Communicating and Communicating and Negotiating Negotiating

with with Brazilian Business Partners Brazilian Business Partners

Presenter: Presenter:

Richard R. GestelandRichard R. Gesteland

Global Management (USA)Global Management (USA)

Patterns of Norwegian and Patterns of Norwegian and Brazilian Negotiating Brazilian Negotiating

Behavior:Behavior:

Comparing Two Comparing Two Business CulturesBusiness Cultures

What What isis a business culture? a business culture?

• A set of expectations and A set of expectations and assumptions about how business assumptions about how business people communicate and people communicate and negotiate.negotiate.

• Note: There are over 6900 Note: There are over 6900 different cultures in the world different cultures in the world today. today.

But…comparing cultures brings a But…comparing cultures brings a challenge: challenge: How can we avoid using stereotypes? How can we avoid using stereotypes?

Solution: Solution: We avoid stereotyping by discussing We avoid stereotyping by discussing cultural cultural tendenciestendencies instead of instead of stereotypes. stereotypes.

Cultural Cultural Cultural Cultural stereotyping: stereotyping: tendencies: tendencies: • A lazy way of A lazy way of

describing describing ethnic ethnic differences. differences.

• ““Brazilians are Brazilians are like that...”like that...”

• Description of Description of differences based differences based on systematic on systematic observation.observation.

• Fact: No two Fact: No two Brazilians (or Brazilians (or Norwegians) are Norwegians) are alike. alike.

Differences within Brazilian culture Differences within Brazilian culture which may affect how your which may affect how your counterparts do business:counterparts do business:

• North/south and urban/rural dividesNorth/south and urban/rural divides

• Generational divide, level of educationGenerational divide, level of education

• Degree of international business exposureDegree of international business exposure

• Corporate culture: Global versus traditional Corporate culture: Global versus traditional firms firms

• Individual personalities. Individual personalities.

Comparing Norwegian and Comparing Norwegian and BrazilianBrazilian ccultural ultural tendenciestendencies in business: in business: • Deal-Focus Deal-Focus andand Relationship-Focus Relationship-Focus

• Direct Direct andand Indirect Communication Indirect Communication

• Egalitarian Egalitarian andand Hierarchical Business Behavior Hierarchical Business Behavior

• Monochronic Monochronic andand Polychronic Time Polychronic Time

• Nonverbal Communication (body language)Nonverbal Communication (body language)

Let’s start with Let’s start with Deal-focused Deal-focused and and Relationship-focusedRelationship-focused business business cultures cultures

Only a few of the world’s business Only a few of the world’s business cultures are cultures are Deal-focusedDeal-focused::

• North AmericaNorth America

• Northern Europe, includingNorthern Europe, including Norway Norway. .

• Australia, New Zealand. Australia, New Zealand.

A few more business cultures are A few more business cultures are Moderately deal-focusedModerately deal-focused::

• France, Belgium, Southern EuropeFrance, Belgium, Southern Europe

• Russia, East and Central Europe Russia, East and Central Europe

• Hong Kong and SingaporeHong Kong and Singapore

The vast majority of the world’s The vast majority of the world’s business cultures are business cultures are Relationship-Relationship-

focusedfocused::

• Asia, except Hong Kong and Asia, except Hong Kong and SingaporeSingapore

• Middle-East, Africa Middle-East, Africa

• Latin America, including Latin America, including BrazilBrazil..

1. Now let’s compare Deal-focused 1. Now let’s compare Deal-focused and Relationship-focused and Relationship-focused

communication and negotiating communication and negotiating behavior behavior

Deal-focused Relationship-Deal-focused Relationship-focusedfocused Norwegians: Norwegians: Brazilians:Brazilians:

• High-trust culture.High-trust culture.

• Face-to-face Face-to-face meetings are less meetings are less important.important.

• Get down to Get down to business quickly.business quickly.

• Prefer low-context, Prefer low-context, direct language. direct language.

• Low-trust culture.Low-trust culture.

• Face-to-face meetings Face-to-face meetings are very important.are very important.

• More small talk More small talk before business.before business.

• Use high-context, Use high-context, indirect language in indirect language in certain situations.certain situations.

2.2. Direct and indirect Direct and indirect language:language:

• Relationship-focused people tend to Relationship-focused people tend to communicate using high-context communicate using high-context (indirect) language.(indirect) language.

• Deal-focused people tend to use low-Deal-focused people tend to use low-context (direct) language. context (direct) language.

Comparing Comparing High-contextHigh-context and and Low-context Low-context communication:communication:

• In low-context, direct language the In low-context, direct language the meaning is in the words of the meaning is in the words of the message. message.

• In high-context, indirect language the In high-context, indirect language the meaning is often in the context meaning is often in the context surrounding the words rather than in surrounding the words rather than in the words. the words.

When are Brazilians likely to use When are Brazilians likely to use indirect language?indirect language?

• To be polite: In some situations using To be polite: In some situations using direct language sounds rude to them. direct language sounds rude to them.

• To avoid losing face. To avoid losing face.

• To avoid offending or disappointing To avoid offending or disappointing others, especially high-status people others, especially high-status people such as bosses and customers.such as bosses and customers.

Brazilian Indirect LanguageBrazilian Indirect LanguageExamples:Examples:

• Regional variations, north/south…Regional variations, north/south…

• Experience in international business…Experience in international business…

• Depth of personal relationship…Depth of personal relationship…

• Difficulty saying ‘no’ to a request…Difficulty saying ‘no’ to a request…

• When correcting or criticizing a person…When correcting or criticizing a person…

Why do Norwegians tend to use Why do Norwegians tend to use low-context, direct language? low-context, direct language?

• To be clearly understood. To be clearly understood.

• To be “honest.” Norwegians often To be “honest.” Norwegians often equate directness with honesty. equate directness with honesty.

• And because Norwegians see no need And because Norwegians see no need to use cautious, indirect language to use cautious, indirect language with bosses or customers. with bosses or customers.

Edward T. Hall found that directness in Edward T. Hall found that directness in language varies predictably across language varies predictably across cultures:cultures:

• Germans, Dutch and German-Swiss tend to Germans, Dutch and German-Swiss tend to be the most direct communicators.be the most direct communicators.

• Norwegians also tend to be direct speakers.Norwegians also tend to be direct speakers.

• Most people from Asia, the Middle East and Most people from Asia, the Middle East and Latin Americans , including Brazilians, tend Latin Americans , including Brazilians, tend to often use indirect language. to often use indirect language.

Differing expectations of Differing expectations of directness or indirectness cause directness or indirectness cause misunderstandings:misunderstandings:

• In some situations a Brazilian may In some situations a Brazilian may avoid saying ‘No’ directly, confusing avoid saying ‘No’ directly, confusing Norwegians.Norwegians.

• In certain situations a Brazilian In certain situations a Brazilian supplier may delay or avoid bringing supplier may delay or avoid bringing problems (e.g. quality, delivery problems (e.g. quality, delivery issues) to his customer’s attention.issues) to his customer’s attention.

3. Egalitarian and3. Egalitarian and Hierarchical Hierarchical Business CulturesBusiness Cultures

Egalitarian: Egalitarian: Hierarchical:Hierarchical:

• Nordic countries Nordic countries including including NorwayNorway

• North AmericaNorth America

• Australia, New Australia, New ZealandZealand

• Great Britain, rest Great Britain, rest of Europeof Europe

• Asia, Africa, Middle Asia, Africa, Middle EastEast

• Latin America Latin America including including BraziBrazil. l.

Egalitarian Hierarchical Egalitarian Hierarchical Norwegians: Norwegians: Brazilians:Brazilians:• Status differences Status differences

are small.are small.

• Do not defer to the Do not defer to the boss. boss.

• Status is achieved. Status is achieved.

• Few layers of Few layers of management.management.

• Status differences Status differences can be large. can be large.

• Tend to defer to Tend to defer to authority.authority.

• Status is ascribed.Status is ascribed.

• More layers of More layers of management.management.

4. Monochronic and 4. Monochronic and Polychronic Time CulturesPolychronic Time Cultures

Monochronic Time Cultures:Monochronic Time Cultures:

• Germans and German-Swiss (very Germans and German-Swiss (very monochronic)monochronic)

• North Americans and northern North Americans and northern Europeans including Norwegians. Europeans including Norwegians.

• Czech Republic, Hungary, JapanCzech Republic, Hungary, Japan

Polychronic Time Cultures:Polychronic Time Cultures:

• Southern and Eastern Europe, East Asia Southern and Eastern Europe, East Asia

• Latin America, including Latin America, including BrazilBrazil. .

• South and Southeast Asia, Middle East, South and Southeast Asia, Middle East, most of Africa (very polychronic) most of Africa (very polychronic)

Monochronic:Monochronic: Polychronic:Polychronic: • Punctuality is Punctuality is

expected.expected.

• Meetings usually Meetings usually follow an agenda.follow an agenda.

• It is rude to It is rude to interrupt interrupt meetings. meetings.

• People are less People are less punctual.punctual.

• Meetings may not Meetings may not follow an agenda. follow an agenda.

• Meetings may be Meetings may be often interrupted. often interrupted.

5. Nonverbal Communication: 5. Nonverbal Communication: Norwegians and BraziliansNorwegians and Brazilians

Norwegian and Brazilian body Norwegian and Brazilian body language issues: language issues:

• Facial expressionFacial expression

• Space bubbleSpace bubble

• Touch behaviorTouch behavior

• Gestures.Gestures.

Tips for negotiating with Tips for negotiating with Brazilian suppliers:Brazilian suppliers:

• Build trusting relationships Build trusting relationships

• Be prepared for indirect, vague Be prepared for indirect, vague language when your business language when your business partner faces a difficult or partner faces a difficult or embarrassing situation.embarrassing situation.

Communicating and Communicating and Negotiating with Negotiating with

Brazilian Business PartnersBrazilian Business Partners

Presenter:Presenter:

Richard R. GestelandRichard R. Gesteland

Global Management (USA)Global Management (USA)