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Jun 28

Challenges of Doing Business in Vietnam

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 2 Comments »

Located in South East Asia, Vietnam is a culturally rich country whose distinct history has helped to shape the development of the modern state. Independent since the mid 20th century, Vietnam spent 1,000 years under Chinese rule and 100 years as a French colony and aspects of both countries are still reflected in Vietnamese culture. The combination of both has influenced the unique Vietnamese culture, business, values, beliefs and traditions.

Understanding these influences is very important for every organisation wishing to do business successfully in Vietnam and build relationships with Vietnamese counterparts. Attending Communicaid’s cross cultural awareness training programme Doing Business in Vietnam will help your organisation maximise the chances of working successfully with Vietnamese counterparts and understand some of the following key challenges of doing business in Vietnam.

Vietnamese Scene Keith Molloy i Challenges of Doing Business in Vietnam

© istockphoto.com/Keith Molloy

 

Confucianism
The Vietnamese believe in the teachings of the early Chinese philosopher Confucius which emphasise the importance of relationships, responsibility and obligation. The teachings also promote respect for age and status. This philosophy is still a vital component of Vietnamese society. The principles of Confucianism can also be found in Vietnamese business culture, where the importance of the collective good is emphasised.

Face
The concept of face is crucial in Vietnamese society. Vietnamese will go to great lengths to prevent loss of face including avoiding confrontation or telling others what they want to hear rather than dealing with immediate issues. Criticising someone in public and not staying true to your word are ways in which people may lose face. In addition, it is considered imperative to show appropriate respect according to rank and seniority.

Collectivism
Vietnam is a collectivist country in which the needs of the group are often placed over the individual. Family and community concerns will almost always come before business or individual needs. The concept of society as an extension of the family is key to Vietnamese business culture. The Vietnamese tend to create business relationships on a personal basis and are relaxed about sharing their personal lives, including family issues, hobbies and opinions. This may be uncomfortable for foreign counterparts who are more accustomed to keeping their private and business life separate.

Family life
Vietnamese culture places a high value on family life and it is very common for several generations to live under the same roof. Following the Confucian tradition, the father is the head of the family and he is the one who makes important decisions. Vietnamese life is influenced by ancestor worship and children learn at a very early age that they owe everything to their parents and their ancestors. Respect for parents and ancestors is extended to all elders in Vietnam whose life experiences are valued. The importance of family is also apparent in business situations in Vietnam where the opinions of family members may be taken into consideration during decision making.

Any organisation doing business in Vietnam should consider attending a cross cultural awareness training programme in order to maximise their understanding of Vietnamese culture and approach new business situations with confidence.

© Communicaid Group Ltd. 2010

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Jun 24

Cross Cultural Communication: The Magic of a Smile

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

In the international business world the first face-to-face meeting with business counterparts can significantly influence the success of the relationship, negotiation or contract. Many people underestimate the impact of first impressions which can either unite or alienate people forever.

Psychologists studying the phenomenon of ‘first impressions’ suggest that if the person wants to be accepted and trusted by his or her peers, all verbal and non-verbal messages should complement each other. Practically, this means that none of the sent signals should go into conflict with another signal sent at the same time.

Team businessYuri Arcurs i Cross Cultural Communication: The Magic of a Smile

© istockphoto.com/ Yuri Arcus

 

For example, a British person saying ‘yes’ while rubbing their head and raising their eyebrows may not give the message of ‘yes’ to the other person but rather a message of ‘I’m saying yes but I’m not really sure’. While the person receiving the message understands something different than what the sender intended, the sender does not often realise that the receiver hasn’t understood their message in the first place.

Examples of where people use conflicting verbal and non-verbal signals increases significantly in intercultural interactions. This is primarily because a non-verbal signal such as gestures or facial expressions in one culture can often mean something completely different in another, frequently resulting in misunderstandings and confusion.

Smiles are something that can easily be misinterpreted by people from different cultures. Smiling in North America is usually a sign of happiness and confidence as well as an effort to build rapport. In Russia, people often smile when they are happy or when something really funny takes place but you may find they do not smile quite as much as their counterparts in North America. Meanwhile, in many Asian cultures, smiling is often a signal that they are embarrassed or uncomfortable.

Take the example of an American manager who was once visiting some business counterparts in China to celebrate the opening of a new factory. The Chinese wanted to be sure everything was perfectly organised to really impress their new manager so they booked the American manager in a nice hotel and organised lots of social events in the evening. The morning after the first evening, the American manager woke to find no hot water in the hotel. He went down to the reception to complain but was greeted with a smile. He was already frustrated about the situation and felt even more frustrated by the smiling response from the receptionist. He later mentioned the situation to his Chinese counterparts in frustration and they too, smiled in return, and gave a small apology. This situation did not significantly hurt the visit or relationship, but it did leave the American manager feeling very confused about their reaction.

This is an example where a simple smile was completely misinterpreted. The North American may have thought the Chinese receptionist was smiling as they thought the situation was funny but the Chinese receptionist most likely felt uncomfortable and did not have a solution for the situation so was therefore trying to prevent loss of face.

This is a very basis example of where a simple smile can easily be misinterpreted and change the perception people have of each other. This kind of communication breakdown can be more effectively anticipated and understood by taking part in a cross cultural training course such as Doing Business in China. Intercultural Training China programmes such as this can help business people understand Chinese values such as face as well as the different communication styles and non-verbal gestures such as smiling to ensure they correctly interpret and understand any interactions with their Chinese counterparts. By accentuating the differences between cultures, intercultural training can help anyone doing business internationally pay more attention to the details and suggest strategies to overcome any possible cross cultural miscommunication.

© Communicaid Group Ltd. 2010

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Jun 23

Managing International Teams – Can Fabio Capello Harness the Bulldog Spirit?

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Fabio Capello has been under constant criticism ever since England started their World Cup campaign with a draw against the USA. At the time, people acknowledged that this poor start was not helped by the horrendous mistake made by the goalkeeper, Robert Green. But sceptics pointed out that England did not capitalise on the goal scoring opportunities that would have eclipsed Green’s mistake.

The second match saw things go from bad to worse with an abject draw against the Algerians who gave an excellent performance. The end of the match saw Rooney castigating the England supporters for booing and talk of dissent and unrest surfaced in the England camp. Suddenly, stories started to appear about communication problems between Capello and his team, and the different points of view that were threatening to send England back home embarrassingly early, shredding a nation’s hopes to pieces once again.

To think that only a few weeks ago the media could not be more positive about Capello makes matters worse. His strict upbringing in Italy, another traditionally strong football nation, seemed to be just what the England team so desperately needed to reach the top of world football.

England flags Joe Gough1 Managing International Teams – Can Fabio Capello Harness the Bulldog Spirit?

© istockphoto.com/ Joe Gough

 

After a disastrous Euro 2008 campaign, with manager Steve McClaren, which saw England failing to qualify, they thought that a strong character and foreign influence like Capello at the helm of the English team would help change players’ mentality for the better. Unlike lenient McClaren, who as an Englishman was perhaps more star-struck by his players, Capello, a disciplinarian with strict rules on and off the pitch, would not allow misbehaving and would certainly not treat his players with kid gloves. Indeed, his stint as England manager up until the World Cup had been quite successful and he led the team to nine victories in ten qualifying games, losing only to the Ukraine, albeit only after qualification to the World Cup had been secured.

But as with many high-profile and high-pressure appointments, there were a few things that were ignored when Capello was appointed England manager. Despite his previous successes as manager in his native Italy and in Spain, Capello’s poor English language skills were brushed aside by the FA. His strict disciplinarian approach was also thought to be good for the team, however since English players are pampered throughout the year by their respective clubs, it was perhaps too hard a transition for players in the much-higher pressure environment of a World Cup. Indeed, only after England’s draw against Algeria did it become known that the team had apparently just drank their very first beer since the start of the tournament and that a few players had voiced their dissent against Capello’s tough-love approach.

Cultural, language and communication differences are well-known challenges faced in the business world, and football is no exception. Yet because football players and managers are sometimes perceived as ball-kicking athletes with no intellectual aspirations, their cultural and language differences go largely ignored.

The problem then is when football teams are immersed in high pressure on the world stage. All their differences are magnified and the façade starts to crack. How could an Italian manager ignore the fact that the British need to wind down sometimes with a beer and that they need directions in simple, plain English?

England is facing Slovenia in a must-win match later today, so the time has finally come to deliver results despite the many differences between manager and squad. Only time will tell whether Capello should have undertaken some sort of cultural awareness training course such as Communicaid’s Managing International Teams.

There is no doubt that Capello has done remarkably well and managed to gain a good level of English. Most people at Capello’s age are retired and so his performance and passion is all the more remarkable. Managing an international team, however, requires the Manager of England or indeed any business to harness the qualities of the team and culture(s) that it is made of. In the case of the English team, they have always been renowned for their passion, bulldog spirit and the desire to keep fighting to the end – often to lose on penalties!

Today we need to see that bulldog spirit once more. We don’t care if England lose today as long as they show that they care passionately and deliver a performance to make the fans back home and those that have travelled all the way to South Africa proud. Come on England!

© Communicaid Group Ltd.2010

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Jun 22

International Assignments: Overcoming the Cultural Challenges Together as a Family

Cross Cultural Training, Cultural training for Relocation, Culture No Comments »

The increase in numbers of long-term international business assignments has led employers to look at family relocation as an important element of a successful international assignment.

Successful family relocation is increasingly recognised as a key factor in international assignments for two reasons. Firstly, one of the most common causes of failed international assignments is the employee’s partner’s unhappiness in the new location. Secondly, employees who relocate with their families usually feel more secure in their new environment and are less inclined to travel back to their native country as frequently as those whose families stay behind which saves the organisation time and money.

 

Family H Gall i2 International Assignments: Overcoming the Cultural Challenges Together as a Family

© istockphoto.com/ H Gall

 

Sending employees and their families abroad can present a huge risk to international organisations. If the family members fail to adjust and fit in to their new cultural environment, the company risks huge financial costs. Some estimates put the cost to an organisation of a failed international assignment at $250,000 or more.

Providing cross-cultural training for relocation programmes to the international assignee’s family can help prevent this direct cost to the organisation and lessen the emotional strain of the relocation on the partner and children. Participating in a Living and Working in Saudi Arabia cultural awareness training course, for example, helps families moving to Saudi Arabia anticipate any potential problems they might have in adjusting to the cultural differences while it also equips them with strategies to ensure they maximise their relocation.

Training the family of international assignees provides a unique opportunity for them to experience the target culture as a family and find ways to help each other through any problems during their adjustment to their new life and surroundings. Ensuring the whole family is happy and well adjusted will drastically improve the chances of a successful international assignment and save the organisation time and money.

© Communicaid Group Ltd. 2010

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Jun 21

Challenges of Doing Business in New Delhi

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for the Public sector 1 Comment »

As the cosmopolitan capital city of the Republic of India, New Delhi is the political, commercial and financial centre of the country. The vast amount of workforce available combined with the fact that English is one of India’s official languages have made New Delhi an excellent destination for doing business. Particular sectors which are attracting an increasing amount of foreign investment include tourism, banking, telecommunications, media and IT.

Although the sheer size and often perceived chaos of the city can put some people off, there are many great appeals to the foreign visitor. The opportunity to discover some of the sights of New Delhi as well as making profitable business deals should not be ignored.

motorized rickshaw zips Graham Norris i Challenges of Doing Business in New Delhi

© istockphoto.com/ Graham Norris

 

New Delhi’s business practices differ from those in the UK in many areas ranging from punctuality to business etiquette. According to The Economist’s recent podcast, people in New Delhi don’t make much of a difference between working hours and non-working hours even during evenings and weekends. They therefore tend to become quite sociable and will want to get to know you and ask you lots of questions about your life. On a client basis, however, Indians do not tend to purposely go out and socialise with their clients and so there usually aren’t many organised events such as going to watch the cricket to strengthen business contacts.

New Delhi is known for its flexible attitude to time so business people will be forgiving if you arrive a few minutes late. Government officials may arrive late for meetings or cancel at the last minute but they will not normally tolerate you arriving late as they see this as disrespectful.

It is common for business meetings in New Delhi to start with small talk so your Indian hosts have the opportunity to get to know you. They will usually ask questions about your family or about your views of India. Remember not to delve too much into Hindi-Muslim relations or into the topic of castes which is a fixation for foreigners that Indians may find irritating.

Once in a meeting in New Delhi make sure you are dealing with the right person because your Indian counterparts will often defer a decision if the key decision-maker is not present. When working with Indian government in New Delhi, you may find that decisions are rarely reached in meetings and are instead made afterwards or even before the meeting.

In order for companies to take full advantage of New Delhi’s fast growth and promising economic development without compromising profitable deals, it is vital to prepare short-term visitors and international assignees for their experience of doing business in India.

Communicaid’s Cultural Awareness Training India courses such as Doing Business in India are especially designed to give you and your company the in-depth knowledge required to interact in the Indian business world as successfully as possible. Communicaid’s expert trainers will tailor the course content to your needs and give you the tools necessary to maximise your business endeavours in India, giving you the advantage you will need to accomplish your goals in India’s fascinating capital New Delhi.

© Communicaid Group Ltd. 2010

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Jun 18

Benefits of Doing Business in Thailand

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources No Comments »

The ancient kingdom of Thailand is located in South East Asia. The country has never been subjected to foreign rule and its people have a strong and independent sense of identity. Thailand’s economy is heavily dependent on its tourist industry, and visitors flock from across the globe to enjoy the country’s idyllic beaches and experience its culture. Doing business in Thailand will offer your organisation many advantages. Some of the benefits of doing business in Thailand include the following.

Open and Welcoming Economy
Thai society, and in particular the business community, is very welcoming to foreign investment and companies wishing to establish operations in the country. Organisations doing business in Thailand will find the infrastructure and systems ready for them to begin operating successfully.

Diverse Manufacturing Sector
Thailand has a large and very active manufacturing sector producing a diverse array of goods including toys, fish products, rubber, furniture and jewellery. These strengths in manufacturing and FMCGs have led Thailand to become a regional leader in trade and commerce.

Pro-active Government Policies
The Thai government is a forward-thinking and innovative body which actively encourages development and socioeconomic advancement. Foreign investment, both financial and in the local workforce, is strongly encouraged by the Thai authorities and the government’s policies over the last decade have made for a more inviting environment for foreign businesses and organisations.

A Large, Adaptable and Cost-efficient Workforce
Thailand has a large and adaptable workforce. According to Thailand’s Board of Investment, literacy rates reach 94% for men and 90% for women, so that foreign investors will find an intelligent workforce with the potential for further development. In addition to being flexible and educated, the Thai workforce is also among the most cost-efficient in the region in terms of pay with the average daily wage for Bangkok being 203 THB (approximately US$6).

 

Bangklok Thailand laughingmango i Benefits of Doing Business in Thailand

© istockphoto.com/laughingmango

Thailand is a hospitable, friendly and rapidly developing nation in which there is the opportunity to establish long lasting and strong commercial and financial bonds. Thai culture is rich in tradition and history, and Thai people have integrity and a powerful desire to succeed. A regional centre for trade and manufacturing, with democracy interwoven into the fabric of its society, Thailand has become a very attractive location for doing business.

To maximise your organisation’s chances of successfully doing business in Thailand, you should consider a cultural awareness training course such as Communicaid’s Doing Business in Thailand programme. Having completed one of these intercultural training courses, your organisation and its employees will be able to form strong strategies to help overcome any cultural pitfalls or challenges when doing business in Thailand.

© Communicaid Group Ltd. 2010

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Jun 17

Living in the UK – Is this the end of the ‘Home Sweet Home?’

Cross Cultural Training, Cultural training for Relocation, Culture 1 Comment »

The latest Mercer Quality of Living City Ranking was published recently and it contains a major surprise: the only United Kingdom city in the top 50 is London, far behind other European countries like Germany which had seven cities in the top 50 and Austria which has the number one rated city Vienna. Even France did better with two cities (Paris and Lyon) being ranked 34th and 38th respectively. With such a disappointing result, some may wonder if it is indeed the end of the “Home Sweet Home” concept cherished by many British.

IMG 1469002 1024x636 Living in the UK Is this the end of the Home Sweet Home?

© Cora Malinak

Living in the United Kingdom is often challenging for newcomers who may find some of the cultural aspects of British culture confusing or difficult to understand. One of the best examples of this is the concept of the British ’stiff upper lip’ which is a term often used to describe the lack of emotions displayed by many British and their preference to maintain a level of formality and detachment in certain situations. This straight face and reserve can often be negatively perceived as cold and uninterested. In fact, it’s one thing that helped the British population get through many historical ordeals like the blitz during the Second World War.

Other cultural factors can get in your way when you are trying to settle in the UK such as the sense of humour. The use of self deprecating irony is common and something you will definitely need to get used to when living in the UK and making new contacts. The same applies for the fairly indirect British communication style which requires a higher level of attention to not only what is being said but also to the tone of voice and facial expression in order to effectively decipher their message.

The British Isles are also renowned for the diversity and vast array of people, landscapes and regional differences. Scotland’s landscapes are dramatically different from those in Southern England while there is a significant difference in the English accents of Birmingham and Belfast. This wonderful patchwork makes the British Isles an amazing place to live, full of diversity and new discoveries.

While having only one city in the Mercer Quality of Living City Ranking can seem disappointing to some, the United Kingdom can still be proud of having four cities ranked between the 53rd and 63rd positions, showing that living in the UK can be a great experience thanks to the many wonderful cultural and historical assets added to the overall quality of life in the country.

Regardless of the potential cultural challenges awaiting you, living in the United Kingdom can be a truly enjoyable experience. To fully appreciate British culture and to ensure you have a positive experience, however, it is vitally important that you understand the challenges awaiting you in the UK. Communicaid’s Cultural Awareness Training United Kingdom courses like Living and Working in the UK can help you to identify and overcome the main cultural differences in the UK and develop appropriate strategies that will ensure you get the most out of your expatriation in the UK.

© Communicaid Group Ltd. 2010

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Jun 16

Renault: the Challenges of an International Acquisition in South Korea

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

The French car maker Renault has recently made a proposal to buy the smallest South Korean car manufacturer Ssangyong Motor. This bid is a joint operation between Renault, its subsidiary in South Korea and its Japanese partner Nissan.

Renault is renowned for its involvement in the world market and is the perfect example of an intercultural company. Its chairman Carlos Ghosn has lived in Brazil, Lebanon, France and Japan where he is highly regarded after his spectacular saving of Nissan during the 90’s. Ghosn also strongly supports multicultural organisations, claiming they will be increasingly successful in the future. His company has also developed a successful joint venture with Nissan and Samsung and is present everywhere in the world from South America to China and Eastern Europe.

It is safe to say that Renault is more than used to dealing with intercultural challenges within the global work place. However, this operation in South Korea will come with its own set of specific challenges and cultural differences that Ghosn and his employees will need to recognise and be able to deal with in order for this acquisition to be a success.

South Korea building 4 i1 Renault: the Challenges of an International Acquisition in South Korea

© istockphoto.com/ Neomistyle

 

Here are just three key areas where French carmaker Renault may experience challenges as a result of the cultural differences.

The Impact of Confucianism
Confucianism values are deeply rooted within South Korean society and have shaped the laws, moral systems, beliefs and values shared by South Koreans. Confucianism emphasises the importance that every member of society look after each other, respect hierarchy and strive for harmony.  This particular value has a tremendous importance when doing business in South Korea and drives South Koreans to look for consensus in the workplace resulting in a sometimes slow and confusing decision-making process.

Kibun and Bae Liou
Like in many Asian cultures, the concept of Face (or Bae Liou in Korean) is crucial to understand.  South Koreans will try to keep face at all costs so you should show them as much respect possible.  A loss of face includes any sign of disrespect or loss of temper.  The concept of Kibun involves understanding other people’s feelings and emotions through non-verbal signals and cues which can sometimes be difficult to correctly interpret without the right level of preparation and cultural awareness and understanding.

Personal Relationships and their Impact on Doing Business
Personal relationships have a significant influence on doing business in South Korea. As relationships are an imperative part of South Korean business culture, it can be helpful to be introduced by a third party. Lacking the proper contact or trying to do business in South Korea without introduction can lead to closed doors and failures.

Understanding these and the many other key concepts in South Korean business and social culture is essential for anyone doing business in South Korea.  To help Renault ensure a smooth acquisition of Ssangyong Motor, employees working with counterparts in South Korea should be provided with intercultural training solutions that will give them the required level of knowledge and understanding of South Korean culture. Communicaid’s Cross Cultural Awareness Training South Korea courses like Doing Business in South Korea or Living and Working in South Korea can help Renault and other companies doing business in South Korea reduce the chances of misunderstandings and critical incidents, resulting in a more successful business venture.

© Communicaid Group Ltd. 2010

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Jun 15

Football – How Intercultural Differences can Make or Break the Dreams of a Nation

Cultural training for Relocation, Culture, Culture training for Business & Management No Comments »
Football Adam Kazmierski i Football – How Intercultural Differences can Make or Break the Dreams of a Nation

© istockphoto.com/ Adam Kazmierski

With the 2010 Football World Cup in South Africa in full swing, there seems to be little else that people talk about these days. Football is the most popular sport on the planet and events such as the World Cup attract fans from all over the world.

Devoted supporters follow their teams regardless of time zone, and players such as David Beckham are revered as much here as they are in Asia or America. Still, even though football’s boundaries seem endless and we can all watch the same match wherever we are, cross-cultural differences between countries remain and can provide challenges even in the international language that is football.

Speaking strictly in terms of business, football and professional sports in general are one of the very few global enterprises in which players and coaches are brought from all over the world and put into a team which is then expected to communicate and achieve positive results immediately, regardless of cultural or linguistic differences. Yet, even though the topic of intercultural training has been more widely reported in the world of business than in sports, intercultural communication should be given attention whenever and wherever international success is expected.

 

An employee who is assigned to a foreign country without any sort of previous experience of the cultural customs, traditions or language can hardly be expected to thrive regardless of his subject expertise or football abilities. A good example to illustrate this point is the one around a familiar face to England fans: Sven-Göran Eriksson.

A Case in Point: Sven-Göran Eriksson

Sven, a Swedish national, is one of the most sought-after international trainers having achieved several victories in European leagues before receiving the coveted post of England manager in 2001. Sven’s England adventure was often criticised but still quite successful, with the FA actually rating Sven as England’s second most successful coach after Alf Ramsey, who led England to their only World Cup trophy in 1966.

After leaving the England post, Sven became coach for Manchester City and led them to their most successful season for decades, but he was let go because of differences with the team’s owner. However, a few days later he was scooped up by Mexico to become their national coach.

With such an impressive CV, it was thought that Sven’s experience in European football could be a breath of fresh air and would help change the Mexican mentality, leading the team to a higher level. However Sven’s stint as Mexico’s manager failed spectacularly.

Starting in 2008, Mexico suffered humiliating defeats against much weaker teams such as Jamaica and Honduras. The Mexicans also lost against the US, their bitter northern rivals, which earned Sven a lot of criticism. When Mexico lost a World Cup Qualifying match against Honduras in 2009, Sven was sacked from his position because the Mexican Football Federation thought it too risky to keep him and jeopardise Mexico’s participation in the World Cup.

Why did things go so wrong?

How is it possible for such an experienced football manager to fail in the seemingly easier level of Central American Football, having previously succeeded in the highly competitive European leagues? There are surely several answers to that question but there is one that focuses on the fact that Sven’s success in Europe was just not transferrable to a different cultural setting like Central America.

Sven is Swedish and as a European football expert he kept up to date with the European leagues and worked for clubs in Italy, Sweden and Portugal. While these countries differ widely in terms of culture, Europeans are clearly more aware of each others’ football traditions thanks to the proximity of their countries and European tournaments such as the Champions League, Euro or the UEFA Europa League.

So Sven-Göran Eriksson’s failure can be seen as his lack of expertise in Mexican football, the wider culture and the football tradition. It is unlikely he had heard much about the Mexican league or the players before his assignment in Mexico. So Sven’s failure could be blamed on a lack of intercultural awareness and a lack of adaptation on his side. It could also be blamed on the assumption of the Mexican Federation that his expertise could be used in any context, despite the cultural differences.

This example shows the importance of intercultural training courses and cross cultural awareness whenever different cultures meet. Whether it is a multinational company or a football coach, expertise and a previously outstanding record do not necessarily ensure a successful international assignment.

Communicaid’s wide range of cross-cultural awareness training courses are specifically tailored to meet you and your organisations’ needs. Communicaid’s cross cultural awareness training courses will ensure international assignees are equipped with the practical tools and skills necessary to live and work in a multicultural environment, whether they are responsible for the roll-out of an international merge or the success of a football club.

Now Sven is national coach of the Ivory Coast and will be playing today against Portugal. Let’s see if he learned his lesson this time…

© Communicaid Group Ltd. 2010

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Jun 14

Challenges of Doing Business in Indonesia

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »
Jakarta Warren Goldswain i Challenges of Doing Business in Indonesia

© istockphoto.com/ Warren Goldswain

Indonesia has a fast growing economy and today has the largest economy in South East Asia. Indonesia’s unique traditions and beliefs all contribute to Indonesian social and business culture. Communicaid’s cross cultural awareness training course Doing Business in Indonesia provides insight on the cultural behaviour and provides solutions to possible cultural challenges of doing business in Indonesia.

Doing business in Indonesia requires the ability to understand and deal with some of the possible challenges outlined below:

Collectivism
Indonesian society is very collectivist which means that they tend to place a higher importance on the group than on the individual. Family, extended family and the community are very important and will always be placed above individuals or business. Closely linked with collectivism is the importance of personal relationships and relationship building. When doing business in Indonesia, long-term relationships based on trust and familiarity are essential. Personal contacts and networks are important in making business deals and will help you improve your success of doing business in Indonesia.

  

Religion
Almost 90% of the population in Indonesia is Muslim (CIA World Factbook) making it home to the largest Islamic population of any country in the world. Showing respect towards their religion is very important when doing business in Indonesia. Although the influence of religion varies by from one organsiation to another, Indonesians will generally pray five times a day and Ramadan is celebrated nationwide. Understanding religious and other traditional customs of Islam will help you to be more successful when doing business in Indonesia.

Communication Style
Differences in styles of communication are often a reason for cross-cultural misunderstandings and faux-pas. To get a full understanding of Indonesian business etiquette it is important to understand their preference for a high context and indirect style. In other words, Indonesians tend to place a high importance on body language and non-verbal communication. Indonesians also tend to speak in a subtle way and would never directly speak their minds in public. As in many Asian and collectivist societies the concept of ‘saving face’ is very important. Indonesians will do anything to avoid losing face, so you should consider this seriously when doing business with Indonesians. Communicaid’s cross-cultural awareness training course Doing Business in Indonesia can help you understand how Indonesians communicate and will provide you with solutions to better deal with high context societies.

Time Management
Indonesians have a very relaxed attitude to time. The focus on building relationships is highly valued and much time can be spent on this before getting into the business task at hand. For people that come from monochronic cultures this way of doing business can be very frustrating and could cause misunderstandings when doing business in Indonesia.

Understanding Indonesian social and business culture will help you to be more effective when doing business in Indonesia. Communicaid’s Intercultural Training Indonesia courses will provide you with the understanding and tools to succeed when building relationships with Indonesians or doing business in Indonesia.

© Communicaid Group Ltd. 2010

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