Case Study

A.

Cultural differences

Many managers agree that an understanding of cultural differences is essential when doing business abroad. The following case studies illustrate what happens if business people do not take into account the culture of the countries they are dealing with.

1) In groups, read each of the four case studies. Choose one and discuss what you think caused the problem or misunderstanding.

1. Mr. Byrd was an ex-US State Department employee hired by a well-known multinational corporation to be its “man in Riyadh”, Saudi Arabia. This retired American diplomat went to the home of a Saudi, Mr. Fouad, to try to interest him in participating in a local joint venture with his company. A middleman who knew them both had introduced them. As this was a first meeting, the men's conversation began with small talk that made Mr Byrd a little impatient.

Questions such as “How are you doing? How was your flight? How is your family? and How is your father?” were common. Mr. Byrd, familiar with all these obligatory formalities of greeting, answered “fine”. “Oh, my father, yes, well, he is fine, but he is getting a little deaf. I saw him a few months ago during Christmas when we took him out of the nursing home for a few days.” From that point everything froze up. Mr. Byrd’s mission was completely derailed. Mr. Fouad remained gracious enough but was obviously uninterested in doing any business with Mr. Byrd.

2. This incident was reported by a British management consultant based in Paris:

“I had taken the American CEO of a New York-based consulting company to a first meeting with the three partners of a French consulting firm in Paris. The negotiations did not go well. He hadn’t been in the boardroom for more than 15 minutes before he asked them what their company's annual earnings were. Without waiting for an answer to that question, he suggested they give him an estimate of their firm’s market value, as he was interested in making them an offer.

I could feel things freezing over.”

3. Jim Turner was attending a conference in Lyons. This was not his first trip to France, and he was pleased some of the French colleagues he’d met previously remembered him. One evening they invited him along for dinner and began joking about the quality of the food. That surprised him. He thought the food was really rather good and said so, expecting the discussion to continue. But to his great discomfort, they then made some joke about “food and Americans” and changed the subject. He felt somewhat excluded and didn’t know what he'd done wrong.

4. Why is no one eating?

A businesswoman recently asked why a high-level delegation of visiting Japanese clients had not approached the breakfast buffet table she had taken such great pains to prepare. “I’d gotten out the good china and silverware and even brought in Japanese green tea for them, but no one touched a thing!”

2) Present your interpretation of the case to see if the rest of the class agrees with it. Could these situations cause conflict or misunderstanding in your country?

B. Communication Styles.

On the left below you will find the opening remarks of the German representative at the board meeting of the company. On the right ― there is a script of the same speech as if made by an American.

1. Find lexical and stylistic differences of both variants. How would you explain them? Are they determined by the cultural differences of the two countries?

2. What do you think how the Americans would perceive the style of the German businessman?

3. How can the American variant be understood in Ukraine?

German variant

American variant

Dear collaborators from our daughter company! We have three main problems to discuss today. Firstly, according to our economical people, our company's benefits were quite good this year, and we can thank the engagement of all our staff and partners for that. Now we need to look for further interesting projects. Secondly, it is necessary for us to shortly discuss how best to realize our project in China. We still have difficulties in the education of the workers, although we are sympathetic about the difficulties in recruiting locally. At last, as you will have seen from the protocols from the board meeting, we will strongly enter the American market next year. Before I give the word to the next speaker, I would thank all of you who reverted to my e-mail about today's conference. The result was satisfactory, and I will resume later.

Colleagues from our subsidiary! We have three main issues to discuss today. Firstly, according to our financial people, our company's profits were very good this year, and we can thank the commitment of all our staff and business partners for that. Now we need to look for further financially worth-while projects. Secondly, we need to briefly discuss how best to complete our project in China. We still have difficulty in training the workers, although we understand the difficulties in recruiting locally. Finally, as you will have seen from the minutes of the board meeting, we will make a great effort to enter the American market next year. Before I give the floor to the next speaker, I would like to thank all of you who replied to my e-mail about today's conference. The result was excellent, and I will summarize it later.