Doing Business in the United States Dr. Sara Jackson IATTO Forum Thessaloniki, Greece 26 September 2013 Dr. Sara Jackson IATTO Forum Thessaloniki, Greece 26 September 2013

2 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

3 Cultural Values  Individual Initiative/Achievement  Privacy  Independence  Risk-taking  Focus on present and future  Change is good; new is better  Individual Initiative/Achievement  Privacy  Independence  Risk-taking  Focus on present and future  Change is good; new is better

4 Cultural 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

5 Cultural 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

6 US 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

7 US Corporate Culture  Little business conducted on Sundays  Must be on time  Deadlines must be met  Work 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 time  Deadlines must be met  Work long hours, two weeks vacation a year, with family coming second to the job  Business conducted during meals in US

8 Business Values  Transactions first, personal relations later  Deadlines rule  Facts and figures most important  Being direct is a virtue  Yes means Yes, and No means No  Transactions first, personal relations later  Deadlines rule  Facts and figures most important  Being direct is a virtue  Yes means Yes, and No means No

9 Business 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

10 Business Communications  Always spell out month when writing dates. US tends to do it opposite from others : 3/5/13 Is this May 3 rd or March 5 th ?  Always spell out month when writing dates. US tends to do it opposite from others : 3/5/13 Is this May 3 rd or March 5 th ?

11 Business Communications  Keep correspondence short and simple, including  Do not use ALL CAPS  Signature block should include: Name Title Company Address (physical) Phone address  Keep correspondence short and simple, including  Do not use ALL CAPS  Signature block should include: Name Title Company Address (physical) Phone address

12 Business Cards  Usually no ritual in US  May take notes on card as reminder of person or need for follow up  Usually no ritual in US  May take notes on card as reminder of person or need for follow up

13 Business Conversations  What do you do? as conversation starters  Sports, weather, travel  Avoid personal questions unless it occurs naturally  Never ask one’s age, salary, politics, religion, marital status unless it is volunteered in conversation  What do you do? as conversation starters  Sports, weather, travel  Avoid personal questions unless it occurs naturally  Never ask one’s age, salary, politics, religion, marital status unless it is volunteered in conversation

14 US 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

15 Opportunities in the US  Limited gov’t regulations  Favorable tax structure  Access to venture capital  Huge consumption market  Fast to set-up or establish business structure  Limited gov’t regulations  Favorable tax structure  Access to venture capital  Huge consumption market  Fast to set-up or establish business structure

16 Challenges in US Market  US: about 3 million firms; only ,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 ,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

17 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

18 Challenges: Employment Laws  Equality & Fairness  Cannot Discriminate when hiring:  Age  Ethnicity  Gender  Sexual Preference  Disability  Married/Single  Equality & Fairness  Cannot Discriminate when hiring:  Age  Ethnicity  Gender  Sexual Preference  Disability  Married/Single

19 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 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 Sara Jackson, PhD, CGBP International Business University of the Incarnate Word Sara Jackson, PhD, CGBP International Business University of the Incarnate Word