Topic 3 - Culture and business in Europe Flashcards
Europe:
• 44 countries
• Eu – 27 countries – allows for free circulation of goods, people, labour and service.
• 700 million people – more than 40 languages
• 4 religions spanning across 43 countries
Advantages for companies:
• Standardisation of technical norms
• Free circulation of goods, people, labour and services
Business culture in the UK:
- PD – 35, UA – 35, IDV – 89, MAS – 66
- Tends to be very individualistic (89) and deal – focused
- British are cold, distant and professional in negotiations
- Managers don’t prepare for meeting with excessive detail
- Never use sentimental arguments
- Humour can be used as a WEAPON.
UK negotiating behaviour:
- Understand and tolerate opponents’ position: problem solving approach
- Don’t like to be hurried
- Agreements must be subject to British Law
- More interested in long – term relationships
- Class consciousness still visible
- Queues are very important
Business Culture in France:
• PD – 68, UA – 86, IDV – 67, MAS - 66
• France is one of the most REGULARISED economies in Europe with an important role of the state of the economy.
• France is one of the most CENTRALISED countries in Europe.
• Unions and social movements are strong forces in France.
• Educational level is highly appreciated
• The French are very critical
• Arguments have to be supported by logic
• Step by step negotiation
• Formal communication
Difficulties:
• Retailing is strongly concentrated
• Highly competitive
• Business structures are very HIERARCHICAL.
Business Culture in Germany:
• PD – 35, AI – 65, IDV – 67, MAS - 66
• Order, rules, codes and regulations dominate business relationships
• Focus on product and service quality
• Strong micro chronic culture – tardiness signals unreliability
• Direct and clear language
• Contracts are very detailed and mean the end of negotiations
Economic Outlook:
• Biggest European market and high purchasing capacity.
• Saturated market
Business Culture in Italy:
- PD – 50, UA – 75, IDV – 76, MAS – 70
- Highly REGIONALISED country
- Personal relationships and references are crucial
- Design and quality of product is very important
- Negotiations take place in a relaxed environment
- Very expressive in arguments
- Appearance more important than content
- Negotiations take a long time
Business Culture in Russia:
• Negotiations harsh and aggressive
• Decision – making slow and bureaucratic
• Very hierarchical – managers have last say
• Legal framework not well developed
• Avoid political references
Economic Outlook:
• Strong dependence on export prices of energy and raw materials
• Widespread problems of CORRUPTION, growing social inequalities
• IP protection is still weak
• High concern for safety
Blat
Use of personal networks to access scarce sources – holds certain parallels with guanxi, doesn’t have such widespread social legitimacy. Long – term links and family relations are less important than in guanxi. Key people = blatmeisters
Business Culture in Portugal
- PD – 63, AI – 104, IDV – 27, MAS – 31
- Influence of family groups is very significant
- Professional status is important
- Price is a key argument in negotiations
- Risk of default is high
- Developing strong relationships is key
