Download BBB 4M – Unit 5 Lesson 4 Handout Become familiar with

BBB 4M – Unit 5 Lesson 4 Handout
Become familiar with international business etiquette by reading the following:
Business Protocol
Business protocol infers there are rules of correct or appropriate behaviour to follow
when meeting with officials or business people in another nation.
There are various areas of protocol when doing business internationally. They include:
Gift Giving
In some countries, the visiting business representative is expected to present a gift to
the host out of respect. In others, it would be considered a bribe. If a gift is expected,
find out what they would generally like. In Asian cultures, the number 4 is associated
with death; therefore bringing a gift of 4 wine glasses would be seen as inappropriate.
Negotiation Styles
Negotiating includes how people initiate and maintain business relations. There are
many cultural differences when it comes to negotiating. For example, in Canada, a
company employee may mention that they are considering other companies as well for
a contract. This may be considered rude in some cultures, however is considered a
wise and competitive strategy for Canadians and Americans. North Americans also talk
freely about finances and discuss financial terms early on in discussions. North
Americans are also known to not be as persistent as some other cultures when it comes
to contacting business people. Lastly, North Americans rely on contracts and obey
legalities more than some other cultures. This can be seen as being distrustful of your
negotiating partner.
Punctuality
One must find out if punctuality is valued in the culture. North Americans, Asians and
the majority of Europeans value punctuality and it is seen as disrespectful to be late.
Scheduling Meetings
It is important to know when national holidays and religious holidays are held in a
certain country. In France many businesses are closed in August, whereas in the U.K.
many factory towns have a half-day working day, which means they are closed for the
afternoon. Muslim businesses provide two prayer breaks during the day when no
appointments are scheduled. Israeli businesses generally do not operate on Saturday,
as it is considered a holy day.
Employee Management
Many cultural values have been incorporated into the laws of each country.
For example, in Mexico, lunch is 2-2:30 to 4-4:30 and is considered a family time.
Labour laws are different everywhere, so it is advisable to get the advice of a local
lawyer for any labour negotiations.
Decision Making
In North America and Latin America, decisions are generally made top-down
(management to employees). In many Asian cultures, decisions are made from the
bottom up.
Style of Dress
In Japan, shoes should be slip-on so that you can show respect by taking them on and
off indoors. In Brazil men can be casual; however, women are expected to dress more
formally.
Forms Of Greetings
In some countries, touching is forbidden, therefore handshakes are inappropriate. In
Japan you must bow at the same angle as your partner.
Language
Although English is the number one language in which to do business in the world, it is
important to realize that even if you are negotiating with another English speaking
person, not all North American vocabulary has the same meaning abroad.
Assignment 1
Complete the Culture Profiles assignment. This is a separate handout.
Complete the Non-Verbal Communication assignment. This is a separate handout.
You are to explain in point form the significance of the gesture in Canada as well as
another country of your choice.
Resources.
1. Communicating With Gestures
(http://www.everythingesl.net/inservices/body_language.php)
Reading
Become familiar with modes of non-verbal communication and the difference among
various countries by reading the following:
Non-Verbal Communication in International Business
Every culture has its own unique gestures. A person doing business internationally
should research body language, gestures, personal distances, appearance and modes
of greetings in a particular country. For example - in Japan, a nod up and down means
no! Imagine if you hadn’t done your research before that meeting!
There are 6 modes of non-verbal communication:
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Kinesics: refers to body movement
Proxemics: involves interpersonal space
Chronemics: the degree to which there are silences separating verbal
conversations
Oculesics: involve eye contact or avoidance
Haptics: the degree of body contact
Physical Appearance: includes personal grooming and dress/attire
Hofstede's Cultural Dimensions
Hofstede derived his culture dimensions from examining work-related values in employees of
IBM during the 1970s. In his original work he divides culture into four dimensions at the culturelevel: power distance, individualism /collectivism, masculinity/femininity and uncertainty
avoidance.
Power distance is defined as, "the extent to which the less powerful members of institutions
and organizations within a country expect and accept that power is distributed unequally". The
power distance concept is clearly more far-reaching than the work place alone. Power distance
is often reflected in the hierarchical organization of companies, the respect that is expected to
be shown by the student towards her or his teacher and in general, by the belief in society that
inequalities among people should be minimized, or that they are expected and desired.
The second dimension proposed by Hofstede is Individualism/Collectivism. The concept is
one of the most frequently discussed and researched concepts. Hofstede defines this dimension
as, “Individualism pertains to societies in which the ties between individuals are loose: everyone
is expected to look after himself or herself and his or her immediate family. Collectivism as its
opposite pertains to societies in which people from birth onwards are integrated into strong,
cohesive in-groups, which throughout people's lifetime continue to protect them in exchange for
unquestioning loyalty.”
Masculinity/femininity is an equally powerful dimension. Hofstede defines this dimension as,
“Masculinity pertains to societies in which social gender roles are clearly distinct (i.e., men are
supposed to be assertive, tough, and focused on material success whereas women are
supposed to be more modest, tender, and concerned with the quality of life); femininity pertains
to societies in which social gender roles overlap (i.e., both men and women are supposed be
modest, tender, and concerned with the quality of life).” Hofstede points out that this dimension
is often neglected. Maybe the controversial name given to this dimension has somewhat
influenced the popularity of it. Equally, it appears often to be confused with
Individualism/Collectivism.
Uncertainty avoidance is the final dimension present in Hofstede's original work. Hofstede
defines uncertainty avoidance as, "the extent to which the members of a culture feel threatened
by uncertain or unknown situations." This dimension is fairly easily grasped, and can often be
seen reflected in business negotiations.
In his later work, Hofstede (1991) introduces a fifth dimension. The long-term orientation
dimension is the result of his co-operation with Michael Bond, who links this dimension to the
work of Confucius. Hofstede describes long-term orientation as characterized by persistence,
ordering relationships by status and observing this order, thrift, and having a sense of shame,
whereas short-term orientation is characterized by personal steadiness and stability, protecting
your "face”, respect for tradition and reciprocation of greetings, favours, and gifts.
The work of Hofstede is probably the most popular work in the arena of culture research.
Although the work provides a relatively general framework for analysis, the framework can be
applied easily to many everyday intercultural encounters. It is particularly useful, as it reduces
the complexities of culture and its interactions into five relatively easily understood cultural
dimensions.
Magnum Paper Ltd. – Case Study
Robert Douglas had been C.E.O of a small paper manufacturing plant for the last 5
years. He had helped develop the business nationally and now was aggressively
pursuing international business relations. Up until now, Magnum Paper Ltd. had
customers in the U.S.A. as well as Mexico, but expanding overseas was a goal in the
near future. The Asian market was far too lucrative to ignore and Robert decided this
was the year to capitalize on the business’s excellent quality paper products.
After several long-distance calls setting up meetings, Robert and his colleague decided
to go to Japan to close some sales deals. None of them spoke Japanese, however they
thought that a few phrases would suffice since English is the international business
language after all.
When arriving at the airport, 3 managers from Ultima Technology Japan Inc. met the
Canadians, presented them with business cards as well as a gift. Robert actually had
forgotten his business cards, but had a few in his suit pocket. Although they were a bit
ragged, he thought they were better than nothing. As for the gift, he was unsure what to
do with it – open it or leave it, so he thought it best to leave it be and put it in his
briefcase to open later in the hotel room. He put their business cards in his back pocket
to look at later on.
The following day, the same Japanese managers came to take them to breakfast.
Robert told them that he didn’t really like Japanese cuisine, but if there were
somewhere to get an American coffee he’d be quite happy. The Japanese seemed to
be stalling and asked quite a few questions about the Canadian way of life, family and
hobbies. Robert thought it was up to him to get the meeting started. He suggested that
they look at the contract he brought with him as well as the pricing. The Japanese
looked somewhat alarmed and didn’t say anything. After quite a few minutes of silence
after looking at the contract, Robert thought they were dissatisfied with the terms and
quickly offered renegotiation. The Japanese managers spoke among themselves and
said that they would speak to their colleagues and discussion could continue later on.
They confirmed a dinner get-together at the Japanese Purchasing Manager’s house.
At dinner, things seemed easier. The two Canadians did partake in a few drinks, which
always helps. It was nice meeting a Japanese family as well, but greetings were a bit
awkward. It seemed that the rest of the family was not familiar with the universal code of
shaking hands. At the end of the evening, Robert thought everything went fairly well. He
offered to reduce his price one more time and hinted that there were other customers
who would ‘jump’ at this offer. He thought he cinched the deal! It was so surprising to
learn the following morning that Ultima Technology Japan would decline doing business
with Robert and perhaps at another time they would reconsider.
Robert hung up the phone after hearing the bad news and scratched his head. What in
the world could have gone wrong?