Intercultural Communication and International Business - Case Study Example

? Business Report Business Report Executive Summary: This report is about the various communication issues that a company faces when conducting business in foreign countries particularly in UAE. The main issues that organizations face while conducting business in different countries are the language barriers, body language, various customs, political factors, technological factors and the routines of people of that country. The report then goes on to discuss the various methods and processes that can be used to carry out successful negotiations with foreign businessmen. There are some issues that a negotiator must keep in mind before meeting with foreign businessmen and he or she must be prepared before meeting their counterpart for negotiations. Abstract: This report looks at the influence culture has had on the world of business. The report closely examines the methodology used to conduct business between different companies with different origins of country. The report focuses on the communication barrier that is caused to due to the difference in the two cultures and the main issues that arise when conducting business. The report discusses the rules suggested when negotiating, the various phases of a negotiation and the steps that need to be followed while conducting business with organizations from different cultures. The report concludes stating that conducting business in a country according to the cultural norms of that country dramatically improves the chances of success. Foreword: With the concept of multinational business on the rise there is a need for many to effectively communicate with individuals from different parts of the world having different backgrounds, beliefs, and cultures. Organizations have to be prepared when they conduct business in different countries. Other than the rules and regulations of conducting business in a particular country the organizations have to bear in mind the various cultural routines that are practiced on a daily basis. Culture also plays a vital role in communication with the foreign parties. Various symbols and colors have different meaning in different cultures. Technological advancements have improved methods of multinational communication, but there are still some cultural issues that need to be addressed to conduct business in various countries. Aims: The main aim of this report is to discuss the various cultural and communication issues that arise while conducting business in different countries and particularly in UAE. The report also aims to provide various approaches that can be made to ensure success within the business world of the United Arab Emirates. Introduction: Effective communication is important for an organization to function and perform day to day activities smoothly. The expansion of business to different geographic locations around the globe has brought new challenges for the business world. The difference in customs and languages causes difficulty in effective communication within an organization. Cross cultural communication relates to an area of study that deals with communication between different individuals from different cultural and ethnic background. The main issue that arises in cross cultural communication is the different language being used in different countries. The second is proper advertising and understanding the targeted audience of a particular country. The third thing to consider would be the norms of the culture. Fourth would be their customs. Last would be the political influences within a country. These five factors should be addressed when conducting business overseas or when employing individuals from different ethnic and cultural background. Issues: Language barrier Language barrier is a term used to describe the difficulties people face when they do not have a common language to communicate. To counter the effects of the language barrier either one of the two parties or both have to learn a new language. The services of an interpreter can be sought during business meetings, but it is a costly option and can often lead to a lot of confusion. When a person deals with individuals from different countries one must have a thorough knowledge of the native language. A gesture in one culture can mean something completely different in another. For example, the thumbs up gesture in United States usually means ok or everything is fine. However, in most European countries and in Australia the gesture is used in a vulgar context (Samovar, et al., 2010). An equally important aspect of foreign language is the style with which one communicates with their foreign compatriot. Businessmen in Japan communicate with their opposite numbers in a soft and patient manner (Sangyaoshao & Shinkokai, 1972) while American businessmen speak more aggressively and frankly when presenting ideas (Samovar, et al., 2010). Customs Different cultures have different methods of communication. During business meetings, one must know the greeting styles and the proper dress codes. When having lunch with foreign business associates one must consider their preference of food and their dining customs. In UAE pig’s meat is considered unclean and therefore is highly disliked. There are specific dress codes that need to be followed by women. A woman wearing skirts and small shirts in public is not seen as a decent woman. In the same way if a person offers a drink or something to eat it is wise to accept it. Declining such an offer makes the person feel that their hospitality is being declined (Benesh, 2008). Routine and norms Innovation in technology has made it easier for people to conduct business from one part of the world to another. People can connect to various individuals in a matter of minutes. Like everything else technology has had a huge impact on the business world. The introduction of the Internet to the world of business made communication a lot easier (Thurlow, et al., 2004). However, the use of the Internet in business did not lead to the establishment of multinational companies they existed before the Internet. A person can hold meetings with his associates abroad with the help of teleconferencing or video conferencing. Before making the call or setting the time for a teleconferencing one must keep in mind the difference in the time zones. The timings of the conference must be decided after consultation with all the parties involved. Sometimes cultural norms cause the unavailability of the person in question. In UAE during Ramadan office hours are reduced by two hours (Benesh, 2008). Targeted audience Companies planning to do business in different countries must carry out through research of the country’s market before they draw up a marketing plan for that country. Perspectives of the population vary from country to country. International advertising can be viewed as a method off communication between the organization and the local population a communication that differs with each culture and each country. The organizations must keep in mind that they are not to produce a campaign that would insult their culture in anyway. A campaign that offends people can result in huge losses for an organization. The organizations must also bear in mind that different media are popular in different countries. Humor in advertisements must also be kept in check. In UAE, it is illegal to make fun of monotheist religions, criticizing anything that is associated with the nation or the royal family. In some cases, learning about the culture of a particular region significantly narrows down the targeted audience. In UAE, men usually make decisions regarding a matter a marketing campaign could be drawn up that targets the men there. Political influences Government plays an influential role in the decision making of many cultures. People take pride in their country and their leaders. In such cases the products or organizations backed by the government can generate a great deal of profit. Moreover, problems can occur if conflicts or disputes exist at the state level between countries from which the companies belong (Schmidt, 2007). Talks can break down if the two countries are hostile towards each other. Dealings might even breakdown after an agreement between the two parties has been reached. Economic ties between United Kingdom and UAE so far have been liberal. Trade and investment between the two countries has been high since the independence of UAE in 1971. As a show of strong political ties, her majesty queen Elizabeth made a visit to his Highness Sheikh Khalifa Bin Zayed Al Nahyan president of UAE in 2010. Steps to handle cross cultural Negotiations: Negotiations Negotiations are a part of our daily lives. Negotiations are just a means for a person to get what they want. Negotiation is a method in which two or more parties try to reach to a comprising stage in order to achieve goals that differ from each other. Rules of negotiations There are certain rules and regulations that have been suggested to achieve the desired outcome from negotiations (Fisher & Ury, 1991). The negotiator must realize that the opposite party comprises of people from different ethnic backgrounds and has some moral values. The negotiator in no way should associate the person with the problem at hand and the two should be handled separately. The negotiating parties must find some middle ground on which both parties can agree on and discuss ideas that cover the interests of both parties. Rigidness can lead to a break in talks. If the opposite party opts a rigid attitude it is best to suggest that any agreement reached should be neutral in nature and should take into consideration the objectives of all parties. Finally, always prepare an alternative object. Say, if one of the parties does not agree with your objectives it is best to prepare an alternative goal that can be achieved if the initial negotiations fail. An alternate goal or perspective provides one with leverage and can prevent the negotiations from breaking down (Fisher & Ury, 1991). Stages of negotiations There are four stages of a negotiation that need to be followed (Williams, 1983). First is the introduction or the orientation. In this phase the parties introduce each other and exchange pleasantries. It is important to mention here that businessmen in UAE begin a meeting with a lot of small talk. The second step is the argument. In this phase, each party presents their own position in a particular matter and makes each other understand their positions. The third stage is the emergence where the parties receive signals of whether a compromise would be reached or not. These signals are given off by the parties either in a direct or indirect manner. Direct communication focuses on what is said instead of focusing on the method in which it is said. Indirect on the other hand focuses more on the method in which it is said rather than what is said (Bowe & Martin, 2007). The last stage deals with the result of the argument. In the last phase either a compromise is reached or the talks break down. A positive outcome of a negotiation is when both parties agree on a point they have gained substantial benefit from the deal (Williams, 1983). Negotiations and cross culture The first step towards cross cultural negotiations is proper preparation. Preparations include research into the other party’s background, interests and their culture. Thorough preparation is an important part of negotiations. Preparation provides an individual with knowledge and knowledge can help convey the message to the opposite party properly. Preparation also includes deciding the style of communication that would be used (Dainton, 2011). The style of negotiations and communication depends upon the type of culture being dealt with (Dainton, 2011). The second step is to make sure to avoid using racial and stereotype remarks. Although stereotype remarks are common in parties and amongst friends they are highly inappropriate in a meeting or in an office. Making assumptions about ones culture only develops mistrust amongst the dealing parties. The best approach to such an issue would be to treat each individual separately and try to gain firsthand experience of the culture instead of assuming the facts (Schmidt, 2007). The third step would be to try and bridge the cultural gap between the parties. The best way to go about it would be to either to adopt a professional attitude towards the meeting or use a combination of both cultures to make both the parties feel comfortable. Adopting a professional approach to the matter is a better option and can help in the negotiating style of the two parties (Schmidt, 2007). Lastly a negotiator should be calm and cool and open towards the opposite party. The negotiator must apologies if he or she makes a mistake and must show interest in conducting business with the opposite party. Being able to communicate properly at the negotiations is crucial for a successful negotiation (Dainton, 2011). If confusion still prevails amongst the team after following the above steps as a last resort an interpreter or a specialist should be hired. As mentioned before hiring outside help could be an expensive option and can often lead to a great deal of confusion. The decision to hire an interpreter should be made after carefully analyzing the pros and cons carefully (Tribe & Raval, 2002). Findings and results: The analysis of various factors related to the cultural norms of UAE and other countries has shown that culture plays a vital role in the world of business. There are certain cultural norms and practices in UAE that make a person feel welcome and there are some that are considered inappropriate. Following these practices greatly improve the chances of conducting successful business transactions. Other than that there are also some rules in general that need to be followed when negotiating with foreign businessmen. These rules make it easy for an organization to understand how to conduct business with organizations from other countries. Thorough analysis prior to a meeting would definitely help the cause of the organization. Conclusion: The resources used in this report have been obtained from various books. A majority of these books have taken the effect of the culture on business as their main subject and theme. The authors of these books are world renowned authors with excellent credentials under their belts. The language and terms used in these books are relatively simple to understand and have been written for the general public. Apart from a few, most of the sources are from the years ranging from 2000-2012. Most of the books use secondary methods of research. Secondary sources are documents that have been published or written by someone else and have been used by the author in question. Recommendations: Based on the above research it is best for an organization to learn of the culture of the country where the organization plans to conduct business activities. It would also be wise to be completely prepared before hand and plan out an alternative object before going in for negotiations. The report provides some cultural norms that are practiced in UAE on a regular basis. However, it would be better to carry out a thorough research on the cultural norms of UAE. If confusion prevails over the approach that needs to be taken regarding cultural communication a professional approach can be made. As a last resort, an organization can hire an interpreter to help them fill in the cultural gap and to overcome the language barrier. List of References Benesh, G. C., 2008. CultureShock! United Arab Emirates: A Survival Guide to Customs and Etiquette. Singapore: Marshall Cavendish International (Asia) Private Limited. Bowe, H. & Martin, K., 2007. Communication Across Cultures: Mutual Understanding in a Global World. Melbourne: Cambridge University Press. Dainton, M., 2011. Applying Communication Theory for Professional Life: A Practical Introduction. London: Sage. Fisher, R. & Ury, W. L., 1991. Getting to Yes: Negotiating an Agreement Without Giving in. New York: Houghton Mifflin Harcourt. Samovar, L. A., Porter, R. E. & McDanie, E. R., 2010. Communication Between Cultures. Boston: Cengage Learning. Sangyaoshao, T. & Shinkokai, N. B., 1972. Trade and Industry of Japan. Tokyo: Japan External Trade Organization. Schmidt, W. V., 2007. Communicating globally: intercultural communication and international business. Boston: Sage publications. Thurlow, C., Lengel, L. & Tomic, A., 2004. Computer Mediated Communication. London: SAGE. Tribe, R. & Raval, H., 2002. Working With Interpreters in Mental Health. New York: Psychology Press. Williams, G. R., 1983. Legal Negotiation & Settlement. Minnesota: West Publishing company. Read More