Table of contents
2.1 Legal system
2.5 Business negotiations
3.5 Business negotiations
4.5 Business negotiations
Our choices of the countries were Great Britain, Germany, France, Morocco, Greece, China, Canada, Japan, Argentina and Australia. We chose to focus in these three countries: Morocco, Canada and Greece.
We chose these three because the countries are on different continents therefore, the cultural differences are huge. Also the methods of doing business in these countries are at different lev-el. Morocco was chosen because it is a collision of the Islamic, the Arabic, The African and Eu-ropean culture. Canada was chosen because it is a Western country that is healthy. Greece was chosen because it is situated in Europe and it follows European Union’s regulations and has a long history in trading.
We left out the rest of the countries because we felt they didn’t have as many cultural and business style diversities.
Great Britain together with Germany and France are all members of the European Union there-fore, they operate within the EU regulations. Moreover, these are European countries and alt-hough culture may differ from one another it is very similar.
As for the rest of the countries China, Canada, Japan, Argentina and Australia we felt that they have a big population and are in general much bigger as compared to the European counties. There would have been cultural differences but choosing countries like Morocco and Greece which are close or even in the EU but still have such a different mentality was much more inter-esting. Canada is a big country but has a lot of European influences.
2.1 Legal system
Morocco’s legal system consists of secular courts based on French legal tradition, and courts based on Jewish and Islamic traditions.
• Communal and district courts
• Courts of first instance
• Appellate courts
• Supreme Court
There have been efforts over the past few years to modernize Morocco’s legal and regulatory framework, aiming at establishing a more business friendly environment. The judiciary has long been criticized by all stakeholders in morocco, particularly with regards to business related liti-gation.
They are not the masters of organization, structure and order, but they put into practice key marketing principles that we all should never lose out of sight. There are salespeople that are analyzing you in full detail in order to acknowledge where you are from, what you are looking after and how to make contact with you. The price negotiation: They will usually ask for the triple of what they expect to get and ask you to make a counter offer.
Three basic marketing things in Morocco:
• Customer orientation
• Product customization
• Maximized price per transaction
Advertisement must be made carefully because the culture is against alcohol, pork and other stuff that are forbidden in Islamic culture. Morocco is one of the free thinking Arabic countries so the advertisement is more free than in for example Saudi Arabia. Advertisement of a new product in Morocco needs to be careful because you will face a lot of political issues.
Morocco offers numerous opportunities for Middle Eastern trade in addition to easy access to Europe. Morocco does a lot of exportation an importation also with the U.S. Morocco is a coun-try that has mountains and the desert so it is hard to reach a lot of destinations fast. Hot cli-mate all through the year makes transportation and moving in hot sun harder.
The best areas for distribution and development:
• Water Management
• Building and Construction
• Renewable Energy
• Safety and security equipment
2.5 Business negotiations
Morocco has an advantage in business negotiations because its situation is in northern Africa. Morocco is situated on the southern side of Gibraltar. Negotiations are rarely conducted during the month of Ramadan. Due to European influence, business is almost always conducted in French. Some companies prefer to use Arabic or English as their standard.
It usually takes time to reach work-related decisions. Moroccans dislike being rushed and may arrive late for meetings. Foreign visitors are expected to be punctual.
In Morocco culture has been affected by the Spanish and the French.
Key concepts and values:
o Moroccans have a strong belief that you should always respect yourself, your el-ders and your superiors.
o Moroccans are considerate to everyone they meet and expect the same in return.
o It is never acceptable to be rude and important to be polite.
• Personal Relationships
o Family comes first before the individual.
o Moroccan value long-term personal relationships so close friends are considered family.
o Trust and relationships play big roles in Moroccan business and social networks.
o Honor is really important to Moroccans.
o Shame is to be avoided at all costs.
o Moroccans will often do as much as possible to win the respect of others and to avoid arguments and confrontation.
o Reputation is very important to Moroccans.
o They will do whatever it takes to ensure it is not damaged and to avoid shaming their family.
Islam unifies Morocco as the vast majority of Moroccans are Sunni Muslims.
Businesses usually close on Friday afternoons to allow time for prayer.
Ramadan is a month of peace to Muslims and a time when Moroccans fast.
The Canadian legal system has its foundation in the British common law system. Canada's legal system is unique from many others. They have the common law and the civil law. Canada's court system itself is shaped like a pyramid.
1. Supreme Court of Canada
2. the Courts of Appeal of each province
There are different laws for business:
• Competition Law
• General Rules on Foreign Investments
• International Trade Agreements
• Product Standards
• Labeling and Advertising
• Product Liability – Ontario Law
Here are some challenges that you face in Canadian marketing
• Physical distance between buyer and seller
• Language and cultural differences
• Creating a Canadian presence
The three biggest turnoffs for Canadian online shoppers are shipping, duty and custom costs. In the province of Quebec, 95% of the population speaks French. French Canadians want to be marketed to in French.
Canada has its own laws of advertisement for example The Canadian Code of Advertising Standards (Code), which has been developed to promote the professional practice of advertis-ing. It has been reviewed and revised periodically to keep it contemporary.
A distributor usually takes title to the goods and offers them for resale, either directly to the customer or through dealers or retailers. Distribution is modern because of the good roads and good technology level. Canada is a big country and the transportation takes a lot of time. Canada has easy access to the U.S. because they are neighbor countries. Canada is one of the nations of the world that experiences all four seasons in a year, allowing companies to see how their products do in climate-changing areas.
3.5 Business negotiations
You may be dealing problems with regionalism and cultural diversity. Canadians begin meetings with a minimal amount of small talk. Meetings are generally well-organized and adhere to time schedules. Here are few examples how are Canadian people in negotiations
• They are rational and logical.
• Businesspeople often begin relationships in a reserved manner; once people get to know one another they become friendly and informal.
• They appreciate politeness.
• Canadians shake hands with everyone at the meeting upon arrival and departure.
• Business cards are exchanged after the initial introduction.
Canada’s languages are English and French. 77% of the people are Christians and 23% other religions and non-believers. Culture is almost the same as in the U.S. It is an western country that is wealthy.
• More conservative
o On the average, they respond better to softer-sell strategies.
• Less trustful.
o They are less likely to give away their email address
o Relevancy and careful targeting is a key to marketing to Canadians.
• Savvy shoppers
o Canadians’ accessibility to high-speed Internet is among the highest in the world
o They spend more time online than Americans do.
The Greek legal system is a member of the family of European laws and is especially influenced by German and French law. “Areios Pagos” is the Supreme Civil and Criminal Court and it plays an important role in the decision-making process of the lower courts.
Regular Administrative Courts are divided into primary and secondary:
• primary administrative courts are the One-and the Three-Member Administrative Court
• secondary administrative courts are the Three-and Five-Member Administrative Appeals Court
Foreign judgments can be enforced in Greece irrespectively of the country where they have been issued.
Being organized for sure isn’t one of the key features of the Greek companies. Greeks prefer to trade with friends and people they trust so, it’s of a high importance to try and create a friend-ship first.
Most of the time trusting a company or a product goes from mouth to mouth between friends and it’s important to show you can be trusted and even better if someone can recommend you.
A lot of attention is given to the human factor and people will judge and analyze you so, you will need to pay attention to their non-verbal messages as well as to your own.
Greeks are good at negotiating and will try to get the best offer and price for them, although if you’re patient and polite they will go for much less.
Advertising in Greece happens as in any other European country. Due to the economic crisis in-ternet advertising has increased compared to other forms of advertising and targets mainly people who actually use the internet. In Greece people haven’t changed much in the past few years and so old fashion television commercials, radio advertisements etc. are a better choice.
It all depends on the target group therefore, for young people the most effective option is:
• internet advertising
• television commercials
And for older age groups:
• television commercials
• radio commercials
Because Greece consists of so many islands a big part of the distribution chain happens by car-go ships, which of course slows down the transfer of goods significantly.
4.5 Business negotiations
Relationships are the linchpin of business dealings since Greeks prefer to do business with those they know and trust.
Greeks prefer face-to-face meetings rather than doing business by telephone or in writing, which are seen as too impersonal. Under no circumstances should you publicly question someone's statements and if your Greek business colleagues become quiet and withdrawn, you may have said or done something to upset them.
Forming a personal relationship is critical to developing a successful business relationship and imposing a deadline on reaching a decision may end the negotiations.
Quite often it is not until the third meeting that business is actually conducted. During the first meeting your Greek business colleagues will want to get to know something about you as a person. The second meeting is used to develop trust and mutual respect. By the third meeting, business may begin. Do not lose your temper or appear irritated during business discussion.
The official language of Greece is Modern Greek and it’s spoken by 98% of the population. Greeks are proud of their cultural heritage and have a high ethnic satisfaction. The family is the basis of the social structure and it offers both financial and emotional support to its members. Family relationships carry over into business and nepotism is accepted. The Greek Orthodox Church is the national religion and is practiced by the majority of the population and it plays a greater role in political, civic, and governmental affairs than in more secular countries. Most holidays and festivals are religious in nature.
Greeks are warm and hospitable and when meeting someone for the first time, they shake hands firmly, smile, and maintain direct eye contact.
If you are invited to a Greek home:
• Arriving 30 minutes late is considered punctual
• Dress well. This demonstrates respect for your hosts