Zak Richardson 01.03.

2012














Developing Cultural Understanding for
Overseas Operations

Adapting UK behaviour for optimum
performance within foreign markets












CONTENTS


Section 1: Page:
Executive Summary 2
Introduction 2

Section 2:
France 2
Germany 4
Japan 5

Section 3:
Conclusion 7

Bibliography 8
Reading List 8















Executive Summary
Our company Macrosoft is a fictional UK based private limited company which
specialises in the manufacture and retail of personal computers. We currently have an
excellent standing in the British market and now seek to expand our operations overseas.
We currently have three ideally selected countries in which to set up regional offices:
Rennes, France
Hamburg, Germany
Tokyo, Japan

This report will serve to provide recommendations on how the employees being posted to
these three countries might need to adapt their behaviour and expectations to achieve
optimum success, both in managing their team and in dealing with local clients / partners. It
will conclude with which of these postings might be expected to prove most challenging; and
the reasons why.


Introduction
Macrosoft ltd is seeking to develop business relations with electronic retailers to
establish ourselves in these foreign markets- all three of the countries have been chosen
because they have a well-established personal and corporate demand for computer
hardware.

Working in a rapidly changing global environment, we have to deal with people who speak
different languages and live by different customs and values. Our three offices will each
have a British national posted to manage a locally recruited team; this report will focus on
advising the best methods and practices for best dealing with these employees and business
contacts. The ideas of Geert Hofestede will provide the theoretical basis of the points made
here.

Geert Hofestede is an influential Dutch researcher who played a major role in developing a
systematic framework for assessing and differentiating national cultures and organizational
cultures. This cultural dimensions theory argues that people (and countries) differ on the
extent to which they endorse six dimensions of values power (equality versus inequality),
collectivism (versus individualism), uncertainty avoidance (versus tolerance), masculinity
(versus femininity), temporal orientation, and indulgence (versus restraint)- with each
country in the world being quantifiably measured in these categories.


France
Our first posting will be in Rennes. It is vital for our
delegate to understand the core differences
between ourselves and our French counterparts.
Geert Hofestedes five dimensions highlights the
comparisons between the two countries

As we can see Frances power distance (PDI) is
extremely high- almost double that of the UK- this
means that as a society French citizens accept and expect power is distributed unequally. In
practice this means that French corporate structure is quite hierarchical with decisions
generally being made at the top of the company- and an individual rarely should question
his superiors judgement. It is advisable for our contact; when dealing with the local staff- to
maintain strong leadership and understand there is a lot less consultation with their
subordinates in the decision making process. France is a very stratified society- with a much
stronger distinction between the classes

The graph also shows France, has a fairly high Individualism score- yet which is still lower
comparatively to the UK (71 to 89). This would highlight an emphasis on personal
achievement, and that the French favour individual & private opinions, taking care of
themselves and immediate family rather than belonging to a group.
In the work environment, the focus is on the task and autonomy is favoured. The
recognition of ones work is expected by a superior; and our agent would do well to adhere
to these points.

Another key point to observe is the masculinity/femininity dimension. In laymans terms A
high score on this dimension indicates that the society will be driven by competition,
achievement and success (masculine), whilst a low score on the dimension means that the
dominant values in society are caring for others and quality of life (feminine). With a score
of 43, France is a relatively feminine country.
It is important to realise that competition amongst work colleagues is not generally
favoured as feminine societies like France usually have more sympathy for one another. Our
agent will need to be aware that flashy material signs of success and bragging will not be
appreciated by his French colleagues- and management should always be supportive and
dialogue should help resolve conflicts between employees.

Frances uncertainty avoidance should be made paramount in our agents mind when
dealing with business contacts/ potential French clients. This dimension capsulates how
members of a culture, as a whole, feel threatened by the unknown & their willingness to
take risks. France has a score of 86; one of the highest scores in this field. In practice the
French are extremely methodical, taking care to plan and eliminate chance. This is a nation
where reason, logic and rationality are the key to all problems.
Our agent should note that when dealing with potential clients that business is
conducted slowly, where patience and protocol is required- high pressure sales techniques
should be avoided the French are more receptive to a low-key, logical presentation that
explains the advantages of a proposal in full; and whilst debate is often heated & intense; a
good demonstration of it will be appreciated- and if an agreement is reached; they will
usually insist it be formalised in a precisely worded, extremely comprehensive document,
again to avoid loopholes and minimise uncertainty.

The final fifth dimension is Long-term Orientation; the extent to which a society shows a
pragmatic future-oriented perspective rather than a conventional historical short-term point
of view. A longer score means the culture focuses more on respect, personal reputation and
tradition. With a score of 39; France is indeed similar to the UK (25) in this respect- a great
emphasis on tradition and normalities- a set way of doing things. Companies in France are
indeed driven by short terms goals (e.g. quarterly figures).
Managers are based on self-reliance, hard work, and achievement; for they too are often
based on short term success- something our agent needs to keep in mind. Whilst this score
is higher that the UKs a British national may find the atmosphere slightly more lax even
though both cultures hold similar values in this field.

Hofestede aside, there are some other points our agent will need to observe when dealing
with his French staff & contacts: Business lunches it should be noted are part of the work
environment, colleagues usually eat together to discuss points and exchange ideas- almost
functioning like meetings, and no benefit would come from excluding oneself from this
ritual.
The French generally prefer to isolate their personal and business lives, so unless
otherwise invited, address them by their surnames; and keep formal. If our agent does not
speak French; it is polite to apologise for not doing so. Finally our agent should be aware
that the French usually maintain direct eye contact- which should not be viewed as
intimidation; and this should be reciprocated when speaking.


Germany
Moving on to our second office, which will be located
in Hamburg. There are some striking similarities
which are clearly visible- German culture and
etiquette is in some respects very similar to our own-
however certain differences need to be addressed.

Germanys Power Distance dimension is exactly the
same as the UK at 35 (equal scores are uncommon).
In reality many of our British business practices are
the same as in Germany. There is a more democratic
decision making process as managers involve
employees thoughts and usually things are agreed upon by the majority.
Co-determination rights (where employees have a role in the management of the
company) are pretty much universal in German business. Our agent needs to show strong
leadership but that being said a democratic managerial approach is most advisable.

The second dimension (IDV) shows Germany as a largely individualistic society- whilst not as
high as the UK; there is still an emphasis on personal achievement. Business and working
relationships tend to feel rather distant and formal in comparison with Anglo cultures- yet
there is a strong sense of duty and responsibility in Germany; again, much like the French,
Germans are very task orientated and much effort is put into their work. Our agent would
do well to learn to communicate very directly and honestly- even if it hurts. Germans
generally avoid vague terms and always say what they think & mean.

Moving on to the masculinity/femininity dimension: With a score of 66, Germany is again
identical to the UK in this respect; both are considered masculine societies. Germans (it
could be argued) live to work and draw a lot of self-esteem from performing their job well.
Traits including assertiveness, self-centeredness, power, strength, individual achievements
and material success are all included in the fabric of German business. Indeed status is often
shown by what car they drive or technical devices they might own- again very similar to the
UK; and our agent should feel relatively comfortable in this field.

The fourth dimension (uncertainty avoidance) is at 65. This is a fairly high score as is to be
expected- Germans understand and rely on the importance of punctuality, detail, planning
and procedure. An accentuation on conformity- combined with a fear of the unknown
makes Germans very apprehensive about risk. Security is guaranteed through risk analysis.
The phrase Gut feeling is not a term used in German society- favouring long methodical
analysis over impulse decisions- unlike in the UK where taking chances is commonplace.
When our agent meets potential business contacts- it would serve him well to have all
the information readily available- down to the smallest detail, and they do hold appreciation
for quantitative stats & figures when considering a deal. Our agent will also need to be
cautious in the use of humour- as it can give off the impression that one it not taking the
task in hand seriously- however as long as it is appropriate and within context it is usually
acceptable.

Now the Long-term Orientation dimension shows Germany with a score of 31- much like
France and the UK, a great emphasis on short term goals, tradition and a strong pressure to
keep up with their peers- so competition and personal reputation are important things to
keep in mind- for practical use never embarrass or call out other colleagues in front of
others- potential partners would look down upon it. Again a need for self-reliance, hard
work and achievement is needed to gain the respect of his/her German employees.

Moving on to other observations our agent needs to make outside the paradigms of
Hofestede. It needs to be repeated Germans are very punctual, meetings and agendas are
carefully adhered to. In these meetings small talk and relationship building to not take
priority- and so business talk commenced almost immediately.
Our agent should address any German by their Surname unless invited to do otherwise.
It is also important to make a note that sales technique and charm will have little effect
here- and decisions will be made solely on the information available to them- and once that
decision is made minds will rarely get changed.


Japan
Our third and final posting will be in Tokyo,
Japan. This is a highly industrious and
technologically advanced nation and to expand
our products into this market is a highly
desirable option- despite tough competition
there are many avenues for success. Our agent
will experience a significant culture shock

Japans PDI is stated at 54- this is middle of the
road however hierarchy is still a key value in
society- it is a national belief that people of
higher status are responsible for taking care of those below, whilst those of lower status
must show due respect to their seniors.
Our agent should know that respect permeate through all levels of society- and he should
treat his staff with the utmost courtesy. Since there is a great level of respect for superiors,
new or young employees are unlikely to say anything provocative in front of or two their
seniors- so our agent should take this into consideration when asking for their opinion.
Japanese have a lot of interest in your age and background and frequently ask this; and so
during business meetings be prepared for it.

When dealing with a locally recruited team- our agent aware that confrontation is highly
undesirable in Japanese culture- a tendency not to rock the boat so it can sometimes
difficult to gauge what a person is actually thinking- and may tell the other party wishes to
hear to not clash. Try to avoid using direct questions, which can appear as blunt and
demanding.

Japan only rates a 46 on the IDV dimension- there is a greater sense of loyalty with a firm,
and employees often spend their whole lives working for one employer- individual identity
is defined by social group- when dealing with Business partners- our Agent should use every
care to praise a particular company instead of singling out one individual. At the same time
bragging should be avoided.

The MAS Dimension shows Japan as one of the most masculine societies in the world.
This is categorised by extremely long working hours- our agent will observe this first hand
and should expect to put in long hours himself. Saying that it would be advisable to send a
man for this posting due to the inherent dominance of male orientated practices and there
are very few women in the world of business in Japan. Competition is fierce between
companies- yet due to their harmonious way of life and a preference not to embarrass
fellow employees- teams generally work very well together.

When negotiating with potential business contacts- it is important to build relationships-
being sincere, appreciative and respectful go a long way; business negotiations are much
easier if rapport is developed beforehand. Our agent will also need to note that it is impolite
or even offensive to maintain eye contact with the Japanese during meetings or
conversation. This is a superficial point but is very important for day to day encounters with
both the staff and business partners.

The Japanese are also very analytical in terms of making decisions- with a UAI score of 92
it is one of the highest in the world at uncertainty avoidance. Businessmen will often ask for
every single detail, every shred of information- even if deemed irrelevant by his western
counterpart. Our agent should have all this information to hand- failure to have an answer
to any of their questions will look unprofessional.
Each decision is a rigorous and drawn out process. When discussing options; be wary of
their responses- not wanting to cause offence a Japanese contact may talk very indirectly
and it is often difficult to interpret his thoughts.
Meetings usually take place for only one of three reasons: to build rapport, exchange
information or confirm previously made decisions. Decisions are rarely made in a meeting
and our agent should not push or hurry any Japanese delegates during. Finally their long
term orientation score focuses on long-term success, contrast to western societies-
managers need to focus long term to maximise and achieve the goals of the business.
Conclusion
On reflection; with the UK being a western society- our first two posting to both France
and Germany; also western societies would be arguably easier to adapt to. All three
countries share some similarities in Hofestedes graph- the main obstacle to overcome
would be uncertainty avoidance- learning to adapt to a slower- more scrupulous decision
making process and taking care in the smaller details of business etiquette.

Japan on the other hand contrasts complete with the UK in many respects- obvious
Japanese language aside- an entire system of harmony and long term orientation; which
percolates every fibre of Japanese life- is an alien concept to many Westerners. For this
reason Japan would be considered our most difficult posting- but with the correct attitude
and cultural understanding we can predict great financial success in all three countries.


Word Count
2612































Bibliography
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LNG100 (Jan 2012) Culture & Business in Germany [PowerPoint Presentation] Available from:
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LNG100 (Jan 2012) Culture & Business in Japan [PowerPoint Presentation] Available from:
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Reading List:
Hofestede G, Hofestede G J, Minkov M (2010) Cultures & Organisations- Software of the
mind; Third Edition [pages 3-26, 54-88]