Business Practices Across the European Union Diana Cretu, Alexandra Dan, Alina Matei

School of International Business and Economics Bucharest 2015

Table of contentsPart 1 : Business Communication

Part 2 : Business Etiquette Part 3 : Business Meeting Etiquette

Part 4: Business Practices

… to conduct a successful international negotiation, businesses need to adjust to the peculiarities of the other party.

… there are barriers that every businessman has to overcome when negotiating. These barriers are common and there are many studies conducted in order to facilitate the processes in business practices.

…. can be analyzed by means of Hofstede’s cultural dimensions.

General information

Business Communication

Language is a necessary ingredient of ongoing sequences of decisions and resources commitments that characterize day-to-day organizational life.

“The most important thing in communication is hearing what

isn’t said.”

Peter Drucker

Business Communication

• French consider their use of French as a sign of respect for

their culture.

• communication style often appears extremely direct

• important to admire the logical exposition of well-

defined ideas.

• German is the third most taught worldwide.

• important are legal or technical terms outside of the negotiations particular

area of expertise.

• people are familiar with English, French, Italian, Spanish and German.

• important to address with Mr. or Mrs., followed by their last name or title.

• English is the official language and predominantly

spoken.

• communication style is a mixture of direct and indirect

approaches.

• communication style is a mixture of direct and indirect approaches.

France

• important to maintain eye contact.

• in communication style Germans are quick to get to the point.

• expect probing questions and interruptions.

Communication style

Customs and

manners

languages

Business Etiquette

In many societies, particular clothing may be a status symbol, reserved or affordable to people of high rank.

“It takes twenty years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

Warren Buffett

Business Etiquette

… the dress code is dictated by the degree of formality of the business meeting.• for a formal meeting it is important to present a highly professional image

and a conservative style would be most appropriate.

… classical conservative attire in the British culture .• it is common for women to wear either trousers or a skirt in an office

environment, and head scarves are accepted as part of religious freedom.• many senior managers choose to express their status through their choice

of clothing.

… Germans take great pride in dressing well, regardless of where they are going and of what position they hold.

• even when dressed informally, they are neat and conservative. • their clothes are never ostentatious.

… the nation that created “haute couture” puts a premium on style. • even low-paid, entry-level executives buy the best clothes they can afford.• generally, dress tends to be on the formal side for both men and women,

whether in business or social situations.

Business Meeting Etiquette

Business meetings are one area in which poor etiquette can have negative effects.

… there are certain steps you have to follow (greetings, entertainment and punctuality)

Respect is the hallmark of business and it starts with the very first greeting.

Business Meeting Etiquette

ROMANIA... shake hands with a simple ‘hello and how are you’ form of greeting and exchange business cards. ... eye contact can be very direct and it is a sign of respect.… meetings tend to incorporate a touch of entertainment.…punctuality is considered a strength when doing business.

UNITED KINGDOM… it is customary to shake hands with all those present. … business cards are exchanged. … “Good morning/afternoon/evening”. … as the British are very time conscious they are doing their best to avoid wasting time … it is considered very impolite to arrive late for a business meeting.

Business Meeting Etiquette

…France handshakes are expected as a form of greeting. … have a very relaxed attitude when attending appointments.

… do not be surprised to find your French interlocutor arriving fairly late.

…. our analysis of the similarities and differences between business practices in Romania and the other three countries in

the European Union ….

…shows that

…. getting to know how to treat your foreign partners paves the way to success in business and a

long-term relationship.

Business Practices

European Union

Germany

France

United Kingdom

Romania

• Appointments…should be scheduled 2-3 weeks in advance. • Protocol…wait to be seated and don`t remove your jacket without permission.

• Protocol…will be conducted by the most senior ranking person in the room. • Thorough preparation… back up your claims with facts and figures.

• Information…the introductory letter should be in German and your company brochures should either be in German or English.

• Small talk … humour can be used

when you know your German business partner

better.

• Taboo…it is considered rude to place your hands on the table.

• Professional vs. Personal

… Maintain a professional focus .

Be on time, or better yet be a little bit early.

Dress appropriately.

Having good manners is a must

Familiarize yourself with

your colleagues

and opponents.

Information exchanged in a negotiation is

generally considered

confidential.

When you do speak

out, be clear, concise, and

stay on topic.

Come prepared.

Bring your positive attitude.

Do not interrupt

your opponent.

Adopt the attitude .

Rules of Business Etiquette

… it is essential to learn how to be able to face up the intercultural differences ;

… we need intercultural negotiation skills for a successful meeting ;

… do your homework with a sense of responsibility ;

… plan on a long-term relationship not a short one ;

… respect is the key to a long and successful business relationship ;

… knowledge of international business etiquette can aid in gaining competitive advantage in the labour market ;

&