Thursday 29 November 2007

Doing Business in Morocco

Morocco is the closest African country to Europe separated from the Spanish market and its 60 million tourists by a mere 9 miles through the straits of Gibraltar (a stone through from Tangiers).

Despite its association agreement and its formal application to join the European Community, Morocco is a North African country, an Arab and Islamic state. If Arabic and English are the common business languages in the Middle East, French is a must for doing business in Morocco. Arabic is the official language followed in terms of usage by Berber dialects, Spanish in the North and South . The use of English is on the increase in manufacturing and exporting companies, the Hotel industry, universities and private schools.

Compared to its North African neighbours, Morocco has a more diversified economy with tremendous untapped potential and prospects for business in a number of fields (Agribusiness, fisheries, mining exploration, tourism, export oriented manufacturing, infrastructure development).

France is still Morocco's main client and supplier. However, instead of going through a French or Belgian French speaking agent, British companies are now flying direct from UK airports to Tangiers, Casablanca, Marrakech (the beloved city of Sir Winston Churchill) or Agadir ( Morocco's French Riviera and second largest economic region after Rabat/Casablanca).
As an investor, your Moroccan hosts and partners will invest in supplying the necessary framework for communication. They will either speak English or provide an interpreter.

However if your aim is pure export of goods or services to Morocco ( you may already have dealings with France), you're advised to prepare yourself and be accompanied by a private or public export/consultant/interpreter who could guide you into the market both before, during and most importantly after the market visits.

The public sector projects are important but the private sector is very active in commercial and industrial activities. In the clothing sector alone, over 50 British manufacturers are operating from Morocco for re-exports to UK, Europe and world markets.

Kacem Debar speaks Arabic, French and English From 1982-1985 he was Economic Counsellor (Export Promoter) at the Moroccan Embassy in London. At present he is a Markeing and Business Consultant specialising in two way trade investments between the UK/France/Morocco and North Africa and other Arab and French speaking countries.

Wednesday 14 November 2007

Doing Business in Kuwait - Be Yourself

Dr Jehad Al-Omari, Middle East Consultant, provides some important advice for expatriates and frequent business travellers.

One of the first things which strikes you when you arrive at Kuwait International Airport is that sense of modernity. You will be right in thinking that you are stepping into a highly prosperous society where only the best technology will do. Wander around the city of Kuwait, and you will be impressed by the high rise buildings, modern office blocks and electronic shops selling the latest technology on offer.

Investigate further, and you will realise that apart from being an oil producing country, Kuwait city is one of the oldest trading nations in the Gulf region, has the longest democratic tradition, and where freedom of speech is part of everyday life, whether you are sitting in a Diwanych or reading one of Kuwait's many daily newspapers.

Yet, you must dig deeper to realise behind all of this there is a deep-rooted pride in history, Islam, traditions, family and culture. Kuwait's modernity and outlook derives from a rich synthesis of the old and new, and the desire to acquire the best the world can offer while maintaining a firm grip on tradition. A Kuwaiti official once commented to a Western journalist that in buying Western-made fridges he does not have to eat souffles. Kuwaitis have gone a long way in developing their oil, investment and trading sectors, without compromising their family values. Putting one's parents in old people's homes is perceived as being inhumane and barbaric.
Talk to Kuwaiti managers and professionals and you would soon recognise that they are the product of a sophisticated educational system which ranks amongst the best in the Arab world. You will certainly come across more Kuwaiti managers with degrees behind them than you would in the UK - that is assuming that they have not done a second degree somewhere in the UK or USA. You will again be right to relax, and assume that the majority can speak your language, metaphorically speaking.


However, you must not drop your guard completely. Business and business dealings are not exempt from this blend of old and new. Great and lavish hospitality to guests is pursued with the same vigour as productivity and efficiency. Open door policy and consultation go hand in hand with delegation and empowerment. Loyalty to superiors and clients will override systems and procedures. Timing and confrontation avoidance remain as far more important than time and results.


In other words, "Business is Personal", and you cannot afford to ignore the subtleties of this simple statement. Your ability to engage in small talk, to carry out favours, to develop personal relationships, to avoid confrontations and to cultivate loyalty will all convince you that the most important thing you will be selling to the Kuwaitis is yourself.


Whether you are thinking of going to Kuwait on business for one week, or whether you intend to live and work there for the next three years, you will need a good deal of preparation.
Looking up books from libraries and information centres is a good starting point, but a more effective way would be to attend a specialised briefing where you will meet both expatriate and Arab experts who will be able to answer your queries, provide you with practical tips, and point you in the right direction.


Farnham Castle International Briefing Centre offers regular programmes for both expatriates and frequent business travellers on a scheduled and customised basis. Intensive language tuition in Arabic is also available.

Tuesday 6 November 2007

Developing the multi-cultural organisation: managing diversity or respecting differences?

Face the Challenge

Today's business and service organisations face a three-fold challenge. With management and employees of a variety of national and cultural backgrounds, they must:
1 enable this heterogeneous workforce to work together harmoniously toward their common goals;
2 maximise the contribution of each member of what is in fact a large team;
3 ensure fair treatment for all, irrespective of background.

Meeting this challenge demands systematic efforts on the part of these organisations, as many of them have come to realise. Whether the multi-cultural character of the company arises from its internationally mobile workforce and its local operations in various countries, or from the mixed backgrounds of a workforce in a single location, the organisation must address this diversity if it is to be successful.

DEFENSIVE OR DEVELOPMENTAL?
Every organisation has a strategic choice to make in how it will face this issue, between a fundamentally defensive approach, and one that is developmental in nature and effect.
An organisation which adopts the defensive approach treats cultural differences as hazards - a series of weak links between people in which there is great potential for misunderstanding, conflict, mistrust and even resentment. It assumes at the start that certain people are inherently culturally insensitive to others. Handling 'cultural diversity' therefore means avoiding giving offence to groups or individuals, preventing harassment, and managing grievances. It may have an implicit political objective as well, to reduce the alleged dominance of one 'culture' or another.
The developmental approach, on the other hand, first of all sees cultural differences for what they are - potentially different values, assumptions, expectations, and behaviour which people bring to business as a result of their differing backgrounds. As expressed by one prominent writer in the field, culture is "the way in which a group of people solves problems" (Trompenaars). Moreover, the developmental approach recognises that these collective tendencies reveal themselves as individual differences. Members of a team are not there to represent a 'culture' or particular ethnic group - they represent themselves.
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CKNOWLEDGING THE DIFFERENCE
In this way, handling cultural differences means recognising
1 that these differences can have a significant impact on how people of different national or ethnic backgrounds approach the day-to-day issues of business and professional life, and
2 that people want those differences, where they exist, to be acknowledged. The developmental approach begins with the more positive assumption that while people may sometimes be unaware of these differences, they are not automatically insensitive to them.

The outcome of the developmental approach is a recognition of these different perspectives as alternative ways of handling particular situations. Cultural differences are no longer hazards - they are opportunities to strengthen the organisation through shared learning, better communication, and new perspectives.

How can one tell whether an organisation has adopted the defensive or the developmental approach? After all, any organisation can use terms such as 'diversity,' 'culture,' 'differences,' or even 'inclusiveness' to its general goals in this area, whatever the reality.

For a start, the defensive approach often arises as a reaction to grievances or conflicts. The organisation may define it through policies, procedures, and public relations statements, and make it visible through initiatives and 'programmes.' 'Training' is preoccupied with reducing insensitivity, often by trying to induce certain subjects to admit how insensitive they are. To the extent that such efforts are presented positively (or in the words of one company's website, "leverage[d] for competitive advantage"), it is as a question of equal employment opportunity.

THE RIGHT ROUTE
Farnham Castle helps its clients follow a developmental route, which assumes a very different form. It often starts at a local level, on a practical basis, with an individual's or a team's efforts to improve the way people work together, or to prepare for wider international responsibilities. It tends not to be fixed in policy or procedure, but instead is most often driven by business needs and actual situations faced by people. Training is interactive, involving exchanges of impressions, experiences, and problems amongst learners. It recognises that perceived differences are as important as 'real' ones, for it is our perceptions of others that give rise to our reactions and judgements.

People learning to handle cultural differences will learn a great deal when they become aware of how they are culturally viewed by others. In addition to awareness, informational briefings increase people's knowledge of possible differences between cultures. That insight in turn helps them see how apparently 'strange' behaviour has its own cultural 'logic,' as the way in which a group of people have, as we said, solved universal problems. With increased mutual awareness and knowledge, mistrust tends to evaporate and questions of cultural 'dominance' become irrelevant.

PRACTICAL BENEFITS
The practical benefits of the developmental approach are seen in their effects on management style and on the way a team works together. 'Cultural' differences are now seen as individual differences arising out of people's backgrounds. These various points of view, openly communicated, represent alternatives and choices available to the group for consideration and negotiation. A greater willingness to talk directly about differences helps build trust, facilitates decision-making and opens the way, where appropriate, to compromise.

The developmental approach, as we have labelled it, needs sound leadership if it is to take root. It will be nourished by the resources of an organisation such as Farnham Castle, which is able to offer (1) collaborative training to raise awareness and increase knowledge, (2) extensive expertise in various business cultures and in the challenges and goals of international business. The developmental approach is further enhanced by training that strengthens the skills required to handle difficult situations and to communicate effectively in intercultural settings.

DIVERSITY TRULY VALUED
None of this, of course, is to imply that organisations should not concern themselves with the indispensable goals of providing a working environment that is free of 'harassment' and discrimination, and of ensuring equal career opportunities for all. We would simply say, however, that truly 'valuing diversity' means valuing the contributions that 'diverse' individuals can make. A developmental, rather than a purely defensive, approach to dealing with cultural differences will help make that a reality.

Article by Robert Day, a senior consultant for Farnham Castle specialising in effective communication/negotiation, team development, and cross-cultural issues in international business

Thursday 1 November 2007

The Middle East - Business Culture and Practices

The countries of the Middle East cover a very large geographic area from Iraq and Syria through the Arabian peninsula and the countries of North Africa to the shores of the Atlantic.
The affluence of the oil based Gulf States and Saudi Arabia contrasts with some of the less economically endowed and highly populated countries of the Arab nation.

Since the oil boom of the 70's world business has tended to concentrate on the massive development programmes of the oil rich Gulf States of the Arabian peninsula, but now consumerism is also finding its place in densely populated countries such as Egypt. Mass markets already attract the attention of the world's global Companies, many of whom have established bases in these territories. Other businesses follow to extend their potential trade in these areas.
The Arabs of the Middle East have been successful traders for centuries, long before the discovery of oil. One will find willing and knowledgeable partners, but some study of the necessities of doing business within the Arab culture may smooth the path to success.

Business culture, practices and etiquette
The business culture tends to have a greater social element in its characteristics than its western counterpart. This is evidenced by the warmth of welcome in all forms of contact that is always provided and the expectation of similar response.

No Arab businessman would dream of opening contact in any form without an exchange of pleasantries, before settling down to the matters for discussion.

The Arab businessman is essentially a trader and whilst he may not possess certain specific technical sophistication that his western counterpart may be offering, he will be financially astute and additionally a quick learner.

He will prefer to do business with someone he likes, to the extent that he may choose to refuse possibly lucrative results, if he finds the business contact unfavourable. Conversely, one may be fortunate to find a long term business and personal friend.

Historically the people of the Gulf, in particular, are tribal. As such there will be particular alliances, some geographically far reaching. This can be particularly useful in building your business intelligence of contacts to make and perhaps to avoid. This type of knowledge when offered can provide opportunity.

A businessman, foreign to the region, will be expected to know his proposition thoroughly. Should any omissions be discovered in contractual conditions the Arab businessman will be expert in finding these to his advantage and will exploit loopholes - believing these to be 'fair game'.

On his part he will act within the letter of such arrangements and fulfil his obligations.

The Arab will always understand the financial element, which is of course the end objective.

The Arab cannot say no directly - so it is vital to listen carefully to responses to your proposition, to avoid misunderstandings.

Business and social etiquette demands shaking hands on greeting and leaving. A few words of greeting in Arabic and in understanding the responses will be greatly appreciated.

Refreshments, always offered, should always be accepted. The one occasion where this may be refused is out of deference to the host who will be fasting in the month of Ramadan.

Preparing for your trip
Obviously in the vast majority of cases appointments will be made prior to your journey. There may be some flexibility in timings since Arabs tend to be fatalistic by nature and not hold to exact arrangements.

An in-date passport is obviously necessary.

In certain States it may be necessary to have received an invitation from your business host/sponsor before the appropriate visa is granted. In any event it is vital to understand the entry requirements, particularly in the case of Saudi Arabia and many other nations.

Generally preventive health requirements such as inoculations are not compulsory, except in the case of obtaining residence/work permits.

If during your visit you intend to make presentations requiring audio/visual aids, it will be necessary to establish that your host can provide appropriate facilities.

Comprehensive preparation enabling clarity of your objectives should be evident and the possession of the facts to answer searching questions, available.

Successful meetings
Having done one's homework on your 'target' will ensure that one is addressing a potential success. It is well to remember that the Arab does not refuse to meet someone, this is not in his culture of hospitality - so valuable time could be wasted.

Sociability, cordiality, respect and a non-patronising attitude will go far in developing a successful conclusion. Aggression, the hard-sell, blasphemy and arrogance are very distinct negatives.
Good preparation of your proposition, experience and knowledge of your subject will be well received. Listen carefully and observe the non-verbals as well.

Having a business card with two-sided printing of your name and Company, together with communication details in your language and Arabic, is very useful. The Arabic should be a phonetic pronunciation.

Women in business
With the exception of Saudi Arabia, where officially women are not involved for business, women are generally well accepted in the business world.

Arguably they have to exhibit their business skills and acumen to a greater degree than their male counterpart, in order to be successful in the Arab world.

Women will be observed and encountered in all types of business endeavours as their traditional role of family nurturer extends beyond the household.

Dress code
Formal meetings call for formal dress. Lightweight suits, ties etc. Standard meetings are relatively informal requiring a business shirt and tie.

The Arab businessman in his native 'thobe' will always look formal and immaculate. Always err towards the formal, sloppiness will be construed as disrespectful.

Corporate hospitality
Entertaining in its various forms is widely used in business life, whether it be business lunches or dinners or more formal presentations.

The Arab believes that having shared one's food with another brings them closer together.

The difficulty arises in whether to provide alcohol on these occasions. A devout Muslim will no doubt be offended in the presence of consumption of alcohol. Others will not object and may themselves partake. Homework is required - if in doubt don't provide or offer alcohol.

Arab society is a 'gifting' society and in formal conferences it is standard practice to offer a small appropriate gift on guests' departure.

Conclusion
The Arab culture is complex and intricate and its understanding can be very rewarding. This brief view of fundamentals cannot give full justice to a fascinating way of life, but may open the doorway to seek further exploration.

Farnham Castle/Robert Hughes
Robert Hughes worked in the Gulf States and Saudi Arabia continuously for the past twenty years. During this time he has had experience at top management level for some of the world's leading advertising and marketing agencies and their clientele, most recently J. Walter Thompson and their Unilever business. From his base on the Arabian Peninsula, his remit latterly also extended to Syria, Lebanon, Jordan and onwards to Egypt. His book 'Living & Working in the Middle East' was published in 2002.

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