Relation between business and culture free essay sample

To know before you go is an essential but often overlooked skill in the world of business. Competing in todays global economy means the successful business person must understand the relationship between culture and international business. Brush up on international etiquette, tips and customs. The advent and emerging popularity of the Internet changed the way we conduct business. It all but eliminated the geographic limitations of handling business affairs and negotiating trade. Now a corporation in Wyoming can conduct transactions with a company in Shanghai in real time. An automotive plant in Maine can order parts from Japan with the click of a mouse. Despite these advances, some things in the world of business have not changed. To be competitive in business and successful in professional dealings, companies have to understand how another countrys culture affects the way we do business with them. Brief definition of business: Business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants. We will write a custom essay sample on Relation between business and culture or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page All of us need food, clothing and shelter. We also have many other household requirements to be satisfied in our daily lives. We met these requirements from the shopkeeper. The shopkeeper gets from wholesaler. The wholesaler gets from manufacturers. The shopkeeper, the wholesaler, the manufacturer are doing business and therefore they are called as Businessman. Brief defnition of culture: Culture describes the cumulative influences on a group of people or society–their collective knowledge, characteristics and learned behaviours. This knowledge is passed on from generation to generation and accounts for the different cultures that we can see around the world, for example Western culture, Eastern culture, Middle Eastern culture, African and Latin culture. Each of these cultures is defined by the values, traditions, social habits and behaviours, language, belief systems, concepts of the universe, dress, food, music and arts that they encompass. Culture determines what is acceptable or unacceptable, important or unimportant, right or wrong, workable or unworkable. It encompasses all learned and shared, explicit or tacit, assumptions, beliefs, knowledge, norms, and values, as well as attitudes, behavior, dress, and language. What is Business Culture? Companies that have to compete with others in the marketplace set themselves apart by their ability to interact on a personal level with their clients and vendors. Companies that conduct business internationally should take precautions not to offend their potential clients. They must understand that the slightest breach in etiquette can destroy years of positive relations. ex: It is John’s first trip overseas to meet a potential client in China for his company, ToysInc. Upon arrival he greets the first man he sees with a loud, boisterous hello and a firm hug. After being formally introduced, he calls his potential client by his first name, and shoves the business card he was given carelessly into his pocket. Later in the day he joins his new team for a business lunch where he arrives five minutes late. There John takes the initiative to begin eating, using a fork, and takes the last of the food on the table. During the meal he is loud, and makes an attempt to tell a joke when there is silence at the table. John’s outgoing, friendly personality makes him a great employee of Toys Inc. in the United States; however, his behavior with the Chinese clients could cost Toys Inc. their business. Communication and business practices vary greatly from country to country. It is important for business men and women to study the way business is conducted in other countries as there are very different norms for behavior across borders. This not only includes the way meetings and negotiations are run, but how greetings are done, whether gifts are appropriate, what types of verbal and non-verbal communication are used, as well as cultural attitudes. It is also imperative to learn how to behave in a social setting, because in many countries a personal relationship precedes that of a business relationship. Thomas Jaffee once said that first impressions- looking good and having a friendly greeting for someone- will go a long way. In business, this is much harder than it sounds because looking good and being friendly must be catered specifically to each culture. On a first encounter, eye contact, distance, introduction styles, dress, gifts, and language are all things that should be studied before a meeting takes place. In this research, two countries will be explored in details China and the United States of America. Appropriate Business Behavior in China Of these two countries, business culture in China is the most reserved, and is perhaps most unlike that of the United States. First and foremost, a contact should always be established before representatives of a business are sent to China. Trips to China are best if scheduled between the months of April to June, and September through October, when they will not conflict with any Chinese holidays (Morrison, Conaway, and Borden, 1994). On arrival, the business person should not touch people because touching makes the Chinese uncomfortable, especially if it is the first meeting. Inappropriate touching would include patting on the back or squeezing the arm. In China a light handshake is accepted, but the Chinese business associate should initiate the action. Bowing is common and is done with the palms together while facing each other. Holding eye contact is a sign of disrespect and should be done cautiously, especially in a social setting. When entering a room full of potential business partners, greeting the most senior person first is important, as is using appropriate titles. Sometimes the last name is said first in Chinese culture, and individuals will expect to be addressed formally until they say otherwise. Also, if greeted with applause, return the gesture. Chinese often show little to no emotion. Generally joking is not accepted because they may not interpret humor in the same way as others. Exchanging business cards is something of great importance in China. Business cards should be printed in both English and Chinese and in plain lettering. Cards should be accepted using both hands, read, and placed somewhere safe. It is inappropriate to write on another’s card in front of the person who gave it. Business dress in China is conservative and formal. Women should wear a high neckline, and should avoid high heels if they make them taller than their host. Gift giving should be done only after a relationship has developed, and should be modest . It is important to consider carefully what is given. Researching potential cultural superstitions and hidden meanings is a very good idea. For example, a clock, anything given in a group of four, and white flowers all symbolize death. If a gift seems appropriate for a particular business situation, a nice pen or cognac is a good choice. A gift received should not be opened immediately; it is polite to open it at a later time. Business Behavior in the United States In the United States, the first impression is key to a successful business relationship. Americans like direct eye contact and a firm handshake from a client or partner. They often perceive a weak handshake as a sign of weakness in all aspects of life. When being introduced, American business people typically give a full name but insist that they are called by their first name. citizens of the United States are the most casual in both addressing one another and in dress. When meeting in a purely social environment, the foreign business person should expect to come dressed casually, rather than in proper business attire . Americans tend to be very friendly and will go out of their way to say hello or wave from afar. Like the other cultures, business cards are given frequently but are not treated with the same amount of respect as other countries. They are usually presented after the first meeting with the other party rather than the beginning . In the United States, gift giving is not practiced very often and is discouraged by law, but it is still done in some settings. In two situations gifts are appropriate: if attending a function at the person’s home or after a deal is closed . The Impact of Cultural Differences Styles of communication, both verbal and nonverbal, are different in many cultures. Words and phrases can be interpreted differently, as can gestures. Something as simple as a nod can be interpreted in two completely different ways in two countries. Seating arrangements and the distance between two people are also something that varies form culture to culture. It is important to be sensitive to the place business is being conducted. Also important for the traveling business person, is to observe things like speaking volume, posture, touching, typical conversation, and how something is written. Business Negotiation and Acceptable Practices in China Negotiating business in China is very different from American practices. It is good practice to send the same representative to do business in China every time. This builds the strong, solid relationship that the Chinese prefer. While in a meeting, the Chinese will be very vague in their propositions so that those propositions may be adjusted in the future if needed. It would not be unusual to ask the same question in many different ways in order to test a potential partner for consistency, although this practice tries the patience of the other negotiating party . Losing face is an important issue in Chinese culture, so that confrontation and direct questioning should be avoided at all costs. It is considered rude to question authority, speak loudly, or to give a negative answer. In a negotiation only a leader should be singled out; it is important not to single out others. It is easy to spot the leader because he or she will be the only person speaking, and the one to make the final decisions. As the Chinese behave in a modest manner, a business partner, client, or employee should act accordingly. As an example, if one is selling something, it is preferable to solicit the opinions of others on the sale item, in addition to those of the seller. This will be appreciated much more . People of the Chinese culture are very reserved and hard working, and it is vital that visiting business people remain modest and polite while conducting business there. Business Practices in the United States When arriving for a scheduled meeting in the United States, the business person should be sure to be punctual or even a few minutes early. If a guest arrives late, Americans perceive them as being rude or highly disorganized. An action plan or agenda with a clear cut schedule is provided at almost all formal business meetings, and contracts are written out ahead of time. That way time is not wasted in the drafting of new contracts and previously contracts may be easily modified. In negotiating, American business people are more likely to be very open and direct, and normally do not enjoy haggling. The United States produces the fastest negotiators in the world. Although they are competitive, Americans value flexibility and spontaneity, and these characteristics play key roles when trying to close out a deal. Often Americans will accept subpar deals towards the end of a negotiation, due simply to an impatient desire to complete the transaction . Americans tend not to be comfortable with silence and will make every effort to maintain constant communication. Interruptions are not always welcomed either; in presentations all questions and comments should be held to the end of a gathering unless otherwise specified . In less formal business settings, Americans are more relaxed and place great emphasis on personal achievement. Fairness and the ability for a person to move up and down the business ladder are highly valued; however, businesses in the United States also value teamwork. Unlike many other countries, business in the United States is based on personal power rather than class, status or seniority. Hiring family or friends solely based on favoritism is completely unethical in the United States . Americans are not as reserved about their personal opinions and express themselves freely in the work environment, including giving input on important decisions. Managers tend to delegate many of their responsibilities, and it is not uncommon to see lower ranked employees questioning superiors. Decisions are made on all levels . Americans think big and are constantly planning for and anticipating the future. A job description is appreciated when interviewing because clear cut roles are preferred in a business environment. Once at a job, all employees are expected to be immediately loyal. Changing jobs is very common. A person does not usually stay at one job his or her entire career. Americans are risk takers; they are likely to take chances to achieve goals. In this environment, money equals power and status . Conclusion Every country has a different way of communicating and a unique way of doing business. Chinese tend to be reserved and patient and do not like to be pressured during negotiations and its relationships are developed before business takes place. For the United States of America,The emphasis is on deal making in it. Americans do not feel it is necessary to form a personal relationship before entering into a business contract with someone. A fast-paced, scheduled plan is the way negotiations are conducted, and for the most part, individuals in the United States do not like to haggle. This research has illustrated the importance of knowledge of other cultures as the key to reducing risk of failure in business relationships. Revisiting John’s trip to China from earlier, it is now easy to identify exactly what he did wrong. His company is also to fault for not making sure he was prepared to meet with Chinese clients before he was sent. Today, globalization is the norm, and it is important that people go to different  countries prepared to do business and behave in a socially acceptable manner. This includes having a sense of communication styles, being aware of body language, learning meeting and negotiation skills, dressing appropriately, giving proper greetings, and learning how social events are conducted. It is best to be sensitive to other cultures and always treat people with respect. Goethe once said, â₠¬Å"There is nothing more frightful than ignorance in action. † This applies to international business and business people should be aware that informed actions will be appreciated by all.