Cultural Consideration in International Business - Coursework Example

Cultural Consideration in International Business In today’s globalized environment, international business is a platform where different cultures come together with a shared objective. In order to succeed these meetings, businesses must be attentive to cultural diversity and ways in which it can influence business relationships. In international businesses, meetings with executives of different countries are a matter of everyday tasks. Executives coming from different countries bring different cultural backgrounds along with them. These varying cultures encompass different norms, values, ethics and ways of dealing. Some actions are considered as acceptable in a specific culture but at the same time, are considered as disrespectful or unacceptable in another culture. “Intercultural adaptability relies on an understanding of New Zealanders direct communication. Avoid "hard sell" techniques and do not take a relaxed attitude as indicative of a lack of attention to detail” (INTERCULTURAL MANAGEMENT - NEW ZEALAND, n.d.). Here are five main cultural determinants, which must be considered while performing business dealings in international businesses. 1 Communication and Language Communication style of New Zealanders is very pleasant and welcoming. New Zealand is considered as a very “politely correct” country. New Zealanders do a great emphasis on politeness and manners. They are usually very open-minded and friendly. New Zealanders tend to give hint for those things, which they want to say but that carries a degree of risk as being offensive. Concerning Italy, executives need to acknowledge that Italians, instead of precluding, complement each other. In order to make a good first impression, one can go along better by introducing himself. Good impression can also be made having a nice and positive conversation. It can be related to good weather, economic improvement, quality of red wine or olive oil, performance of businesses in Italy etc. discussion can also revolve around work i.e. position and workplace or the family members i.e. spouse and children. Positive image of Italy must also be portrayed in order to make a good first impression on Italians. The dialogue can be related to luxury products, fine cuisine, realm of cinema and sports as well as historical heritage. The topic of politics must be avoided since it makes the conversation more strained. Using humor in order to break the ice is very common among Italians however; it must be used with care (Centre for Intercultural Learning). 2 Dress Code In New Zealand, while conducting business, it is appreciated to have a more formal look and dress conservatively. For Men, a conservative three-piece business suit is preferable in business events in New Zealand. A darker suit with a conservative tie is what executives prefer. In order to maintain formality, it is better to wear light color or a white dress shirt. For Women, businesses suits, pantsuits, dresses are a good idea. It is best to evade revealing clothing. In New Zealand, being well groomed and clean is highly appreciated. In business dealings, it is better to maintain a professional style and to keep clothing in neutral colors such as ivory, camel, gray, navy, and white (Culture Crossing). In Italy, the manner of dress is also inclined towards conservative and formal. In order to make a good first impression, it is highly essential to stay presentable and formal because Italians pay particular attention to grooming and dressing. It is strongly advised to avoid casual wear at workplace. It is said that one should “dress to impress” when it comes to dealing with Italians. 3 Dining Etiquettes As reflected in their table manners, New Zealanders are casual when it comes to dining. The more formal an event, the more stern the protocol. It is advisable to wait to be told where one should sit. Meals are usually served in a family style. While eating, one should have their hands above the table and elbows off the table. The table manners are of continental style. For Italians, if you are invited by them, then must bring a wrapped gift such as chocolates or wine. Punctuality is not mandatory. One may arrive a little late if invited to a dinner. Dress code of dinner depends upon as mentioned on the invitation. If it says formal then one must dress in stylish clothes, which are still bit formal such as elegant dress for women and tie and jacket for men. As far as table manners are concerned, one must wait until told to sit. The same is the case in New Zealand as well. Table manners of Italians are also continental just like New Zealanders. In Italy, it is acceptable to leave a small amount of food on your plate. The glass must be left half filled, if one does not want more wine. 4 Socializing Socializing is one of the most important factors, which demonstrates the inward culture of a country. It is better to learn about how to socialize in a specific culture before tapping into their society because any inappropriate stance can deteriorate one’s image, thereby harming the overall reputation of the company. To New Zealanders, relationship building is very important. It usually happens outside of business either to attend a gathering or a party of some sort or for a drink. Unlike many other countries, in New Zealand, when invited for a dinner, it not the wealthiest member or the host who pays the bill, but the bill is divided amongst all the diners (Regional Language Network). Italians also strive to establish personal relationships before proceeding for a business deal with their clients. According to them, it creates atmosphere of trust. In first meeting, one must develop camaraderie with client and then later direct the conversation towards the topic, which they wish to discuss. Among Italians, it is better to acquaint yourself with the one, with whom you are going to develop personal relationship. Social activities are recommended. 5 Business Negotiations and Meetings Greetings are relaxed and casual in New Zealand. A smile, eye contact and a handshake suffices. A strong eye contact is considered as a sign of confidence and trust. Usually, first names are used. Meetings are generally relaxed but it does not mean that one loses the approach of usually level of professionalism. Good topics for conversation include free-time activities, sports and one’s relevant experience of the country. In presentations, it is required to avoid exaggerated terms, hype or ‘whistles and bells’. Integrity and honesty is crucial. In business, feelings and emotions are not considered and high emphasis is put on facts and figures. New Zealanders are usually direct and hopes the same in return. Bargaining is not accustomed and negotiations proceed rapidly. They expect the initial proposal to have a very small margin for bargaining or negotiation (Regional Language Network). Italians prefer to perform businesses with someone they know. While dealing with Italians, it is better to use your networks and contacts to introduce yourself before proceeding to meetings and business dealings. For arranging a meeting, a letter must be written in Italian. It, then, must be followed up with an email, fax or a phone call. In Italy, negotiations are usually slow. Demonstrate urgency is considered as a sign of weakness. In business meetings, topics of meeting must be avoided and small talks are encouraged. Subjects may include food, Italian culture, wine and football. Apart from the above-mentioned factors, another important component of Italian culture is Energy Conservation. After using a room, one must turn off the lights, fans and close the door. The lack of this sense among Americans usually frustrates Italians. While doing business dealings with Italians, it is recommended to stay energy conservationist at workplace and in offices. Another important aspect is use of ‘purple’ color. Italians consider purple color as unlucky therefore, this color must be avoided as much as one can. In gift-wraps, clothing and in other areas, it is required not to use purple color. Moreover, cheap wine must also not be gifted to Italians. They do not appreciate it. . As far as approach to priorities and time is concerned, New Zealanders have very strict schedules. Adherence to meeting deadlines is expected and important. Missing a deadline is considered as a sign of inefficiency and poor management. In contrast to this, Italians have high tendency of lateness. Italians take deadlines and schedules very lightly. There is no problem in reaching late at workplace or at a formal dinner. In New Zealand, it is believed that all people have their distinct role to play and therefore, they are valued for the input, which they give for the betterment of an organization. Therefore, in the culture of New Zealand, executives lose no respect in referring subordinates. The same is the rule in Italy as well. Assistants are secretaries are never underestimated because they are in a continuous contact with top management and they can facilitate access of executives with them. The executives of New Zealand must consider the above-mentioned points while doing business dealings with Italians. Understanding of Italian culture can improve business relations, since Italians will be pleased to see the way in which they are being honored. In this way, business dealings and relationships with Italian executives will also prosper. In addition to that, undesired problems and unpleasant situations can be minimized. Works Cited Culture Crossing. (n.d.). New Zealand. Retrieved from: http://www.culturecrossing.net/basics_business_student_details.php?Id=19&CID=148 5 Considerations for International Business. (2012). Retrieved from: http://www.smartmediatips.com/5-cultural-considerations-in-international-business/ NEW ZEALAND - CULTURE, ETIQUETTE AND CUSTOMS. (n.d.). Retrieved from: http://www.kwintessential.co.uk/resources/global-etiquette/new-zealand.html New Zealand Business Etiquette and Culture. (n.d.). Retrieved from: http://www.cyborlink.com/besite/new_zealand.htm INTERCULTURAL MANAGEMENT - NEW ZEALAND. (n.d.). Retrieved from: http://www.kwintessential.co.uk/intercultural/management/newzealand.html?highlight=YTozOntpOjA7czozOiJuZXciO2k6MTtzOjc6InplYWxhbmQiO2k6MjtzOjExOiJuZXcgemVhbGFuZCI7fQ== Kennedy, J.C. (2000). LEADERSHIP AND CULTURE IN NEW ZEALAND. Retrieved from: http://dspace.lincoln.ac.nz/dspace/bitstream/10182/531/1/cd_dp_88.pdf Read More