International Business

Poland (Polska)

Capital: Warsaw | Official Language: Polish | Currency: zloty (PLN)

Doing business in Poland?

Report by - Group A4 PGDM Rural Management (Emerging Economies) 2013-15

Poland
POLISH ETIQUETTES - SOCIAL A. Polish Etiquette - Formal or Casual 1. Mr and Mrs and the family name are an absolute requirement when introductions are made. 2. Always be on time, it is considered extreme bad manners and poor etiquette to keep people waiting. 3. When departing, men shake hands with everyone individually. 4. It is very important to show special consideration and care for the senior citizens of Poland. Children are taught good manners and etiquette from an early age, to give up their seats for the elderly is just an accepted way of life. 5. In Polish etiquette, littering is considered bad mannered and unacceptable. B. Polish Etiquette - Social and Family 1. In Polish etiquette the family always comes first, then close friends, then business associates and other people. If you are a Westerner you will be received warmly, but will have to prove yourself if you wish to remain part of the Polish circle. 2. The Poles are extremely good hosts and hostesses and will go out of their way to make you feel welcome. One cannot fault Polish social etiquette. 3. If you are invited to a private home for dinner, be prepared to remove your shoes before entering, it is usual to arrive around 8 pm and to stay until past midnight. It is considered to be polite to arrive about 15 minutes late to give the hostess time to prepare, but later than 15 minutes is considered bad manners and not good etiquette. 4. When invited to a Polish family home it is considered good manners and accepted social etiquette to take a small gift such as a bottle of wine or bouquet of flowers for the hostess. It is also good etiquette to send a hand written card to your host and hostess thanking them for their invitation, hospitality and time. 5. If you drink tea and/or vodka you will feel quite at home in Poland. Tea is normally consumed black with a slice of lemon. Polish vodka is world-renowned and will usually be served with all meals, between meals and at social events. The most common toast is "na zdrowie," to your health. "Stolat," is sometimes said instead, this implies you should live to be 100 years old. 6. The more you drink, the more they will offer, so if you cannot hold your liquor, know when to say no. 7. In Polish etiquette, direct eye contact should be maintained, especially when toasting. Flicking a few fingers against the neck is not a rude gesture; it is simply an invitation from one male to another to join the person for a drink of vodka. 8. Tipping in restaurants is expected and is usually approximately 10% of the bill. C. Polish Etiquette Dining 1. Be sure to bring a small gift such as a bottle of wine or bouquet of flowers for the hostess if you are dining in their home. 2. It is also good etiquette to send a hand written card to your host and hostess thanking them for their invitation and time. 2

3. Wait to be seated by your host or hostess at the dinner table. 4. A toast is usually performed before or after eating. If you propose a toast, it is important to maintain eye contact. Do not begin drinking until your host has proposed a toast to everyone at the table. If your host stands when proposing a toast, so should you. 5. Wait for your host to start eating before you start. 6. Keep your knife in your right hand and your fork in the left at all times. 7. While eating you should keep your wrists on the table. 8. When you have finished eating, place the knife and fork parallel to each other at an angle across the right side of the plate. 9. Crossing the knife and fork on your plate is a sign you have not yet finished your meal. D. 1. 2. 3. 4. Polish Etiquette Dress Generally the culture in Poland dislikes ostentatious displays of wealth. Mostly the dress is smart casual conservative. In the larger companies and banks conservative suits and ties in subdued colours are usually worn. Bright colours are considered inappropriate. Women's dress etiquette is to wear conservative suits or dresses, again bright colours should be avoided. The usual classical colours are worn, for example black, navy blue, grey, brown or beige. T-shits, sweatpants, shorts and runner shoes are not acceptable in the business or social world. Perfumes and aftershave should be used sparingly. Jewellery should never be ostentatious, elegant and modest is the key. To sum it up, Polish dress etiquette is conservative, respectable, elegant and modest.

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POLISH BUSINESS ETIQUETTES 1. The Polish workday usually starts around 8 am and ends no later than 4 pm. The working week includes a Saturday morning. 2. Sunday is a day of rest, a time to be with family and go to church - Poland is 90% Catholic. 3. The use of business cards is common. If you will be doing business there on a regular basis, it would be considered good business etiquette if you were to have your business card translated into Polish on the reverse side. Be sure to include any advanced educational degrees and your full title on your card. 4. Hands in pockets is considered disrespectful and rude. It is also bad etiquette to sit with one ankle resting on the other knee. 5. The accepted greeting is a firm handshake, the same applies to farewells. Kissing and hugging is generally only acceptable if you are family or a very good friend. 6. When you meet a group of people, wait to be introduced by a third party. 7. Business presentations need to be clear, concise and easily understood. 8. Back up documentation is important and should be in both English and Polish. 9. The Poles don't appreciate the Western-style sales pitch. Just say it as it is and keep it strictly as business. When doing business in Poland 1. Greetings should include a firm handshake and direct eye contact; if there are a number of people, they should all be greeted individually, rather than a general wave or nod of acknowledgement. 2. Men should wait for a woman to extend her hand and Polish men will sometimes kiss a woman on the hand, as a sign of respect. 3. Gifts are usually opened immediately and should not be overly expensive. 4. If you are giving flowers, make sure that they are given in odd numbers and avoid flowers that have cultural significance, especially yellow chrysanthemums, which are used at funerals, and red or white flowers such as carnations and lilies. 5. If you wish to meet with someone, you will have to make an appointment in advance. 6. Letters should be addressed to the company rather than to a specific person. This prevents a letter from being held up if the person it is addressed to is away from the office. 7. Punctuality is expected and taken extremely seriously. 8. Initial meetings are scheduled as introductions to see whether you are trustworthy; and a first meeting may be with a middle manager, rather than the actual decision maker. 9. Poles are known for being straight-talkers, but they still try to be diplomatic about their opinions, so as not to offend their business partners. 10. Expect some small talk and getting-to-know-you conversation before business is discussed. 11. Business is conducted slowly. You will have to be patient and not appear ruffled by the strict adherence to protocol. 12. Companies tend to have a hierarchical structure, with decision-making power held at the top of the company.

13. Punctuality a. In general, Poles are considered to be quite punctual. However, people in higher positions might arrive late to a meeting, in order to demonstrate their status and importance within the company hierarchy. b. In social circumstances, the rules are more relaxed and if you are invited to a party, it is expected that you will arrive about 15 minutes late. 14. Gift giving a. In Poland, it is expected that gifts will be given at the initial business meeting and upon the conclusion of any business arrangement, such as when a contract is signed. Small presents, like a corporate gift (without company logo or branding) or a souvenir representing the country you are visiting from, would be acceptable. Other appropriate gift choices might include high quality chocolates, cigars, flowers, perfume, wine or liquor from your home country that are either not available in Poland or difficult to obtain. b. If invited to a business partners home, it is normal to bring flowers, sweets or a bottle of wine. 15. Bribery and corruption a. The Corruption Perceptions Index (2012) charts levels of corruption in 176 countries throughout the world and places Poland at 41st on the list with a score of 58. b. In Poland, people perceive that big business is often behind the motivations of public officials, including politicians, ministers, regional heads and even judges. c. Bribery is commonplace on the smaller scale, where a few thousand zloty will change hands to cut red tape in government offices and smooth over procedures for licensing and contract procurement. It is almost impossible to do business in Poland without being part of the open more doors culture. However, with this modus operandi, you could just as easily be accused of committing a crime.

BILATERAL TRADE BETWEEN INDIA AND POLAND With diplomatic relations established in 1954, India opened its Embassy in 1957. During the Communist era, bilateral relations were close and cordial, with regular high level visits, planned trade and economic interaction through state trading organisations underpinned by the rupee clearing arrangements, inter-governmental cooperation in defence and science and technology and cultural exchanges. After emerging from the Eastern Block, Polands priorities are NATO and EU. However, Polish officials reiterate that they regard India as a mature democracy and wish to deepen relations with it. Poland supports Indias claim to Permanent membership of a reformed and expanded UNSC. Indian Investments in Poland Major recent Indian investments In Poland include Arcelor Mittal Steel Poland SA in Katowice, Videocon (acquired from Thomson TV picture tube manufacturing facility in Piaseczno near Warsaw.), Escorts (Farmtrac Tractors Europe Sp.z o.o), Strides Arcolab in Pharmaceuticals, Uflex in packaging material plant, Rishabh Instruments (acquired in June 2011 Lumel, a state owned Polish company in the field of Industrial Automation equipments) Reliance Industries (Treviramanufacturing polyester fibres), Ranbaxy, VSNL Teleglobe, Essel Propack. (speciality packaging tubes), I Services companies like KPIT Cummins, Zensar Technologies Ltd, Tata Consultancy Services (TCS), HCL Technologies, Infosys and Wipro, Genpact GE money, Jindal Stainless , Tata Tetley, Lambda Therapeutics Research, Uflex Limited, Berger Paints India, Sylvania Havells India Ltd., Tata Motors, VVF Ltd., Mumbai, Glenmark Pharmaceuticals Ltd, Novo Tech Sp. z o.o. Polish companies that operate in India include Toruskie Zakady Materiaw Opatrunkowych (TZMO) in Dindigul (manufacturing hygiene sanitary products), Can-Pack Poland in Aurangabad (manufacturing metal packaging) and Geofizyka TORUN (group PGNiG) doing oil extraction/ exploration services. BILATERAL TRADE IN US$ MILLION (Source : Central Statistical Organisation, Poland) Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (First Quarter) Indias Exports to Poland 140 157 183 225 310 367 473 700 976 740 1035 1350 1240 241 Indias Imports from Poland 48 94 34 81 84 201 202 162 299 310 357 523 665 189

India's major exports to Poland: Tea, Coffee, Spices, Textiles, Pharmaceuticals, machinery and instruments, automobile parts, surgical items. India's major imports from Poland: Defence equipment like T72 Tanks, air defence missiles, artificial resins, plastic material, non-ferrous metals and machine tools.

Product / Service which India exports to the rest of the world on large scale but not to Poland: Mineral Oils Product / Services which Poland imports from the rest of the world on large scale but not from India: Mineral Oils Product / Services which Poland exports to the rest of the world on large scale but not to India: Apples, Electronic Appliances

Bibliography: 1. http://atlas.media.mit.edu/country/pol/ (dated 12th February, 2014) 2. Central Investigation Agency World Factbook (Online reference document - dated 12th February, 2014) https://www.cia.gov/library/publications/the-world-factbook/geos/in.html 3. Article "POLISH ECONOMY-Foreign Trade" Confedaration of Indian Industry. Retrieved 200811-04. 4. http://geoportal.pgi.gov.pl/css/surowce/images/2012/tabele/table_6.pdf 5. Passport to trade - http://businessculture.org/eastern-europe/poland/business-etiquette 6. Article regarding India Poland Relations - http://mea.gov.in/Portal/ForeignRelation/IndiaPoland_Relations.pdf