International Business - Sweden PDF

Preview

Summary

Essay zum Thema "Cross Cultural Management - Hofstede etc- country: Sweden"
Modul: International Business
Note: 1,3 ...

Description

International Culture Project - Sweden

Inhalt PART I. INTERNATIONAL CULTURE..............................................................................................2 Values and norms........................................................................................................................2 a. Values......................................................................................................................................2 b. Norms (folkways and mores)..........................................................................................3 c. Single culture........................................................................................................................5 Determinants of culture.............................................................................................................5 a. Political and economic systems.....................................................................................5 b. Social structure....................................................................................................................6 c. Dominant religion................................................................................................................6 d. Language...............................................................................................................................7 e. Education...............................................................................................................................8 Culture and the Workplace.......................................................................................................9 a. Power distance.....................................................................................................................9 b. Individualism........................................................................................................................9 c. Masculinity...........................................................................................................................10 d. Uncertainty avoidance....................................................................................................10 PART II. BUSINESS ETIQUETTE...................................................................................................10 1.

Communication...............................................................................................................10

2.

Giving gifts and compliments....................................................................................11

3.

Meaning of time..............................................................................................................11

4.

Business meetings.........................................................................................................12

5.

Business negotiation.....................................................................................................13

6.

Greeting, dining and entertainment........................................................................14

III. List of references.....................................................................................................................15

1

PART I. INTERNATIONAL CULTURE Values and norms a. Values Values are cultural characteristics that change slowly and though varying across individuals and cultures, they are usually shared orientations by most of the community members. Hence, they are of great importance for an endeavor setting up its base in another country. Therefore, it is important to know that Sweden is a country focusing strongly on quality of life. As a matter of course, people do play emphasis on accomplishment, both in private life and relating to business, but the focus lies on cooperation and harmony within the population and within companies. Therefore, openness is a very important value for Swedes and critical to the success of the business operation since it means being thoughtful and eager for knowledge. Moreover, it is synonymous with acceptance and tolerance, with freedom of thought and the understanding of diversity between people, cultures and lifestyles. Being open stands for having space to live freely and with curiosity, without obstacles and without prejudices. Sweden’s openness can be seen in its companies being internationally focused and interested. Furthermore, the government fosters education and farsightedness, hence making language, knowledge about the rest of the world, and information easily accessible; for instance, by broadcasting mainly English television program. Unfortunately, Spain is not nearly as developed as Sweden in terms of openness yet. However, the country’s level of education is constantly improving. Students start to go abroad and participate in ERASMUS and other European programmes to continue their education, gain international experience and improve their language skills. Furthermore, the use of information technologies is constantly increasing, hence another factor that fosters the improvement of Spain’s education.1 In Sweden, authenticity is another value that is essential for a company’s success for it means standing up for one’s values. It means being natural and aware of own strengths and weaknesses. Being authentic implies being honest, consistent, and sincere. It expresses itself in reliability and honesty; two characteristics that are best preconditions when wanting to appear respectable and trustworthy. Compared to Sweden, Spanish people do not foster authenticity very much, since they are a rather collectivistic public. Notwithstanding, trust is a high valued factor in Spain. 2 Hence, 1 cf. Justlanded (2017) 2 cf. Cremades (2017)

2

business and public life are intertwined and there is not much distance or difference in the business and public information content. Colleagues are even considered friends or at least well-known people. Consideration is caring for every individual. Safety and security, respect and inclusion of every human being are of great importance. Trying to meet the needs of others, not being selfish but empathic and learning from others are characteristics that are highly valued in Swedish culture and even in when it comes to business since they are very difficult for most people to fulfill. The Swede’s thoughtfulness is visible in their attitude towards equality and co-determination rights. Many Swedish companies are environment-friendly and what needs to be mentioned as well, is, that the tourism organization is greatly developed offering facilities for disabled in nature, food low in allergens, and camping with all conveniences, hence providing calm, quiet, healthy, and laid-back vacations with lots of fresh air and simplicity. In addition, the well-thoughtout street sign system makes it easy to find roads and directions. Therefore, being a considerate society instead of selfish and solely profitoriented, Sweden presents an economic advantage compared to other countries that only want to benefit the most from foreign tourists. 3 Compared to Swedes, Spanish people put great importance on the value consideration as well, but only in terms of social life. For them, family is the most important factor, even the basis of the social structure and includes both the nuclear and the extended family, which sometimes provides both a social and a financial support network. Therefore, they care for each other and are used to being empathic when it comes to family. When it comes to business, however, the Spanish public differs much, because it tends to be competitive, ambitious and rather inconsiderate of others.4 Innovation is believing in a better future and working on it. It stands for the freedom to make a difference in the world; to see possibilities and to work on solutions. Sweden has a forward-looking and creative economy producing unique design, fashion, and media culture, valuing innovation and progress. However, not only the economy but also the society is future-oriented: Swedes are known for a modern lifestyle, sensitivity to trends and world-leading research. Moreover, they successfully implemented paternal leave, cohabitation laws and registered partnership, thus lead the way for many other cultures.5 In comparison, Spaniards tend to rather stick to traditional and well-tried ways. New business models and decentralization are accepted by young people but still marked by skepticism of older businessmen. 3 cf. Council of Europe (2000), p.123 4 cf. Cremades (2017) 5 cf. Haas, Linda (1992), p.114

3

b. Norms (folkways and mores) Going to another culture usually includes understanding a few societal norms. In Sweden, although there might not be any mores other than the regular ones forbidden by law, there are some folkways that need to be considered to blend in and not to hurt the public’s feelings: #1 Swedes love coffee: Few people drink more coffee than the Swedes. In Sweden, coffee drinking is fostered through a tradition called fika – in which friends, family or colleagues meet for coffee or tea, often with something sweet on the side. Most Swedes will enjoy at least one fika a day as an opportunity to bond. #2 Get in line: Patience is needed as one waits to be served in a numbered queue. Many businesses have a ticketing system – usually a small hard-tofind machine hung on a wall that dispenses number notes. #3 Get your shopping done before 17:00: Many stores close early, especially at weekends. You’ll be hard-pressed to find a store open past ten in the evening that isn’t a petrol station. #4 Squeeze food out of toothpaste tubes: In grocery stores in Sweden, tubes are also used to package foods such as caviar, mayonnaise, mustard, and other similar condiments. #5 Fathers pushing baby strollers: When it comes to equality between the sexes, Sweden is one of the leaders, and many men stay home and raise infant children. #6 Many businesses shut down in July: It’s not uncommon to find restaurants and stores shut down for an entire month, usually in July, while employees take their four to six weeks of holiday. #7 Lagom: There is a societal code of conduct in Sweden. Loosely translated, the word lagom means ‘just enough’, ‘in moderation’, ‘appropriate’. Used about societal behavior, it means blending in appropriately without extreme displays of emotion. #8 Taking off shoes: Shoes are taken off when entering private residences in Sweden. Some explain it with the simple fact that Swedes spend a lot of time outdoors during winter and are prone to dragging in dirt. Others say it’s a sign of respect for the home. #9 Be on time: Time should always be respected – regardless of whether going for an interview or a friendly fika. Meetings will start on time with or 4

without you. The train leaves on time with or without you. Swedes value punctuality. #10 Keep the plastic bag: Most Swedish grocery stores charge for plastic or paper bags to keep waste low and encourage recycling. Swedes like to keep it sustainable. #11 Special days celebrating food: Swedes celebrate Christmas, Easter, Midsummer and Walpurgis Eve. But almost as important are the days celebrating foods: Shrove Tuesday (Fettisdagen), which in Sweden calls for a semla; Waffle Day (Våffeldagen) on 25 March; and Cinnamon Bun Day (Kanelbullens dag) on 4 October. #12 It is safe to drink the water: Drinking straight from the tap is the norm in Sweden. The water is clean and fresh, so you can save both money and the environment by not buying bottled water.6 c. Single culture Relatively isolated from the main currents of continental European cultural change, many of Sweden's artistic traditions developed their own rich and distinctive character. Drawing inspiration from folk culture, as well as from the stunning beauty of the land itself, these traditions have maintained vitality and a bold simplicity that are now appreciated all over the world. 7 Hence, Sweden has always had and still maintains its own, one single culture. Swedes are very proud of that and highly value their traditions and cultural habits. Determinants of culture a. Political and economic systems Sweden is a parliamentary democracy country with a symbolic monarchy. The Riksdag (Swedish parliament) with legislative power is representing people at the national level. Then the Government is the one responsible for implementing the Riksdag's decisions and draws up proposals for new laws or law amendments. General elections are held every four years; however, it is a very common practice in Sweden that the people take part in a political life of the country by voting on referendums or proposing different initiatives regarding amendments to the existing laws or even proposing new laws. Sweden democracy is based upon the Constitution, which defines how Sweden shall be governed and its fundamental laws. It also contains the freedoms and 6 cf. Sweden (2017) 7 cf. Geografia (2017)

5

rights enjoyed by citizens. The Freedom of the Press Act is one of the most important fundamental laws as it was the first European act, which abolished censorship. Citizens have easy access to information about the work of the Riksdag, the Government and public agencies 8. Sweden is a country of developed, dynamic economy and high standards of living. It used to be mixed economy back in the second half of XX century, however, after the 1990s crisis it has become more capitalized and liberal. Stable economic policies combine with competitiveness, innovation and an open approach to trade to make Sweden a model for economic success. Sweden has one of the largest GDP per capita in the world and it is higher than the EU average 9. The non-salary cost of employing a worker is high, and dismissing an employee is costly and burdensome, the real labor productivity is higher than the EU-28 average but is not the biggest in Europe. Sweden is relatively open to foreign investment, but there are still a few stateowned enterprises and Swedish capital markets have non-Swedish origin (for example, American NASDAQ). 10 b. Social structure The class division in Sweden is quite like the one in other European developed countries. There are lower, middle and upper classes, depending on the level of income, with the prevailing middle class, and the distribution of income is among the closest to equal in the world 11. The share of the richest and the poorest people is slight because of historical matters. “Isolated” from Europe during Middle Ages, Scandinavian countries (except Denmark) didn’t have feudalism. The Nordic nobility was a small share of the population and not as powerful as the nobility in continental Europe. Instead, nowadays there’s a caste distinction between Swedes and immigrants. The regions and districts, in which immigration population is prevailing have higher unemployment rate and crime rate. However, even in the most notorious of these suburbs—Stockholm's Rinkeby—the rates of poverty and crime are relatively low. c. Dominant religion Freedom of religion is constitutionally guaranteed. Eighty-five percent of the people are members of the Church of Sweden; there are an

8 Cf. Government.se 9Cf. World Bank 10Cf. Eurostat 11Cf. Everyculture.com

6

estimated 250,000 Muslims and 166,000 Roman Catholics as well as significant numbers of members of other religious movements. The Church of Sweden emerged as a national church during the Protestant Reformation, after which it has been highly supported by the state until the year 2000, when the Church of Sweden received autonomy. Members of the Church of Sweden often say that they are Christian "in their own way," and are uninterested in dogma. Lutheran ideals and Renaissance humanism have engendered a demanding social morality with openness to scientific modernity. Church attendance is low except on special occasions; less than 5 percent of the members regularly attend Sunday services in the Church of Sweden – holiday observances are more popular. Three of five marriages are performed by the Church of Sweden. Ninety percent of funerals take place in the Church of Sweden. The practical arrangements usually are handled by a national organization that is part of the cooperative movement. Autopsies are common to determine the cause of death, embalming is rare, and cremation is prevalent. Many individuals believe that death involves losing one's individual existence while becoming part of something greater. d. Language Swedish is mainly spoken in Sweden. It has elements of German, French, English, and Finnish. The language has been nationally standardized for more than a century with the help of mass media, but there are still some regional pronunciations. Swedish has few forms: The Göta dialect group (Southern Sweden); The Svea dialect group (North, Swedish-speaking parts of Finland); Southern Swedish (Skåne, Blekinge, Southern Småland and Southern Halland); Northern Swedish (Northern Hälsingland and Jämtland and northwards); Eastern Swedish (Finland, Estonia, and Gammalsvensk by Ukraine); Gutnic (Southeastern Isle of Gotland and Fårö). Most Swedes are fluent in English and don’t mind running business meetings with foreigners in English. At the same time, it will be a profit if you use some key Swedish phrases. A ‘ hej’, ‘tack’ or ‘Trevligt att träffas’ will open many doors. With its various intonations, Swedish may seem incomprehensible at first, but it is worth asking locals to repeat phrases slowly if you do not understand (Var snäll och tala långsammare)12.

12 Cf. Kwintessential.co.uk

7

Regarding other languages, due to considerable immigration, people of the country speak roughly 200 languages. Here is the percentage of adults in Sweden who speak the languages below as a native language13:

Swedish

93%

English

1,52%

Spanish

1,09%

Finnish

1,04%

German

0,69%

Others

2,66%

Percentage of adults in Sweden who speak the languages below as a native language or learned: Swedish English German French Spanish Danish Finnish Italian Arabic

96.72% 53.97% 18.66% 6.85% 4.78% 4.47% 1.60% 1.22% 1.15%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Adults in Sweden who speak the languages below as a learned language:

13 Cf. Languageknowledge.eu

8

English German French 6.85% Danish 4.15% Swedish 3.72% Spanish 3.69% Italian 1.22% Finnish 0.56% Arabic 0.37%

52.45% 17.97%

Therefore, as we can see, Swedish language is still major one despite the high immigration level; Swedes tend to be fluent in speaking English and other prevailing foreign languages are German French, Danish and Finnish. e. Education Before a school, Swedish children can attend so-called municipal preschools, if their parents don’t have enough time to take care of them in personal. Children can also attend förskoleklass (pre-school year) which is designed to stimulate a child’s development and learning. The compulsory school In Sweden starts when children are 7 years old and consists of three stages: 1. lågstadiet (years 1–3); 2. mellanstadiet (years 4–6); 3. högstadiet (years 7–9). Children between ages 6 and 13 are also offered out-of-school care before and after school hours. The compulsory school is followed by the upper secondary school ( Gymnasium) which is optional but needed to enter a university or start a job. There are 18 regular national programmes of 3 years to choose from, 6 of which are preparatory for higher education such as university, and 12 of which are vocational. Even though entrance requirements vary between programmes, all of them demand students to have passing grades in Swedish, English and mathematics from their final year of compulsory schooling. If a student isn’t qualified enough to enter a national programme he can choose of 5 so-called introductory programmes, after which the student can ...