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Thailand Heidi Vanderploeg Roth Puth Kelsey Gillaspie Michaela Johnson Heather Dunning Aaron Gutierrez.

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Presentation on theme: "Thailand Heidi Vanderploeg Roth Puth Kelsey Gillaspie Michaela Johnson Heather Dunning Aaron Gutierrez."— Presentation transcript:

1 Thailand Heidi Vanderploeg Roth Puth Kelsey Gillaspie Michaela Johnson Heather Dunning Aaron Gutierrez

2 Introduction Our website serves as a guide for businesses to the inner workings of Thailand. Our goal is to provide businesses with the necessary information needed to conduct business in Thailand. It is essential for any business looking to extend their business into Thailand that they become familiar with the background and culture of this country. Our company is here to provide the information that you need to make your business dealings in Thailand more successful and less stressful. HV

3 General Information Upon arriving in Thailand there are some immediate differences that businesses need to be prepared for. First of all is that Thailand is very populated and it would be very easy to become overwhelmed if not prepared. Population (Bioweb, 2005): In 2004, the population of Thailand reached a high of 64.86 million and is continuing to grow. The forecast for 2010 is approximating that their population will exceed 70 million people. Their current population is 65,444,371. HV

4 General Info. Cont. The language barrier. It would help to know some common words for greetings and salutations. Thai and English are most commonly spoken in Thailand. However, English is mainly considered a secondary language for the upper class. Some commonly used Words or phrases (Thai Society): “Mai pen rai”: Meaning ‘it doesn’t matter’ or ‘that’s okay’. “Sanuk” is an important term Thai people often use that means “to have fun”. “Ku na” is the notion of saving face. Thais do not like to be criticized in front of others. HV

5 General Info Cont. Religion (Country Reports, 2005) It is also important to take note to Thailand’s religions. The Thai’s regard their religion very highly so it is important to avoid saying anything that might offend them. Main religion: Buddhism. There are also some Muslims, Hindis, and Christians. Keep in mind that Buddhists recognize many different holidays that we find unfamiliar and to be respectful of the differences in cultures. HV

6 Thai Weather © 2005 Hot Season (°F)Rainy Season (°F) Cool Season (°F) Northern Thailand 69.8-93.2 March - June 73.4-87.8 July - September 60.8-86 October - February Northern Thailand: Hot Season - High temperatures are experienced throughout the day and only drop slightly at night. Rainy Season - Expect heavy rainfall throughout the season due to the effects of the southwest monsoon. An umbrella is useful and wearing waterproof clothing is “NOT COOL”. Cool Season - Extra layers of clothing are recommended as temperatures drop at night. Very little rainfall at this time of year. Best time to travel and do business. RP

7 Thai Weather cont… Central Thailand: Hot Season – The “Hottest” weather of the year with High Humidity. Little rainfall, but expect to see early signs of the Rainy Season in late May. Rainy season - Heavy rainfall throughout the season - flooding can be common towards the end of this period. Cool Season - remains quite hot but evenings tend to be cooler and a few warm layers are required. Best time to travel and do business. © 2005 Hot Season (°F)Rainy Season (°F) Cool Season (°F) Central Thailand 77-93.2 March - May 75.2-89.6 June - October 69.8-89.6 November - February RP

8 Thai Weather © 2005 Hot/Dry Season (°F)Rainy Season (°F) Southern Thailand/ West Coast 77-87.8 November - May 78.8-86 June - October Southern Thailand/ East Coast 69.8-89.6 January - April 75.2-87.8 May - December South Side/Both sides of the coast: Differences in temperature and rainfall occur during both seasons on the east and west coasts. Rainy Season – Both regions receives more rainfall than anywhere else in the country. Most rain falls between June and November. Expect flooding in the west coast. Hot and Dry Season – Pretty much rain-free between January and April. Cool sea breezes relieve us from high temperatures and humidity. Best time to travel and do business on both regions. RP

9 Average Rainfall © 2005 Hot SeasonRainy SeasonCool Season Northern Thailand 2.7 inches8.6 inches1.2 inches Central Thailand3.8 inches4.0 inches.98 inches © 2005 Hot and Dry SeasonRainy Season Southern Thailand/ West Coast4.9 inches12.4 inches Southern Thailand/ East Coast1.6 inches7.9 inches RP

10 Thai Weather cont… Remember: It’s Hot Wear light cotton clothing Bring an umbrella Dress warm for the night In Northern Thailand and Central Thailand, the Cool Season is the best time to do business and visit. In Southern/Coast Thailand, the Hot and Dry Season is the best time to business and visit. RP

11 Thai Dining What to do ….. Most hotels and restaurants offer private dining rooms. Book in advance. If hungry and you and your partner(s) want to discuss business, it ’ s highly suggested to eat at an upscale restaurant RP

12 Thai Dining cont… What you need to do and know at the table: If you need something at a restaurant, never raise your voice or snap your fingers at the waiter. Attract the waiter by waving quietly with your palm down or say “ nong ”, this means brother or sister. Thai Food is eaten with a spoon and a fork. Chopsticks are only used for noodles. Dishes and Soups are placed on the center of the table, so everybody around the table can share. But each person has their own individual plates and bowls to chow-down on their own. RP

13 Thai Dining… Rice is served first on the individuals ’ plate. Rice is Thai ’ s primary source of food and it ’ s usually served for all dishes and most soups. Except noodle soups, curries and salads. White and Fried Rice cannot be eaten alone. It must be eaten with soups or dishes. RP What you need to do and know at the table:

14 Thai Dinning cont… What you need to do and know at the table. Spicy dishes cannot be served independently. Your dishes must be balance by ordering bland dishes to avoid human discomfort. Fish is Thailand ’ s primary meat source and usually inexpensive than other meats. Beef, pork, and other meats are very expensive compare to fish because there is not enough land, farming-technology, and money to raise farm animals. Ordering a bottle of wine show that you are wealthy. RP

15 Thai Dining What you need to do and know at the table: Tipping is not customary, although Thais are getting use to the idea. When you are done eating, make sure you leave a small amount of food to say that you are full and place your spoon and fork on your plate at the 5:25 position to show that you are done. Never split the bill. It ’ s considered rude in Thailand. Always let the host pay for it. RP

16 Communications: Greetings When making introductions, the younger person, or person of lower status is always introduced first. When in a formal situation last names are appropriate and expected. However, when in an informal situation, first names and titles are fine. The Thai use the word “ Khun ” in place of our Mr. and Mrs. The “ wai ” is a bow used to communicate hello, goodbye and thank you. The higher the rank of the individual, the lower you should bow. It is inappropriate to return a “ wai ” to a person of lower standing than yourself. For example, children and subordinates. KG

17 Communications: Gestures It is considered rude to touch, eat or pass anything with your left hand. The Thai people smile frequently, so you should too! Never touch or pass anything over the head. It is considered sacred. It is taboo to touch members of the opposite sex, but perfectly appropriate to touch members of the same sex. It can be considered rude to point your feet at others or their possessions. Use your whole hand to gesture at things. Pointing is considered rude. KG

18 Communications: Dress The overall theme for dress in Thailand is modest, neat and clean. For women conservative clothing including long skirts, dress pants and blouses are appropriate. However, blouses must have sleeves. Day time attire for men includes nice pants and shirts, with the tie being optional. At night dark suits or traditional Thai shirts are the norm. Undershirts are recommended to beat the heat and avoid embarrassing sweating problems. In personal homes the custom of removing shoes is common. KG

19 Time In the U.S. we have a 24 hour a day schedule. Splitting time into two, twelve hour slots. In Thailand they divide their days into four, six hour time slots. Advice for business professionals is to stick to the 24 hour clock so as not to confuse yourself. Most Thai can operate in this was as well. Thai people are usually flexible in their schedule allowing for spontaneity. Thai people multi-task. KG

20 More Time Polychronic vs. Monochronic The U.S. views time in a monochromic fashion. That is to say they view time as structured and something that can be wasted. Therefore, they value time. Decision making tends to be done quickly in the short term. The Thai view time in a polychromic fashion. That is to say that time is less structured and punctuality isn’t as enforced. Decision making is made over the long term. Time is more fluid and tasks overlap more. KG

21 Business Meeting Appointments must be made for everything and should be scheduled a month in advance. Along with the list of attendees you shall send an agenda of the material that will be covered as well as info about your company. Written materials should be available in both Thai and English. You should arrive on time and be prepared to present when scheduled. Most Thais will also be on time to reciprocate the respect however, punctuality is a personality trait. Meetings and appointments usually take place in a hotel lobby or restaurant depending on the size of business you are dealing with. The person who enters the meeting room first is assumed to be the person in charge. MJ

22 Business Meeting cont. VIP’s are usually escorted to their seats. In large rooms the host will most likely sit directly across from the most important guest. It is considered rude to start a meeting talking about business. Although the meetings begin with small talk, avoid telling American-style jokes. These may not translate correctly and may be offensive. Wait to be introduced to others. This will allow them to know their status comparative to yours. They will then know if they should do the wai or how far they should bow. MJ

23 Business Cards After the wai the handing of the business card is usually taken care of, another first impression that is of utmost importance. Always deliver your card to a person individually. Never deal out or toss your business card on the table. You should try to give your business card to the person of senior status. Deliver the card using your right hand with the Thai side facing the person you’re giving it to. It is polite to lay a received card in front of you during the first meeting. MJ

24 Gift Giving Give your gift with both hands as a sign of courtesy. Always give a better gift to the most important person. If you are unsure of the hierarchy, give a joint gift. Never give a gift with sharp edges (such as a knife or scissors), this implies the cutting of ties in the relationship. Also never give a handkerchief, which symbolizes sadness or tears. Only wrap the gift in red if giving it to a Chinese Thai. Avoid wrapping in green, black or blue due to their association with funerals and mourning. Give an American gift. Make sure that it has a “Made in the USA” sticker, or that you remove any “Made in China” stickers before wrapping. MJ

25 Gift Giving cont. Flowers are usually not a good gift especially marigolds or carnations which are linked with funerals. Good quality chocolates or fruit are always a safe choice, as well as books and desk accessories. After a gift is giving the Thai custom is to not open it in the presence of the giver. This is to show that it is not the gift that is important, but instead the thought that counts. MJ

26 Kinds of Businesses in Thailand Sole Proprietorships Partnerships Limited Companies HD

27 Requirements to Start a Private Limited Company Minimum of 7 promoters File a memorandum of association Statutory meeting Register the company Obtain a company income tax identity card HD

28 The Factory Act Governs factory and construction operation Governs safety and pollution-control requirements HD

29 General Business Information Government Buildings open at 9:00 am and close at 4:30pm Lunch is from noon to 1:00pm Banks are open from 9am to 3:30pm Restaurants can close as early as 5:30pm, but some stay open until midnight. HD

30 Money Issues Currency is called the Baht Be aware of the exchange rate In local markets, vendors expect bartering Illegal to take 50,000 Baht with you when you leave Thailand Minimum wage: 175 Baht/hr=$4.20/hr HD

31 Thai Government Government Type: Constitutional Monarchy Economic System: Free-Enterprise Economy Legal System: Based on the Civil Law System with the influence of the Common Law System. Suffrage: 18 years of age; universal and required Administrative Provinces: 76 provinces Independence: 1238 Political parties and leaders: The 4 big political parties: Democrat Party, People's Party, Thai Nation Party, and Thai Rak Thai Party RP

32 Thai Government Executive Branch: Under King Phumphon Adunyadet, the country consist of the Prime Minster by the name of Thaksin Chinnawat, the ministers of the various ministries, deputy ministers, and the permanent officials of the various ministries of the government. Legislative Branch: 200 Senate seats (six year terms) and 500 House of Representatives seats (four year terms). BOTH, members are elected by popular vote. Judicial Branch: Supreme Court. Just like the U.S President, the King selects the supreme judges. RP

33 Equality in Business On a scale from one to one-hundred, Thailand’s power distance is 64. A high power distance generally means that there is a high degree of inequality. There is more equality within US business firms. AG

34 A Collective Culture Thailand has much more of a collective business culture than the US. Its ranking of individualism is very low. The US is very high. AG

35 Success and Caring The masculinity in this dimension rates cultures success by characteristics like motivation and the need for money. Femininity is categorized as caring for others and caring for the environment. On a scale from one to 100, Thailand is listed at 34. AG

36 Risk Uncertainty avoidance measures the willingness to take chances. Thailand’s uncertainty avoidance is 64. They take less risk and follow strict rules. In the US, business people will take more risks. AG

37 The Big Picture Asian firms tend to be family owned and managed. Most US firms are owned by institutions and are independently managed. Thailand has centralized decision-making also discourages staff initiative and promotions are based on connections and loyalty. Western firms encourage and expect initiative from staff. AG

38 Sources American Fruit Basket. “Gourmet Creations”. 27 July, 2005. “Valuta”. 27 July, 2005. Asia Source. “Meeting and Greeting” 23 Jul 2005. “Business and Travel Etiquette- Thailand”. 1 October, 2003. 27 July, 2005. CIA. “World Factbook- Thailand”. 14 July, 2005. 27 July, 2005. Cross Cultural Issues and Information: Thailand. AOL@School: Country Watch. 29 Jul 2005. ITIM: Creating cultural competence. 25 Jul 2005. Kwintessential. “Thailand- Country Profile”. 27 July, 2005. Never Cross Your Legs in Thailand, And Other Cultural Keys to Succeeding Internationally. 20 Jul 2005. Sales and Marketing: International gift giving protocol. 20 Jul 2005. Thailand. Country Profiles. 31 Jul 2005. “Thailand Guide: Bangkok, Phuket, Pattaya, etc.” 20 Jul 2005. http://www.virtual-http://www.virtual- Thai Society: Everyday Life. 29 Jul 2005.

39 Sources baht." The American Heritage® Dictionary of the English Language, Fourth Edition. Houghton Mifflin Company, 2004. GuruNet Corp. 30 July 2005. B.R Cohen & Associates. “Doing Business in Thailand”. 30 July 2005. 2004. Modern Publishing, Ltd. “Status of Thai Economy”. 30 July 2005. 2005 Runckel&Associates, Inc. “Thai Tips”. 30 July 2005. 2004. &hl=en&start=30&prev=/images%3Fq%3Dthailand%2Bfood%26start%3D20%26svnum%3D10%26hl%3 Den%26lr%3D%26sa%3DN img/extra_restaurant_20030827151004.jpg&imgrefurl= ah.htm&h=318&w=499&sz=51&tbnid=XjLw0EfjcxcJ:&tbnh=80&tbnw=127&hl=en&start=26&prev=/im ages%3Fq%3Dthailand%2Bfood%26start%3D20%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DN grefurl= nh=65&tbnw=106&hl=en&start=77&prev=/images%3Fq%3Dthailand%2Bfood%26start%3D60%26svnu m%3D10%26hl%3Den%26lr%3D%26sa%3DN

40 The End Business in Thailand

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