Business Workshop. Intercultural Business. Presented by. Daniela Jardot & Christina Thiedig International Management (M1) 10 January 2007

Transcription

1 Denmark Sweden Norway Finland Business Workshop in Intercultural Business Presented by Daniela Jardot & International Management (M1) 10 January 2007

2 I) Index 1) Introduction.3 2) Denmark ) Communication style at the workplace.3 2.2) Non-verbal communication ) Etiquette at the workplace and during meetings ) Relationship between superiors and subordinates ) Relationship between suppliers and customers ) Sensitive Issues ) Sweden ) Communication style at the workplace ) Non-verbal communication ) Etiquette at the workplace and during meetings ) Relationship between superiors and subordinates ) Relationship between suppliers and customers ) Sensitive Issues ) Norway ) Communication style at the workplace ) Non-verbal communication ) Etiquette at the workplace and during meetings ) Relationship between superiors and subordinates ) Relationship between suppliers and customers ) Sensitive Issues ) Finland ) Communication style at the workplace ) Non-verbal communication ) Etiquette at the workplace and during meetings ) Relationship between superiors and subordinates ) Relationship between suppliers and customers ) Sensitive Issues ) Conclusion II) Literature III) Internet- Resources Daniela Jardot Intercultural Business IM-M1 2

3 1) Introduction Because dealing with companies from different countries is getting more and more important to build large distribution areas, international manager should concentrate on dealing successfully with different cultures and other types of business manners. Business in Nordic Countries is booming. Therefore it is necessary to research effectively dealing with Nordic Countries in this report to be able to understand in which way those countries operate and react to different business attitudes. In literature you can often find two different terms: Scandinavia and Nordic Countries. First of all it is essential to clarify the differences between those terms. The name Scandinavia is used for Denmark, Norway and Sweden 1 whereas the name Nordic Countries is used in Intercultural Business. These countries - which had received their name because of the geographical position in the north of Europe - didn t only include the Scandinavian countries, but add Finland, Iceland and their associated territories (like the Faroe Islands or Greenland) as well. 2 In this report we concentrate on Denmark, Norway, Sweden and Finland which are the biggest countries in this Nordic region. However, Nordic Countries - which have a combined population of approximately twenty-four millions habitants - don t build an organizational entity, but they work closely together in the so-called Nordic Council. 3 2) Denmark 2.1) Communication style at the workplace The communication style at the workplace in Denmark is very direct. Danes tend to say what they mean and mean what they say. This directness can cause the impression in business dealings that Danes appear to be unfriendly and uncaring. But this directness is helpful to avoid misunderstandings. Danes address each other informally at the office, with the familiar pronoun du and their first names. 4 Moreover they express their feelings freely what can cause in business that they are seen as highly undiplomatically ) Non-verbal communication Danes have a more restrained body language and moderate gaze behaviour. For that they often seem to be reserved, seem to be arrogant and cold. Most Danes stand arm s length away from conversational partners in business gatherings. Closer is causing discomfort and stress Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S What you should know before negotiating (4 January 2007), Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Daniela Jardot Intercultural Business IM-M1 3

4 2.3) Etiquette at the workplace and during meetings The dress code in Denmark is relative informally at the office. At meetings men normally wear a suit or jacket and a tie. Women are well prepared with a suit or a business dress. 7 If you are invited to a Danish home for an informal get together, you can wear casual jeans and an open-neck or sports shirt but all has to be neat. Besides, red is a positive colour in Denmark and isn t associated with aggressiveness like in Germany ) Relationship between superiors and subordinates The relationship between superiors and subordinates in Denmark is affected by flat hierarchies. They all address each other with their first names what shows equality. The communication with superiors can be direct and it isn t necessary to go through official channels ) Relationship between suppliers and customers Danish business people are deal-focused. Normally they are moderately informal, monochronic, and relatively reserved. They usually get down to business after a few minutes of small talk. They get to know their counterparts while talking about business. 10 For doing business in Denmark wellprepared presentations are a must and written agreements are seen as definitive. Danes are very truth oriented. They use objective facts to make a point. In negotiation subjective feelings do not play a role. Moreover Danes dislike the common international bargaining tactics, for that negotiating partners do better to open with a more realistic offer. As in other countries, business cards are necessary but don t have to be translated into Danish on the reverse side. Stability is an important characteristic to the Danes. If a company someone represents was founded 10 or more years ago, it should be listed on the representative s business cards. Punctuality is very important, so you should always make the effort to be exactly on time for all business appointments. In business relationships it is not common to ask personal questions about someone s private life. Gifts are also not common only if you are invited at home. Roses are, unlike many other countries, acceptable gifts for the hostess. Nevertheless, be sure you don't give white roses, because white is associated with mourning. Danes do not demand a gift of their business partners at a first meeting. 11 Good gifts can be a quality logo gift, an item your country is famous for or a good book about your home country or wine Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Selecting and presenting an appropriate business gift (4 January 2007), 9 What you should know before negotiating (4 January 2007), Impact of Cultural Differences on Negotiations (4 January 2007), 10 Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S What you should know before negotiating (4 January 2007), Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Daniela Jardot Intercultural Business IM-M1 4

5 2.6) Sensitive Issues For Danes compliments are inappropriate. Comments which could be viewed as personal should be avoided. Also, avoid discussing controversial subjects and financial, personal, or family issues. Criticism on other people or systems is not advisable. Moreover, it would be a mistake to introduce a business plan that will have detrimental side effects for the environment. Danes love nature and preserve the environment. Be careful with gestures. The North American "O.K" gesture, thumb and forefinger forming a circle, can be interpreted as an insult in Denmark. The "V" for "Victory", must always be done with your palms facing out; if done with your palms facing in, it can be interpreted as a very rude and obscene gesture. 13 3) Sweden 3.1) Communication style at the workplace Swedes are known for their direct communication style and their informal way of communication. Pauses in conversations are normal. Swedes accept silence with ease, so it is not necessary to fill in pauses hurriedly. Greeting people at work is very important in Sweden and conversations normally are not superficial. Swedes avoid arguing over sensitive topics in general, especially with visitors. Moreover Swedes don t like to stretch the truth, for that they don t use a lot of superlatives ) Non-verbal communication Swedes maintain in arms-length distance from their conversational partner. Moving closer causes discomfort. The touch behaviour is limited to handshake. They smile less often as the Americans and the eye contact is less intense. They make only few gestures because they have a sense of modesty and moderation, a toss of the head means for example come here ) Etiquette at the workplace and during meetings In Sweden the dress code is conservative. Men usually wear a suit and tie; women wear a suit or a dress. 16 Swedes always dress well, but none of them much better than others. This shows the importance of maintaining a sense of equality in this society. 17 Moreover they attach importance to punctuality, a firm handshake, adhering on schedules and no interruptions. Presentations in Sweden are always clearly detailed, and include usually handouts and overheads. 13 Acceptable public conduct (4 January 2007), 14 What you should know before negotiating (4 January 2007), Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Business Dress(4 January 2007), Daniela Jardot Intercultural Business IM-M1 5

6 3.4) Relationship between superiors and subordinates The Swedish management model has a flat structure. There exists only little regard for rank and status differences. The equality-minded character is also shown in the equalization of men and women. You ll often find well-educated, self-confident women in management positions of Swedish companies. The way of communication is informal and direct. For that top executives do not hesitate to communicate directly with junior employees. 18 The most effective way to work is a thoughtful, quiet and careful adherence to procedures. Subordinates follow decisions which have been made within a group. All parties are expected to work alongside each other as equals ) Relationship between suppliers and customers Swedes dislike small-talk and call it dead talk (döprat). They usually get down to business right away. Sometimes this seems to be rude for their business partners from other countries. But it also shows that the Swedes are a transaction-oriented, deal-focused business culture. 20 Their behaviour is extremely businesslike and detail-oriented. Appointments should be made two weeks in advance and abrupt changes of time and place of appointments should be avoided. Business relationships are normally built up on an informal, but not familiar, level. Decisions are not made in the first meeting due to the fact that meetings are more of a forum for information. Swedes need time for decisionmaking. Meetings start and end at time. Not arriving on time symbolises disrespect. In general, gift giving is not common among business associates, but good gifts can be liquor, wine or chocolate. If you send flowers, never send chrysanthemums or white lilies, since they are used primarily for funerals. Also, avoid red roses or orchids as these usually indicate romantic intent. Moreover, always make sure the bouquet is in odd numbers. Furthermore Business Cards are important ) Sensitive Issues Don't use profanity at any time. If you do, you will offend the Swedes. As well, do not ask personal questions or be offended if Swedes do not ask about your family and work. Swedes are very equality-minded, so remember A lack of deference does not mean lack of respect. Following schedules and punctuality are very important in Sweden. In conversations avoid sensitive topics, e.g. private life. Quality of life and environmental issues are two of the most sensitive topics in Sweden. Swedes love their environment and are interested in protecting it Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Making appointments (4 January 2007), 20 Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Selecting and presenting an appropriate business gift (4 January 2007), What you should know before negotiating (4 January 2007), What you should know before negotiating (4 January 2007), Daniela Jardot Intercultural Business IM-M1 6

7 4) Norway 4.1) Communication style at the workplace Norwegians are less reserved than Finns or Japanese and there will be no long pauses in conversation as they can be found in Finland or Japan. It is important to know, that Norwegians never interrupt each other because in Norway this is regarded as rude behaviour. 23 That is why you should always remain polite and respectful in Norway. 24 Using a direct communication (but less direct than Germans or Danes 25 ), Norwegians are very egalitarian and less formal compared to Germans. They address each other by first names. But you should wait until your communication partner switches to first-name basis. 26 Norwegians can speak English fluently because English is the second language in Norway and therefore used as house language in every international company. 27 Good topics to get a conversation started are talking about travelling, sports (especially winter sports like skiing or biathlon), nature or music. But you should never start with criticism of the Norwegian culture, things which are associated with status or the high costs of living in Norway ) Non-verbal communication Norwegians have moderate gaze behaviour and alternately they use eye contact with the person they are speaking to but then looking away. They tend to stand at an arm s length distance from business partners not having physical contact except for handshaking. Furthermore Norwegians tend to have less use of gesture and facial expression ) Etiquette at the workplace and during meetings In Norway there is no formal dress code: men can be a bit more relaxed than Finns wearing a suit or jacket and tie, women may wear a suit or dress. 30 Norwegians expect a warm and friendly welcome in every meeting and address each other by his or her full name plus academic title until they are invited to go to first names. Business meetings start right on time and have a probable ending time to allow for a better planning of your day. 31 Punctuality is very important in Norway; if you are late, call your partner. 32 Shaking hands at the beginning and the ending of the meeting is usual, but no further physical contact as mentioned above. Norwegians avoid showing emotion and interrupting and exaggerating are seen as rude behaviours. Presentations should be organized and well-prepared. 23 Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Daniela Jardot Intercultural Business IM-M1 7

8 4.4) Relationship between superiors and subordinates In Norway you can only find flat hierarchies because of its belief in equality. Superiors and subordinates address each other with first name and you can often find team work in Norwegian companies. The communication with superiors is very direct. Norwegians generally do not socialize with their colleagues after the workday 33, even if they consider them to be good friends. 4.5) Relationship between suppliers and customers Norwegians like a well-documented approach without exaggeration and they dislike bargaining practices or pressure tactics and rude communication styles. That is why they begin with a realistic offer. There is no corruption in Norway and that is why Norway is ranked on top of corruption-free business cultures. Written agreements are regarded as definitive. 34 Norwegians often invite business partners out for meal. If you are invited for having a meal at your partners home, you should be on time and wait at the door until you are invited to enter. It is polite to bring chocolates, pastries, wine, liquor or flowers with you if you are invited by your business partner, but avoid lilies, carnations and white flowers because they are used at funerals ) Sensitive Issues Do never talk about the expensive way of living in Norway! Nature is very important for Norwegians. That is why you should respect this attitude and do not say anything bad about nature and environment. Punctuality is very important in Norway. That means if you are late, you have to inform your business partners about being late. 36 5) Finland 5.1) Communication style at the workplace Finns are very quiet a not communicative 37. What is said is more important for them. They make a break before saying something and do not use words like ah, yes, sure because that seems to be an interruption. 38 Finns use a very direct way of communication and only important facts will be outspoken. Finns distance themselves at least 30 centimetres from the speaker because they do not want to get too close. 39 They speak excellent English and English is often used as company language. Furthermore Finns use a familiar form to address (use of 2 nd person singular: sinä ) Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Gibson, R. Business in Nordic Countries, Business Spotlight, p Gibson, R. Business in Nordic Countries, Business Spotlight, p engine: Finnland schweigsam und verbindlich 40 Daniela Jardot Intercultural Business IM-M1 8

9 To get a conversation started topics like sports (skiing, Formula One), nature and the sauna are welcome meanwhile you should avoid talking about politics, job and money. 41 Do not begin with negative statements about the weather and beware talking about yourself because it seems arrogant and impolite ) Non-verbal communication Finns love silence and therefore breaks are part of their communication. 43 They have eye contact with the person you are speaking to but less use of gesture and facial expression. 5.3) Etiquette at the workplace and during meetings In Finland dominate a high dress code: men should wear suit and tie; women can chose between suit and dress. 44 To address persons Finns use last names plus academic until their business partner moves to first names. Punctuality is very important. If you are late, call your partner. Shaking hands at the beginning and the ending of the meeting is usual, but no further physical contact. Finns avoid showing emotion and interrupting and speaking too loud is seen as rude behaviour. 45 Presentations should be organized and well-prepared and only important facts should be mentioned as well on a handout for documentation. 46 Business meetings can be held in the sauna: there you meet each other as equal people and you can relax and create a lovely atmosphere for a good business meeting ) Relationship between superiors and subordinates In Finland flat hierarchies dominate. Superiors and subordinates address each other with first name what it showing the weight of equality. Superiors are expected to make clear decisions 48 and they work closely in teams with their subordinates. Communication with superiors can be direct and it is not necessary to go through official channels. 5.5) Relationship between suppliers and customers In Finland you ll never find small talk. 49 Finns want to come down to business as soon as possible. 50 Only important facts should be mentioned. Details are unnecessary and waste of time. Finns do not like bargaining practices because they associate distrust with bazaar haggling. To negotiate effectively in Finland you should begin with a realistic bid and be prepared to adjust price 41 Gibson, R. Business in Nordic Countries, Business Spotlight, p Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Gibson, R. Business in Nordic Countries, Business Spotlight, p Gibson, R. Business in Nordic Countries, Business Spotlight, p Daniela Jardot Intercultural Business IM-M1 9

10 or terms in response to proposals from your business partner. Finns need time to think about a decision-making. 51 Business cards are very important and help to be kept in mind. 52 Furthermore your business partner will chose you as a contact person in the future. Gift giving is very usual in Finland. Because imported alcohol is very expensive in Finland a bottle of a good whiskey or liquor will be a nice gift. 53 If you are invited to visit your business partner at home for dinner, you can bring an uneven number of flowers for a hostess gift but do not chose white and yellow flowers because they are used at funerals. 5.6) Sensitive Issues Finns are very interested what others think about their country and culture. 54 They admit that they have a low national self-esteem but Finns can laugh about their own national faults of the past nevertheless. 55 Because Finns love the nature and a healthy life, it is not advisable to be disinterested or to talk about that in a bad way. Punctuality is most important in Finland. If you are late, you have to inform your business partners about being late. To be unpunctual is impolite and can cause no further business connection. Equality is another very important fact; you can find lots of women in management positions. 56 You should treat female business partners in the same way you deal with men in management positions. Furthermore you should be patient with the Finnish silence and the lower use of verbal communication. 57 6) Conclusion After looking at each of the four countries you will find many similarities but as well many important differences. To deal effectively with those countries the differences should be regarded carefully. For German business managers dealing with Nordic Countries is easier than dealing with other countries because of the Germanic historical background and a very similar culture (the most identical country to Germany is Denmark). Nordic Countries are in the same way than Germany task-oriented and they want to come down to business as soon as possible. Small talk is seen as waste of time and if Germans deal with managers from Nordic Countries each part will feel comfortable to start negotiating with fast and realistic offers. But there are still some differences: Nordic Countries are less formal but more reserved than Germans even though they are familyoriented in social life. They reach the highest scores in the Programme for International Student Assessment (PISA) because they advance their best students to be a teacher and thereby they make them more ambitious. 51 Gibson, R. Business in Nordic Countries, Business Spotlight, p. 40, Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S engine: Finnland schweigsam und verbindlich Gibson, R. Business in Nordic Countries, Business Spotlight, p. 39 Daniela Jardot Intercultural Business IM-M1 10

11 II) Literature Finnland schweigsam und verbindlich, in: engine, Ausgabe Nr. 4 (Dezember 2006), S. 32 f. Gibson, Robert Business in Nordic Countries, Business Spotlight (January 2007), S Gesteland, Richard Cross-Cultural Business Behavior Negotiating, Selling, Sourcing and Managing Across Cultures (2005), S III) Internet- Resources Denmark: Acceptable public conduct - Denmark (4 January 2007), Impact of Cultural Differences on Negotiations - Denmark (4 January 2007), _Part_1 What you should know before negotiating - Denmark (4 January 2007), Sweden: Business Dress - Sweden (4 January 2007), Making appointments - Sweden (4 January 2007), Selecting and presenting an appropriate business gift - Sweden (4 January 2007), Daniela Jardot Intercultural Business IM-M1 11

12 Sweden (prosecution): What you should know before negotiating - Sweden (4 January 2007), Welcome topics of conversation - Sweden (4 January 2007), Norway: Doing Business in Norway (3 January 2007) Norway (3 January 2007) Selecting and presenting an appropriate business gift (4 January 2007), Finland: Alho, Olli Guide to Finnish customs and manners (November 2002) Doing Business in Finland (3 January 2007) Finland Business Practice and Business Etiquette Tips (3 January 2007), Daniela Jardot Intercultural Business IM-M1 12