The perfect intercultural negotiation
One of the most difficult things in international business is probably the intercultural negotiation. There are a lot of different aspects to which attention has to be paid to in order to respect and adapt to an unknown culture. This requires an extensive preparation and analysis of the typical business-behaviour in another country. The following report will show how a perfect negotiation from an intercultural point of view could look like in Brazil.
The business Situation: A CEO of a multi-national company located in Germany and his team are in Sao Paolo for a negociation with a Brazilian company that could be a potential partner for future projects in Brazil.
After arriving at the “Aeroporto Internacional de São
Paulo/Guarulhost” which is the largest of Sao Paolos two airports and is
located around 30 km in the north of the city the group of professionals take a
taxi to their hotel-The Grand Hyatt Sao Paolo. The best option to
get to the city center is to take one of the blue-and-white Guarucoop
radio taxis from the airport that offer a fix price to go downtown (approximately
110-140 BRL = 34-44 €). The choice of the famous Grand Hyatt has a simple
reason. Staying at a first-class hotel is important in order to maintain a good
appearance. This is very important to Brazilians, who are still dividing people
after a certain class system (for more information: take a look at our section
about Social Life in Brazil). Once arrived at the hotel the negotiation team
gets ready for the business meeting that is set up for 10.00 a.m. at the office
space of the potential Brazilian partner. First step is to dress appropriately
for a business meeting in Brazil. For women it is accepted to dress sexy in any
situation. In Europe and the USA it is normal for women to dress formal during the
negotiations, however in Brazil it is possible to wear something more informal. For men the choice is not as complicated. A conservative dark
suite (3-pieces), a shirt and a tie are appreciated. Both gender should also
pays attention to their shoes a which shoud be polished and well kept.
After the short stay at the Hyatt and the pickup of a local lawyer who is fluent in English and Portuguese, the CEO and his team arrive on time at the office of the Brazilian company. The local lawyer will facilitate the negotiation process and help to clarify details. If needed also a local accountant should be considered.
It is important for European
business professionals to adapt to the meeting procedure of Brazilian culture. Taking enough time to great the whole negotiation team of
the other party shows the respect for the whole group. First, both groups are shaking hands while maintaining steady eye
contact and then exchange their business cards with everyone who will assist to
the meeting. If the women of the German side want to shake hand as well they should extend their arm first to clarify the situation and to make sure that there will be no awkward misunderstanding. A small detail
that the German team has used here is to translate the
back of the business card into Portuguese. Even if most professionals speak a very good English
there might still be some who have problems with it and it will be easier for the secretary to handle contacts.
The negotiation atmosphere is
usually very casual and not too formal. It has to be clear that there is the
possibility that there are no any concrete results after the first round of
negotiation. The German group has studied the habits and knows that Brazil is
a collective society and that the building of a personal relationship is a must
before doing business. For Brazilians the individual they deal with is more
important than the company that stands behind. Also the perception of time is
different in Brazil. The first hours are therefore often used to get to know
each other and to talk about something different then business. A key to
success is to play the game and to let the Brazilian negotiation team start to
talk business whenever they are ready to do so. After having engaged into
negotiation it is crucial for success to be very patient. Brazilians will take
a long time to discuss every little detail. They will only grudgingly make
concessions so it is important to stay persistent and maintain a stable
position. A common mistake is made by a lot of companies. Changing the negotiation team during a stay in Brazil should be avoided. It risks that the
whole process starts over at the beginning because new confidence must first be
established. As said Brazil is a collective society where the
group counts more than an individual. This is why criticism has to be used
extremely careful. If one member the Brazilian group loses face it is the whole
group that is concerned and it affects everybody. Trying to avoid situations
with conflict potential is necessary. There are several other aspects that are
common in Brazilian business culture. For example being interrupted while
speaking is normal and also that every group member adds his or her opinion at
any time. This is not a sign of disrespect, how many European professionals
might believe.
Last but not least body language and signs have different meanings in other cultures. Also in Brazil there are several differences that can be identified. For example the American or German sign for O.K. is considered as rude and vulgar. Instead the “thumbs up” is used to express approval. Another sign that is uncommon in Europe is the wiping of the hands. This means: “It does not matter”. Also there should not be seen as shocking if there is physical contact during conversations. Touching shoulders arms or elbows can be part of the Brazilian way of communication, even if it is unusual on a first business-meeting. Finally Brazilians stand extremely close to each other while communicating. There is no reason to be afraid or to step back. Different cultures means different traditions and comfort zones.
Being informed about the local dinner-etiquette is also very important because in Brazil eating or drinking will surely be part of a typical day of negotiation. If meeting somewhere for dinner it is common to come at least 20-30 minutes late or to be prepared to wait a bit. Once again talking business during a meal is not appreciated, unless the other party does start with it. More appropriate conversation topics are for example soccer (football), family and the nice beaches or regions in Brazil. Topics that should be avoided are politics, poverty and religion. Brazilians do also wash hands before every meal and rarely touch food with them. Using fork and knife for everything even for example for fruits is normal. To call up a waiter it is enough to hold up the index finger and say “garcon”.
Before visiting Brazil there is a typical saying that best summarizes what has been explained in the text before: “For friends everything. For enemies the law.”
Sources
(http://www.ediplomat.com/np/cultural_etiquette/ce_br.htm) (http://www.kwintessential.co.uk/resources/global-etiquette/brazil-country-profile.html)
(http://www.businessinsurrey.com/storage/international/Doing%20Business%20in%20Brazil-Overview.pdf)
http://www.frommers.com/destinations/brazil/707706
http://www.cyborlink.com/besite/brazil.htm
https://www.youtube.com/watch?v=vMqvOgh9GBE
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