Portuguese business culture guide - Learn about Portugal

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businessculture.org Content Portugal

http://businessculture.org/southern-europe/business-culture-in-portugal/

businessculture.org

Business Culture

in Portugal

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This project has been funded with support from the European Commission. This publication reflects the view only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.

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TABLE OF CONTENTS

Business Culture in Portugal ..................................................................................................... 4

Xenophobia: being a foreigner in Portugal ........................................................................................... 5

International Business in Portugal ........................................................................................................ 6

General Education ................................................................................................................................ 6

Educational standards ........................................................................................................................... 6

Other Issues such as transportation infrastructure ................................................................................ 7

Cultural taboos ...................................................................................................................................... 8

Business Communication .......................................................................................................... 9

Face-to-face communication ................................................................................................................. 9

Language Matters ............................................................................................................................... 10

Business Relationships ......................................................................................................................... 10

Making contact .................................................................................................................................... 10

Personal Titles ..................................................................................................................................... 11

Business Etiquette .................................................................................................................. 12

Corporate Social Responsibility .......................................................................................................... 12

Punctuality .......................................................................................................................................... 12

Gift giving ............................................................................................................................................ 13

Business Dress Code ............................................................................................................................ 14

Bribery and corruption ........................................................................................................................ 15

Business Meeting Etiquette .................................................................................................... 16

Importance of Business Meeting ......................................................................................................... 16

Business Meeting planning .................................................................................................................. 17

Negotiation process ............................................................................................................................. 17

Meeting protocol ................................................................................................................................. 18

How to Run a Business Meeting ......................................................................................................... 18

Follow up letter after meeting with client ............................................................................................ 19

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Business meals ..................................................................................................................................... 19

Business Meeting tips .......................................................................................................................... 20

Internship and placement ....................................................................................................... 21

Work experience ................................................................................................................................. 21

Internship and Placement advice ........................................................................................................ 21

Social security and European health insurance .................................................................................. 21

Safety ................................................................................................................................................... 22

Do I need a visa? ................................................................................................................................. 22

Internship and placement salary ......................................................................................................... 22

Internship and placement accommodation ........................................................................................ 22

Cost of Living ........................................................................................................................... 23

Money and Banking ............................................................................................................................ 23

Traveling costs ..................................................................................................................................... 23

Work-‐life Balance .................................................................................................................... 24

National holidays ................................................................................................................................. 24

Working hours ..................................................................................................................................... 25

Working culture .................................................................................................................................. 25

Health insurance ................................................................................................................................. 25

Social Media Guide ................................................................................................................. 27

Private individuals ............................................................................................................................... 27

SMEs ................................................................................................................................................... 27

Search and Social Media Marketing for International Business ......................................................... 28

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Business Culture in Portugal

The following is a very short introduction to Portugal. External links at the end of this page provide you with more in depth information concerning different topics.

The following video gives you an overview of the general facts:

(http://www.youtube.com/watch?feature=player_embedded&v=ylfMWZxq2GY)

Portugal is situated on the West and Southwest side of the Iberian Peninsula in south-western Europe.

The country covers an area of 92,072 square km and is divided into 308 municipalities, which are further subdivided into more than 4,000 parishes. The regions are:

• Entre Douro e Minho; • Tras-os-Montes e Alto Douro; • Beira Interior; • Beira Litoral; • Alentejo

The population of Portugal is 10.562.178 million according to the 2011 Census conducted by the National Institute of Statistics. The capital is Lisboa (Lisbon) and the official language is Portuguese. The majority of Portuguese are Roman Catholic. There are small numbers of Protestants, Hindus, Jews and Muslims but the number of Evangelic Christians is currently rising due to the large numbers of Brazilians and their descendants who emigrated to Portugal in the early 2000’s.

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Portugal is in the GTM zone and during March to October Daylight Saving Time (UTC +1 hour) is in operation. Portugal has a maritime temperate climate with average annual temperatures of about 16°C. The North is usually cool and rainy, whilst the South is generally warmer and drier. In the past, Portugal was a world power. During the 15th and 16th centuries, the country acquired many dependencies overseas and enjoyed significant prosperity. In 1910 when the monarchy was overthrown, a repressive government ran the country for the next sixty years. In 1974 a left-wing military coup initiated a set of democratic reforms. At that time, Portugal granted independence to its African colonies. After 1974, Portugal set out an agenda for modernisation and democratisation. Between these dates Portugal had a fascist dictatorial government and was the last country to release its African Colonies (Angola, Cape Verde, Mozambique, St Thomas & Prince and Guinea) in 1975, a year after they were granted independence on 25th April 1974. In 1949 Portugal signed the North Atlantic Treaty (NATO) and in 1986 she joined the European Community. Portugal is now a parliamentary republic based on a Constitution drafted in 1976, . The executive is represented by the President, the Council of State (the presidential advisory body), the Prime Minister and Council of Ministers (the government). The President is directly elected for a maximum of two consecutive five-year terms. The Prime Minister who is also elected leads the Council of Ministers. The legislative body is constituted by the unicameral Assembly of the Republic (Parliament) of 230 deputies, who are elected for a maximum period of four years. The judicial power is vested in the Supreme Court, district courts, appeals courts and Constitutional Tribunal. The main agricultural products of Portugal are: cereals, olives and their vineyards. The main industries are cement production, fishing, oil refineries, automotive and shipping machinery, paper injection moulding, electrical and electronics plastic products, textiles, footwear, leather, ceramics, furniture, and cork ( of which Portugal is a leading producer). In addition, in several areas across the country there are non-traditional technology-based industries: biotechnology, aerospace, and ICT sectors.

Xenophobia: being a foreigner in Portugal

Generally Portuguese people are very friendly and welcoming to strangers. They are sincere and usually mean what they say. Personal relationships are especially important in business and, in fact, very often are as important as the products or services involved. In general, the Portuguese prefer to do business with those they can trust which is usually the result of having spent time in building a relationship. It is thus appropriate to have a mutual contact and to build up a certain degree of credibility before you start negotiating with the Portuguese. The approach in Portuguese business in general is also based in flexibility, sometimes looking forward to long-term business relationships rather than a single one off transaction. The Portuguese have a great respect for foreigners and as such usually welcome them and their ideas warmly. In the 70’s anything that came from outside Portugal was seen as being “new” a fact that was probably related to the fascist government’s prohibition of certain products or services. Nowadays, due to the recession the Portuguese prefer to buy their own products,

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even though these are usually more expensive due to a smaller output in terms of product or service.

International Business in Portugal

Some essential aspects of Portuguese life have an impact on the way business is conducted. Without at least a partial understanding of some of the issues relating to Portuguese cultural attitudes and values, you may experience a ‘culture shock’ which may have a negative impact on your business activities in the country.

General Education

Although the Portuguese education system is of an acceptable standard, it is still not as advanced as those of many other western European countries. In the past the country’s poor educational performance when measured against the rest of the EC was particularly striking and could be seen as a legacy of Portugal’s long isolation from Europe and the repression of the period before the revolution of 1974. In recent decades, however, the Portuguese economy and society have undergone significant changes and many issues related to the education system have been addressed. Despite these changes, Portugal is still ranked as the lowest country in the OECD Educational Attainment index.

In the 1990s, the illiteracy rate in Portugal was at about 15% – the major contributors to this statistic being older people. Another problem was the low school enrolment figures after the primary cycle, especially in rural areas, where many children began work at an early age. The Portuguese education system also suffered from outdated facilities and equipment, poorly paid teachers, curricula unsuitably set and a low rate of university enrolments. Although many of these issues have improved significantly in recent years and the standard of Portuguese education system is continuously improving, for many foreign companies the necessity to address education-related issues is still quite common.

Nowadays, a skill that is growing rapidly among Portuguese people is computer literacy. Although not as high as in North-Western European countries, Portugal has a fairly good PC literacy profile, particularly among the younger generation. For managers of all age groups, it can be expected that they have developed PC skills, as the use of information technology is continually spreading within Portuguese businesses.

Educational standards

Having an high level of education it’s vital to find a job. In Portugal, only the 32% of adults (25-64 years old) have an high-school degree.

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This percentage is lower respect the OECD average of 74% and. Anyway, during the last years government are facing this issue reorganizing and modernizing its school system and offering better facilities for all.

Other Issues such as transportation infrastructure

Topics that are particularly suitable for a conversation with Portuguese counterparts include: football, Portuguese food and wine, family, politics, the economy, movies, travel, music and literature. The colour red is usually seen as a symbol of the revolution, whilst green is a symbol of hope and blue of royalty.

When planning appointments you should use the 24 hour clock [e.g. '09.30h' for 9.30] in written exchanges but verbally ‘half past nine in the morning’ is ok. You should always write the date in the format ‘day/month/year’.

Portugal is a culture that respects age and position. In Portuguese society, status is of crucial importance. Car brands, executive remuneration, academic titles are all very important in Portugal. Interestingly, car brand is probably the most significant element of one’s status, Job title is of such importance that it is quite normal to see employees underpaid for the job they do but still be happy because of its status.

Since the Portuguese place such a high emphasis on status, they have a great respect for their superiors, which is, often exaggerated. Due to this approach, Portuguese workers are not used to asserting their own ideas or questioning management and so their bosses tend to be dictators.

This culturally embedded unwillingness to challenge authority is probably the biggest drawback of the Portuguese workforce. In the workplace, it usually manifests itself in a low appreciation for team work, analysing only the personal interest in an action (what’s in it for me?) and not being keen on taking responsibility. Portuguese people are generally complacent and dislike confrontation. Disputes are typically resolved through discourse, negotiation or avoidance altogether. However, it is rare to see a Portuguese avoiding confrontation when their values are called into question. Cheating or loss of trust would be a deal breaker for the Portuguese.

The workplace tends to be somewhat formal with even close colleagues using titles and last names. Very often Portuguese employees do not seek empowerment and are not used to accepting responsibility. When something goes wrong in an organisation, it is the fault of a colleague, a competitor, the government or the economy. For foreign firms therefore, it may not be easy to find someone who will take personal responsibility for the carrying out of delegated work.

Another issue in Portuguese business culture is the non-fulfilment of commitments either on time or at all. For foreign associates it is advisable not to assume that a commitment will be fulfilled without constant attention and badgering. In Portuguese business, planning is often

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poor and deadlines are not held to be very important Also, the Portuguese tend to plan more than they actually accomplish – over promising and then under delivering.

On the other hand, Portuguese employees are usually experts in dealing with a last minute crisis. In a Portuguese business there is always someone who will find a creative solution to the problem.

Cultural taboos

Your Portuguese counterpart will be quick to let you know if you have introduced a taboo subject. Topics that are better avoided include, colonial wars or the fate of their victims. Other controversial topics such as religion, racism, discrimination or abortion are also best avoided. It is advisable not to ask certain personal questions, for instance, about a person’s background, age, relationships, appearance or weight, or about their earnings and occupation. Behaviours that should be avoided are making overly exaggerated gestures and spitting in public.

As the Portuguese generally dislike confrontation, it is advisable to ensure that your behaviour cannot be interpreted as critical or ridiculing of this proud people.

As a golden rule, it is most appropriate to go for an atmosphere of mutual respect within the country and culture and acknowledge the effort your Portuguese counterparts make to welcome you to their country.

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Business Communication

Good communication is a corner stone of all prosperous business relationships. In order to communicate with Portuguese business partners effectively and avoid any misunderstandings , that may have serious impacts on the success of business relationships, it is necessary to understand the underlying conventions concerning communication practices. The following section will provide you with recommendations on the type of contact that is appropriate and will also outline some basic rules for effective verbal and non-verbal communication with your Portuguese counterparts. Last but not least, the use of titles will also be mentioned as it represents quite an important area within Portuguese business culture.

Face-‐to-‐face communication

Generally, conversations tend to be quite informal. Portuguese people are open and welcoming to strangers and are keen to discuss various topics. The golden rule for business people is to start in a rather formal manner and gradually proceed to a more casual mode of conversation . However, bear in mind that this can vary depending on the age, origin or status of the person involved. In the initial stage of an encounter, any personal compliments or personal questions should be avoided. Instead, it is advisable to compliment the country, people in general, food, wine or climate and discuss, for instance, your own family and home since the family is important in Portugal.

A sense of humour is also highly valued in Portuguese society, and , it is usually a good idea to use it in the early stages of a conversation. It is also acceptable to touch each other’s arms or hands during a conversation as Portugal is an affective culture. In general, the Portuguese do not use overly exaggerated hand gestures, but they are more demonstrative when greeting friends.

The Portuguese do not like verbal directness or confrontation. Thus it may be rather difficult to get to the point or to get an honest answer from them. In such cases, it is advisable to ask politely for a straightforward explanation. On the other hand, the majority of Portuguese are tolerant and it’s difficult to offend them. They are happy to deal with people from other cultures so it is not necessary to be overly concerned with the finer details of your behaviour but is more appropriate to focus on giving an positive overall impression.

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Language Matters

You can assume that any business contacts will speak reasonable English. If your Portuguese partners do not, they will tell you, it is not unusual for business people to speak other foreign languages.

English is usually the preferred language for negotiations with foreign associates in Portugal. When speaking English it is essential to take care to speak slowly, clearly and without the use of slang or overly technical jargon .

As, naturally, the language competence of each individual may vary, it is advisable to check their language competence with each individual business contact. If there is a probability of issues with the language, it is advisable to ensure that interpreting facilities are available at the negotiations.

Business Relationships

In Portugal, written contracts do not generally have the strength in business relationships that personal trust built over years of business association has. Mainly as a result of the bureaucracy and slow justice system, written contracts are often considered to be just pieces of paper. There are “Gentlemen’s agreements” based on trust that are as important as contracts). It is quite rude to put trust in doubt when forming business relationships with Portuguese companies. Should the system of justice get involved in resolving an industrial dispute, this usually takes about five to ten years.

If you do not know your counterparts very well, it is advisable to keep in mind that, as in any other business relationship, there is a possibility of being deceived. However, the business environment in Portugal is generally fair and honest. Nevertheless, it is advisable to constantly check that the other party is following the points that were agreed upon. If necessary, it is recommended to openly express any discontent and to point out that you really insist on the conditions agreed. This may help the other party to start to follow the rules.

Making contact

A gentle and/or firm handshake, with a smile and enthusiasm, is a common way of greeting business associates. It is a matter of courtesy to shake hands with people on meeting, even if you have met them many times before. When greeting women at a first meeting you should use a gentle handshake, but a kiss on each cheek it is not unusual.

However, it is not easy to assess whether it is appropriate to kiss or shake a woman’s hand. The golden rule is to extend your hand and kiss only if the woman offers her cheek. A gentle

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hug on first greeting or departure is acceptable only for business partners who know each other well.

Generally, in Portugal physical contact is more common than in other Northern European countries. People stand closer to each other during conversation and maintain more eye contact. People normally put their hand on the upper arm of their colleagues and friends as they walk down the street as a gesture of warmth and trust. A grip of the arm or a hand on the shoulder is not uncommon between business associates.

Personal Titles

A persons title is not usually asked for. Someone who has graduated in Portugal has the title of “Dr.” and in business you should address any individual as “Dr.” with their “last name”. If the individual has not graduated, he usually corrects you by saying “Mr.” and that is a good ice breaker, so always assume someone is a Dr until he or she tells you otherwise.

In Portugal it is normal for people to have several first or second names. Usually, the first in the list is the first name, the rest are family names. Generally, when addressing people, you are not expected to use their first name, unless you have been invited to do so. First names are usually used only by very good friends ( outside work, good friends are usually called by their nicknames). In many companies, even close and long term colleagues may still refer to each other quite formally.

Bear in mind that Portuguese people are very difficult to offend, thus when in doubt about using or pronouncing someone’s name, do not hesitate to ask your Portuguese associates for help.

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Business Etiquette

The knowledge of cultural aspects of your Portuguese partner can help you to overcome potential difficulties in communication. Relevant issues when you start business relationships in Portugal you should know some basic rules of business etiquette such as punctuality, gift giving, dress code.

Corporate Social Responsibility

Corporate Social Responsibility (CSR) in Portugal is mainly focused on fighting exclusion and poverty and on corporate community Involvement. The main environmental issues are soil erosion and air pollution caused by the emissions from industries and vehicles, water pollution is also significant in particular, in coastal areas.

In general, Portuguese people are unaware of CSR, because there is a lack of information, publicity, media involvement and CSR regulations,

Those who are familiar with CSR work in companies where it is a focal point or because they are interested in the topic generally; public debate on CSR doesn’t exist.

Sustainable products and sustainable consumption are still unknown to Portuguese society, however in the last few years companies have started to consider sustainability as representing a possible competitive advantage.

Politics of CSR should be promoted by the government, because it can be a powerful instrument with which to address social exclusion and favour more transparency in companies’ activities.

Punctuality

In Portugal punctuality is not seen as important. Interestingly, people from the North are usually more punctual than those from the South. In fact it is polite to arrive five minutes late. The host usually arrives “on time” but all others are usually late although. more than 30 minutes late, is generally considered to be rude. For foreigners, the best practice is to be on time, probably 5 minutes late. If you are running late, is it advisable to telephone your business contact and advise them of your delay. To sum up, it is essential to bear in mind that the Portuguese do not share the same concept of time with other western European nations.

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When you arrive for a meeting, do not be offended if you are kept waiting for up to 20 minutes. This is usual practice in Portugal. If you are kept waiting more than 30 minutes, then it would be quite normal to express some discontent.

The Portuguese will often specify the time arrangements in a somewhat lax way, for instance, by saying ‘in the afternoon’ (meaning between 1PM and 6PM), ‘in the late afternoon or evening’ (from 6PM to 9PM) or ‘at night’ (after 10PM). Thus it is recommended to ask your Portuguese associates to specify the time. Business wise, it is common to say “By 15h” which can mean anything from 15:00 to 15:20m, more than that is rude. Bear in mind that the Portuguese use the 24 hour clock.

Most people will have dinner outside their homes when socializing, older generations however will stay several hours at someone’s house, from afternoon to after dinner time or from lunch until late afternoon.

Gift giving

In the Portuguese business environment it is normal to give a gift to customers and partners. To reject a gift is seen as offensive. Also, as gifts are considered to be a personal gesture, it is not polite to re-distribute a gift to staff.

For the Portuguese, gifts are a sign of respect, not a bribe. The usual practice is to present gifts unwrapped and to give them at the beginning of a business encounter. If you receive a wrapped gift, it is polite to open it immediately and express gratitude. It is not polite to give a gift in return at the same time.

Although it is sufficient to say thank for a gift, it is recommended that you also send a thank-you note after the encounter.

Particularly suitable gifts for Portuguese business partners include gifts from your own country or region. Spirits, whisky, French brandy (Cognac) or Port wine, coffee table books, personal items such as ties or scarves are also acceptable gifts. Flowers are unacceptable..

Excessively expensive gifts can be accepted only if they are really appropriate for a particular business situation and if the person involved has a high position within the company. At Christmas suppliers usually distribute gifts to their customers.

Similarly, your company’s gifts should be representative of your country and their value must be able to be clearly perceived by the recipient. If you are invited to your Portuguese host’s family, apart from the almost compulsory flowers or a box of chocolates for the spouse, it is advisable to bring along some gifts for his/her children, however, some knowledge of their age range would be beneficial here. Giving wine in Portugal is best avoided, stick to spirits.

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When giving a bouquet, it is considered unlucky to give 13 flowers and avoid giving lilies or chrysanthemums as these flowers are only used at funerals. Red flowers should also be avoided as red is the symbol of the revolution.

Business Dress Code

In Portuguese society in general, appearance is very important. Portuguese people are usually well aware of current fashion trends and clothes are often used to express one’s status and success. When going out to a social event, it is advisable to choose your dress carefully and ensure it is clean and your accessories are coordinated. When invited to a meal, men should wear a tie. When going to the opera or theatre, a tie is also the best option.

Business dress is usually rather formal. Casual dress is still unusual in Portuguese companies, even in modern or creative industries. In some cases, however, companies allow their staff to dress down on Fridays. However, a standard business suit is still the most common form of dress among businessmen.

Male Portuguese business associates normally wear long sleeved shirts since short sleeved shirts are considered too casual. When in a meeting, it is fine to take off your jacket if you are hot, however, it is advisable to check first whether the other party minds. Rolling up your sleeves is not acceptable, unless your companion does so first.

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However, even if he does, be careful since the rules concerning the ‘right fit’ of jacket; shirt and tie are quite complicated.

For women, it is advisable to dress well but not to overdress. Conservative fashion is preferred for business meetings. Trousers and trouser suits are also acceptable as a part of women’s business attire.

Bribery and corruption

Portugal has a slightly higher level of corruption than other western European countries. Corruption is an important political and economic issue and still represents an enduring characteristic of Portuguese business culture.

Most cases of bribery and corruption are reported from the public sector. They are related mainly to concessions, unclear approvals of contractors and specific economic lobbying or job offers to friends and family members. However, corruption is usually not identified as an obstacle by foreign firms doing business in Portugal. It is tax evasion that currently represents a major problem. The situation is continuously improving though, mostly as a result of the government’s efforts to combat corruption before it reaches the highest levels. Portugal has ratified the OECD Anti-bribery Convention and incorporated it into domestic legislation.

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Business Meeting Etiquette

Before you attend a business meeting, it is recommended to have a general understanding of Portugal’s cultural background. The culture colours all areas of life and business encounters are no exception. During your stay in the country, you may notice that there are substantial differences between regions.

Adjusting to a particular setting is therefore important. However, bearing in mind that the Portuguese are generally aware of other cultures, any minor ‘infringements’ from the norm will surely be tolerated.

Be prepared for negotiations with your Portuguese counterparts to be time consuming Finalizing meetings with unclear statements but with the feeling of a job “well done” is quite common. Afterwards, contracts are exchanged and if there are any problems then these will be ironed out between the parties. Long business lunches in traditional restaurants are normal parts of Portuguese business culture.

Do not take any statements for granted until the final contract has been written and signed. Any verbal or written statements are generally not given the same importance as in, for instance, the UK or Germany.

The key to successful negotiations with your Portuguese counterparts is to respect their culture and values, however, at the same time clearly assert, in a polite way, what your conditions are. The key is reaching a mutual agreement.

Importance of Business Meeting

In general, Portuguese associates are keen to discuss potential business with foreign counterparts. Companies from abroad are seen as more modern and innovative, bringing valued experience and expertise to the Portuguese environment.

On the other hand, like in many other country’s business environment, in the beginning it is not always easy to get to the people with the appropriate status for negotiating business.

Portuguese business is hierarchical and the highest-ranking person makes the decisions. The initial challenge is often to deal with secretaries who try to filter visitors to some highly positioned executives.

Building a network of business associates is vital for success. Generally, expect to invest a significant amount of time developing the relationship. The Portuguese usually prefer face-to-face meetings than written or telephone communication, which are seen as impersonal.

Business relationships are built with people not companies. Thus, if a company decides to change its representative, the process of building the mutual trust that may have taken several years will have to begin all over again.

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Business Meeting planning

Your first correspondence with a new Portuguese counterpart should be written in Portuguese.

Ideally, appointments should be made about one or two weeks in advance and confirmed a few days before. When scheduling the appointment, you should avoid the vacation period in August and the week between Christmas and New Year. The best times of day for arranging a business meeting are 11 AM or 4 PM. Early mornings are not recommended as local people need some time to get going.

Appointments later then 6 PM are not viewed favourably since this is the time that should be devoted to the family.

As the majority of Portuguese executives are men, it is advisable for foreign companies to send male delegates to negotiations in Portugal.

This situation is constantly improving though and you can now find women company executives, directors and managers who are paid as much as their male counterparts. Women with a minimum level of education do still get paid less than men however, but this is more due to the type of job role they hold which tends to be administrative.

While it is not common to come across much overtly sexist behaviour, women do still have the harder time when it comes to fighting for equality in the workplace. For meetings you should arrive either on time or with a ‘polite’ five minutes delay. If you are kept waiting, do not appear irritated, unless you have been kept waiting for more than 30 minutes.

Negotiation process

During negotiations general rules of politeness apply. In particular, it is important to treat business colleagues with respect and not do anything to embarrass them. As relationships are of vital importance in the Portuguese culture, a deal may well be rooted more in an emotional and personal consideration than a purely financial one. Keep in mind that for the Portuguese it is much easier to reach an agreement with a friend than with an opponent. When in negotiation, it is useful to bear in mind the following general characteristics of the Portuguese. Although honest, the Portuguese do not tend to share information, unless they are explicitly asked to do so particularly if it is to their advantage to withhold it. Secrecy is an integral part of Portuguese negotiation tactics.

The Portuguese often feel that opening up would expose their weaknesses. It may also be somewhat difficult to find out their honest opinions since direct criticism is not appreciated in Portuguese culture. It may be wise to maintain eye contact and look for clues in the body language of your Portuguese associates.

As they are generally more relaxed than, for instance, north European nations, be prepared that the meeting may be interrupted or suddenly postponed to another date.

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Furthermore, it can be expected that your Portuguese associates will focus on short-term gains, rather than long-term strategic benefits. Any presentations should be well prepared, thoroughly researched and backed up with charts and figures. Also it is advisable to have all materials available in both English and Portuguese. Be prepared for the fact that a final decision will not be made until several negotiation meetings have taken place. Business is conducted slowly. You must not appear impatient. Do not use high-pressure sales tactics (these do not work at all), and the Portuguese are offended by aggressive behaviour. As stated above, the golden rule is not to consider anything said in a meeting as final or absolute. Contracts, oral or written, do not have much significance. Be prepared for renegotiations of points that were already agreed upon: an agreement is reached only when the contract is signed.

Meeting protocol

The first action should be to shake hands. At the end of a meeting partners will exchange their business cards, never at the beginning. Ensure you maintain direct eye contact when talking to your Portuguese counterparts. You will probably be offered coffee (espresso) and water. After the greeting, it is polite to devote some time to an informal conversation before you proceed to the business agenda. The weather is considered an appropriate topic for small talk and Portuguese business partners usually get carried away with football, food, the economy, politics and fashion. The weather is a good standby as when it is warm the Portuguese do not like to work in suits and when it is cold they complain about it and their mood is low! Initial meetings are usually conducted in a formal way. As both partners get to know each other, the nature of meetings becomes more personal and relaxed. Then it is acceptable, for instance, to greet each other with a hug and a handshake and women to kiss each other twice on the cheek starting with the right.

How to Run a Business Meeting

When running a meeting with Portuguese counterparts, it is most important to ensure that the event has been properly planned and prepared. The Portuguese often do not put much emphasis on the preparation part and as a consequence, meetings can be confusing and inconclusive.

Ensure that appropriate documents are prepared for the meeting and any necessary facilities provided. Bear in mind that dialogue constitutes the most important element of the business encounter and closure will usually take time and patience. It is highly recommended to make good notes during the meeting and offer to do the minutes, if there are any. Although writing up minutes is not common in traditional business meetings, you can insist on doing them in order to ensure that the agreed points will be followed and any actions completed as agreed.

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The golden rule is to sum up at the end of the meeting what the salient points are and to conclude what actions need to be taken and by whom before the next meeting. Ensure that everyone’s commitments are clearly stated. Furthermore, you can send a reminder of those commitments shortly before the next meeting.

Follow up letter after meeting with client

It’s not unusual to find that Portuguese partners don’t respect deadlines, because they have a different attitude towards time and deadlines are not so crucial as they are to people from other countries. In order to ensure that business meetings with your Portuguese counterparts will be as effective as possible, is it advisable to do the following: after the meeting, circulate the minutes. In particular, point out the main areas that were agreed on and specify the commitments of each participant. Ensure that the deadline dates for each action are clearly communicated and acknowledged by the other party. Shortly after your meeting, it is appropriate to telephone your Portuguese counterparts to confirm that points are being followed through e-mail and then make an informal phone call letting them know that an e-mail was sent.

This can also provide the right opportunity to double check the next meeting date and venue. The Portuguese associates will appreciate a telephone call, and the opportunity to speak briefly with you before the next face-to-face meeting will appeal to their need for affiliation. You could also invite your partners out for drinks in order to get to know them better and further cement your growing business relationship.

Business meals

Lunches and dinners represent a suitable opportunity to deepen a relationship and discuss business in an informal way. Breakfast meetings are still unusual in Portugal since in the morning Portuguese people are generally only warming up for the day’s work. Lunch however, is a key opportunity for business activity. Dinner is more social and intimate than lunch. Normally, lunchtime is between 1 PM and 3 PM and dinner between 8 PM and 10 PM. It is normal practice that your Portuguese counterparts will pay the bill. If you decide to pay, make it clear at the very beginning that you are inviting your host and ensure the waiter brings the bill to you since he/she may assume that it will be the Portuguese associates who will want to pay. Portuguese people don’t usually divide bills. Charges for services are not included in the bill and a tip is usually about 10 per cent. When you are just going out for few drinks with friends, the bill is paid by “round”, when having drinks with business colleagues, each partner will pay for their own drink: they don’t share the bill.

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Table manners in Portugal are formal, similar to other countries in continental Europe. It is polite to stay standing until invited to sit down at the table and not to start eating until the host says ‘bom apetite’. It is not acceptable to rest your elbows on the table while eating. Portuguese cuisine is generally very good: cooked fish, fresh and tasty, is a traditional food in many areas. Also popular is a dish based on salted cod that can be cooked in many ways. Other types of meat, such as beef, pork, chicken, lamb are also widely available. Wine, particularly red, is a typical Portuguese drink and people are very proud of it. Please note that Port wine is not red wine, but is considered a spirit. Red wine is the flagship of a Portuguese table and is not consumed with fish or seafood. The selection of Portuguese wines is large and it is advisable to ask the waiter for assistance with your selection. Portuguese coffee is also excellent and of superb quality.

Typically, it is served as an espresso. Only older generations drink black coffee, at home. Milk is usual at breakfast, but as mentioned, a coffee is usually a single espresso. In Portugal it is not unusual for you to be invited to your business partner’s home for dinner. You will probably be asked to arrive around 8PM, Make sure you arrive with a polite 5 or 10 minutes delay, never on time. If it is the first time that you are invited to somebody’s house, be it for coffee or food, it is necessary to bring a small gift for the hosts (for example wine).

Business Meeting tips

Under no circumstances, should you ever shout or lose your temper since this will simply diminish your credibility. The Portuguese have an instinctive wish to please. Thus it is essential to insist on specifics. Very often the information given by the Portuguese is rather vague in order to mask shortcomings. Never write anything in red ink since this is considered offensive: use black or blue only. You should respect people in senior positions and be formal in your written communications. When you have to turn your back towards someone, apologise first.

Although smoking is largely widespread in Portugal, ask before lighting up as some workplaces operate non-smoking policies. The expressions ‘please’ and ‘thank you’ are very used often and they are also associated with adverbs or adjectives such as “Muito obrigado” thank you very much”. When in a meeting, it is not acceptable to sprawl or put your feet on the furniture. A good posture should be maintained at all times but it is OK to cross your legs. If your Portuguese business partner needs further information, for example clarification during a presentation, they will usually not interrupt you, waiting until you have finished speaking. You are quite safe using hand gestures and animated body language while speaking and making your presentation in Portugal.

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Internship and placement

Work experience

Universities in Portugal have specific International Relations Units and/or offices dedicated to student placements.

Students interested in carrying out a work placement in Portugal should send their CV and a covering letter to the placement office. This office can help students thanks to connections with associate partner organisations, companies and other organisations who offer placement opportunities.

In addition, there are private organisations, which offer placement opportunities to students and researchers. Usually, these organisations require students to take a preparatory language course which helps them to prepare for working in Portugal.

Private agencies provide information and assistance throughout and a tutor will give you advice in order to solve any problems that might occur during the placement. These organisations also guarantee a job interview, but not to a job. The result depends on previous experience, language skills of the student and on company needs at the time.

Users of these services are expected to pay a fee in two instalments, a first payment, and once the organisation has accepted t request of the participants, they should make the final payment.

Internship and Placement advice

There are several practical issues related to internship and placement you should need to know. It’s very important you are aware about the formalities necessary before leaving such as Visa rules, social security, arrangements.

Social security and European health insurance

EU citizens and students from Iceland, Liechtenstein, Norway or Switzerland, can benefit from free medical and hospital care during their stay in Portugal by presenting their European Health Card.

Third Country citizens must have medical insurance or other special medical cover/arrangements for the duration of their stay in Portugal. If they have been residing in Portugal for more than 90 days they may wish to apply for the National Health Service Card

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(Cartão do Utente do SNS). The card allows access to the Portuguese Public Health Service which is free of charge and can be obtained from local Health Centres (Centros de Saúde).

Safety

Walking alone at night in particular areas of large cities, might be dangerous, so it’s important to bear this in mind when looking for a flat. Recently, strikes and public protests against the government have increased as a result of austerity measures. Travellers should therefore try to avoid areas where these public protests are taking place. In the event of an emergency the number to call is 112 but there are also other numbers for specific emergencies.

Do I need a visa?

Portugal is part of the Schengen Area, hence, EU citizens and those of Andorra, Iceland, Liechtenstein, Norway and Switzerland need only an identity card in order to enter the country. For stays of up to 90 days, visitors from non EU countries such Argentina, Australia, Brazil, United States, Canada and others (view the complete list from the reference below) need only a Passport. Otherwise citizens from countries not listed above will need a VISA to enter Portugal. You can request visas at any Portuguese Embassy or Consulate in your country.

Internship and placement salary

Private organisations offer information and help to match placement opportunities to students. Their programmes allow students to find a paid work placement or to participate in unpaid internships.

Some programmes that include paid jobs combine a language course (usually 3 weeks minimum) in the main cities, with a job placement. Participants will receive between 200-400 Euros depending on the company and the previous work experience of the students. This amount should cover basic expenses. Nowadays however, placements are not usually paid.

Internship and placement accommodation

Many universities offer accommodation in Student Residences which are usually located around the city/town. Housing facilities are not always integrated into Campuses. Although the cheapest option is to stay in university residences, it’s possible to rent a room sharing a flat with other students. Prices vary depending on the city and the area; the range in 2013 was from- €150 to €300.

Older Portuguese people u often offer to rent out a room in their own house, so if you don’t want this kind of accommodation you should look for flats without landlord (‘sem senhorio’).

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Cost of Living

Portugal is not as expensive as many other Western European countries, especially when buying food & primary goods, rent, and entertainment. The amount of money a student needs depends on their life style, but a budget of € 600 per month (this estimate is accurate for 2013) should cover basic expenses and some leisure activities.

Money and Banking

Third country citizens should open a bank account because foreign credit cards may not always be accepted in Portugal. To open an account, you will need your passport or international ID card, an address in Portugal and a Portuguese fiscal number which you should be able to find at the Citizen Shop (Loja do Cidadão). Students can usually benefit from special deals between universities and banks which provide free or low service fees accounts.

Traveling costs

Students taking an internship in Portugal are normally expected to cover their own costs of travelling to the country. Students who participate in ERASMUS mobility programmes receive a grant to help them to cover travelling costs (including insurance and visa costs) related to their study period abroad.

There are low cost companies who offer good fares to the Portuguese international airports at Lisbon, Oporto, Faro and Funchal (Madeira). Daily international trains run between Paris-Lisbon, Lisbon-Madrid and between Oporto-Vigo. Buses are cheaper than trains but they are slower and less comfortable. Long-distance bus lines are Eurolines and Busabout.

Usually, students can get special rates for travelling on trains or other public transport.

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Work-‐life Balance

Many Portuguese people feel a tension between their working lives family responsibilities and their personal well-being suffers as a consequence. In OECD and other European studies, women in particular reported suffering from a poor work-life balance. Indeed, many Portuguese women reported that keeping a healthy balance between work and life was not easy.

An important aspect of work-life balance is the time spent at work: about 8% of men spend more hours in paid work, compared with 3% for women.

Compared with other European countries, Portugal places greater emphasis on family values although younger generations are much more career oriented than their parents were. Even the extended family is quite closely bound and members are usually very loyal to their families.

For working parents, balancing work and domestic responsibilities is a crucial part of life and families need more support when caring for young children. The recent government reform on parental leave has allowed families to spend more time with their newborns, as well as promoting gender equality. Families are asking for more investment in child care services for the future.

National holidays

Following is the list of Portuguese Bank and Public holidays:

January 1 – New Year’s Day

February 28 – Carnival

April 14 – Good Friday (moveable date)

April 25 – Liberation Day

May 1 – Labour Day

June 10 – Portugal Day

August 15 – Assumption Day

October 5 – Republic Day

November 1 – All Saints’ Day

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December 1 – Restoration of Portuguese Independence

December 8 – Feast of Immaculate Conception

December 25 – Christmas Day

Working hours

Local time is Greenwich Mean Time – the same as in London in the UK. Usual business hours are from 9 AM to 6 PM. Shops are normally open from 9 AM until 8 PM (some shopping centres stay open until 11pm). Office hours of public institutions are usually from 9 AM to 6 PM with a lunch break from 12.30 PM until 2 PM – there is no ‘siesta’ tradition in Portugal.

Portugal does not have many convenience shops, however almost all petrol stations have a 24 hour shop service Coffee shops and snack bars are open until 11pm, apart from some convenience stores and petrol stations. Every town operates a 24 hour pharmacy service and each pharmacy shows a list of pharmacies open on Sundays, during holidays, etc.

Working culture

The statutory maximum working week in Portugal is 40 hours and the statutory maximum working day is 8 hours. Annual holidays provide employees with the opportunity for physical and mental recuperation and the right to be paid for this period. Employees may not waive their right to paid annual holidays. In Portugal the holiday entitlement is 22 days (in the banking sector it is 25). For employees on fixed-term contracts lasting for less than a year, the entitlement is two days for each month of service completed. During their annual holiday, employees receive the pay corresponding to the period concerned plus a holiday bonus of the same amount

Health insurance

The constitution in Portugal protects health care as a fundamental right. As a consequence, the public health facilities are not always able to offer a particularly high level of service. Today Portugal still lags behind most other EU member countries in some categories of health care

The health sector is currently undergoing extensive modernisation and it is expected that the number of high quality hospitals will grow. Furthermore, there are many private health establishments that offer a high standard of service. So overall, health care in Portugal is gradually improving.

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EU citizens have free access to the health care system in Portugal under the EU reciprocal health agreement on production of a valid European Health Insurance Card (EHIC) (the validity is for three to five years).

This card covers any medical treatment you may need during your trip, or in the case of illness or accident. Your card provides you with access to same state-provided medical treatment that is available to a Portuguese citizen. like any other . Although in a vast majority of cases, the health care can be claimed for free, it is still advisable to arrange for optional insurance for travellers.

If you intend to stay in Portugal for an extended period of time, your rights change. If you work in Portugal and thus pay the compulsory national insurance contribution, you are entitled to free health care. In other words, you are entitled to the same range of health services as other local citizens. This usually involves free essential medicines, free appointments with a doctor etc. It is normally necessary to pay for non-essential medicines and the contribution varies between 40 and 100 per cent of the cost of the medicine. In comparison with other European countries, it is possible to get a considerably larger number of medicines on prescription in Portugal.

Pharmacies are open for long hours and there is always at least one that is open for emergency prescriptions.

In Portugal the number to dial in case of emergency is 112.

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Social Media Guide

In Portugal the use of Social media is increasing and it is recognized by companies and other organizations as a useful communications tool, particularly for communicating with potential clients.

Although, the government has invested in IT infrastructure and technologies, in particular in schools, there is still a lot of work to do.

Private individuals

The main social networks are Hi5 and Facebook and these are used for private messaging, contacting friends and sharing videos and photographs. At the moment, in Portugal, there are 4.7 million users on Facebook and 2.5 million users on Hi5. The majority of users are aged under 18 and this has raised concerns about privacy and safety online.

Orkut has a high number of accounts, like Myspace, due to the use of “Hotmail” which with the updates from MSN MESSENGER (also quite popular 10 years ago) allows the user to create an account by just pressing “yes” a few times.

As regards professional networking, Portuguese people working abroad use the Star Tracker which is a highly visible niche network.

Businesses and researchers are very keen on using Google+ as Gmail is very reliable for the Portuguese internet communities.

SMEs

Currently the use of social media in SMEs is growing and is becoming part of their communications strategy.

In Portugal as in other European countries marketing and public relations industries are the main users of social media, but consumer brands are quickly following..

The majority of online conversations via Social Networks are held in Portuguese; English is occasionally used for contacting people from other countries. Companies seem to adhere to the general social media rules and etiquette.

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The main rule is that contact is generally made with people that are directly known to the company or who have been introduced by mutual friends. .

Search and Social Media Marketing for International Business

Learn how to use social media for business from one of Salford Business School’s latest business management courses.

The course was jointly researched by the Passport to Trade 2.0 project team and prepared in collaboration with some of the leading digital marketing agencies in the UK.

This Massive Open Online Course (MOOC) can help businesses and individuals to make the best use of search and social media platforms.

The course is called Search and Social Media Marketing for International Business and is applicable to students looking for placements abroad as well as businesses thinking about new trade links; it comprises the following twelve topics:

How to develop a personal brand online (1/12)

http://www.youtube.com/watch?v=l9LYw0mgtn4&feature=player_embedded

• Whether you are a student beginning a job search or a business person planning a new business venture, personal branding can make a difference.

• Learn about personal branding and why it is important for you.

How to use Twitter (2/12)

http://www.youtube.com/watch?v=9CVY3pp91Dc&feature=player_embedded

• Learn the basics of using Twitter to develop an individual or business profile.

• Remember to use hash tag #SSMMUoS to share your learning journey on this course so far!

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How to use Search Engine Optimisation (SEO) (3/12)

http://www.youtube.com/watch?v=zw27cRcwtM0&feature=player_embedded

• Learn the principles of SEO to ensure that your website and any social media profiles are found by individuals searching for your name, products and services.

• These basic principles of SEO include keyword research, on-page optimisation and off-page optimisation.

How to use social media for international business development (4/12)

http://www.youtube.com/watch? v=Bx-B56AHS4c&feature= player_embedded

• Social media networks break down the traditional country barriers, but do you know which networks are relevant for the country you are interested in trading with?

• Find out in this video how to identify the relevant networks and what social media strategies you might be able to use on these networks.

How to use Facebook (5/12)

http://www.youtube.com/watch? v=UmRGn-vdcO8&feature= player_embedded

• Facebook is currently the largest social media network in the world and it can benefit you as a business as well as an individual.

• Learn how to develop a Facebook business page and see how other businesses use it and what strategies work for them.

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How to use YouTube (6/12)

http://www.youtube.com/watch?feature=player_embedded&v=G20OVpmTBss

• YouTube was identified as the second largest social network amongst younger internet users as part of the Passport to Trade 2.0 project.

• Learn how to optimise your video content in order to reach wider audiences for your profile.

How to use LinkedIn (7/12)

http://www.youtube.com/watch?v=N6e_EAUQqic&feature=player_embedded

• LinkedIn is one of the three main professional social networks – the others being Xing and Viadeo which are also popular in several European countries.

• Learn how to make the most of LinkedIn for your profile.

How to use Google+ (8/12)

http://www.youtube.com/watch?feature=player_embedded&v=8ti3SPHkEWw

• Google+ is the second largest social network as of January 2013.

• It is one of the fastest growing social networks and one that has the biggest impact when it comes to search engine results integration for anyone who uses Google as their main search engine.

• Learn how to make the most of Google+ for you and your digital profiles.

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How to use copywriting online (9/12)

http://www.youtube.com/watch?v=5f1hx_f2ONI&feature=player_embedded

• Copywriting is a process of translating technical specifications and product descriptions into engaging and understandable customer focused text.

• Learn about the basic techniques in structuring your online content here.

How to stay legal on social media (10/12)

http://www.youtube.com/watch?v=eQxD-piHsdk&feature=player_embedded

• Everything and anything you do and say online can be potentially viewed by anyone who has internet access.

• Always respect the law and familiarise yourself with new options offered to you through a creative commons licence which is popular online.

How to use monitoring and reporting (11/12)

http://www.youtube.com/watch?v=LbEq7jsG0jg&feature=player_embedded

• Whether you are an individual or a business spending time on social media – there has to be a return on your engagement online.

• How do you justify your engagement on social media to your boss? Listen to the industry experts in this area and see what you might be able to measure in respect of your on-line engagements.

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How to blog (12/12)

http://www.youtube.com/watch?v=OqVjR7oI8Rs&feature=player_embedded

• Blogging is a process of writing text and sharing content with others. It can help your customers or friends to keep in-touch regardless of social media platforms.

• Think about the voice you might want to adopt and who your audience might be. Share your thoughts with us by writing a blog post about this MOOC.

• Tweet us the link to your post on the #SSMMUoS Twitter hash tag.

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Passport to Trade 2.0 Project Partnership Five Universities:

Lead partner: Salford Business School, University of Salford, United Kingdom

Elena Vasilieva Aleksej Heinze Alex Fenton

URENIO research unit at Aristole University of Thessaloniki, Greece

Christina Kakderi Nitsa Papadopoulou

TSE Entre Research Centre Turku School of Economics, University of Turku, Finland

Satu Aaltonen Elisa Akola

Institute for Information System Research University of Koblenz-Landau, Germany

Verena Hausmann Susan Williams Petra Schubert

Valahia University of Targoviste, Romania

Adriana Grigorescu Leonardo Badea

Three Small & Medium Sized Enterprises (SMEs)

Spin, Italy

Carmine Antonio Donato Dorella De Tommaso

Technology Development & Innovation – TDI LTD Bulgaria

Milanka Slavova Ivan Stoychev

TIS Praha, Czech Republic

Anna Klosova Richard Adekeye

Portuguese business culture guide - Learn about Portugal

Education

Transcript of Portuguese business culture guide - Learn about Portugal