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Apr 22

Benefits of Doing Business in Spain

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 »

The second largest country in Western Europe, Spain dominates the Iberian Peninsula. It borders Portugal on the west, France and Andorra to the northeast, the Mediterranean Sea to the east and south, the Atlantic Ocean to the west and the Bay of Biscay to the north. This unique location makes Spain very attractive to foreign investors. Its highly developed economy and stable political situation help to ensure that investments in Spain are successful. As part of the EU, Spain has become a very important player in international affairs since emerging from international isolation during the Franco era. Spain’s history of invasion has had a massive impact on its civilisation and cultural variety.

Understanding the country and its value in Europe is crucial to successfully doing business in Spain. Any organisation planning to do business in Spain could benefit from Communicaid’s cross cultural awareness training program Doing Business in Spain. The following are some of the key benefits you can take advantage of when doing business in Spain.

Geographical Location and Climate
Spain is Europe’s second most mountainous country after Switzerland and is a perfect location for any organisation wishing to develop business in Western Europe. Spain has access to the Atlantic Ocean and the Mediterranean Sea with numerous large ports and a merchant fleet. Spain’s borders with France and Portugal encourage the flow of capital and commerce within Western Europe. The predominantly Mediterranean climate is also very attractive, with mild winters and hot and dry summers which encourage visitors and potential customers for many businesses.

Stable Political Situation
Since emerging from international isolation during the Franco era, Spain has steadily become more active in international affairs. After the death of Francisco Franco in 1975, Spain gradually began its transition to democracy which has expanded Spanish diplomatic and security relations with the West. Spain has been an active member of NATO since 1982 and the European Union since 1986. Spain’s EU membership represents an important part of its foreign policy and supports the efforts of European political mechanisms. A stable political situation and diplomatic relations guarantee development opportunities for organisations doing business in Spain, and reduces the risk of potential conflicts and disagreements.

Growing Economy
Over the last four decades Spain’s social and economic structure has changed enormously. Joining NATO and the EU established Spain on the international market and created good relations with many countries. Since joining the Eurozone in 2002 Spanish economic growth has been well above the EU average. Spain is the eighth largest industrialised economy in the OECD (Organisation for Economic Co-operation and Development). For the past five years, the Spanish economy has also experienced one of the strongest rates of GDP growth in the European Union which makes it the most dynamic within the EU. Also, in the space of 40 years the Spanish tourism industry has grown to be the second largest in the world. Spain’s economy is the ninth largest worldwide and the fifth largest in Europe according to the World Bank. Investors could hardly wish for a more advantageous business environment.

Development Opportunities
Spain offers many developing benefits for new businesses including low labour and transport costs. As a member of the European Union, Spain benefits from the transit of goods within the EU without unnecessary formalities, including exchange rate fluctuations and transaction costs. The European Union is very generous towards Spain with its structural and cohesion funds. Also the Spanish Government offers various incentives and flexible policies for developing businesses. More recently, the Spanish Government has pursued policies aimed at creating a welcoming environment for foreign investment.

The overall profile of Spain offers numerous benefits for foreign businesses including its geographic location and climate, stable government and economy and attractive development opportunities. Doing business in Spain effectively requires knowledge of the country’s business culture and its national mentality. International organisations interested in doing business in Spain would benefit from Communicaid’s Spanish language and cross cultural awareness training courses such as Doing Business in Spain to gain necessary insights into the Spanish culture and environment.

© Communicaid Group Ltd. 2010

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Mar 18

Challenges of Doing Business in Spain

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 »

Spain is a large country with a diverse landscape and climate. The division of the country into 19 Autonomous Regions which are further divided into 50 provinces forms a range of cultural varieties. The regions differ from one another and at the same time create a united nation. Spanish culture is deeply rooted in tradition and may be challenging for foreign investors doing business there who are not familiar with it.

Any organisation considering doing business in Spain could benefit from Communicaid’s cross cultural training programmes such as Doing Business in Spain to better deal with the challenges of doing business in Spain. Below are some of the key challenges of doing business in Spain which Communicaid’s cross cultural training programmes could help you understand.

Cultural Diversity
The location of Spain on the Iberian Peninsula exposed the country to numerous invasions throughout history. Spanish civilisation was affected by the successive arrival of people of various nationalities bringing their culture and languages to Spain. This resulted in the division of Spanish society into minority groups who retain their native cultural influences. The additional division of the country into 50 provinces keeps the Spanish people culturally separated and independent. Such cultural diversity within one country can be challenging for foreigners who do not understand how culture impacts business throughout the country.

Individualism
Spain’s cultural diversity has created a strong sense of individualism which is seen through strong bonds and a sense of identity within the various cultural groups. Although individual on many levels, family values and a sense of identity and belonging to a group are all integral parts of society in Spain. Contemporary Spanish culture values personal qualities such as appearance, image and personal relationships. In a business context, personal attributes and character are frequently valued as much as technical ability, experience or professional competence. When doing business in Spain, individualism is particularly predominant in management, where Spanish managers are less inclined to favour group decision making and team orientation.

Face
Spanish culture values the concept of face as a very important matter in personal pride and respect. Face is crucial for Spaniards who strive to avoid the risk of losing face. Therefore, any forms of public criticism or causing embarrassment may result in misunderstanding and unnecessary conflicts in Spain. Saving face is important especially in a business context when your Spanish counterparts have to focus on relationship-building to protect their business investments.

Relationship-building
Spaniards value interpersonal relationships on a business level. They tend to take time to get to know their counterparts and will sometimes go out for a drink or dinner to build the relationship. The trust and relationship building process may be time consuming but will benefit in gaining a long-term and reliable business partner. When doing business in Spain, foreigners need to make an effort to gain the trust of their Spanish counterparts and show them that they value their relationship as much as the business opportunities.

Uncertainty Avoidance
Spaniards are cautious not only with business relationships but also with their approach to new ideas. They prefer to feel truly familiar with new situations before taking any steps or making decisions. Patience is necessary when doing business in Spain as Spaniards try to avoid ambiguity and need as much detail as possible.

Having an understanding of Spanish social and business culture is very important when doing business in Spain. Any organisation doing business in Spain should consider attending Communicaid’s cross cultural training programme Doing Business in Spain to increase their knowledge of the cultural diversity and cultural values and attitudes which can result in misunderstandings and conflicts if not correctly interpreted or understood.