Cultural Differences between Businesses in France and China - Example

Deakin University English Language Institute “Cultural Differences between Businesses in France and China” Submit to Submitted by Student ID: EAP 2B Date of Submission: 1st September, 2011 Contents Page 1. Introduction 4 1.1. Aim 1.2. Background 2. Method 6 2.1 Secondary sources 2.2 Primary sources 2.2.1 Subject 2.2.2 Questionnaire 2.2.3. Procedure for administering questionnaire and collecting the results. 3. Results and Discussion 7-13 3.1 Value for Culture- Figure 1 3.2 Major Feature of Communication- Figure 2 3.3 Positions in Businesses- Figure 3 3.4 Dress code 3.5 Impacts of Chinese and French cultures on Businesses- Figure 4 3.6 Opinion- Figure 5 3.7. Deliberation- Figure 6 3.8. Negotiation- Figure 7 3.9. Covering of hair by women- Figure 8 4. Conclusion 13 5. Recommendation 14 5.1 Understanding cultures 5.2 Training and Education 6. References List 15 7. Appendices 16 7.1 Appendix 1 (Questionnaire) Summary The report looks at the different cultural practices between China and France. Although there are many of these, the report discusses three of them which include: communication, women and dress code. The way the Chinese people interact during communication is very different from the French people. The Chinese people focus more on listening, while communication with the French people involves a lot of interruptions. In addition, in order to initiate effective business communication and build a strong business relationship, the Chinese people use gifts, while in France gifts are considered as bribery which is illegal. On the other hand, women in China and France have low rank in business relationships although in the recent years this has changed a little and a woman is required to be highly educated in order to be given a higher position in business. Moreover, business decisions are made by men. The dress code in both countries is required to be formal. However to the Chinese people a suit is highly regarded while in France as long as you remain presentable in business a suit is not of much importance. The French people are well known to like wearing coats even in the businesses. The report used both secondary (internet and books) and primary (questionnaire) sources. According to the results, there were a few variation of the information provided in secondary and primary sources. Basically, the local people agreed that China integrates a lot of their culture in business unlike the French people. Further, following these results, the report recommended that businesses intending to open branches in China and France should have an understanding of their cultures and conduct training and education to their employees. 1. Introduction 1.1 Aim This report is aimed at finding out the cultural differences between businesses in France and China. The report will focus on three cultural differences which include: dress code, communication and women. This report has been written for the companies that intend to open branches in France and China. 1.2 Background Basically, every country has its own culture or a way of doing things. The way we respond to cultures is often influenced by the attitudes, beliefs, values, assumptions and biases that shape our own life. China integrates a lot of their cultural practices with business holding them as very important compared to France. Communication and gifts, dress code and women are some of the cultural aspects that create business differences between France and China (WBC 2011). One feature of communication in France is that there will be interruptions during discussions. Interruptions are seen as means to reaching the end results. In China listening is regarded as the best way to reaching an end result. Another aspect that is addressed in relation to communication in business is a gift. In China in order, to build health communication and business relationships, the parties can offer gift to each other. However, in France, though a gift is highly appreciated; gifts offered in business relationships are at the discretion of the foreigner (Henderson et al 2011). Despite prices and traditional practices, China is taking modern fashion in businesses (Maschi 2007). In China, the men can now wear suits and ties, while women can wear skirts and blouses of the modern fashion. The most important thing is to wear clothes of high quality that can make you be considered as wealthy since wealth is envied in China. In business, the French dress code varies with the position one holds within the company, industrial sector and the region. Women have almost in many cultures held at low positions and regarded as weak to conduct healthy and sound business. In France, women can hold prominent position in business and the only weapon to achieving this in addition to other business successes is to attain a high level of education. In China, the women can participate in business but hold low position where the man is the one required to make business decisions. On the other hand, foreign businesswomen are treated with great respect and courtesy and can be involved in decision making in business relationships (WBC 2011). 2. Method 2.1. Secondary Sources The secondary sources used in this report included books and the internet. The reference provided at the end of this report will disclose the contents of these secondary sources in a detailed manner. 2.2. Primary Sources The primary source used for the purposes of this report was the questionnaire. This is because the questionnaire allows the researcher to gather a significant amount of data at relatively little cost that is why it is regarded as the cheapest and the quickest tool in data collection (Beiske, 2007, pg 4). 2.2.1. Subjects This report is proposing to use 20 people from Saudi Arabia to investigate the cultural differences and assess how much they know about the cultural differences in China and France. The respondents will be presented with the questionnaires. 2.2.2. Questionnaire or Survey This survey will focus on the cultural differences between businesses in France and China. The questionnaire contained 10 questions based on the information sourced from the secondary sources particularly the internet. The questionnaire will comprise of multiple choices to make it easier for the respondents to provide answers. 2.2.3. Procedure for administering questionnaire and collecting the results. The questionnaire was presented to 20 local people in Saudi Arabia. As far as the questionnaire is concerned, all the 20 respondents were very cooperative and therefore each answered all the questions and gave back the questionnaires on time. The data or information collected, was analyzed though the use of figures where appropriate in addition to a short narrative. 3. Results and Discussion 3.1. Value for culture As earlier discussed, the Chinese people value their culture that they even integrate it in conduct of their business. Based on the information collected from the 20 respondents, 16 respondents indicated that Chine values its culture more compared to France, while 4 respondents indicated that France valued its culture more than China. Figure 1 Figure 1 illustrates that the Chinese people value culture more than the French people. In China, cultural practices are applied in businesses relationships compared to France. Therefore it is important for the business considering opening branches in China to be aware of this fact. 3.2. Major features of Communication According to the result based on the questions about the major feature of communication for in France, 4 respondents indicated interruption, while 5 indicated listening and 1 respondent indicated it to be negotiation. On the other hand, about the major feature of communication in China, 6 respondents indicated it to be interruption, 2 to listening and 1 to negotiation. Therefore, there was a variation between information acquired from secondary sources and primary sources. Figure 2 illustrates these findings in details. Figure 2 As presented above, interruption during communication in French businesses was not indicated as the major feature of communication in France and neither listening for China. Another aspect that was considered together with communication was gifts. In relation to these, all the respondents were aware that gifts were acceptable in China businesses. Therefore, the results from primary sources conquered with information provided by the secondary sources; where giving out gifts was a cultural practice that is integrated in business relationships in China. 3.3. Women’s role in Businesses According to the responses acquired through the questionnaires, 18 respondents indicated that women played minor roles, 2 respondents replied to average roles and none to major roles in businesses in China. On the other hand, 4 respondents indicated that women played minor roles, 13 respondents replied to average roles and 3 to major roles in businesses in France. This is illustrated by Figure 3. Figure 3 3.4. Dress Code The 20 respondents indicated that formal wear was the accepted dress code during business in both France and China. The respondents added that both women and men are required to appear presentable during businesses and this is highly achieved by wearing suits. Therefore, the primary sources conquered with information provided by secondary sources that that the required dress code in business in France and China is that which is formal and presentable in order to conduct a healthy business. 3.5. Impacts of Chinese and French cultures on businesses In both instances (Chinese and French culture on businesses), the respondents provided both positive and negative cultures. Since these were open-ended questions, there was a variety of answers from the respondents. Positive impacts included: respect and a systematic way of conducting business will be achieved. Negative impacts include: misunderstanding, broken business relationships, legal action (in case of gifts) and ineffective communication. Generally, there were numerous negatives impacts of French and Chinese culture on businesses compared to the positive impacts. Figure 4 illustrates these findings. Figure 4 3.6. Opinion The respondents were asked which the best country between France and China to build businesses relationship is. Out of the 20 respondents, 15 respondents indicated that French was the best, while 5 respondents indicated China as the best. In addition to this, those who indicated that France was the best provided the reason for this as been the fact that there were few cultural practices in France integrated in business compared to China; and hence there was a high possibility that the business would run smoothly. Those respondents, who indicated China as the best, said the reason is that there would be creation of strong and respectful business relationships. Figure 5 concludes these findings. Figure 5 3.7. Deliberation When it comes to deliberation in business, it is easier to deliberate with the French people than with the Chinese people. According to the findings, 10 respondents said that the Chinese needed to be rushed, while 9 indicated that they appear impatient while only 1 respondent said that the Chinese patiently wait. 7 respondents said that the French people needed to be rushed, while 7 indicated that they appear impatient while only 6 respondents said that the French people would patiently wait. This is illustrated in Figure 6. Figure 6 3.8. Negotiation When it comes to negotiation in business, it is easier to deliberate with the French people than with the Chinese people. According to the findings, 9 respondents said that the Chinese needed to technical experts, while 6 indicated project team, while 5 respondents said that senior managers were involved. 4 respondents said that the French people used technical experts, while 9 termed project team, while 7 respondents said that the French people needed senior managers for negotiation. This is illustrated in Figure 7. Figure 7 3.9. Covering of hair by women 15 respondents indicated that women in Chine covered their hair during business because of religion, while 5 respondents said is because they had interest and none indicated to regulation of Company. On the other hand, the reason behind women covering their hair during business in France is because of religion by 13 respondents, interest by 5 respondents and 2 by regulation of company. This is illustrated in Figure 8. Figure 8 4. Conclusion In conclusion this research has investigated cultural differences in communication, gifts, dress code and women in businesses between France and China. These cultural differences have both positive and negative impacts on Saudi businesses based in either France or China. Communication in Saudi Arabia is full of respect and honor for business relationships. The dress code varies greatly with these two countries since Saudi’s dress code is not suits but sares worn by men. Women are required to cover every part of their body except the eyes. Further, in China, negotiation and deliberation are not considered as important traits for business compared to France. There was a close similarity as to why women covered their hair during business in France and China. The dress code in both countries is associated with religion requirement rather than personal interest or as a company requirement. In addition this research has outlined people opinion about France and Chinese women in business. France focuses on listening rather than interruption; however, China mostly focuses on interruption. Interruption here means where one party is talking and the other party is supposed to be listening but instead of this, they also raise their point. If staff understand and accept these cultural differences new branches will be successful when opened in Chine and France. 5. Recommendations Based on the findings in this report, there are various recommendations for businesses intending to open branches in France and China. 5.1. Understanding cultures The foremost important thing, for businesses intending to open branches in France and China are to understand the culture of each of these two countries. This is because if they understand, they would not find it difficult to interact and conduct a smooth business. This can be done by training and educating the employees on the different cultural differences as well as how to utilize them in business relationships. 5.2. Training and Education It is important for the management of the business intending to open branches in France and China to educate and train their employees by allowing them communicate with other people with multicultural to obtain knowledge about the culture of each of these two countries. This will make the employees aware of what they are to find if it they are sent to work there training and education should be for old employees as well as for the new recruits. 5.3. Value for culture During training it is important to make the employees aware that the Chinese people value their culture more than the French people. Therefore, it is essential for all staff to utilize this knowledge during business. 5.4. Major features of Communication Communication it core in the development and sustainability of a healthy business relationship. In communication, listening is the most critical aspect. Therefore, while interruption has being found as a major feature of communication in France it is essential to make the employees aware of this as part of communication with the French people. 5.5. Women’s role in Businesses Women should be given equal roles to men in businesses as long as they meet the requirements of any position. However, where religion or politics dominates, then the company should do in accordance to the requirement of the law. 5.6. Dress Code Knowledge about the required dress code in each country (China and France) can be provided through education. This will ensure that employees appear presentable during business which will produce a positive impact on the results of the business. 5.7. Impacts of Chinese and French cultures on businesses` In accordance with the results of the study, there are both negative and positive impacts of cultures on business. Nevertheless, it is important to focus on cultural aspects or practices that have a positive impact on businesses such as listening. 5.8. Deliberation and Negotiation Deliberation and negotiation are important traits in building a healthy and sustainable business relationship. The employees should be educated and trained on how to use these traits for a healthy business. 5.9. Covering of hair by women Religion and company requirement due to job characteristics should be the most pivotal reasons as to why female employees should be required to cover their hair during business. This will ensure uniformity and elimination of prospects of negative issues such as discrimination. References 1. Henderson, S, Pehlke, S., Philips, H & Smith 2011, NS Global Business Etiquette, Retrieved On 16 August, 2011 at, (ppt) International Business Etiquette and Manners. 2. Maschi, A 2007, Cultural Differences between China & France, Retrieved on 16 August, 2011 at, http://www.planetema.net/~MASCHI/UIBE/cultural_differences_between_china_and_france.pdf 3. Understanding Asian and European Business Culture, Retrieved on 16 August, 2011 at, http://www.gmprecruit.com/pdf/ResourceHub/UnderstandingAsianAndEuropeanBusine sCulture.pdf 4. Ben Beiske, 2007, Research Methods: Uses and Limitations of Questionnaires, Interviews, and Case Studies, GRIN Verlag, pg 4, available at http://books.google.com/books?id=1nxRCLVIq6YC&printsec=frontcover&dq=why+questionnaires+are+good+in+research&hl=en&ei=kEh3Ts7gPMu48gO1o_HfDQ&sa=X&oi=book_result&ct=result&resnum=2&ved=0CDEQ6AEwAQ#v=onepage&q=why%20questionnaires%20are%20good%20in%20research&f=false 5. World Business Culture (WBC), Doing Business in China, Retrieved on 16 August, 2011 at, http://www.worldbusinessculture.com/cultural/general-cultural-issues.html 6. World Business Culture (WBC), Doing Business in France, Retrieved on 16 August, 2011 at, http://www.worldbusinessculture.com/Business-in-France.html 7. World Business Culture (WBC) World Business Culture, Retrieved on 16 August, 2011 at, http://www.worldbusinessculture.com/ Appendix 1: Questionnaire Gender Male ( ) Female ( ) 1. Between France and China, which country values it culture more? (I) France ( ) (II) China 2. What one major feature of communication in France and China? Interruption Listening Negotiation China France 3. What kinds of gifts are given in business relationships? Food Watches Music Jewelry Books China France 4. What kind of role do you think women play in business? Minor Role Average Role Major Role China France 5. What is the most important form of business dress? Formal Wear Casual Wear Make up and Jewelry China France 6. Which are the negative impacts do cultures have on businesses? Misunderstanding Legal Action Broken Business relationships China France 7. Based on the above, which is the best country to build businesses relationship with? China France 8. What do people do when some one is deliberating? Rush them Appear impatient Patiently wait China France 9. Who is considered the best person to negotiate a contract? Technical experts Project team Senior managers China France 10. Why do women cover their hair for business in meetings? Religion Interest Regulation of company China France PARTS USED http://www.worldbusinessculture.com/Women-in-Business-in-France.html Women in Business in France (World Business Culture 2011) Women are gaining an increasingly prominent position in French business life - with particularly strong representation in retail and service industries. Once again, the prerequisite for success as a woman is to have achieved a suitable level of education. Some evidence points to less progress having been made in the more engineering-based industries and that they are less accepted in senior positions outside Paris. French Dress Code (World Business Culture 2011) http://www.worldbusinessculture.com/French-Business-Dress-Style.html Dress codes vary with position within the company, industrial sector and region in France. The higher the position within a larger organization, the more formal will be the dress code with formal suit and tie being worn. The further south one travels, the more informal business dress becomes, with open shirt and slacks being the norm. One thing that is common to all areas and all positions however is the need to appear well-presented. Casual does not mean scruffy. Appearances are important at all times in France Women in Business in China (World Business Culture 2011) http://www.worldbusinessculture.com/Women-in-Business-in-China.html Officially, women have the same rights as men in the workplace and the party has promoted this sense of equality over the past thirty years or so. However, traditional Confucian thinking does not sit easily with this notion of gender equality and it is somewhat ironic that the liberalization policies of the last decade might have reversed many of the advances made by women in Chinese society under the previous hard-line regimes. Foreign businesswomen will be treated with great respect and courtesy. They may find that, within a delegation, the Chinese defer to male colleagues regardless of the actual seniority of the western party - the Chinese assumption being that the male will naturally be the decision-maker. Chinese Dress Code (World Business Culture 2011) http://www.worldbusinessculture.com/Chinese-Business-Dress-Style.html One of the most visible changes to the human landscape of China over the past ten years has been the change in dress code. Gone is the standard unisex Mao jacket and trousers in blue or green and these have been replaced by a much more western style of dress - especially in the commercial and urban areas. Many men now wear suits and ties and women tend to wear skirts and blouses of a modest cut. It is advisable to have smart business attire with you when visiting. Be aware of the vagaries of the Chinese climate, which veer from sub-tropical to freezing and dress appropriately for the weather conditions. Wealth is admired, so wear good quality clothes, watches etc. if you want to impress - but don't be overly ostentatious. Understanding Asian and European Business Culture (pdf doc) Our responses to other cultures are influenced by the attitudes, beliefs, values, assumptions and biases that shape our own life. The purpose of engaging with other cultures is not to study them, but to learn from people of those cultures and receive the gifts of diverse cultures. Cultural differences between China & France (Maschi 2007) http://www.planetema.net/~MASCHI/UIBE/cultural_differences_between_china_and_france.pdf Despite prices and traditional culture, Chinese are really taking part of the fashion world. They wear many wild-looking clothes (like clothes with Mickey Mouse), short skirts, but never plunging necklines. Chinese girls, according to the fashion, want a white skin, there are many creams for this and Chinese girls have always an umbrella in order to be protected of the sun. In France this is the opposite, French girls put creams for being suntanned, always put their all body on the sun and wear classic and common clothes. Global Business Etiquette (Henderson et al 2011 power point) French Language French is the official language If you don’t speak French, it is very important that you apologize for your lack of knowledge. However, most individuals in business do speak English. Communication The French appreciate conversation as an art form. They frequently interrupt each other, not to be rude, but because argument is considered entertaining. They complain that Americans often “lecture” rather than “converse”. As an American, you should be sensitive of the volume of your voice (don’t be too loud!) French eye contact is frequent and intense, don’t be intimidated! Appearance The French are very conscientious of their appearance. One should dress in well-tailored conservative attire Dark colors or patterned fabrics are preferred. Bright colors and glitzy jewelry should be avoided. French men do not loosen their ties or take off their jackets. Such behavior is considered unprofessional. Other Important French Cultural Trends Education is very highly valued in France Gift giving as a business meeting is up to the foreigner’s discretion; however suggested gifts are books and music, as they demonstrate interest in intellectual pursuits. Read More