Aug 31

Challenges of Doing Business in Germany

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 2 Comments »

Most people associate German business culture with efficiency, quality and high technical standards. With the fifth largest economy in the world and a great degree of openness to international trade and business, Germany has established itself as a key economic power on the global stage making doing business in Germany more attractive than ever.

Germany Flag wrangel i1 Challenges of Doing Business in Germany

© istockphoto.com/ Wrangel

Doing Business in Germanywithout adequate cross cultural awareness, however, is a risky proposition. The cultural values of German business culture at the root of the country’s economic success can also prove a source of cross cultural misunderstanding for global companies doing business in Germany. Cross cultural awareness training courses highlight the cultural risks your organisation is likely to encounter when doing business in Germany.

These stem from a number of factors, some of which are described in more detail below.

Hierarchical Company Structures

German business culture places a great value on hierarchy. German businesses therefore follow a strict hierarchical structure, where decisions tend to be made at the top and communication is usually vertical. Status is acquired and assigned on the basis of merit, and the highest positions in a German company will be held by the most technically qualified and experienced employees. For international organisations doing business in Germany this hierarchical structure can affect negotiations and meetings which may seem to take longer than expected. You may perceive the plethora of procedures and policies as excessively slowing things down and creating mistrust. In truth, your German counterparts are most likely looking closely at all details and waiting for decisions to be made at the appropriate level. While decision making processes may be slow, the final result will be of the highest quality, as German products are renowned to be.

Strong Departmental Rivalry

When doing business with German companies, you should be aware that you may come across strong departmental rivalry. This may be actively encouraged by German managers in order to get the best out of their employees and staff. While it arguably contributes to a competitive product and high levels of efficiency, it means that you should be sure of communicating and sharing information with exactly the right parties and people within the German company with which you are doing business. Make communication channels clear from the start and ensure you are aware of who the key decision makers are on the German side.

Direct Communication Style

German businesspeople tend to communicate in a very direct manner. They will give you their opinion openly and straightforwardly and they will expect the same from you and your colleagues. Humour does not tend to be valued or used in business, so be aware that using humour can be inappropriate and unprofessional. You and your organisation need to be aware of this cross cultural difference as your German counterparts can otherwise be seen as blunt and undiplomatic. In negotiations, you should read any criticism as a constructive contribution to improve the outcome, rather that an attack of the person in charge. If you are working under a German manager, don’t expect praise, as a good job done is the minimum you will be required to do.

Understanding German business culture and developing the cross cultural skills to decipher its influence on business relationships with your German counterparts makes the difference between a profitable venture and a failed one when doing business in Germany. Cross cultural awareness can help you tip the balance of negotiations with German businesses in your company’s favour, greatly contributing to your company’s global success. Cross cultural awareness should form part of the know-how of all internationally focused organisations and can be developed and harnessed through Communicaid’s bespoke cross cultural training solutions.

© Communicaid Group Ltd. 2010

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Aug 24

Managing International Teams – Reduce the Risk and Reap the Benefits

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

Have you ever thought of multicultural teams as a distraction? Do differences in approaches and opinions always get in the way of the decision making process? Some people think that cultural difference is something that must be enjoyed but should not get in the way of achieving goals. How could that be an effective perspective at work?

Business People 8 Sean Locke i1 Managing International Teams Reduce the Risk and Reap the Benefits

© istockphoto.com/ Sean Locke

Prioritising goals over relations can be considered a culturally specific trait. Team members may, depending on their cultural background, place more importance on completing tasks over relationship building. People who place tasks before relationships may also value assertiveness and antagonism as opposed to compromise and cooperative achievement. But how could it be possible to enjoy an international environment and the differences that exist if you think that culture is an obstacle to achieving targets?

You can’t fully enjoy and appreciate something that you do not know very well, and the same applies for cultural differences. Either through extensive international experience or by attending a cross cultural awareness training course such as Managing International Teams or Working Effectively across Cultures, you will be able to understand how culture influences the way people communicate and, in particular, how they approach business relations.

The way people talk to each other, their working standards and the ability to adapt constitutes challenges in an international environment. Hence, it is crucial to acquire the right skills to acknowledge with an open mind the cultural gaps in order to pursue effectively your team’s goals without letting them be in the way of your operations.

Managers should make sure that members of international teams have appropriate cross cultural training to make them aware of the different styles of communication and approaches that their international colleagues or customers might display. Harnessing the many cultural perspectives and opportunities of cross-cultural teams requires the ability to motivate each team member no matter their culture by creating a sense of trust between employees.

Through an understanding of culture and its impact on business and cross cultural teams, intercultural traininghelps global organisations remove any potential of conflict and risk and gives them the knowledge they need to reap the benefits of a culturally diverse team without taking the focus off the targets.

© Communicaid Group Ltd. 2010

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Aug 20

The Will to Live… Abroad – Intercultural Training is Key to Global Success

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Human Resources No Comments »
Globes Mike Bentley i1 The Will to Live… Abroad – Intercultural Training is Key to Global Success

© istockphoto.com/ Mike Bentley

According to the 2010 Hydrogen Global Professionals on the Move Report, top executives and managers are increasingly willing to go on international assignments in foreign countries. Why are these highly qualified workers so eager to work in a different country? The report shows that they are not fleeing the economic crisis but they are in fact, trying to advance their career and stand out in this competitive global market.

It is true that being an expatriate has many advantages. From a career perspective, working abroad has always been a valued experience and enhances any CV. The experience international assignees gain in key positions in subsidiary companies or divisions abroad can significantly help to boost career opportunities later in their life.

In addition to improved career opportunities, expatriates also traditionally have higher wages and an improved status in their company. Although increased wages and status are attractive, the report indicates that these two aspects are not the main factors motivating employees to go on an international assignment. Instead, the report suggests their interest is increasingly around the challenging aspect of expatriation and the opportunities they would have to develop their skills in an international context.

One of the best examples of this is the quick rise of Philip Clarke through the Tesco Group. Clarke held several posts abroad, particularly in Asia where he was impressively successful, before being chosen as the next CEO of Tesco by Sir Terry Leahy. There are no doubts that he was chosen because of the skills he developed abroad and in his many roles at Tesco where he showed a great capacity to adapt to each new environment and choose the best suited option to ensure the success of the stores under his supervision.

Top executives, managers and team members who recognise the opportunities an international assignment can bring, like Philip Clarke did, should be aware that it takes more than being good at their job. Future expatriates need the expertise and social skills necessary to accomplish their business objectives and responsibilities but this along is not enough.

International assignees have to possess a global mindset which allows them to lead and manage their foreign counterparts effectively. Flexibility, adaptability and cultural awareness are also important skills to have. While these skills can be developed slowly through experience, going through a tailored intercultural training programme will ensure they avoid any cultural faux-pas and help them to reach their full potential in their new cultural environment. Intercultural training is key to helping them overcome the many different cultural challenges awaiting them in the target culture which can hinder their progress and performance.

Working effectively in a new country takes time and requires cultural knowledge and insight which can only be gained through a combination of experience and intercultural training delivered by qualified trainers with ‘dirt under their nails’. Intercultural training courses like Communicaid’s Living and Working in Brazil or Living and Working in India are designed to help top executives, managers and team members settle and adapt to the new work and social environment of their expatriation through intercultural knowledge, tools and strategies.

© Communicaid Group Ltd. 2010

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Aug 17

The Impact of Ramadan on Global 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 1 Comment »

It’s the Maghrib hour, just after sunset, and you are sitting on a carpet in a big tent being served juices and mint tea, snacking on dates. There are lots of people around you and the atmosphere is one of fellowship and joy. Any ideas where you might be? You have been invited to an Iftar, a breaking of fast ceremony which you may be lucky to experience in the next month if you are planning a business trip to a Muslim country.

Cairo sunset clu i1 The Impact of Ramadan on Global Business

© istockphoto.com/ Clu

Ramadan started on Wednesday 11 August this year and lasts for one month. If you are doing business in countries that observe Ramadan, such as Saudi Arabia, then you may find things a bit different than the rest of the year. You may find it difficult to arrange business lunches, your Muslim counterparts might be feeling tired or irritable during meetings and shops and restaurants will usually be open only during restricted times. Bank and other services may also be interrupted regularly for prayer times during the day. Being aware of how Ramadan impacts both social life and business will help you avoid any loss of time while you are there.

People doing business in Muslim countries during Ramadan often find a lower level of productivity, increased difficulty in meeting deadlines and challenges scheduling meetings. If you are travelling to a country which observes Ramadan, you may have the honour of receiving an invitation to attend the ceremonies that take place after the fasting hours. Iftar in particular substitutes normal business lunches and being invited is a sign of trust and friendship so you should accept. People with good interpersonal skills, cultural awareness and an understanding of the social etiquette during Ramadan will be more likely to have the opportunity to be involved which can help the relationship-building process.

Doing business in Saudi Arabia or any other country which observes Ramadan requires an ability to identify and understand the expected behaviours and the appropriate topics of conversations that would engage your Muslim counterparts. Communicaid’s Cultural Awareness Training Middle Eastcourses such as Doing Business in the Middle East provide you with the necessary knowledge and understanding to overcome any cultural barriers. Cross cultural training also helps you to develop the skills to be able to learn and recognise crucial factors such as respecting face and status when trying to create new business relationships with counterparts in other cultures.

Although a lot of things may appear closed during this period, not everything is dormant during Ramadan. For example, the Holy Month is a peak season for sweet shops, with sales increasing up to 30%. Some telecommunication companies have also adapted their products for the Muslim market by adding special features such as Islamic chants, videos and ring tones relating to Ramadan.

Another successful initiative was started by Samsung who has agreed to give part of its profits to a humanitarian organisation every time certain products are purchased during Ramadan. “The Holy Month is the perfect opportunity to demonstrate the company’s commitment to corporate social responsibility and ongoing dedication to helping those in need”, said the head of Corporate Marketing at Samsung.

Being able to relate to the cultural values of a specific market and showing respect towards them will open many oportunities for your business. Building effective business relationships is one of the pillars for doing business in the Middle East successfully, so Ramadan could be the perfect time to approach new ventures. Provided that your cultural understanding is strong, you will find plenty of opportunities to build relationships with your Muslim counterparts during Ramadan.

© Communicaid Group Ltd. 2010

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Aug 16

Selling across Cultures – Increase Profit and Customer Loyalty

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

Many people believe that intercultural training courses are only relevant for international assignees, high level global executives or members of multicultural teams wanting to work more effectively with foreign counterparts. Intercultural training courses are indeed relevant for these populations but they can also have real impact for people in other roles such as customer service or client relations.

Business is becoming increasingly global as organisations expand into other countries and employ individuals from multicultural backgrounds. Employees who support customers in or from other cultures need a high level of cultural awareness, understanding and adaptability skills to be effective, whether over the phone or face-to-face.

Handshake Chris Schmidt i1 Selling across Cultures – Increase Profit and Customer Loyalty

© istockphoto.com/ Chris Schmidt

This is especially true in the luxury industry where customers from newly developed and fast growing countries like China or India are becoming more and more present. The increasing population of customers from other countries is leading to an increased need and demand for intercultural training. Luxury brands such as Chanel, Harrods and Burberry who want to take advantage of this new customer market must understand the different cultural expectations, needs and shopping habits of their international customers.

Being prepared to deal with international customers can greatly increase the ability of sales personnel to provide a superior service and meet their sales targets. Intercultural training will enhance their performance by giving them the cultural knowledge they need to decipher customers’ behaviour and answer their unique needs. This in turn will increase the customers’ loyalty to the brand bringing the company profit for longer.

For example, an intercultural training course about Chinese culture will help customer facing employees develop strategies for welcoming and serving large groups of Chinese customers. In addition to helping them find ways to manage groups of Chinese customers, intercultural training also gives them an understanding of why many Chinese customers come as a group as opposed to individually. Intercultural training would also give them information about Chinese culture that they could use to build relationships with their Chinese customers which can only help the sale.

Understanding cross-cultural communication styles, either verbal or non-verbal is also crucial when selling across cultures. Using the right tone, adapting to the customer’s level of English or answering complaints in an appropriate way is as important as interpreting the meaning of a silence or a smile which can have completely different meanings from one culture to another.

Customer facing employees must have a high level of intercultural awareness as well as the ability to adapt to their international customers’ needs and expectations in order to be successful. Tailored intercultural training programmes provide a comprehensive overview of the intercultural practices and strategies they need to ensure they provide the best customer service to customers of any nationality. Communicaid’s intercultural training programme Selling across Cultures will give your sales team the competitive edge they need to take advantage of this interested and ever increasing international customer base.

© Communicaid Group Ltd. 2010

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Aug 12

The Importance of a Global Mindset for Success Overseas

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 »

In the current worldwide economic situation, being culturally aware and interculturally competent is a must for success in this highly competitive international market. Successful business people from all over the world are competing for top positions in international organisations. Being business savvy and having a good track record at home is no longer enough to secure the best roles in the global arena.

Globe Kasia i The Importance of a Global Mindset for Success Overseas

© istockphoto.com/ Kasia

According to new research published by the Harvard Business Review, a ‘global mindset’ is what candidates need to be successful in a global role in which they will need to be capable of adjusting to different environments and have the ability to work effectively with international colleagues. This ‘global mindset’ is defined as having three key elements: intellectual, psychological, and social capital.

Looking at how two people, one with and one without a global mindset, deal with cultural difference and international situations can give us a very good idea of how important having a global mindset is for anyone in a global role.

Alan, a promising employee at a US-based manufacturer was sent to Beijing as general manager for consumer products. He was excited by the challenge and looked forward to helping his company through a difficult period which was due to internal tensions that were interfering with the growth of the company. Before he started his new role he researched Chinese culture and read that the Chinese tend to think collectively and prioritise the interests of the group. As he started his work in China he emphasised the need for cooperation and teamwork amongst his employees in order to improve the situation and achieve the desired results.

After 60 days however there were no visible improvements and Alan found that although his employees had agreed to all of his suggestions, they had not committed to any specific action and were also not holding anyone accountable for the lack of improvements. Alan soon started to lose confidence in his abilities, took a dislike to Chinese food and Chinese culture and ended up returning to the US before the end of his international assignment in China costing the company wasted time and money.

Debra, Alan’s colleague, had a completely different experience when she was sent to Sao Paulo under similar circumstances. She was expected to turn around operations affected by low productivity and poor staff morale in a short timeframe. Unlike Alan, Debra was born in Venezuela to US military parents, had travelled extensively throughout her life and was fluent in several languages. Debra quickly embraced her new position and sought input from the local staff about what needed to be done to improve productivity. She did her research and took every opportunity she could to reach out to her staff. Within months, her project was back on the right track.

So although Debra’s background was more international than Alan’s, why were their experiences so different?

According to experts, the intellectual, psychological and social capitals that make up a ‘global mindset’ are each comprised of three key attributes that can guarantee organisations that their assignees are ready and likely to succeed in an international assignment. These attributes are:

Intellectual Capital: Global business savvy, cognitive complexity and a cosmopolitan outlook.

Psychological Capital: Passion for diversity, thirst for adventure and self-assurance.

Social Capital: Intercultural empathy, interpersonal impact and diplomacy.

Debra’s previous experiences abroad and her knowledge of other languages and cultures helped her to better understand her new employees and how she needed to deal with them in order to increase staff morale, confidence and productivity. She possessed, apart from talent, the ‘global mindset’ required for the international assignment set by her company. While Alan was talented as well, his skills weren’t as transferable to another culture given his lack of previous exposure to an international environment.

Debra was born into a different culture and had international experiences from an earlier age than Alan. However, the skills necessary for success in international assignments are not necessarily skills you are born with but can be acquired through cross cultural awareness training and international exposure.

Cultural awareness training programmes can equip you with the relevant tools and strategies to communicate efficiently with foreign counterparts and reduce the stress coming from a new and international context. They can also help you to adapt your management styles and understand the motivation factors and expectations of your new counterparts, ensuring a good working atmosphere. Getting familiar with their cultural values will also help you to decipher their behaviours and thus avoid critical incidents which can jeopardise a project or a profitable business opportunity.

Communicaid’s specialist courses such as cultural training for Relocation, Managing International Teamsor Effective Global Leadership can provide you and your company the necessary knowledge and skills required to thrive in the international arena. By being culturally aware and prepared to work across different cultures, employees of international organisations who posses this ‘global mindset’ are invaluable assets to their company, capable of increasing their chances of success and of profitable international assignments.

© Communicaid Group Ltd. 2010

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Aug 10

The Recipe for a Durex International Acquisition

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

Did you know that Durex stands for Durability, Reliability and Excellence? SSL, the owner of Durex and Scholl, was recently acquired by Anglo-Dutch company Reckitt Benckiser, manufacturers of cleaning merchandise ranging from Cillit Bang to Air Wick. As these two organisations come together, will SSL maintain their existing principles or adapt to those of its new owner Reckitt Benckiser? Let’s look at the three characteristics of Durex in a bit more detail.

Durability

This factor could prove quite challenging because a high number of cross-cultural M&A’s fail within a few years due to cultural misunderstandings, failure to merge organisational cultures and miscommunication between teams. Reckitt Benckiser’s long and well established experience in expanding to new markets and merging with other companies may help it escape a failed acquisition, but the question remains whether this partnership will last.

From the organisation’s background and international experience, it should be easy to think positively about the future but the reality is that many challenges lie ahead. Through this acquisition Reckitt Benckiser will see an increase of approximately 10,000 people coming from all over the world, so the tactics they have used in the past may not meet such a large scale global acquisition.

Reliability

Even though both companies’ principles point towards similar international goals, they are likely to have very different approaches to achieving them. Bart Becht, CEO of Reckitt Benckiser, has a very precise way of leading innovation and research which might clash with SSL’s method. This is particularly true when dealing with its recent providers in Russia and Ukraine.

For example, Russian society is fundamentally egalitarian, so it’s important to bear in mind that mutual advantage and reciprocity are key values when doing business with Russians. On the other hand, while having a flexible work ethos, Russians recognise authority so it is essential to show recognition of the hierarchical structure and respect of authority.

Excellence

SSL and Reckitt Benckiser have created performance driven cultures over the years, giving much importance to watching and listening to the consumer. However, to guarantee a successful acquisition, it is crucial they communicate as much as possible with the employees and consider their expectations and preferences. Differences in management styles, reward systems and decision-making processes are all areas that could lead to failure if the people in charge are not aware of all the subtleties that doing business abroad presents. A cross cultural awareness training programme such as Communicaid’s Working Effectively across Culturescan provide you with in-depth insight of underlying cross-cultural attitudes, values and behaviours and their impact on the workplace to avoid any cross-cultural issues during this M&A.

Team cercle Rafal Zdeb i1 The Recipe for a Durex International Acquisition

© istockphoto.com/Rafal-Zdeb

Becht sees diversity and conflict as real strengths, but will that be still manageable in this new organisation? Conflict is good if seen as a multitude of perspectives coming together, but when culturally embedded differences become insurmountable, then the company can really suffer.

The outcome of a conflict could be measured differently depending on the culture you are working in. In Asia, for example, mutual face-giving behaviour is much more important than finding practical goals and solutions. Conversely, in most Western countries it is vital to address issues directly and openly while trying to focus on the outcome. So, while for you a confrontation might have had a satisfactory outcome, your counterpart might be feeling frustrated, resulting in a significant deterioration of your relation.

These different approaches can cause feelings of mistrust and misunderstanding which will hinder the smooth running of the newly formed company. Attending one of Communicaid’s cross-cultural training courses such as Managing International Mergers and Acquisitions can give you the opportunity to examine essential cultural components in mergers and acquisitions planning, grounding and implementation.

Reckitt Benckiser has at its disposal a great pool of international workers who can contribute to the further growth of the company thanks to a variety of different approaches and points of view. By managing in a culturally sensitive way, this merger has the potential to create positive progression towards a cooperation that is durable, reliable and excellent – ingredients for global success!

© Communicaid Group Ltd. 2010

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Aug 09

Ramadan Mubarak! – A Month to Celebrate

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management 1 Comment »

Ramadan is without a doubt one of most important Muslim celebrations. One of the five pillars of Islam, Ramadan occurs during the ninth month of the Islamic calendar which is calculated according to the moon. This is why this 30 days long celebration takes place at a different time each year.

Ramadan is mainly a time of worship and closeness with God. Most people associate Ramadan with a time when Muslims fast from dawn until dusk. Muslims believe this fasting helps them to clean their soul and allows them to practise self control, sacrifice and empathy.

Ramadan is also a time for prayer. Each night 1/30 of the Qur’an is read so that the whole holy book is completed by the end of the month. Generosity is emphasised as well and Muslims are strongly encouraged to act like the prophet Muhammad who, according to the Qur’an, was “as generous as the blowing breeze”.

While some adjustments are made for young children, pregnant women or elderly people, all Muslims are expected to respect the fast and other aspects of the celebrations. Severe punishments can be imposed against people who eat, drink or behave improperly during this period in some strict Muslim countries.

Ramadan is not merely a religious celebration, rather it impacts all aspects of a Muslim’s life for 30 days. In most Islamic countries or nations counting a large Muslim population, the whole social and economic life is affected during Ramadan. Shops have different opening hours and will usually close during the afternoon and reopen during the evening. The same goes for many companies who tend to change their working hours and avoid scheduling important meetings during this period of the year.

Night life activity also increases during the month of Ramadan which often results in a lower performance rate during the day. In fact, the Arab World Institute based in Cairo published a survey showing that employee productivity decreases by 73.3% during the month of Ramadan. Absenteeism also rises as fasting and eating large portions of food once per day can create illness or digestive disorders.

Holy Koran Adem Demir i Ramadan Mubarak! – A Month to Celebrate

© istockphoto.com/Adem-Demir

Investors doing business in countries that observe Ramadan need to be aware of these elements when doing business with Muslim counterparts and avoid scheduling meetings during inappropriate hours of the day. International assignees living in Arabic countries must also adapt. Even if they are not obliged to fast, they should eat behind closed doors and avoid any disrespectful behaviour that might offend Muslims.

It is not only in Arab countries where you need to acknowledge the impact of Ramadan on professional and personal spheres. Muslim employees working in western countries also fast and celebrate the Ramadan traditions. Managers should be aware of this fact to avoid critical incidents or cultural insensitivity. Organising important business lunches or company events with food and drinks in the middle of the day during Ramadan for instance can put Muslims in uneasy or frustrating situations that can damage your business relationship with them.

Cross cultural awareness training programmes such as Living and Working in Saudi Arabia or Doing Business in the Middle East can help managers, international assignees and employees to have a better understanding of their Muslim counterparts. Training is tailored to provide the cross cultural tools and strategies required to deal with and fully understand Ramadan and its impact on business.

If you want to impress your Muslim counterparts by acknowledging this important time of the year, you can now purchase cards (even e-cards for the tech savvy) with Ramadan greetings. Showing your interest in this holiday is a great way to build relationships with Muslim counterparts and colleagues.

Ramadan Mubarak (a blessed Ramadan) to you all!

© Communicaid Group Ltd. 2010

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Aug 06

Can the UK Improve its Relationship with India?

Cross Cultural Training No Comments »

The UK’s Prime Minister David Cameron recently went to India on a mission to try to reduce trade barriers in banking, insurance, defence, manufacturing and legal services. While he had hopes of discussing business opportunities between the two countries, India’s Prime Minister Manmohan Singh had hopes of speaking about reconciliation with the Taliban. Has Cameron managed to create a successful connection with his Indian counterparts? Will India agree to collaborate more closely with the British?

Concentrating on restoring a close relationship with India is a fundamental step towards increased business opportunities between the two countries. Cameron could not afford to make any mistakes because having a closer relationship with India can significantly expand the English market and create new job opportunities.

For example, TATA is an extremely large global competitive conglomerate that bought British companies Jaguar and Land Rover. This acquisition is representative of the rapidly increasing number of sophisticated and affluent investors in India. However, because of the high potential of profitable relationships with Indian companies, many other countries are competing for the same opportunities. When doing business in India it is therefore crucial to know how to make the best impression on your Indian counterparts and build strong profitable relationships.

Business People biffspandex 2 i Can the UK Improve its Relationship with India?

© istockphoto.com/biffspandex

British high-street retailers such as Marks & Spencer and Debenhams have done surprisingly well. For M&S the trick was to collaborate with another company, Reliance Industries, whose knowledge of the Indian market was indispensable to their success. Their decision to work with a company with experience in India was very beneficial as it helped M&S to consider some of the many cultural factors that can impact doing business with Indian counterparts such as negotiation styles, working preferences and communication styles.

For example, when negotiating in India it is crucial to avoid using sarcasm, asking direct questions that require a yes or no answer, or appearing too aggressive. Cross cultural awareness training courses such as Communicaid’s Doing Business in India programme can help you to understand the key cultural differences to ensure that these do not become barriers to your progress in India. By providing you with cultural knowledge, skills and strategies, cross cultural trainingcan help you ensure your business thrives abroad.

India is a vast market offering a plethora of growing opportunities for British organisations to actively engage with. However India is an extremely competitive market and home to a culture that highly values relationships. Only employees, global leaders and politicians like David Cameron who have excellent interpersonal skills and a high level of cultural awareness will have a chance at long-term success in the Indian market.

© Communicaid Group Ltd. 2010

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Aug 03

Negotiating across Cultures – Is Losing your Temper a Good Strategy?

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

An international team of French and American researchers recently conducted experiments on the effect of anger during international negotiations. The experiments involved 130 Americans, 63 of whom had a European background while 67 had an Asian background. The aim of this study was to establish whether or not anger could be used as a tool to influence a foreign counterpart, regardless of his/her cultural core values.

Meeting Business Meeting 2 nyul i1 Negotiating across Cultures Is Losing your Temper a Good Strategy?

© istockphoto.com/ Nyul

 

The results are clear: Americans with a European background are more likely to accept demands coming from a counterpart who openly shows their frustration or anger. However, using this particular strategy will be ineffective with Asian interlocutors. But how can we explain these differences?

In Europe, negotiations are usually seen as a test where both parties confront their strengths: the strongest wins while the weakest inevitably loses and is the one who makes compromises. In this context, showing anger or a strong display of emotion can be a way to influence the outcome of the negotiations as well as a way to express your will and eagerness to succeed.

This strategy may not be effective everywhere in Europe however. For example, showing emotions tends to be negatively perceived in countries with a neutral communication style such as Norway or Germany. On the other hand, countries with an affective communication style like Spain or Italy tend to accept displays of anger or strong feelings.

Meanwhile in Asia, the importance of harmony is paramount and is present even during business negotiations. Building this harmony takes time but it can result in consensus and a win-win situation. Asians also tend to be obsessed with the concept of ‘face’ and will do everything they can to keep face during a negotiation. A loss of face in most Asian countries includes any sign of violent emotion such as anger or exaggerated eagerness. Shattering harmony is also considered inappropriate and can harm your reputation and jeopardise the whole negotiation process along with future business opportunities.

If we consider these huge differences in negotiation styles and expectations, it’s not difficult to foresee potential problems and risks that European and Asian negotiators may encounter during international meetings.

Providing employees the tools they need to understand their international counterparts and work effectively in a global context is key to success. Cross cultural awareness training courses such as Negotiating across Cultures  can help you and your organisation to truly understand the complexities of cross-cultural negotiation styles and expectations and give you strategies to manage them effectively.

© Communicaid Group Ltd. 2010

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