Spain Culture Presentation

International Business
Management
By
Group 1
 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
 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
 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 low cost of
living.
• Large promoter of R&D
 Business Environment
Ease of doing business 62
146
Starting a business
53
Dealing with construction permits
157
Ease of Employing workers
48
Property registration
43
Getting credit
93
Protecting investors
78
Paying taxes
59
Trading across borders
52
Enforcing contracts
19
Closing a business
 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 Borbón is proclaimed King.
• 1978: The Spanish people approve  the new Constitution. Spain becomes a
parliamentary monarchy.
• 1986: Spain Joins the European Community
 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.
 Clothing

• Modern, conservative,
stylish
• Girls wear trousers
• Boys are into designer
wear
• Denim is “in”
• Short skirts and swim-
wear are frowned upon
Food
• Cheap, substantial meals
as opposed to gourmet
• Tapas
• Serrano Ham
• Fish delicacies (Paella)
• Continental breakfast,
light lunch, late evening
meal
 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
 Siesta
• To fully enjoy a siesta it is very
important to have a good lunch with
friends or/and relatives.
• The real siesta takes place in bed and in
pyjamas, but a suitable sofa is also
meant if a bed is not available
• Timing is very important. A siesta
should last between 15-30 minutes not
more.

• Don't let anything disturb you.

Siesta is quite a serious activity.
Some people can't enjoy a siesta
without tv or radio. If these kind of
things help you to fall asleep, use
them.
• The best way to wake-up from a
siesta is a delicate human voice.
 Nightlife

• Evenings start with el paseo

• Spanish life is lived in the streets
• Street cafes and bars
• Nightclubs are the main attraction for teenagers
Fiestas and Traditions

• Each town has their own

celebrations
• Celebrate national
holidays such as
Christmas, Easter, All
Saint’s Day, ect.
• Majority of festivities are
religious based
 Bullfighting

• The National Sport of

Spain
• 711 AD
• 24,000 bulls are killed
each year
 Flamenco
• The Great Spanish Tradition
• Cante: the song
• Baile: the dance
• Guitarra: guitar playing
• Product of the Gypsies
 Music and Dance
• Dances – lots of dance forms, flamenco
being the most famous. Others are -
sardana from Cataluña, muñeira from
Galicia and Asturias, The jota, danced
with castanets. Famous dancers:
Joaquin Cortes, Tango, Salsa, Merenge.

• Music – has its own variations of pop,

rock and punk. Flamenco music is very
popular. Influences mainly from
Christian, Jewish and Muslim
communities. Famous personalities :
Ricky martin, Pepe Romero,Manuel
De Falla, Domingo, Carreras.
Cinema in Spain
Only 20% of box office
receipts is from the domestic
industry

Pan’s 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 of English language

Spanish films are also made.
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
Sports in Spain
•Have 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
 Inventions and discoveries
• Contraceptive pills.
• Cleaning mop.
• Submarine.
• Structure of the
nervous system.
• Circulation of blood.
• Cubism.
• Lollipop.
 Languages
• Spanish.
• Castillian.
• Basque in Basque and
Navarre.
• Catalan.
• Valencian.
• Galician.
• Aranese (North Catalonia).
• Asturian.(Asturias and Leon
provinces)
• Aragonese. (Aragon province).
 Hofstede’s Cultural Dimensions
1. Power Distance Index (PDI) - The extent to which the less powerful members of organizations
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 the degree 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 roles between
the genders . Assertive role has been called 'masculine' and the modest, caring role 'feminine'. The
women in feminine countries have the same modest, caring values as the men; in the masculine
countries they are somewhat assertive and competitive, but not as much as the men, so that these
countries show a gap between men'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 extent a culture
programs its members to feel either uncomfortable or comfortable in unstructured situations.
Spain lags behind in this on 86.

5. Long-Term Orientation (LTO) versus short-term orientation Values associated with Long Term
Orientation are thrift and perseverance; values associated with Short Term Orientation are respect
for tradition, fulfilling social obligations, and protecting one's 'face'. Spain’s rank is 72 in this.
 Organizational Dynamics
• Post Franco Era
• Greater importance to personal attributes like honor, courage,
trustworthiness and gravitas that mere technical excellence.
• 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
 Organizational Dynamics
• Teams
– Individualistic and hierarchical, not team players
– Older managers used to directive management style and find
empowerment and open collaboration alien
– Communication is on a need to know basis or who do I want to know
basis
– Departments do not freely interact
• Communication
– Predominantly oral and not in written form
– Ability to use large volume of language and a sincere manner are key
management tools
– Important to be seen as good company, little humorous and entertaining
 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.
Meeting Etiquettes
• Shake Hands
• Pat each other on the
shoulder once
relation established.
• Female friend - kiss
each other on both
cheeks, starting with
the left.
• People are often
referred to as Don or
Dona and their first
name
• Many men use a two-
handed shake
Dining Etiquette
• If invited to a
Spaniard's home,
you can bring
chocolates,
pastries, or cakes;
wine, liqueur, or
brandy; or flowers
to the hostess.

• For host’s kids

small gifts are
appreciated.
Table manners
• Remain standing until invited to
sit down.
• Use utensils to eat most food.
Even fruit is eaten with a knife
and fork.
• Host gives the first toast.
• It is acceptable for a woman to
make a toast.
• Indicate you have finished
eating by laying your knife and
fork parallel on your plate
• Do not get up until the guest of
honour does.
Business Etiquettes & Protocol

Business Meeting 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.
Dress Etiquette

•Business dress is
stylish yet,
conservative.

• Elegant accessories
are important for
both men and
women.
Business Cards

Present your business

card to the receptionist
upon arriving.
 

Have one side of your

card translated into
Spanish.
 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
achievements and 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.
 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, it merely
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.
 Works Cited
• http://www.idealspain.com
• http://spanishunlimited.com
• http://newsimg.bbc.co.uk/media/images/39249000/jpg/_39249664_bullfighta
p203.jpg
• http://www.all-creatures.org/anex/cattle-bf-21.jpg
• 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/F
lamenco.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_greeti
ngs_t2.jpg
• http://www.evergreen-spain.com/images/currency.gif
• http://www.riomarseafood.com/images/feature/23_rio%20031.JPG
Muchas Gracias