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7th Meeting November 3rd 2011 Novotel , Ipswich The importance of understanding the culture and language issues of your

7th Meeting November 3rd 2011 Novotel , Ipswich The importance of understanding the culture and language issues of your target export markets David Owen, RLN East Kevin McCole , UK India Business Council. 3 rd November 2011. Agenda. 5pm – 5:25pm Networking

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7th Meeting November 3rd 2011 Novotel , Ipswich The importance of understanding the culture and language issues of your

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  1. 7th Meeting • November 3rd 2011 • Novotel, Ipswich • The importance of understanding the culture and language issues of your target export markets • David Owen, RLN East • Kevin McCole, UK India Business Council

  2. 3rd November 2011 Agenda 5pm – 5:25pm Networking 5:25 – 5:30pm Welcome by Jim Fanshawe. Novotel – Mr SerhanIlker Competition announcement 5:30 – 5:45pm International Business Culture - David Owen. 5:45 – 6:00pm True perspective of business culture in India Kevin McCole 6:00 – 6:05pm Conclusion – Jim Fanshawe 6:05 – 7:00pm Buffet & Networking

  3. International Business Culture An Introduction Ipswich, Nov 2011

  4. Levels of Culture • Level 1: The General Business Environment • Level 2: General Styles of Doing Business • Level 3: Sector Business Culture

  5. Levels of Culture • Level 4: Corporate Business Culture • Level 5: Business Etiquette • Level 6: Individual Culture

  6. Making the Most of Experience There now follow some anecdotes from selected cultures & markets Many of these are cross-market but provide food for thought

  7. Considerations I • National pride in the language • Regional variations • State intervention • Low staff turnover • Value of experts & technocrats • Power of debate & rationality • Meticulous examination of proposals

  8. Considerations II • Importance of seniority • Importance of gender • Sending presentations in advance • Elicit early reactions to proposal • Overseas colleague understands nuances of body language • Etiquette surrounding gift-giving

  9. Considerations III • Avoiding direct questions • Allowing for consensus opinion • Respect for hierarchy • Respect for periods of silence • Following up in writing to confirm agreed actions • Allowing time for second meetings

  10. Considerations IV • Influence of ‘parallel business society’ • Bureaucracy & rubber stamps • Importance of face-to-face communication • Disparities of wealth • Lack of open responses • Power of signature / authority

  11. Considerations V • Sensitivity to price • Protracted payment terms • Spontaneity & flexibility • Slow decision-making • Interruptions are not rude • Handling alcohol during relationship building • Actions not always implemented to Western norms

  12. Considerations VI • Strong communal spirit • Strong opinions expressed in meetings • Dominance of technical questions in discussions • Late confirmation of meetings • Importance of historical economic events (eg: 2001 crisis in Argentina) • Are they rules or are they recommendations?

  13. Considerations VII • Identifying the decision maker • The ‘huddle’ experience • Yes meaning no: importance of face • The grilling of negotiations • Importance of guinxi (wasta, blat) • Generational differences • Changing the rules

  14. Considerations VIII • Directness and importance of time • Focus on profitability and targets • Obsession with customer service • Inward-looking attitudes • Importance of first impressions • Emphasis on quick responses • Innovation and dynamism valued • Entrepreneurial spirit & patriotism

  15. Summary Tips 1 • Avoid putting nationalities in one basket • Be yourself (avoiding the negative aspects!) • Distinguish between national, corporate & personal culture • Allow time for relationship building • Develop local representation • Budget for multiple visits

  16. Summary Tips 2 • Go prepared • Learn some basics of the language • Check with other contacts for their experience • Use international English and avoid idioms / acronyms etc • Allow time for extended meetings

  17. Getting Support • Attend culture workshops where these exist • Keep in contact with your local International Trade Advisor • Use the UKTI culture microsite www.rln-east.com/resources • Download the UKTI East ‘field culture reports’

  18. International Business Culture An Introduction Ipswich, Nov 2011

  19. Business Culture in India – The myths and the reality Ipswich, Nov 2011 Kevin McCole, Chief Operating Officer, UK India Business Council

  20. 3rd November 2011 • Next SITG meeting 23rd February 2012 • Sponsorship opportunities available • Lowestoft & Waveney Chamber of Commerce and Suffolk Chamber of Commerce Business Awards 2011 • International Trade Award category • www.waveneychamber.co.uk & click on Awards 2011

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