The Leading Edge - Spring 2008 - (Page 10)

international conducting business outside the united States requires proactively thinking, doing By Ann M. Gynn mericans have a need for instant gratification, which could backfire when doing business outside the United States, says Paramjit Mahli of Sun Communications Group. “We expect results immediately. You have to have a different mindset when dealing abroad,” says the second generation British Asian who has lived in New York the past 12 years. Mahli says that business executives should identify the political, cultural and social happenings in a country where they want to do business. “It’s the same as doing business here— you’ve got to know your market,” she says. “You have a lot of time, energy and resources invested. You have to be in this for the long haul.” Mahli recommends identifying chambers of commerce in the countries where one wants to do business as well as working with trade associations to learn more about the country and the players in a particular industry. “People do business with people they like, know and trust,” she explains, quoting from a recent panel on outsourcing in which she participated. “It takes time.” For example, while the Internet has expanded the concept of social networking, having a meal with a prospective business partner can be critical to developing a relationship. Learning the language helps, though that does not mean you need to be fluent, Mahli says. “Just making the effort to know a couple expressions like ‘thank you’ and ‘hello’ will go a long way. Be nice, polite and courteous to everybody.” a JUST MAKING THE EFFORT TO KNOW A COUPLE EXPRESSIONS LIKE ‘THANK yOU’ AND ‘HELLO’ WILL GO A LONG WAy. BE NICE, POLITE AND COURTEOUS TO EVERyBODy. do your homework first Jeff Jiang of the China Strategies Consulting Group at Lurie Besikof Lapidus & Company, a Leading Edge Alliance firm, has a perspective that applies to almost any country. He says business executives should do their homework, listing questions that need to be answered and conducting the proper research. Businesses should: • Analyze current market situation, including key domestic and international competitors. • Identify special government regulations, license/registration need for offering products or services in a particular country. • Evaluate intellectual property and brand- name protection. Start needed registration before first trip to a country such as China. • Develop a strategy, list options for evaluation and later decisions. Include selection of an exclusive distributor or set up a wholly owned manufacturing plant first then distribute products on their own, or a create a staged strategy starting with a distribution agreement. “The above research could be done by talking to your current customers, suppliers and legal counsel who have done business with that country,” explains Jiang. He recommends companies hire an advisor or consultant who understands about languages, culture and ways of doing business instead of hiring a pure translator. “I have seen many occasions of meaning getting ‘lost in translation’ in business communication. It is because the translator does not understand the business content in the conversation,” Jiang says. He explains that a consultant can be the quickest way to learn about the cultural aspects of a country and the ways of doing business there. For example, many Chinese always answer their cell phone in the middle of a meeting or conversation. While Americans might interpret this behavior as rude or that the Chinese are not taking the conversation seriously, those would be inaccurate interpretations. “In Chinese cultural and social setting, it is totally fine and acceptable to pick up a ringing cell phone and answer it. The big majority of Chinese cell phone users don’t have voice mail. Answering the phone is just a way to get the message immediately,” Jiang says. global from a-Z Amy Zuckerman, president of A-Z International, which helps companies go global, has seen dramatic changes since she began working globally in 1990. She says the difference between just talking business and actually executing a deal all comes down to understanding the culture. “It can be much more subtle than you realize,” she says. She tells of the work she and her partner were doing near Amsterdam with a family-run busiVOLUME 8 ISSUE 3 SPRING 2008 10 n n

Table of Contents Feed for the Digital Edition of The Leading Edge - Spring 2008

The Leading Edge - Spring 2008 Contents No Place To Go But Up Lessons from Harvard Bits & Pieces Conducting Business Outside the United States Top 10 Misconceptions of Doing Business in Ireland In a Nutshell: Q&A The Leading Edge Alliance

The Leading Edge - Spring 2008

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