Doing Business in theDoing Business in theUnited States United States

Doing Business in theDoing Business in theUnited States United States

Dr. Sara JacksonDr. Sara JacksonIATTO ForumIATTO Forum

Thessaloniki, GreeceThessaloniki, Greece26 September 201326 September 2013

Dr. Sara JacksonDr. Sara JacksonIATTO ForumIATTO Forum

Thessaloniki, GreeceThessaloniki, Greece26 September 201326 September 2013

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Presentation Outline Presentation Outline

Overview of Culture and Business Protocol in the US

Business Communication

Opportunities & Challenges

Market Entry Strategies

Overview of Culture and Business Protocol in the US

Business Communication

Opportunities & Challenges

Market Entry Strategies

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Cultural Values Cultural Values

Individual Initiative/AchievementPrivacyIndependenceRisk-takingFocus on present and futureChange is good; new is better

Individual Initiative/AchievementPrivacyIndependenceRisk-takingFocus on present and futureChange is good; new is better

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Cultural ObstaclesCultural Obstacles

Few people speak a second language

Assumption is that everyone speaks English

Little knowledge about other cultures

Attitude that the US way is the only way

Few people speak a second language

Assumption is that everyone speaks English

Little knowledge about other cultures

Attitude that the US way is the only way

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Cultural ObstaclesCultural Obstacles

Don’t assume women in a meeting are there to get the coffee; they may be running the meeting

Corporate success based on achievement, not gender, age, or social class

Don’t assume women in a meeting are there to get the coffee; they may be running the meeting

Corporate success based on achievement, not gender, age, or social class

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US Corporate CultureUS Corporate Culture

Based on company relationships rather than people

Not important to develop personal relationship in order to establish successful business relationship

Based on company relationships rather than people

Not important to develop personal relationship in order to establish successful business relationship

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US Corporate CultureUS Corporate Culture

Little business conducted on Sundays

Must be on timeDeadlines must be metWork long hours, two weeks

vacation a year, with family coming second to the job

Business conducted during meals in US

Little business conducted on Sundays

Must be on timeDeadlines must be metWork long hours, two weeks

vacation a year, with family coming second to the job

Business conducted during meals in US

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Business ValuesBusiness Values

Transactions first, personal relations later

Deadlines ruleFacts and figures most

importantBeing direct is a virtueYes means Yes, and No

means No

Transactions first, personal relations later

Deadlines ruleFacts and figures most

importantBeing direct is a virtueYes means Yes, and No

means No

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Business ValuesBusiness Values

If you do not understand something, ask questions.

If no questions, assumption is that you understand

It is ok to disagree, but must be polite and professional

If you do not understand something, ask questions.

If no questions, assumption is that you understand

It is ok to disagree, but must be polite and professional

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Business Communications

Business Communications

Always spell out month when writing dates. US tends to do it opposite from others :

3/5/13 Is this May 3rd or March 5th?

Always spell out month when writing dates. US tends to do it opposite from others :

3/5/13 Is this May 3rd or March 5th?

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Business Communications

Business Communications

Keep correspondence short and simple, including e-mail

Do not use ALL CAPSSignature block should

include: NameTitleCompanyAddress

(physical)PhoneEmail address

Keep correspondence short and simple, including e-mail

Do not use ALL CAPSSignature block should

include: NameTitleCompanyAddress

(physical)PhoneEmail address

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Business CardsBusiness Cards

Usually no ritual in USMay take notes on card as

reminder of person or need for follow up

Usually no ritual in USMay take notes on card as

reminder of person or need for follow up

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Business ConversationsBusiness Conversations

What do you do? as conversation starters

Sports, weather, travelAvoid personal questions

unless it occurs naturallyNever ask one’s age, salary,

politics, religion, marital status unless it is volunteered in conversation

What do you do? as conversation starters

Sports, weather, travelAvoid personal questions

unless it occurs naturallyNever ask one’s age, salary,

politics, religion, marital status unless it is volunteered in conversation

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US NegotiationsUS Negotiations

Time is money…Negotiations may seem rushed

Middle managers often make commitments/decisions

Competition is tough: keep your bottom line a secret to leverage your deal

Time is money…Negotiations may seem rushed

Middle managers often make commitments/decisions

Competition is tough: keep your bottom line a secret to leverage your deal

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Opportunities in the USOpportunities in the US

Limited gov’t regulationsFavorable tax structure

Access to venture capital

Huge consumption market

Fast to set-up or establish business structure

Limited gov’t regulationsFavorable tax structure

Access to venture capital

Huge consumption market

Fast to set-up or establish business structure

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Challenges in US Market Challenges in US Market

US: about 3 million firms; only 250-280,000 export (less than 10%)

97.3% of all US exporters are SMEs

Germany: about 2.9 million firms; 350,000 export (12%)

98% of German exporters are SMEs

US: about 3 million firms; only 250-280,000 export (less than 10%)

97.3% of all US exporters are SMEs

Germany: about 2.9 million firms; 350,000 export (12%)

98% of German exporters are SMEs

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Challenges: Legal Environment

Challenges: Legal Environment

4% of world’s population but 70% of its lawyers

Written contracts, rules, and legal advice necessary

Laws different in each State

4% of world’s population but 70% of its lawyers

Written contracts, rules, and legal advice necessary

Laws different in each State

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Challenges: Employment Laws

Challenges: Employment Laws

Equality & Fairness

Cannot Discriminate when hiring:AgeEthnicityGenderSexual PreferenceDisabilityMarried/Single

Equality & Fairness

Cannot Discriminate when hiring:AgeEthnicityGenderSexual PreferenceDisabilityMarried/Single

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Challenges: Legal Environment

Challenges: Legal Environment

Cannot advertise for a secretary saying:

Wanted: attractive female, age 19-25, unmarried, excellent health with computer skills, etc.

Cannot ask for a photo!

Cannot advertise for a secretary saying:

Wanted: attractive female, age 19-25, unmarried, excellent health with computer skills, etc.

Cannot ask for a photo!

Final CommentsFinal Comments

Overall, US is positive environment for business.• Strong work ethic• Meritocracy, not seniority• 50 hr work week not uncommon• 2-3 weeks paid vacations• Negotiated employee benefits• Solid markets generally• Rules not as rigid as Asia and EU• Achievement based respect, not

seniority

Overall, US is positive environment for business.• Strong work ethic• Meritocracy, not seniority• 50 hr work week not uncommon• 2-3 weeks paid vacations• Negotiated employee benefits• Solid markets generally• Rules not as rigid as Asia and EU• Achievement based respect, not

seniority

Thank you for your attention

Thank you for your attention

Sara Jackson, PhD, CGBPInternational Business

University of the Incarnate Wordjacksons@uiwtx.edu

Sara Jackson, PhD, CGBPInternational Business

University of the Incarnate Wordjacksons@uiwtx.edu