GHANA INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION (GIMPA)

GIMPA BUSINESS SCHOOL GREEN HILL COLLEGE

INTERNTIONAL BUSINESS SOLUTION

Bsc. OPERATIONS AND PROJECT MANAGEMENT

EFFECT OF CULTURE ON BUSINESS

AMAZING GROUP 2 DANSOMAN

THEME
Introduction Determinants of Culture Impact of Culture on Business Case Study CUBA Map of Cuba General Information

Culture and Society

Local Perspective Cuba Business Dealings

Effects of Culture
Conclusion

INTRODUCTION When working in the global commercial environment, knowledge of the impact of cultural differences is one of the keys to international business success. Regardless of the sector in which you operate finance, technology, or computers and consumer electronics global cultural differences will directly impact on you and the profitability of your business. Improving levels of cultural awareness can help companies build international competencies and enable individuals to become more globally sensitive.

CULTURE
The quality in a person or society that arises from a concern for what is regarded as excellent in arts, letters, manners, scholarly pursuits, etc. The behaviours and beliefs characteristic of a particular social, ethnic, or age group: the youth culture; the drug culture. Culture is a powerful human tool for survival, but it is a fragile phenomenon. It is constantly changing and easily lost because it exists only in our minds. Our written languages, governments, buildings, and other man-made things are merely the products of culture. They are not culture in themselves.

THE DETERMINANTS OF CULTURE

REFERENCE: PROF HENRY BOATENG

IMPACT OF CULTURE ON BUSINESS

Culture affect; Choice of Goods and Services General Attitude to Works and Business Education System Management of Natural Resources Etc.

CASE STUDY

"Cuba is beautiful; whoever lover her Will defends her until death.

CUBAN REPUBLIC

MAP OF CUBA

Official Name Area Capital Population Official Language Workforce GDP Per Capita Currencies

GENERAL INFORMATION

Ethnicity

: Republic of Cuba : 110 860 square kilometers : Havana City : About 11 million : Spanish : 4.7 million. : US$3, 300. : Convertible pesos, Cuban Peso. : 65.1% White, 10.1% African, 24.8% Mullato & Mestizo

GENERAL INFORMATION -CONTD

Work Force: 4.7 million. Life expectancy: 77 years Bordering Countries: US Naval Base at Guantanamo Base Bay. Climate: The climate in Cuba is similar to that of the Eastern Caribbean Islands. The rainy season is from May to October. Natural Hazards : Although droughts are common in Cuba the coast subject to hurricanes from August to November .This country averages about one hurricane every other year. Environmental Issues: Some environmental issues for Cuba are air pollution, water pollution, and deforestation. The country also has biodiversity loss

Santiago de Cuba city

HAVANA

Havana.

Guantnamo

CULTURE AND SOCIETY

Cuban culture is a colorful and interesting mixture of dissimilar often contrasting factor and influences. The significant roots in the Cuba nationality are Spanish and African.
Spanish is the official language of Cuba, and was brought to this medical tourism destination by its former colonial masters who arrived in 1511. The Spanish soon began to import African slaves, mainly from Guinea, Congo, and Nigeria, and these slaves brought in their own African dialects to add to the linguistic melting pot. Cuban Spanish however, is a little different from the version spoken in Spain, with certain variations in pronunciation. Cuban Spanish has a lot in common with the Venezuelan and Colombian forms, and especially with the kind of Spanish commonly spoken by Canarians The Cuban Revolution deeply influenced Cuban culture down to the essential levels of daily life Cubans love music. It is part of their culture to gather together in public places Drink a chilled beer, have some talk and dance.

LOCAL PERSPECTIVE
GREETINGS
Man greeting Man - Men shake hands when greeting one another and usually maintain direct eye contact. Handshakes may linger. Good friends and family will engage in a firm hug which may be combined with a few slaps on the back. Woman greeting Woman - At a first meeting, women generally shake hands. Friends and close acquaintances kiss each other once on the cheek. Man greeting Woman - At a first meeting a regular handshake will do. Friends, family and close acquaintances usually share a light kiss on the cheek. Be formal at first meetings and dont use first names unless invited to do so.

- PERSONAL SPACE AND TOUCHING

Cubans prefer standing close to one another while talking with someone they know. One to two feet is normal. When meeting strangers this distance is farther. There is a fair amount of touching between people while conversing (between men and men, and women and women and men and women).

- MEETINGS & EYE CONTACT

Cubans tend to favor direct eye contact over indirect. During conversations direct eye contact is common place rather than sporadic as it shows a sign of interest and respect towards the speaker. Cubans place more emphasis on people and relationships than to the strict adherence of set schedules in social situations. The bus, train, and plane schedules are not adhered to for the most part, and showing up late to a party or function is quite common Views on time

- GENDER ISSUES
Even though women hold jobs in a variety of professions, they are still usually expected to do the housework and take care of the kids when they return home.

Cubans have a very liberal view of sexuality. This holds true for both sexes. Its acceptable for women to dine alone and walk alone at night.

- GESTURES
Cubans tend to speak very quickly and loudly. They use their hands and bodies for emphasis when speaking and tend to be emotionally expressive. Cubans will point by puckering their lips in the direction or person they are referring to. Wrinkling or scrunching up of your nose usually means, huh or what?

-TABOOS
Avoid spitting and blowing your nose in public. Avoid taking pictures of people without asking their permission. Avoid littering. It is against the law. Actions to avoid: Discussions about politics, which can be a minefield.

- LAW AND ORDER

There is no legal drinking age in Cuba. The purchase age is 16 and not readily enforced. There is no legal smoking age.

Penalties for possession, acquisition, and trafficking of drugs are severe and include mandatory lengthy imprisonment in local jails.

- DRESSING
Dress is quite informal in for both men and women
For men: Depending on the situation, a guayabera shirt with nice slacks may be as formal as it gets. Business casual for a warm climate should suffice. For women: A pair of pants and nice shirt should do. Skirts are fine as well. Jeans and business casual attire are generally acceptable.

Different Seasons in Cuba

WEATHER

Cuba has two seasons: the rainy and the dry season. Rainy season runs from May to October while dry season is starts in November and ends in April. December and August are the driest months of the year. Average temperature = 25.5 degress C Average of sunny days in a year = 330 days Average humidity = 78% Average temperature of water during winter = 25 degrees C Average temperature of water during summer = 28 degrees C Average rainfull per year = 1,515 mm Cuba is a country blessed with a sweat climate. You can visit during the rainy or the dry season and youll get a sunny weather nonetheless. Bad weather in Cuba does not last longer than three days that why youre sure to find a perfect day to enjoy and lounge on the beach.

CUBAN BUSINESS DEALINGS

BUSINESS CUSTOMS
GOVERNMENT WORKING HOURS 8:30 AM TO 12:30 PM, 1:30 PM TO 5:30 PM (MONDAY TO FRIDAY) 8:30 AM TO 12 NOON (ALTERNATIVES SATURDAYS) NATIONAL BANK WORKING HOURS 8:30 AM TO 12 NOON (MONDAY TO FRIDAY)

TITLES AND BUSINESS CARDS

Titles are very important and it is best to address people directly by using their professional title (or Mr., Mrs., or Miss) followed by the surname. It is advisable, although not required, to have one side of your business card translated into Spanish. Present your business card with the Spanish side facing the recipient. There is no specific ritual surrounding the giving of business cards.

BUSINESS MEETINGS
Arriving on time for a meeting is important even though you may have to wait 30 minutes or more. There is usually 5-15 minutes of small talk before getting down to business. It is best to allow your host to begin the business discussion. It is considered acceptable to interrupt someone who is speaking. Its not unusual for Cubans to keep people waiting for an hour or more for a meeting.

NEGOTIATIONS AND CONTRACTS

Cubans value relationship building and harmony so it is important to avoid hard selling, pressure tactics and any sort of conflict or confrontation.

Decisions are made from the top down and can take sometime. Cubans tend to try to tire you out with slow and protracted bargaining.

GIFT GIVING AND BRIBES

Gifts are not introduced at first meetings. When giving gifts it is best to bring something very modest as anything else could be misconstrued. Dont try to impress your contact with an expensive gift that they may not accept for different reasons; it is more effective to think of a small detail or to invite a person for lunch, make your guest feel comfortable with your presence and the conversation.

GENDER PERSPECTIVE IN BUSINESS

Tips for businesswomen: Cuba is a very macho country where women arent commonly seen in positions of power and authority. Proceed slowly and present yourself as representing your company rather than yourself. If necessary, be prepared to graciously allow a male employee to step in if you sense a great deal of uneasiness.

POSITIVE AND NEGATIVE EFFECT OF CULTURE

CONVERSATION
Cubans have a great sense of humor, there is always a new joke on the street, most of the times relating to the political and social situation in the country. However, when they dont know the person or there isnt some kind of previous relationship and confidence, they prefer not to discuss about the government or political and social situation. Since Socialism isnt a democratic system with freedom of expression, people are afraid of being labelled as enemies of the government. If you have official contact with government officers these topics should always be avoided.

COMMUNICATION STYLES
Cubans generally maintain a distance when speaking with strangers or supervisors in the professional environment. In conversations with friends, coworkers or relatives the distance is really short and very frequently there is physical contact with the hands to make emphasis Even when people usually dont keep constant eye contact, refusing or avoiding any kind of eye contact could be considered as a sign of dishonesty

DISPLAY OF EMOTION
Cubans always show their emotions in an open manner, even in public. Displays of affection are very common and extensively accepted. However, even when displays of anger or other negative emotions are also frequent, its considered a negative public behaviour and is widely criticized

RELIGION, CLASS AND ETHNICITY

RELIGION-There are different religions that coexist in Cuba; the most extensive is the Roman Catholic and others. For many years, the government hardly censured any religious practice, even limiting believers access to universities and important positions. CLASS -Differences in the socialist class are more and more noticeable in the Sectors. The working class is currently paying the consequences of a deteriorated economy. Paradoxically, there is a group of people including high government officers, successful musicians, athletes and personnel of foreign firms, among others, who receive important privileges or a guaranteed income in hard currency. ETHNICITY-The Cuban identity is very mixed, but most of the population descendant from Spanish conquerors or Africans slaves, or a mix of both. Acts of racial discrimination are not very frequent in the workplace.

POLITICAL SYSTEM
The only Communist party , installed by Dr. Fidel Castro Ruz s 1959 Revolution led the Country to develop a severed relationship with major traders such as USA and other countries, as a result of embargo imposed by the USA. Cubas current Constitution was approved in a referendum in 1976 with 95% backing. Presidential terms are of 5 years there is no limit on how many terms a president can serve. Fidel has been President since 1976. This sanction has affected the countries effort in involving in active business.

The Cuban Education System

There is general agreement that the level of Cuban education is very high, but sources disagree as to why: Those favorable to the Castro government claim that it is the result of the emphasis placed on education since the revolution, while anti-Castro sources assert that the level of education in Cuba has always been high. Education was compulsory for six years. After that, students up to age 16 were required to continue their education at the secondary level or to join the Youth Movement, which combined study with vocational training and service.

 The primary level was grades 1 through 6, and was compulsory and identical for all children. They started at age 6 and attended classes 61/2 hours a day; they studied basic literacy skills and composition in Spanish, basic arithmetic, and ideological orientation.
The secondary level was grades 7 through 9, 10, or 11, and a student could choose (or have chosen for him) one of three tracks: general secondary, teacher training, or vocational training. All tracks provided instruction in Spanish, mathematics, the sciences, history, and technical/agricultural production. In the general secondary schools there were 26 hours of instruction per week, in 9 or 10 subject areas, with no electives. Students could go on to higher secondary schools for an additional three or four years of education, so a number of Cubans who finished higher secondary school will have had as much as 15 years of pre-college education.

AREAS OF INVESTMENT
TOURISM
Tourism in Cuba attracts over 2 million people a year, and is one of the main sources of revenue for the island. With its favorable climate beaches, colonial architecture and distinct cultural history.

AGRICULTURAL

Cuban Tobacco , the best in the world and of High quality before sugar.

INVESTEMENT POLICY
With the exception of defense ,public health care and education ,all other sectors of the Cuban economy are opened to Foreign Direct Investment . There is a Provision for FDI to cater for broad areas of investment promotion and incentives for foreign investors

HEALTH TOURISM AND PHARMACEUTICS

Attracts about 20,000 paying health tourists, generating revenues of around $40 million a year for the Cuban economy. Cuba has been serving health tourists from around the world for more than 20 years. The country operates a special division of hospitals specifically for the treatment of foreigners and diplomats. Foreign patients travel to Cuba for a wide range of treatment

CONCLUSION
Doing business with Cuba and capitalizing on what the country has to offer is the smart thing to do in todays world scenario with Cuban Foreign Investment law #77 allowing for 100% foreign ownership. This is just one of the reasons why Cuba is primed to do business with international entrepreneurs and companies from various business sectors. If your business deals with ores and metals like cobalt, nickel, iron ore, chromium, copper, gold, salt, timber, silica or petroleum Cuba could be the country which is best suited to do business with you. Other businesses that could benefit from developing business ties with Cuba include Tourism, Real Estate, IT, Biotech, and Agriculture, all of which are sectors that the Cuban government is keen to develop.

THANK YOU FOR YOUR PATIENCE VIVA CUBA.

GRACIAS !!!