DIGITAL ASSIGNMENT – 2

INTERNATIONAL BUSINESS

Submitted to, Submitted by,

Dr Sudipto Bhattacharya J.S.Supreetha

Professor VITBS 19BBA0089

VIT Slot: D2/TD2

1. INTRODUCTION:

A large Baltimore manufacturer of cabinet hardware had sent its most promising
executive named Fred Wagner to make a presentation at a reputable distributing company in
Frankfurt as they have invited them to present a demonstration. The Baltimore manufacturing
company had been looking to locate a suitable distributor for its product in Europe, so they
used this opportunity and sent one of their best executive of their company. The German
company chose not to distribute Fred’s hardware products after his presentation because of
issues with CROSS-CULTURE COMMUNICATION.

2. CROSS CULTURE COMMUNICATION:

Cross-cultural communication includes conversing, negotiating and exchanging

information either verbally or nonverbally with people who are from different cultures.
People from different backgrounds communicate in different ways and follow various
societal norms that may not be familiar to someone who is not of that culture.

The importance of cross-cultural understanding is very necessary in business. Cross-

cultural communication is not only important to a company but to its clients as well. Research
has shown that cross-cultural communication encourages team working and helps to increase
the flexibility and responsiveness of the organization.

3. BUSINESS CULTURE AND ETIQUETTE IN THE USA:

 Greetings in the US is more informal and comes with a handshake.

 Punctuality is important, based on the idea that you are wasting both time and money
if you are late.
 There is a wide range of dress codes in the USA, depending on the region, the
industry, a person’s position, and the company’s policies.

4. BUSINESS CULTURE AND ETIQUETTE IN THE GERMAN:

  Business relations are very formal in Germany, and they reflect the German values of
order, privacy and punctuality.
 Punctuality is extremely important, and in case of any delay, it is important to inform
your partners in advance.
 German business dress code is conservative, understated and formal, as men should
wear a suit and tie; while women should wear a suit.

5. ANALYSIS OF THE CASE:

Reasons why Fred’s offer got rejected:

 Fred used a few humorous anecdotes to set a relaxed and receptive atmosphere which
is not encouraged in German culture
 Even thou his paternal grandparents have migrated from Frankfurt area during 1920’s
he did not have enough knowledge or consciousness regarding the norms or customs
that exist in German culture.
 Germans will deliver feedback directly, whether it is negative or positive. What may
have come across as blunt to Fred is simply honesty to the German company.
 Fred lacked developing strategies for relationships and business cycles based on
appropriate levels of formality, business hierarchy and timing.
 Fred was not aware about the “do’s and don’ts” of the German culture with which he
was partnering because of which he got rejected.
 Fred should have kept in mind that he is representing his culture, so he should have
not taken cultural tendencies for granted. These things have a huge impact on in
decision-making.
 Fred should have been careful while doing business in Germany, that the German
culture demand a lot of respect at all the times. Therefore high standards are expected
and any unethical behaviour would harm his business negotiations.
 Since Fred is a young executive, he doesn’t have much experience in handling such
business situations.
 Fred has failed to come up with the business agenda. Business meeting isn’t executed
in a formal way. He didn’t come up with solid facts. He shouldn’t have tried indirect
 communication styles. Coming up with the humour may result in insulting a
competitor.

NOTE: the word count is 596

6. REFERENCES:

https://bizfluent.com/about-6710853-importance-cross-cultural-communication-business.html

https://www.todaytranslations.com/consultancy-services/business-culture-and-
etiquette/doing-business-in-the-usa/

https://businessculture.org/western-europe/business-culture-in-germany/business-etiquette-in-
germany/