Potential Market Areas for the PM Company

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     In the preliminary investigation, three potential market areas have been identified, namely: Japan, Germany and the United Kingdom. This paper shall serve to highlight background information on business etiquette and in general, the cultures innate to each country which may prove essential in business transactions by the PM Company. It is obviously important to take note of differences between the target countries and our own in terms of culture as this encompasses everything from the way we must approach our potential business partners or customers, to the way a negotiation must be ended. As Hofstede mentioned, even a mere handshake could mean different things in different countries—for one, it may be the end of a transaction, but for the other, only the beginning. Hence, consciousness of the cultural barrier is a necessity, not so that we may find methods in its obliteration, but in creating a bridge of amiability through which both countries may prosper hand in hand (ITIM International, 2003).

     Japan, for example, is in comparison a more reserved and culturally conservative country which prides itself in the preservation of harmonious relationships through the observation of various customs not only in business dealings but their daily lives. There exists a kind of do’s-and-don’ts list for business transaction, and behavior in a certain scenario cannot be aided merely by what may seem right or wrong in our cultural perspective. Shaking hands, which commonly implies friendliness, agreement or a greeting, for example, is something the Japanese do not normally do, although it is said that they tolerate or expect such a gesture from foreigners. In lieu of the handshake, Japanese bow to each other to show respect, or in greeting, and the extent to which one bows also depends on how much respect you must bestow (Williams, 2008). In turn, the amount of respect you bestow and receive depends upon the level of your relationship with the Japanese. This reflects the fact that based on Hofstede’s cultural dimensions, Japan’s Power Distance Index implies unequal distribution of power. Heirarchies are observed, and as foreigners, we may not automatically be considered to be on the same footing as the leaders of the Japanese organization we are dealing with. We must therefore aim to put ourselves in favor of their authorities by showing honest respect, and not be brash in our dealings. Planning for these dealings, moreover, must be done with care especially towards setting dates for meetings and observing punctuality; it is also best to approach them personally and/or by telephone and not just by a memo. All in all, the concept of ‘Face’ (saving face or garnering respect), and the fact that they value personal relations must be taken into consideration. This takes time hence, patience is also a necessity. Japanese, it must also be noted, have a high Uncertainty Avoidance rank, which means that they are not amenable to changes; it is necessary then for plans to be absolute—implementation must be strict.

     Germany, on the one hand, also makes use of the traditional handshake as a greeting. However, it is also customary for one to shake the hands of a child, if present, which means that in spite of this seeming similarity, there still exists a cultural demarcation between our two countries. What the Germans are said to value most is a structured way of dealing with everything from their personal lives to work. Detailed planning and strict implementation of plans, henceforth, is necessary. Compared to Japan, however, their Power Distribution Index is somewhat lesser, which means that equality is significantly more valued in Germany, so much so that cultivating personal favor is not necessary to create a business relationship—what is necessary is credibility; Germans give a high premium on educational attainment and work experience rather than personal interrelations (Williams, 2008). What takes time in German business transactions, on one hand, is the planning process because Germans are innately meticulous and pay close attention to detail.

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     The United Kingdom, as we know, is made up of four different cultural regions. Thus it is important to note that although all regions make up a single country, they are culturally different; the United Kingdom, therefore, is perhaps the most diverse potential market among the three countries. It is, however, similar to Germany in that its Power Distribution Index is low, which indicates an appreciation of equality among its people. However, even as the four regions are one, they take offense at being mistaken for the other: it is important to remember that all of them are British, but that an Englishman cannot be Welsh, Scottish, or Irish, and the same goes for the others (Payne, 2008). On the one hand, the handshake is also used as a casual greeting. It may seem that a language barrier is thin between America and the United Kingdom, but it exists and cannot be denied—as they say, the language of the Queen and that of America are only slightly alike. Pronunciation and enunciation of words are also different, to an extent that there are times when they may not be easily understood.

     In every step of the management process, the core culture of each must be well-understood and studied; hence, much information must be gathered not only through books and such, but by primary sources like citizens from the country themselves. In so doing, it is better if there are company representatives other than the sales manager present during the transaction who are willing to open the gates towards their home-country as middlemen and guides to proper business decorum. In other words, it be highly beneficial if the ones directly communicating with either the authorities or the workers are one of their own, and having a hierarchy of power will not necessarily harm relations among the three countries: for Japan, power hierarchies are expected and upheld, whereas both Germany and UK are more adaptable, so long as we take care not to side-step specific cultural traditions. In short, management decisions must be flexible and must respect cultural delineations.

References

ITIM International. (1967-2003). Geert Hofstede TM Cultural Dimensions. Retrieved June 7, 2008, from http://www.geert-hofstede.com/

Payne, N. (2008). Doing Business in the UK- Culture, Customs and Etiquette. Retrieved June 7, 2008, from http://ezinearticles.com/?Doing-Business-in-the-UK—Culture,-Customs-and-Etiquette&id=841934

Williams, D. (2008). International Business Etiquette and Manners. Retrieved June 7, 2008, from http://www.cyborlink.com/besite

 

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