Culture consists of various components including values, norms, attitudes, perceptive, language and behaviors. Different cultures have definite attributes that are associated with their cultures and this attributes are learned and shared by the people in a community. Apart from cultures being dynamic, they provide a basis for a people’s way of doing things. The same way these cultures apply in communities so do they apply in business culture and they mould the way different businesses operate in different countries.
Different countries have different cultures that guide them in the execution of duty and France is no exception to that. Just as globalization is taking the world by storm, different companies and individuals consider it necessary to expand their businesses to other parts of the world (Johnson 1996).
France is one of the countries that foreign investors seem to have taken a great interest in establishing investments. In order for these companies to succeed in their business ventures, they have to keenly learn the cultural practices in France that affect the business world. Therefore, a good comparison of the cultural difference between France and the mother country needs to be done to ensure that foreign business investment in France succeeds. In order to make this comparison easy there are certain elements of the French business culture that must be evaluated.
One of the French business cultures is demonstrated in their system of education. A considerate number of the top leaders in French business went through the education system of the elite schools in France, the Grandes Ecoles. The Grandes Ecoles instills intellectual rigor in the students who attend the schools and there is nowhere else in the world where such rigor is instilled in students. For this reason, the management team present in French countries consists of highly educated individuals who use a remarkable degree of intellectual precision in conducting management roles. The French approach management as an intellectual responsibility that needs mastering. In conducting management tasks, there is detailed analysis of the problem at hand that will be completed by the implementation of rational decisions.
For investors who are planning to invest in France, in order for the management to achieve successful cross-cultural management, it has to keep in mind that the French have a high regard when it comes to hierarchy as part of their business culture. The ranks accorded to a certain department have its privileges and decisions are always made at the highest levels without the inclusion of the subordinate staff whatsoever. After the decisions have been reached at the highest levels, they are then passed down to the subordinates for implementation.
However, when they are arranging meetings their main intention is not to reach a decision but most of the times, their meetings are formed for the main purpose of exchanging ideas but the individual who is in charge of the meeting makes the final decision. In France, in case an individual has a pressing matter then it is usually discussed over lunch and business lunches form an important component of corporate communication (Johnson 1996)..
Time management is another aspect of the French culture that must be followed by a foreign investor. The country is time controlled and it would be advisable for investors to keep this in mind as the French expect complete adherence to schedules that have been made. Once an individual fails to reach a certain deadline in France, it is taken as a sign of poor management, it reflects inefficiency on the individual’s part, and as such, the confidence that people had on a certain individual diminishes for the simple fact that the person failed to adhere to the set deadline. For foreign investors in France, efficient cross-cultural management will only be achieved and depends on the ability of the appointed individuals to manage time, priorities and meet deadlines (De Madariaga 1929).
Another consideration that has to be put in mind is the French take on appointments. A foreign investor has to have in mind the fact that for the French, appointment are a necessity and they are usually made for a period of two weeks in advance before the desired date for a meeting. Secretaries take care of appointments and they are made either by phone or in writing. It is important that a foreign investor notes that it is not advisable to arrange for appointments a during July and August because this is the period when most of them go on vacation.
It is good etiquette that in case a person would be delayed in attending the meeting, then making a call and explaining the delay would be a good thing. At the same time, the individual must remember that the French consider these meetings as a time to discuss issues but they are not held with the purpose of making decisions.
French negotiations also follow a certain path and it is advisable that a foreign investor acquaints themselves with these procedures so that they can conduct business properly with the French people. It is important that an investor keep it in mind that the French lay emphasis on business courtesy and a certain degree of formality is also expected. Most of the French conduct their businesses in a slow manner; therefore, patience is an attribute that has to be mastered, as they like to conduct careful analysis of every detail that is contained in a proposal. Another thing to note is that the French are clearly impressed by good debate skills that are clear indicators that an individual has an intellectual hold of the situation at hand.
They also do not appreciate overly demonstrations of friendship during business meetings as they have distinct differences between business and their personal lives. In fact, less social constraints bind the French, as they do not blend business life and private life. Another point to note is that the French do not appreciate high-pressure sales strategies and instead, they would rather have a logical presentation of the matter at hand that gives a clear explanation of the benefits of the proposal.
The French prefer having agreements written down in a detail to form an accurately worded contract. This is because commitments that are on paper appear to be more serious and binding than oral declarations. Other points to note is that for courtesy, an individual should wait to be told where to sit and during the discussions, it is highly recommendable that direct eye contact is maintained during speech.
The French have the tendency of having a knack for finer details in almost everything they do and this is something that has been incorporated as part of their business culture. Dressing is a part that does not escape speculation. While dressing for business meetings, a foreigner must remember to address in an understated fashion and at the same time, the dress code should be stylish. For an initial meeting, men are supposed to wear dark colored suits that are also conservative.
After the initial meeting, the dress code with which the men stick to is determined by the personality of the company that the individual is conducting business with. For the women, business meetings are attended in either business suits or soft colored elegant dresses. Accessories can be accompanied with the dress code but quality has to be put in mind because the French have an inclination to the finer details in life.
Foreign investors should note that the nature of the businesses set up in this country is democratic. It is therefore important and essential that a manager demonstrates one and the same respect and deference towards each employee. At the same time, the workers or employees are usually formal towards each other and conduct themselves in a reserved manner. However, communication between two individuals may be of a formal or informal nature but this is determined by the relationship that these two people share.
Another business culture that is practiced by the French is that they are fond of working in groups and team work. As much as teamwork proves to be quite frustrating for some people, the French collaborate well during these group works, the kind of communication they use is collegial dialect, and it may sometimes be straightforward and blunt. As much as they work in groups, there are task allocations that each member of a group gets because individuals assume greater responsibility for tasks that they have been given individually rather than a task given to the whole group.
This is something that foreign investors must take note of and the fact that effective cross-cultural management greatly relies on the managers capability to harness the collective talent of a group. The leader of this group represents the ultimate authority in the decisions that the group arrives at though they do not have the right to dominate the discussions. For motivation purposes, praise is accorded to individual members of the group and the whole group as a whole.
This would be an important aspect to note for a foreign investor, as it would aid in the achievement of the company’s objective. Another business culture is the fact that the French are sentimentally attached to their companies and truthful to them, they prefer having corporate affairs on a private basis.
An admirable French business culture is that they do not believe in performing a procedure the same way it was previously performed in order to achieve the desired effect. They do not believe in the use of clear and defined organizational charts and goals. For a foreign investor originating from the northern European countries has to come to terms with the fact that the French do not use a definite path in approaching a problem, they prefer having inconsistency in dealing with issues.
They are thus more flexible than the Americans are and considering that they use different methods to approach a particular issue, it means that they are more creative. This is something for the investors to consider since by using this method, the French have a higher productivity as compared to the Americans. These are but a few of the business culture that is present in French and form points of consideration for any foreign investor who intends to make an investment in France.
Going by Gross Domestic Product (GDP), France is the fifth largest economy in the world. Various industrial sectors in the country are responsible for this GDP and this includes sectors such as telecommunications, pharmaceuticals, construction and engineering, chemicals and automobile production. Tourism is also another sector that is recognized in France with at least 75 million visiting the country thus making it one of the most visited countries.
France is also strategically placed and as a result presents an encouraging economic environment for potential exporters (Wilen 2006). European countries offer more competition against the American exporters as compared to the Asian companies. In addition to this, France is one of the countries with the leading number of foreign investors. These investors prefer investing in France because of the country’s high level of skilled work force, the level of research and education is high in addition to good infrastructure and a recommendable lifestyle and quality of life.
Before 1991, the proportion of women in employment was low and it slowly increased to a considerable number by 1992. In 1991, the number of women who were employed was 43% and of these, the majority was between the ages 25-49 which represented 72% of the women workforce. The point of change for working women in France occurred in 1968 after the Cultural Revolution. At this point in time young women demanded for their rights to work just as men were working and having their own careers.
Currently, most French women are working on full time jobs but for the French a woman has to have achieved a considerable level of education so that they can enter employment field and this includes going through the Grand Ecole. The women are showing increased prominence in the business world and especially the retail and service industries. However, evidence reveals that fewer women are engaging in the engineer industries and are not well received to own higher and senior positions in regions outside Paris. Some time back, women were not engaging in the scientific, economic, technological and other disciplines that are highly regarded.
There are day care systems that have been incorporated in France to allow women to work on full time jobs. The school programs have been arranged so that they correspond with parental work schedules thus allowing parents and children to spend quality time together during lunch hour periods of two hours that run from 11.30-1.30. Apart from this, there are day care services that are offered after school so that parents can continue working while children are being attended to. In case of pregnancy, there are paid maternity leaves that women have been given of two years of which they can retain their jobs after this two-year period.
The world has currently become a global village and with such these global markets present open opportunities for the growth of companies into a varied range of markets and at the same time, this boosts the competitiveness of companies with the result of having consumer satisfaction due to the high quality of goods produced. Among the considerations that are made while, joining a global market is the business distances that would be created by establishing a business in another country. This business distance does not only concern the geographical distance but also economic, political, cultural and mental dimensions.
This business distance is the perceived distance that is found between the host and mother country. Transactional costs tend to be higher with increase in this distance. During the study of potential markets, individuals have to consider the potential of the markets on the basis of macro-economic factors for example currency and the currency exchange rates to just mention a few. A measurement of the reward that is to be gained from undertaking such a risk also has to be considered.
In addition to this, detailed information has to be acquired concerning the target market and the consideration of the nation s market value has to be made. A detailed analysis of the companies that deal in the same production line as the company that you intend to introduce in the host country is required so as to determine and gauge the level of competition. Apart from this, the intended managers have to tour the country so as to get a grasp of the cultural practices of the country and whether the intended business idea is acceptable in the host country.
This tour will enable the manager to determine the similarities and dissimilarities that exist between the domestic and host market or other markets if present which the company is already operating in. this will enable the manager in assessing the risks that they are yet to face and the direction which the company would take. These procedures would have to be undertaken by an individual in France who wants to invest in another country or an individual from another country who intends to invest in France.
A detailed analysis of the potential market needs to be undertaken in order to determine the success level of engaging business in a global market and which international market is probable to proffer the most excellent opportunity. Once a company has determined the best international market, it follows that the company has to critically evaluate a method that would enable them to get the goods into the host country at the most profitable method so that they reach the intended customers (Hofstede 1997).
This is determined by several factors such as the nature of the product to be introduced into the host country and the possible conditions for the target market and how this market can be penetrated. Markets can be entered by using different methods such as exporting which involves putting an item on the market by employing an export intermediary. Another method is by international joint ventures, licensing and off-shore production.
The French attempt at internationalization was achieved by the use of a French hypermarket model. The move was a success in Asia and South America save for United States of America where it was a failure. A series of hypermarkets tried to establish chains in the USA but due to failure to do so all of these companies have withdrawn due to failure experienced in this strategic market. The project to have a series of chains of hypermarkets was introduced in France in the year 1963 by a character by the name Carrefour.
This form of retail business contributed a major role in the retail revolution that occurred in France (Hofstede 2002).. There are various factors that led to the success of this business venture and this includes a wide area for car park at reasonable prices coupled with long working hours for the hypermarket and the presence of customer services in addition to one-stop purchasing.
The managerial body implemented the issue of decentralization of the administration body so that consumer contact would be enhanced and it provided for quick reactions to local competitions. Other contributive factors such as the increasing rate in car ownership and the construction of roads and highways had a positive contribution to the growth of this newly introduced industry. The revenue levels were also supported by the long hours on Fridays and Saturdays, which the retail business operated (Dupuis and Prime 1996).
The idea did not work in the USA due to varied reasons, which combined and made the success of the French hypermarket in USA impossible. One of the factors that lead to this failure is the difference in the role of the human resource management (HRM) body in both countries. The HRM in the United States was centralized and that of the French had a local initiative. The American consumers also did not adopt the system of one-stop purchase as they were already used to making purchases at different stores.
Another factor that caused the business to fail in the USA is that the French hypermarket offered limited amount of products while the competing stores in the US had a wide assortment of products. Wide car parking areas and long operating hours were not new to the US supermarkets. All this factors combined made sure, that the French hypermarket could not thrive in the US. This coupled with the fact that the concepts were new to the people in the US made it difficult for the “pilot team” to mange with the management of the retailing business. Other established competitors like the Wal-Mart also made it difficult for the purchasing power of the French business to increase since they already had acquired well-built purchase capabilities.
Another factor that limited the growth of the French hypermarket was that the terms of credit were much lower in the US than in France. The negative response and influence exerted by local climate discouraged Americans from buying from the French stores. The weak purchasing power of the French stores has made it difficult for the business to thrive in the USA. Location of the business was not prohibited by the US legal system but the formulated public opinion regarding the stores and the local authorities have had undesirable negative influence on the performance of the French stores.
The Lafarge Group is another success story of globalization or internationalization in France, which just started as a local producer of cement. The group was incorporated in France in the year 1833 and the first global business it undertook was providing lime that was required during the construction of the Suez Canal. The group is the current leader in the production of cement and other building materials. Ciment Fondu is weather resistant cement that toughens swiftly that was developed by the Lafarge group in 1908. Afterwards in between 1914 and 1955, it turned out to be the chief producer of cement in Algeria, Morocco and Tunisia.
This occurred in France in 1939 and later on in Canada in the year 1960. Acquisitions were made on Lafarge by other countries such as the US for cement production, the UK for concrete and finally producing roofing materials and in North America for the manufacture of aggregate. Currently Lafarge functions in a total of 75 countries (Edward and Mildred 1990)
The cement industry also experiences its own fair share of competition; rather, it happens at the local level due to the transportation expenses. Cement competition is not based on price since it is undifferentiated in nature and therefore competition is aimed at expanding the market share. Due to the high transportation costs that are associated with the cement industry, strategic location is an important factor. There are three advantages that a good location has to have and this are that the quarry is in a place where there are large quantities of limestone, the close location to an urban center and the presence of a form of transport most favorably water and railway.
Diversification has been witnessed in the cement industry where there are takeovers and mergers so as to achieve protection from the undesirable consequences that are associated with business cycles. In the previous decade, Lafarge has made more investments and for this group, globalization entails to acquire it is presence in each strategic market by making acquisitions with the local cement manufacturers.
Those companies that are competing globally with Lafarge also operate in a like approach. Lafarge has not yet achieved its goal in globalization and this includes; persistent expansion of the growth strategies, additional realization of the benefits it acquires from its reorganization plan. Integration of the firms that it has acquired for the creation of synergy and hence value and finally internationalizing its workforce by the development of managers who are capable of working in different markets and interacting with people of different cultures and supervision and control of its human resource body that has grown in the previous five years.
This is part of the strategy that the firm has for its future expansion. The long-term objective for this strategic plan is to provide a defense and maintenance of the profits it gains from its operations and to achieve profits for the management of new operations. Lafarge has had a large growth than was expected and even though it accomplished the vision it had of being at the fore front of the construction industry, the management team recognizes that there is still a couple of things that have to be done for the effective management of a cement company in France that has acquired transformation to become a global leader in cement production and construction materials. The blue circle is still being integrated and the full attainment of synergies will occur after a period of two years after the acquisition.
Globalization or internalization of an intended global company has to have three success strategies, which include the upholding innovation by incorporating either adjustments or globalization. Another strategy is achieving investor pleasant affiliation with the other components in the channel and finally builds up adjustments to varying culture.
Reference List
De Madariaga, S. (1929). Englishmen, Frenchmen & Spaniards. Oxford: Oxford University Press.
Dupuis, M. and Prime, N. (1996) ‘Business distance and global retailing: a model for the analysis of key success/failure factors’, International Journal of Retail and Distribution, Management, 24 (11), 30–8.
Edward, H. and Mildred, H. (1990) Understanding Cultural Differences. Yarmouth USA: Intercultural Press Inc.
Hofstede, G. (2002). Culture’s Consequences : Comparing Values, Behaviors, Institutions and Organizations Across Nations. New York: Sage Publishers.
Hofstede, G. (1997). Cultures and Organizations: Software of the mind. New York: McGraw Hill.
Johnson, M. (1996). French Resistance – Individuals vs. the Company in French Corporate Life. California: Casell.
Wilen, T. (2006). Doing Business with France: Tips for Women. Web.