A) French Business Culture

1) History and religion The growth of the industrial revolution in Europe: The industrial revolution was born in UK in 1790. In the same way, a farming revolution took place to nourish the population (the population double in Europe except in France). The working class developed and the socialist idea appeared. Soon after, Colonies came into being, and Word War took place. The most popular religions of Europe are the following: Roman Catholicism, Orthodox Christianity and Protestantism.

Catholic Christianity

Orthodox Christianity

Protestant Christianity

Islam

2) Behavior in Europe The notion of volition appeared with the trespass into Christian Europe. Its the power to say no, and to disobey God. Thereafter, volition was determined as the power to choose, to decide, or as causality. The volition was criticized by Nietzsche, but the Chinese thought was devoid of this notion. Europe assumes that freedom choice and action possible, and the self are thus free of cause. Conversely, China idealizes the spontaneity in nature following the example of the germination model.

3) Habits and behavior at work Courtesy, formality, mutual trust and respect are part of French business behavior. The way a French person communicates is often determined by their social status, education level, and which part of the country they were brought up. In business, the French are often very direct; this can be unusual for other nationalities. Business Meetings Business meeting are avoided in July or August because it is a time of holidays You may be late to a meeting, but you must give a call to inform about the delay, and not be more than 15 minutes late. During a meeting the French discuss all aspects but they dont make any decisions. Exaggerated claims must be avoided as the French do not appreciate hyperbolic statements. Interrupting is allowed because it conveys that you are interested in your colleagues ideas. Business Negotiation Negotiations are driven slowly. The French usually follow a strict protocol, and patience is thus a quality needed to negotiate with them. The French are not used to confrontational behavior or high-pressure at the work-place. Eye contact while speaking is very important in France and it can be destabilizing in other countries. When someone is able to debate well, the French are impressed. Negotiations may be intense and heated, but without pressure. Even if an agreement is reached, a formalized contract must be drawn. 4) Work and social life Hierarchy in France is not very formal, but the highest individual in the hierarchy, makes the final decision. The French have a great sense of privacy. They separate private life and work life. Having a drink with colleagues or being invited for dinner is not common to them. The French prefer to go back home and spend time with their families Dinner is good occasion to do business in France. Decisions are rarely taken there but you can draw up some interesting contacts during such a meal. With respect to the dress code, the French are fashion conscious and their version of casual is not as relaxed as in many western countries. Gifts and presents are widely used in large companies in France. Gifts are given to employees to motivate them, as in a seminary. There are also gifts given to clients Such as USB key, pens, key-cases etc. Gifts are very important for the companys image.

B) Chinese Business Culture

1) History and religion China's greatest sages established a system of ethics, morals, hierarchy and behavior, setting the rules for people dealing with other people, and establishing each person's proper place in society. From the 1950s until the 1980s, every aspect of China's economic activity was planned, controlled and operated by the government. There was no private ownership of any property or asset, and, consequently, no profit motive for individuals or enterprises. With respect to religion, most of Chinese people are atheist.

2) Habits and behavior at work In China, conducting business with unknown people is not common. Thus when you meet someone for the first time, it is better to be introduced by someone. Learning some Chinese words could also be a key to a successful collaboration. Another important point is that in China, the no is not very polite. Business Meetings Punctuality is extremely important in China. Being late is like an insult (as opposed to France). If you cannot be on time, you must inform your colleague and so that he may attend the meeting if he wants. Scheduling a meeting should depend on the Holidays. Indeed, most Chinese companies close for the weekend and are not available for any meeting. In China, the oldest person is always welcome first. A handshake is the most common way to greet somebody in China, but you need to look at the ground when doing it. In business, China is a very formal. When you come to a meeting you are here as the representative of a company and not a person. China is a social country and the business relationships reflect this. It can take a long time before your relationship with a Chinese partner becomes less formal.

Business Negotiation In a negotiation, the oldest person speaks instead of everybody. He introduces everybody. Negotiation is conducted slowly; it takes quite a long time to come to a decision because everything will be studied very carefully. Decisions are not taken during the meeting. After a meeting, you need to wait for a final answer and decision. Even the negotiation is getting harder; and it is important not to lose your temper. Losing it, will make you lose your face for your Chinese correspondent. If that happens, your chance to conclude a deal with that company will be considerably reduced.

3) Work and social life Lunch in China is often in a private room in good restaurant, but its not really a place for talking about business. Paradoxically, every business negotiation will start by a meal sometime before. Gifts are also something which is appreciated. But if you decide to offer a gift to your Chinese guest, hierarchy is very important. Seniors receive a bigger gift than juniors.

C) Cross cultural Analysis

1) Hofstedes Analysis This graph is a comparison of Chinese and French culture: PDI: Power Distance IDV: individualism MAS: Masculinity

UAI: Uncertainty
LTO: Long term orientation

Hofstedes Cultural Dimension

France China Masculine High Collective High Low

Masculine / Feminine Power Distance Individuality/ Collectivist Long Term Orientation Uncertainty

Feminine Low Individual Low High

Trompenaars Seven Cultural Dimensions

France China Rules refer to situation Focus on group Emotions acceptable Integration of roles Inherited status Planning future

Universalism Individualism Neutral Specific Achievement Sequential Internal

Formal rules Focus on individual Hidden feeling Separation of roles Earn accomplishment Past events

Controlling environment Living in Harmony

French business

Being a Manager in France The business set up in France is egalitarian and to ensure successful cross cultural management it is important to remember to treat each and every person with equal respect and deference. In other words, in business it is safest to be formal and reserved in your behavior and expect that your French colleagues will be the same. Communication may be both formal and informal, depending upon the person you are dealing with and the relationship between you. The Role of a Manager French business behavior emphasizes courtesy and a degree of formality. Chief executives of French companies often come from a select group of universities and share a similar background. Consequently, it is best to send a senior executive to initiate the relationship with the French decision-maker, especially if it is someone whose credentials and experience are comparable. Newcomers to the French management style should carefully study the corporate culture of specific companies because they may vary. Consequently, employees will range from feeling empowered to speak out in the management process, to those who believe it is most important to simply execute the instructions by their leadership. Approach to Change Frances intercultural adaptability and readiness for change is developing all the time. France is seen to have a medium tolerance for change and risk. It is important for innovations to have a track record or history noting the benefits if they are to be accepted and implemented. The fear of exposure, and the potential of embarrassment that may accompany failure, brings about aversion to risk and the need to thoroughly examine the potential negative implications. While in risk-tolerant environments, failure is perceived as a learning process that encourages confidence in future ventures, failure in France causes a long-term loss of confidence by the individual as well as by others. Because of this attitude, intercultural sensitivity is going to be required, especially when conducting group meetings and discussing contributions made my participating individuals. Approach to Time and Priorities France is a controlled-time culture, and adherence to schedules is important and expected. In France missing a deadline is a sign of poor management and inefficiency, and will shake peoples confidence. People in controlled-time cultures tend to have their time highly scheduled, and its generally a good idea to provide and adhere to performance milestones. Effective cross cultural management skill will depend on the individuals ability to meet deadlines. Decision Making For effective cross cultural management it is important to remember that hierarchy is part of the French business culture. This is a country where rank has its privilege, often both literally

and figuratively. Decision making is done at the highest levels, often without consultation with subordinates.

Boss or Team Player French like working in teams and collaborate quite well. The communication within a team is generally quite collegial, albeit somewhat direct and blunt. Role allocation within the team is generally quite clearly defined and people will take greater responsibility for their specific task than for the group as a whole. Successful cross cultural management will depend on the individuals ability to harness the talent of the group assembled, and develop any resulting synergies. The leader will be deferred to as the final authority in any decisions that are made, but they do not dominate the discussion or generation of ideas. Praise should be given to the entire group as well as to individuals. Communication and Negotiation Styles French business emphasizes courtesy and a fair degree of formality. Wait to be told where to sit as there may be a protocol to be followed. Although English may be spoken, it is a good idea to hire an interpreter so as to avoid any cross cultural misunderstandings. Business is conducted slowly. You will have to be patient and not appear ruffled by the strict adherence to protocol. Avoid confrontational behavior or high-pressure tactics as it can be counterproductive. The French will carefully analyze every detail of a proposal, regardless of how minute. The French are often impressed with good debating skills that demonstrate an intellectual grasp of the situation and all the ramifications. Never attempt to be overly friendly. The French generally compartmentalize their business and personal lives.