Doing Business with the French

1
Doing Business with the French

• Group 2
• Marta Catka
• Dan Chambers
• Jonathan Dalchau
• Tiffani Hackett

2
Business Culture

• Uncertainty avoidance
• Distrustful of others, relationship must develop
  over time
• Highly centralized, rigid chain of command
• Rules govern business in France
• Change is slow to take place

Globokar, Tatjana. Intercultural Management in
Eastern Europe. Burcke, James. The French
Market. Slate, Emily. Tips for Negotiations in
Germany France. D Iribarne, Philippe. The
Usefulness of an EthnographicApproach to the
International Comparison of Organizations.
Coale, D Jack. International Barriers to Progress.
3
Business Culture

• Individualism/collectivism
• Highly individualistic
• Each have a very personal interpretation of their
  own task and work territory
• Determines his/her working territory according to
  custom and defends its boundaries
• Masculinity/femininity
• French work to live
• Great deal of importance on quality of life
• Work week

InvestInFrance.org Clobokar, Tatjana.
Intercultural Management in Eastern Europe. D
Iribarne, Philippe. The Usefulness of an
Ethnographic Approach to the International
Comparison of Organizations. Hall Hall.
Understanding Cultural Differences. Taylor,
Sally A. Culture Shock! France.
4
Business Culture

• Neutral/emotional
• French are an emotional culture
• Business negotiations are impersonal, however
• Specific/diffuse
• France is in the middle
• Distrust of people they dont know
• Guard their public space, but also have a very
  small private space

Coale, D. Jack. International Barriers to
Progress. Globokar, Tatjana. Intercultural
Management in Eastern Europe.
5
Business Culture

• Communication
• Less direct than Americans
• French meetings
• Is abstract and didactic
• Formality is strong
• Written communication is preferred
• Topics of conversation

frenchculture.about.com Naullau, Gerard. A
comparison of British and French Management
Cultures. Coale, D. Jack. International
Barriers to Progress. Matthes, Karen. Mind Your
Manners When Doing Business in Europe.
Anonymous. Tradition Plays an Important Role in
the Business Culture of France.
6
Business Culture

• Business relationships
• French do not mix friendships and business
• Relationship drives the business
• Insist on politeness and respect in business
• Must gain the trust of your French counterpart
• Proximity
• Touchy feely

frenchculture.about.com Matthes, Karen. Mind
Your Manners When Doing Business in Europe.
Anonymous. Tradition Plays an Important Role in
the Business Culture of France. Hall Hall..
Understanding Cultural Differences. Taylor,
Sally A. Culture Shock! France.
7
Business Culture

• Dinner etiquette
• Do not talk business before the cheese is cut
• French lunch breaks
• Both hands are on top of the table
• Napkins

Anonymous. France Bottin Line.
8
Human Resource Management

• Unemployment
• Recruitment and employment
• Motivation
• Expatriates

Anonymous. France New law on employment and
part-time work. Tregaskis, Olga. The role of
national context and HR strategy in shaping and
training www.investinfrance.org www.syre.com
9
Labor Relations

• Work hours
• Employment contracts
• Negotiated freely
• Duration
• Salary and incentives
• Unions
• Low unionization rates
• Few labor disputes
• Role of job regulation

Coale, Jack D. International barriers to
progress. Brunstein, Ingrid. Human Resource
Management if France. Anonymous. Tradition Plays
an Important Role in the Business Culture of
France. www.investinfrance.org
10
Quality Control

• Productive and disciplined
• Highly individualistic
• Contribute to collective results
• Productive workforce

Globokar, Tatjana. Intercultural Management in
Eastern Europe. www.investinfrance.org
11
Training

• Government training policies
• Heavily regulated
• Specified spending amount
• Training process
• Cramming method
• Individual competition
• Company involved

Coale, Jack D. International barriers to
progress. Brunstein, Ingrid. Human Resource
Management if France. Jenkins, Alan. Training
and HR Strategy in France Discourse and
Reality. Tregaskis, Olga . The role of national
context and HR strategy in shaping and training.
12
Negotiations

• Beginning negotiations
• Background information important
• Money and profits vs. style and intellect
• Time not an issue
• Stalled negotiations between managers
• Always conflict

Hall Hall. Understanding Cultural
Differences. Taylor, Sally A. Culture Shock!
France.
13
Effects of French Law

• Case law
• Disrespectful of the law?
• Article 15 of the French civil code
• Doctrine of comity
• Article 15 and negotiations
• Last minute commitment
• Arbitration must consist of an odd number of
  arbitrators

Nacimiento, Patricia. International and
Commercial Litigation. Schmandt, Phillip H.
The Long Arm of French Law. Anonymous.
Tradition plays an important role in the business
culture of France.
14
Business Communication

• Communicating
• Attempt to speak in French
• Personal contacts crucial
• All contracts must be written
• Use soft sell approach
• All documents must be translated

Slate, Emily. Tips for Negotiations in France.
Anonymous. Tradition plays an important role in
France., D Iribarne, Philippe . The Usefulness
of the Ethnographical Approach to the
International Comparison of Organizations.
Anonymous. Understanding Cultural Differences.
Taylor, Sally A. Culture Shock! France.
15
Meetings and Negotiations

• Meeting and negotiation tactics
• Low key approach
• Prepare carefully
• Be informed, organized, and clear
• Stress facts
• Present in logical sequence
• French translations of all material
• Clearly state benefits of product or service
• Prepare for interruptions and discussion

Slate, Emily. Tips for Negotiations in France.
Anonymous. Tradition plays an important role in
France.
16
Strategic Management

• Polycentric or Regiocentric
• The French are ethnocentric
• Medium Ownership Control Risk
• Operational Risks

17
Management in France

• Where do top managers come from?
• Social elite
• Prestigious schools
• To create leaders for the country
• Public service
• Grands corps
• Highest availability of senior level managers
• Money less important than style honor

InvestInFrance.org Hodgetts, Richard M.
International Management (4th edition).
International Encyclopedia of Business Management
Vol. 3 . Hall Hall. Understanding Cultural
Differences. Taylor, Sally A. Culture Shock!
France.
18
Management Style

• Autocratic
• Theory X
• Highly centralized
• Eiffel tower
• High power distance?

Hodgetts, Richard M. International Management
(4th edition). Hall Hall. Understanding
Cultural Differences. Taylor, Sally A. Culture
Shock! France. International Encyclopedia of
Business and Management (Volume 3). Globokar,
Tatjana. Intercultural management in Eastern
Europe. Naulleau, Gerard. A comparison of
British and French Management Cultures. Collis,
Roger. Le Style Francais. Coale, D. Jack.
International Barriers to Progress.
19
Circles