunderbird University in Glendale California, the GLOBE project involves about 170 scholars from 61 countries.

By reviewing expected leadership qualities across these cultures, the GLOBE model shows what leaders should be aware of when operating in that country. For example, the research suggests that Americans look for leaders who will give them power and autonomy and lead the way with bold and clever ideas. Chinese on the other hand typically want their leaders to be able to give precise directions and orders but also inspirational and someone to look up to.

To find and isolate the most relevant cultural features, researchers working on the GLOBE project wrote and translated two questionnaires which focused on working styles within companies as well as the society as a whole. Through the analysis of the completed questionnaires nine cultural orientations were identified that relate to the characteristics of the perfect leader.  These nine cultural orientations are described briefly below.

Uncertainty Avoidance: the extent to which person or organisation tries to avoid unknown or unexpected situations and controls future events. In a management context this can be illustrated by the number of processes companies implement, the use of social rituals or the importance of bureaucracy.

Power Distance: how the power is shared within society or an organisation. The power distance value directly impacts organisational charts, the way decisions are made or even how people interact.

Individual Collectivism: how organisations and society incite people to share or undertake collective actions. In the business world, this value impacts the way people work, for instance alone or within groups.

Societal Collectivism: the level of pride and loyalty displayed by individuals toward their family, social group or company.

Gender Egalitarianism: how power is shared between men and women and how differences between genders are perceived. In organisations, this value is illustrated by the presence (or not) of women within the decision making sphere.

Assertiveness: the accepted degree of directness and aggressiveness within social and work relationships between individuals.

Future Orientation: the extent to which persons and organisations are ready to plan for the future. In organisations this value is illustrated in the confidence displayed in the future, the will of investing or the entrepreneurial spirit expected from the employees.

Performance Orientation: how performance and striving for excellence is rewarded by society or organisations. Organisations in strong performance oriented cultures will emphasise professional success before personal development.

Humane Orientation: the degree of reward individuals can get through kind, generous and altruistic behaviour.

The research conducted to date has been presented in the following two books:

  • Culture, Leadership and Organisation – an overview of the methodology and an analysis of 62 countries
  • Culture and Leadership across the World – an in-depth analysis of 25 countries

Cross cultural awareness training courses like Effective Global Leadership or Building International Teams can increase your understanding of cultural models such as the GLOBE project and how you can use them in your working context. Being aware of cultural differences and leadership expectations around the world will help you to motivate, inspire and manage counterparts more effectively while minimising the risks of critical incidents or misunderstanding.

© Communicaid Group Ltd. 2010

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Jul 23

Benefits of Doing Business in Italy

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management No Comments »

Thanks to its position within the European Union and its highly diversified economy, Italy offers a number of benefits to companies looking to expand their operations internationally. Below are some of the key benefits of doing business in Italy.

Coliseum Hedda Gjerpen i1 Benefits of Doing Business in Italy

© istockphoto.com/ Hedda Gjerpen

 

Access to the Eurozone
Italy’s industrial triangle (Milan, Turin, Genova) is favourably positioned near other rich areas such as the Rhone-Alpes and the European core of the heavy industry: the Rhine-Ruhr region. In addition to this, as the EU has gradually expanded to the east and embraced former Eastern Block countries, Italy has gone from being the southern border of the Union to occupying its very centre. Whilst Italy’s territory mostly borders the Adriatic and Mediterranean seas, Italy shares its frontiers with fellow EU members France, Austria and Slovenia, as well as with Switzerland. Moreover, a short ferry trip separates it from Greece and all the former members of Yugoslavia. In the future, a project to create a rail and motorway corridor linking Western Europe with the Balkan Peninsula will place Italy at the very heart of modern Europe making it a great place for doing business.

A Flexible and Diversified Economy
As well as Italy’s excellent geographic position which offers international organisations doing business in Italy access to both its internal market and that of its bordering countries, the country also boasts a strong and diversified economy. Vibrant sectors in Italy include tourism, raw mineral extraction and processing, textiles, car production and of course fashion. Although it did suffer in the 2008 credit crunch, Italy boasted one of the highest per capita incomes in the Union (CIA World Factbook) for a long time and has one of the highest export rates in the world.

Government Support and Initiatives
GDP dropped by 0.2% in the last three months of 2009, but there are signs of recovery. Italy can in fact count on a unique combination of a small number of large companies that can rely on regular support from the Italian government – such as the car manufacturers FIAT and telecommunications group Telecom Italia – and a large number of SMEs, usually family-run, that manufacture high-quality consumer goods.

The combination of local businesses on the one hand and government-backed groups on the other has given rise to a unique economic landscape whose intricacies are hard to grasp without access to insider knowledge. Communicaid’s Doing Business in Italy cross cultural awareness training course offers the tools to address the cultural barriers a company doing business in Italy is highly likely to encounter, as well as strategies from individuals who have extensive experience living and doing business there.

© Communicaid Group Ltd. 2010

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Jul 21

Going on an International Assignment? Cultural Insensitivity Can Bring You Home Early

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

Living and working in another country can be an exciting and welcome opportunity for many business professionals as it offers them a unique chance to put into practice their skills and expertise of doing business, yet in a completely different setting. However, this opportunity also means stepping out of your comfort zone and being confronted with entirely different people and their specific perceptions about things like time, hierarchy, ways of doing business and communication styles. Living and working in another country should not be taken lightly or seen as an extended break.

Globe Kasia i Going on an International Assignment? Cultural Insensitivity Can Bring You Home Early

Whether you are going to another country for business or pleasure, the fact remains that the way you present yourself will reflect your country as a whole. For example, the behaviour of many Britons abroad has resulted in many negative perceptions of British nationals by other countries around the world which impacts business relationships.

A recent article suggested that one of the most irritating habits of Britons abroad seems to be their cultural insensitivity. There have been numerous cases of horror stories of the antics of Britons abroad, most of them of people on holiday who drink too much. Recently, a Latvian MP branded British tourists as ‘savages’ since the Latvian capital, Riga, became the top destination for British stag parties. Unruly Britons seem to like relieving themselves on Riga’s Freedom Monument, which in Latvia is considered an important symbol of the freedom, independence and sovereignty of the country, honouring soldiers killed while fighting for independence between1918-20.

Cultural insensitivities are not always purely on a social scale like this example. Mishaps also occur at the other end of the spectrum, with business professionals on international assignments also guilty of failing to do their research concerning the local culture and traditions of their target country and therefore find themselves in trouble.

One of the latest high-profile cases of cultural insensitivity by business professionals was that of the British couple who were sentenced to jail and fined £200 in March 2010 for allegedly drinking alcohol and kissing in public while dining in a trendy restaurant in Dubai. Although the male defendant, marketing executive Ayman Najafi, is of Muslim background, he has lived in the UK his entire life and was not aware of Dubai’s strict rules. Both were held on bail for a month and were unable to leave Dubai as their passports were taken away.

This is an interesting example since Dubai has a very modern atmosphere compared to many other Arabic cities, with state-of-the-art architecture and a fairly progressive approach to doing business. Yet the United Arab Emirates, of which Dubai is one of seven members, is still quite a conservative state. Many Western expatriates therefore wrongly assume that by being Western the rules do not apply to them, or they are simply unaware of the strict protocol they are required to follow in public.

Cross cultural awareness training courses like Living and Working in the UAE can provide companies and their employees with all the information necessary to make their transition and business experience abroad as smooth and successful as possible. By giving employees an awareness of how to do business in a different culture and an understanding of the wider social and cultural traditions, companies can make sure that their employees do not jeopardise business deals or even their own careers by their lack of cultural sensitivity and awareness.

© Communicaid Group Ltd. 2010

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Jul 19

Let’s Be Clear – This is Not How Cultural Awareness Should Be Applied

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Being culturally aware and sensitive in the diverse world in which we live and work is a very valuable asset. As the job market continues to struggle and competition is fiercer than ever, multinational organisations are increasingly looking for people who can prove they are easily adaptable to different situations and can work well in multicultural teams and multicultural environments – what is often termed being “culturally intelligent”.

Indeed, cross cultural awareness training courses are becoming more and more popular as organisations in both the corporate and public sector look to equip their staff with the skills to develop successful international relationships and exploit the benefits that multicultural workforces present.

Recent articles by the BBC and the Daily Mail highlighted the extent to which cultural awareness training courses impact the views of those who take part in them. This week Greater Manchester’s Exchange shopping centre will unveil two ‘Asian-style’ squat toilets after bosses attended a cultural awareness training course run by a local Muslim community activist. Apparently, as one in ten members of the Rochdale community is of Bangladeshi or Pakistani origin, they prefer them for cultural reasons.

Water Drops mustafa deliormanli i1 Let’s Be Clear – This is Not How Cultural Awareness Should Be Applied

© istockphoto.com/ Mustafa Deliormanli

 

While this shows a culturally sensitive approach by the management of the shopping centre to accommodate the cultural preferences and customs of an ever increasing Muslim population, news of these toilets was met with scepticism by the wider community. As many pointed out, the great majority of Muslims in the UK do not install these toilets at home but rather use conventional western toilets. In fact, a large number of the Muslim community were born in the UK and may never have used squat toilets at all. So why should a business cater for a very small minority or even provide a service that was not required at all?

Many examples can be given to illustrate flexibility and adaptability to specific sectors of the ever increasing multicultural communities all over the world. McDonalds has added kosher or halal meals in predominantly Jewish and Muslim areas respectively to show their commitment to their customers’ beliefs and traditions. We have all seen supermarket shelf space reserved for produce targeted at specific communities, e.g. the Polish in West London or the Irish in northwest London. Meanwhile, schools and many companies also allow pupils or employees time and a dedicated space for holidays like Ramadan or prayer time. And while these measures include small changes for other members of the wider community, they are usually welcome as a sign of tolerance.

While demonstrating openness and respect of other cultures are traits that we would expect of any member of our communities here in the UK, the onus on adaptability and flexibility should not solely rest with the population of British nationals – whether they can trace their ancestors back to Boadicea or are second generation Sikhs living in Hounslow. Newcomers to the UK should also be adaptable and respectful of the traditions and customs of their new home country and understand if they do not always match the customs and traditions of their country of origin.

The most successful international organisations are not those that export their country and corporate culture around the world, but those such as McDonalds that have understood how they need to fine tune their product offering and approach to each new country. The role of cultural awareness training is to help companies to understand this while leveraging their undoubted sector expertise.

After reading the news articles about the installation of squat toilets we asked ourselves many questions – did the local Muslim community ask for this? Do they really want this? Do they want to be particularly singled out? What will be the impact on the non Muslim community?, etc. Obviously we are not privy to the conversations and work carried out by the shopping centre and the local community leader who carried out this training.

Communicaid’s intercultural training courses are specifically designed for organisations to understand how much they should adapt to their new markets while at the same time keeping their own “corporate” and core values intact.

As important as it is to cater for the needs of our multicultural society and workforce, it is also vital for people to learn to adapt themselves to their new surroundings as much as possible. This will ensure a much better experience for all involved without risking offence for either locals or visitors.

© Communicaid Group Ltd. 2010

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Jul 16

Cross Cultural Theory: Expressing your Emotions across Cultures

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management No Comments »

Have you ever been in a situation where you felt your business counterparts were holding something back from you? Or perhaps you’ve been in a meeting and not been able to tell how your colleagues feel about your proposals? Conversely, have you ever found yourself feeling that your international counterparts should learn to keep to themselves and control their emotions?

The extent to which people express their emotions can often be described using the terms affective and neutral. People from affective cultures tend to express their feelings and emotions openly whereas people from neutral cultures usually try to hide their thoughts and feelings. One of Fons Trompenaars’ seven cultural dimensions, these two opposing concepts can help us to understand behaviours and reactions to situations so that we avoid making false interpretations or judgments about others when working across cultures.

Business meeting 8 track5 i1 Cross Cultural Theory: Expressing your Emotions across Cultures

© istockphoto.com/ Track 5

 

When doing business in Brazil or living and working in Italy, both affective cultures, you may find that your counterparts show their reactions immediately and directly through verbal and non-verbal channels such as increasing the level of their voice, using gestures or making more physical contact. However, if you are from a neutral culture like the US or Finland, this may make you feel uncomfortable and sometimes even aggressed. Meanwhile, your Brazilian or Italian counterparts may find your lack of outward expression of feelings confusing and might perceive you as being cold and reserved.

When working across cultures it’s important to be able to recognise how the display of emotions or lack thereof can impact relationships and cross-cultural communication. Failing to understand how your business counterparts express themselves can result in major misunderstandings or misjudgement.

Participating in a cross cultural awareness training course like Doing Business in Brazil or Living and Working in Italy, you can learn not only how to correctly interpret your international counterparts but also how to control your own reaction to it.

© Communicaid Group Ltd. 2010

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Jul 15

International Relocation: Helping Children Thrive in a New Culture

Cross Cultural Training, Cultural training for Relocation, Culture 1 Comment »

Relocating overseas to a culture that you know little about can be daunting enough for an adult but it’s even more so for young children and teenagers. Kids can find it really difficult to move away from friends, family and familiar places to an unknown country and culture.

Flower Tulips Maria Pavlova i International Relocation: Helping Children Thrive in a New Culture

© istockphoto.com/ Maria Pavlova

 

The good news is that psychologists and intercultural specialists believe that children often adjust more easily to a new environment than adults as they are more intensely involved in the life of the new society. School life, for example, provides a wonderful opportunity to make friends and therefore to integrate into the life of a new community.

All the same, it would be naïve to assume that children are mature enough to deal successfully with all the challenges of the host culture. Some of the most difficult issues for expatriate children are:

  • Language barriers
  • Different school system and education style and expectations
  • New communication styles
  • Leaving friends and making new ones

Undertaking an intercultural training course that gives young children and teenagers an understanding of the country they are relocating to can be immensely helpful. Explaining the customs and traditions or way of life as well as a few key expressions in the local language can make a big difference on their adjustment.

Intercultural training can help children of all ages adapt to their new school, new friends, new activities and new life abroad. Ensuring they have everything they need to make a smooth adjustment can help the family carry out their entire international assignment and save the organisation money. Studies show that one of the most common reasons for failed assignments is the family unhappiness or inability to settle in the new country.

In addressing these challenges and providing children with tools to deal with them, cross-cultural training courses for relocation such as Spouse and Family Training and Support or specific language courses can prepare children to meet the challenges of a new environment. Giving them the support they need, can make the difference between them having a difficult time or thriving in the new culture.

© Communicaid Group Ltd. 2010

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Jul 13

Benefits of Doing Business in Africa

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management No Comments »

The mention of Africa conjures images of impressive wildlife, diverse habitats and safaris, but also images of deprivation and inequality. Yet despite its current status as home to the world’s most underdeveloped countries, the past few years have seen a remarkable change in tide for the continent.

According to the Economist Africa’s annual output grew 4.9% faster than the global average of 3.8% in 2000-08. Foreign direct investment increased from $10 billion to $88 billion, which was more than India ($42 billion) and, remarkably, almost as much as China ($108 billion).

Cape Town kensorrie i1 Benefits of Doing Business in Africa

© istockphoto.com/ Kensorrie

 

This increase in growth and foreign investment can be attributed to the fact that international businesses can no longer ignore Africa’s potential. The continent is not only the second largest in size and population in the world, but it is also vastly rich in natural resources, a sector which surprisingly only accounts to about a third of the continent’s growth.

Pharmaceutical and telecommunications industries among others are increasingly looking towards Africa as manufacturing costs are cheaper and labour costs in current powerhouses India and China keep increasing. The Economist also mentions the rising sector of ‘frugal innovation’, which involves developing clever designs to serve the poor. International entrepreneurs and organisations would be wise to take advantage of the endless possibilities for development and business ventures that Africa has to offer.

Starting a business venture in Africa successfully requires an understanding of the cultures and societies present on the continent. Africa is still largely considered uncharted territory for the business world compared to other regions, so getting to know the challenges and intricacies of working alongside African colleagues and their traditions could provide your company with an edge by starting on the right foot.

As Africa becomes an increasingly attractive location for international business ventures, we are seeing an increase in the number of corporate and public sector clients who ask for training on African countries like Kenya, Ghana, South Africa and Zambia. These organisations are leading the way in ensuring that their employees have the right level of cultural support and intercultural training they need to successfully adapt to their professional and daily life in Africa.

Providing relocation training courses such as Living and Working in South Africa to international assignees or cross-cultural training for business and management programmes such as Doing Business in Nigeria, you can significantly increase the chances of any business opportunity in Africa succeeding.

With the World Cup hosted in South Africa over the last month, the whole continent has seen an influx of visitors never seen before. This has provided the perfect opportunity for businesses to see first-hand the numerous prospects and benefits of doing business on the African continent. Organisations doing business in Africa over the next few years will lead the way in harnessing the many benefits this greatly diverse continent has to offer.

© Communicaid Group Ltd. 2010

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