Business StrategyMergers and Acquisitions
Introduction
Terri Morrison and Wayne Conaway’s “Kiss, Bow, or Shake Hands” serves as an essential guidebook for business professionals who interact with international clients across the globe. Published in 2006, the book is a comprehensive manual on cultural etiquette and business practices in over sixty countries. The authors provide actionable insights and practical advice to help business people navigate cultural complexities and succeed in mergers and acquisitions, as well as other international dealings.
1. Understanding Cultural Nuances
Major Point: Recognize that each country has its unique set of cultural norms and business etiquettes.
- Example: In Japan, the exchange of business cards (meishi) is a crucial ritual and should be done with both hands and with great respect.
- Action: When conducting business in Japan, invest in high-quality business cards and practice the correct way to present and receive them.
2. Communication Styles
Major Point: Adapt your communication strategies according to different cultural preferences for direct or indirect communication.
- Example: In Germany, communication tends to be direct and straightforward, while in China, indirect communication is valued to maintain harmony and avoid confrontation.
- Action: When negotiating with German counterparts, be clear and concise in your proposals. In contrast, with Chinese partners, pay close attention to non-verbal cues and ensure your communication doesn’t come off as aggressive.
3. Decision-Making Processes
Major Point: Understand the varying approaches to decision-making, which can range from hierarchical to consensus-based.
- Example: In the United States, decisions are often made quickly and can involve significant individual autonomy. In contrast, in Japan, decisions often require consensus and multiple levels of approval.
- Action: When involved in a merger or acquisition with a Japanese company, expect an extended decision-making process and prepare detailed proposals that can be understood and appreciated by multiple stakeholders.
4. Relationship Building
Major Point: Building personal relationships is vital in many cultures and can significantly impact business success.
- Example: In many Latin American countries, such as Brazil and Mexico, establishing personal rapport is integral before discussing business matters.
- Action: Dedicate time to social activities and informal conversations when negotiating deals in Latin America. Attend social events and show genuine interest in the personal lives of your business counterparts.
5. Gift-Giving Etiquette
Major Point: Understand the significance of gift-giving and the proper protocols associated with it.
- Example: In Saudi Arabia, gift-giving is an important part of business culture, but the gifts should not be extravagant and should be presented in accordance with local customs.
- Action: When visiting Saudi Arabia, bring well-chosen, modest gifts and ensure they are appropriately wrapped. It’s also essential to present the gift with the right hand or both hands.
6. Time Perceptions
Major Point: Different cultures perceive time differently, affecting punctuality, deadlines, and meeting structures.
- Example: In Switzerland, punctuality is paramount, whereas in countries like Italy, meetings may start late, and schedules can be more flexible.
- Action: Always arrive on time or even slightly early for meetings in Switzerland to demonstrate respect. In Italy, be prepared for some delays and remain flexible with timing.
7. Negotiation Tactics
Major Point: Adapt your negotiation tactics to align with the cultural expectations of your counterparts.
- Example: In Russia, negotiations can be intense, and showing strength and resolve is crucial. Conversely, in Thailand, maintaining a calm and respectful demeanor is important.
- Action: With Russian negotiators, be prepared to stand firm and negotiate hard. In Thailand, prioritize politeness and work towards win-win solutions.
8. Dress Codes
Major Point: Dress codes can vary significantly and understanding proper business attire is essential.
- Example: In the United Arab Emirates, conservative dress is a must, especially for women. Men should wear business suits, and women should cover their arms and legs.
- Action: Dress conservatively and modestly when conducting business in the UAE, ensuring your attire respects local customs and religious beliefs.
9. Dining and Entertaining
Major Point: Familiarize yourself with the dining etiquette and customs of the country you are visiting.
- Example: In China, it is customary for the host to order dishes and serve the guests. Refills of drinks often indicate respect and generosity.
- Action: Let your Chinese host handle the ordering and be gracious in accepting refills. Understand that they are a gesture of hospitality.
10. Business Card Etiquette
Major Point: The presentation and reception of business cards carry symbolic weight in many cultures.
- Example: In South Korea, handing over a business card with the left hand or without looking at it is considered disrespectful.
- Action: Use both hands to present and receive business cards in South Korea, and take a moment to examine the card before putting it away.
11. Gender Roles
Major Point: Be aware of various gender norms and how they might influence business interactions.
- Example: In Japan, women in business may face different expectations and may need to work harder for recognition.
- Action: When working with Japanese colleagues, be supportive and inclusive, understanding the challenges they might face.
12. Greetings and Introductions
Major Point: Greetings vary widely, and the first impression can set the tone for your business relationship.
- Example: In France, a light handshake with direct eye contact is customary, while in India, a ‘Namaste’ with palms pressed together is an acceptable greeting.
- Action: Adapt your greeting style to the local customs; for instance, practice saying ‘Namaste’ correctly when meeting Indian partners.
13. Professional Titles and Forms of Address
Major Point: Use appropriate titles and forms of address to show respect and professionalism.
- Example: In Germany, it is important to use professional titles such as ‘Dr.’ or ‘Professor’ when addressing colleagues.
- Action: Make sure to use and correctly pronounce professional titles, especially in formal settings in Germany and other cultures that value formal titles.
Conclusion
“Kiss, Bow, or Shake Hands” by Terri Morrison and Wayne Conaway is an invaluable resource for anyone involved in international business. The book’s detailed exploration of cultural differences provides actionable insights and concrete examples, enabling professionals to navigate global markets effectively. By understanding and respecting the diverse cultural norms outlined in the book, business people can build stronger relationships, negotiate more effectively, and ultimately achieve greater success in their international ventures. As you travel the world for business, let this guide be your companion to ensure you always put your best foot forward.