Culture Presentation IBM Group-1

8/8/2019 Culture Presentation IBM Group-1

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Spain Culture Presentation

International Business

Management

By

Group 1


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Country Facts

Capital Madrid

Constitutional Monarchy & Parliamentary Democracy

King Jual Carlos I

Prime Minster Jos Luis Rodriguez Zapatero

Area 504,000 sq km (51st Largest Country)

Population 46 million (27th ), 11% immigrated

Official language Spanish

Other languages - Aranese, Basque, Catalin & Galician

Spanish Worlds 2nd most spoken first language

Religion 79% Catholics, 11% non-religious, 2% others


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Economic Environment 9th largest economy GDP - $ 1.36 trillion

GDP per capita - % 26,689

Inflation 1.4% Gini coefficient 32

HDI 0.955 (15th rank)

Currency Euro

Conservatory financial regulatory regime 2nd biggest tourism industry in the world

Member of UN, EU, NATO, OECD and WTO


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Business Environment

Very Leisurely approach to doing business.

Many businesses are closed from 1:30 PM to 4:30 PM

Corporate tax rates 25 to 30%

Personal tax rates 0 to 47% Main Industries Metals, Chemicals, Ship Building,

Tourism, Textiles and Apparel

Main business partners EU and USA

17th most attractive business environment

Low labor ,commercial space, utilities costs and lowcost of living.

Large promoter of R&D


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Business Environment

Ease of doing business 62

Starting a business 146

Dealing with construction permits 53

Ease ofEmploying workers 157

Property registration 48

Getting credit 43

Protecting investors 93

Paying taxes 78

Trading across borders 59

Enforcing contracts 52

Closing a business 19


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A brief History

25,000 to 10,000 B.C.: The cave paintings of Pinal, Pena de Candamo, El Pendal,Pasiega, Ribadesella and Altamira demonstrate the existence of a fine culture in the

Magdalenian period.

218 B.C. to 586 A.D.: Romans rule Spain.

712 to 913: Muslims rule Spain.

913 to 1492: The Catholic Re-conquest Spain.

1492 to 1898: Spanish Colonization. Discovery of America (October 12th, 1492).

1812: The first Spanish constitution.

1898: War with the United States. Spain looses. Cuba, Puerto Rico and the Philippines

are turned over to the victors.

1914 - 1918: Spain remains neutral in the First World War.

1923 to 1931: General Primo de Rivera's dictatorship.

1936-1939: Spanish Civil War.

1939-1975: General Francisco Franco's dictatorship established.

1975: Franco dies, Juan Carlos de Borbn is proclaimed King.

1978: The Spanish people approve the new Constitution. Spain becomes a

parliamentary monarchy.

1986: Spain Joins the European Community


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Social Stratification

The apex of Spain's social pyramid is occupied by the royal family, followed by the titled

nobility and aristocratic families (even in the Franco regime which Franco substituted with his

own).

Many titled nobles still make their livings in middle-class professions without loss of social

esteem.

The wide base of the social pyramid is composed of manual labourers, rural or urban workers

in the lower echelons of the service sector, and petty tradesmen.

Spanish farmers, along with country tradesmen, share the disadvantage of having a rustic

rather than an urbane image. Urbanity must be gained with some effort (through education

and self-styling) to move upward in society from rural beginnings.

At the margins of Spanish society are individuals and groups whose trades involve itinerancy,

proximity to animals, and the lack of a fixed base (e.g. Spain's Roma or Gypsies )

Family eminence, inherited wealth and education are increasingly the measures of social

advancement. A Spanish family's ability to take a month's vacation is famously important as a

sign of economic well-being and social status.


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Clothing

Modern, conservative,

stylish

Girls wear trousers

Boys are into designer

wear

Denim is in

Short skirts and swim-

wear are frowned upon


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Food

Cheap, substantial meals

as opposed to gourmet

Tapas

Serrano Ham

Fish delicacies (Paella)

Continental breakfast,

light lunch, late eveningmeal


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Conformities

Greetings consist of a

handshake and a kiss on

both cheeks

Spanish men maintain

longer eye contact with

females

Life is slow paced Life begins when the sun

goes down


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Siesta

To fully enjoy a siesta it is veryimportant to have a good lunch withfriends or/and relatives.

The real siesta takes place in bed and inpyjamas, but a suitable sofa is alsomeant if a bed is not available

Timing is very important. A siestashould last between 15-30 minutes notmore.

Don't let anything disturb you.Siesta is quite a serious activity.

Some people can't enjoy a siestawithout tv or radio. If these kind ofthings help you to fall asleep, usethem.

The best way to wake-up from asiesta is a delicate human voice.


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Nightlife

Evenings start with el paseo

Spanish life is lived in the streets

Street cafes and bars

Nightclubs are the main attraction for teenagers


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Fiestas and Traditions

Each town has their own

celebrations

Celebrate national

holidays such as

Christmas, Easter, All

Saints Day, ect. Majority of festivities are

religious based


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Bullfighting

The National Sport ofSpain

711 AD

24,000 bulls are killed

each year


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Flamenco

The Great Spanish Tradition

Cante: the song

Baile: the dance

Guitarra: guitar playing

Product of the Gypsies


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Music and Dance

Dances lots of dance forms,flamenco being the most famous.Others are - sardana fromCatalua, mueira from Galicia andAsturias, The jota, danced withcastanets. Famous dancers: Joaquin

Cortes, Tango, Salsa, Merenge.

Music has its own variations of pop, rock and punk. Flamencomusic is very popular. Influences

mainly from Christian, Jewish andMuslim communities. Famouspersonalities : Ricky martin, PepeRomero,Manuel De Falla, Domingo,Carreras.


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Cinema in Spain

Only 20% of box officereceipts is from the domestic

industry

Pans Labyrinth (2006) won an

academy award for best

foreign film

However Hollywood contains

quite a few number of Spanish

eminent film-makers, actors

etc.

A lot ofEnglish language

Spanish films are also made.


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Sports in Spain

Current FIFA World Cup &

European Champions

La Liga - Second most watched

league in the world

Won 2 olympic golds in football

FIBA World Cup Champions in

2006, Gold medal in Eurobasket

2009.

Spanish ACB is a major basket

ball league

Golf Hosted Ryder Cup in

1997

Sergio Garcia, Severiano

Ballesteros


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Sports in SpainHave had a lot of players

winning various grand

slams over the years.

Current world no. 1

Winners of Davis cup in

2000, 2004, 2008 & 2009.

Champions in Racing

F1 Fernando Alonso

Motorcycling Dani

Pedrosa

Cycling Alberto

Contador, Carlos Sastre


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Inventions and discoveries

Contraceptive pills.

Cleaning mop.

Submarine.

Structure of the

nervous system.

Circulation of blood.

Cubism. Lollipop.


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Languages

Spanish.

Castillian.

Basque in Basque and Navarre.

Catalan. Valencian.

Galician.

Aranese (North Catalonia).

Asturian.(Asturias and Leon

provinces)

Aragonese. (Aragon province).


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Hofstedes Cultural Dimensions

1. Power Distance Index (PDI) - The extent to which the less powerful members oforganizations and institutions accept and expect that power is distributed unequally.This represents inequality. For Spain this figure is 57.

2. Individualism (IDV) on the one side versus its opposite, collectivism, that is thedegree to which individuals are integrated into groups. This value for Spain is 51.

3. Masculinity (MAS) versus its opposite, femininity, refers to the distribution of rolesbetween the genders . Assertive role has been called 'masculine' and the modest,caring role 'feminine'. The women in feminine countries have the same modest, caringvalues as the men; in the masculine countries they are somewhat assertive andcompetitive, but not as much as the men, so that these countries show a gap betweenmen's values and women's values. Spain ranks 42 in this regard.

4. Uncertainty Avoidance Index (UAI) deals with a society's tolerance for uncertainty

and ambiguity; it ultimately refers to man's search for Truth. It indicates to what extenta culture programs its members to feel either uncomfortable or comfortable inunstructured situations. Spain lags behind in this on 86.

5. Long-Term Orientation (LTO) versus short-term orientation Values associated withLong Term Orientation are thrift and perseverance; values associated with Short TermOrientation are respect for tradition, fulfilling social obligations, and protecting one's'face'. Spains rank is 72 in this.


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Organizational Dynamics

Post Franco Era

Greater importance to personal attributes like honor,courage, trustworthiness and gravitas that mere technicalexcellence.

Benevolent autocrats Boss is considered weak if he doesn't know the answer

Formal Appraisal systems are not welcome

Meeting culture Mostly to communicate direct instructions

Slowly changing to consultative style

People may speak forcefully, not to be interpreted as anarchic

If agendas are used they need not necessarily be followed


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Organizational Dynamics

Teams Individualistic and hierarchical, not team players

Older managers used to directive management style and findempowerment and open collaboration alien

Communication is on a need to know basis or who do I want toknow basis

Departments do not freely interact

Communication Predominantly oral and not in written form

Ability to use large volume of language and a sincere mannerare key management tools

Important to be seen as good company, little humorous andentertaining


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Tips on Business Culture

The ability to react creatively to changing

circumstances is of greater value than such

forward planning

Instructions given by managers are expected

to be followed to the letter

Organizations are driven through relationships

and develop long term relations even at the

expense of shot term hits.


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Meeting Etiquettes

Shake Hands Pat each other on

the shoulder oncerelation established.

Female friend - kisseach other on bothcheeks, starting withthe left.

People are oftenreferred to as Donor Dona and theirfirst name

Many men use atwo-handed shake


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Dining Etiquette If invited to a

Spaniard's home,you can bringchocolates,pastries, or cakes;wine, liqueur, orbrandy; or flowersto the hostess.

For hosts kids

small gifts areappreciated.


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Table manners Remain standing until invited

to sit down. Use utensils to eat most food.

Even fruit is eaten with a knifeand fork.

Host gives the first toast. It is acceptable for a woman

to make a toast.

Indicate you have finished

eating by laying your knifeand fork parallel on your plate

Do not get up until the guestof honour does.


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Business Etiquettes & Protocol

BusinessMeeting Etiquette

Appointments are

mandatory

Punctuality in meetings.

The first meeting is

generally formal and is used

to get to know each other.

Printed material in both

English and Spanish.

Interpreter as backup

watch the non-verbal

communication.


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Dress Etiquette

Business dress is

stylish yet,

conservative.

Elegant accessoriesare important for

both men and

women.


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Business Cards

Present your business

card to the receptionist

upon arriving.

Have one side of your

card translated into

Spanish.


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Relationships & Communication

Prefer to do business with those they know and trust.

Face-to-face contact is preferred

The way you present yourself is of critical importance when

dealing with Spaniards.

It is best to display modesty when describing your achievementsand accomplishments.

Communication is formal and follows rules of protocol.

Spaniards do not like to publicly admit that they are incorrect.

Trust and personal relationships are the cornerstone of business.

Spaniards try hard to avoid looking foolish at all times.


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Business Negotiation

Importance on the character of the person with whom they do

business. Hierarchy and rank are important.

Decision-making is held at the top of the company, since this is a

hierarchical country.

May interrupt while you are speaking. This is not an insult, itmerely means the person is interested in what you are saying.

Will not necessarily say that they do not understand something,

particularly if you are not speaking Spanish. Be adept at

discerning body language.

Spaniards are very thorough.

First oral understanding; formal contract at a later date.

Expect both sides to strictly adhere to the terms of a contract.


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Works Cited

http://www.idealspain.com

http://spanishunlimited.com

http://newsimg.bbc.co.uk/media/images/39249000/jpg/_39249664_bullfightap203.jpg

https://reader009.{domain}/reader009/html5/0527/5b09c25232455/5b09c26867ea http://www.world-guides.com/images/ibiza/ibiza_nightclubs3.jpg

http://www.nerjarentals.info/nerja/img/nerja-nightlife.jpg

http://www.travelinstyle.com/spain/Copy%20of%20spain2/EspanaImageSml/Flamenco.jpg

http://www.daydreamvillas.co.uk/valencia/fiestas_foto2.jpg

http://www.scalaeditions.com/images/CG_F_Romantic%20Siesta.jpg

http://lang.rice.edu/langmedia/collection_spanish/lm_spain/images/sp_greetings_t2.jpg

http://www.evergreen-spain.com/images/currency.gif

http://www.riomarseafood.com/images/feature/23_rio%20031.JPG


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