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France vs Algeria PESTEL Hofstede Analysis High Context vs. Low Context cultures Business Etiquette USA - Lauriane.

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Presentation on theme: "France vs Algeria PESTEL Hofstede Analysis High Context vs. Low Context cultures Business Etiquette USA - Lauriane."— Presentation transcript:

1 France vs Algeria PESTEL Hofstede Analysis High Context vs. Low Context cultures Business Etiquette USA - Lauriane

2 Political Economic Factors Technological Environmental Legal

3 Political FranceAlgeria The French Republic is a unitary semi- presidential republic with strong democratic traditions. The executive branch itself has two leaders: the President of the Republic, currently Nicolas Sarkozy, who is head of state and is elected directly by universal adult suffrage for a 5-year term and the Government, led by the president-appointed Prime Minister, currently François Fillon. The French parliament is a bicameral legislature comprising a National Assembly (Assemblée Nationale) and a Senate. The National Assembly deputies represent local. Senators are chosen by an electoral college for 6-year terms and one half of the seats are submitted to election every 3 years French politics are characterized by two politically opposed groupings: one left-wing, centered around the Socialist Party, and the other right-wing, centered around the Union for a Popular Movement (UMP). The head of state is the President of Algeria (Abdelaziz Bouteflika), who is elected to a five-year term. The president is not limited to any term length. President is the head of the Council of Ministers and of the High Security Council. He appoints the Prime Minister (Ahmed Ouyahia) who is also the head of government. The Algerian parliament is bicameral, consisting of a lower chamber, the National People's Assembly (APN), and an upper chamber, the Council Of Nation. The APN is elected every five years. Under the 1976 constitution Algeria is a multi-party state. Algeria has universal suffrage at 18 years of age.

4 Economic Factors FranceAlgeria A member of the G8 group of leading industrialized countries, it is ranked as the sixth largest economy by nominal GDP. France joined 11 other EU members to launch the euro on 1 January 1999. France's economy combines extensive private enterprise (nearly 2.5 million companies registered) with substantial (though declining) government intervention. According to the OECD, in 2004 France was the world's fifth-largest exporter and the fourth-largest importer of manufactured goods With 81.9 million foreign tourists in 2007, France is ranked as the first tourist destination in the world. The unemployment rate has recently decreased from 9.0% in 2006 to 7.2% in 2008 but remains one of the highest in Europe The fossil fuels energy sector is the backbone of Algeria's economy, accounting for roughly 60% of budget revenues. The country ranks fourteenth in petroleum reserves. Algeria has always been noted for the fertility of its soil. 25% of Algerians are employed in the agricultural sector Algeria’s financial and economic indicators improved during the mid- 1990s, in part because of policy reforms supported by the International Monetary Fund (IMF) and debt rescheduling. The government's continued efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector have had little success in reducing high unemployment and improving living standards. In 2001, the government signed an Association Treaty with the European Union that will eventually lower tariffs and increase trade.

5 Technological FranceAlgeria French inventors played a pivotal role in the development of photography and the internal combustion engine; to French ingenuity the world also owes the first mechanical adding machine (1642), parachute (1783), electric generator (1832), refrigerator (1858), and neon lamp (1910). French industry is now pioneered in the development of high-speed transportation systems—notably the supersonic Concorde and the TGV high- speed train—and French subway companies have built or provided equipment for mass-transit systems in Montreal, Mexico City, Rio de Janeiro, and other cities. France is a leading exporter of nuclear technology and has developed the first commercial vitrification plant for the disposal of radioactive wastes. The Centre National de la Recherche Scientifique (CNRS), founded in 1939, controls more than 1,370 laboratories and research centers. Since independence, Algeria has made major technological advances, especially in the steel and petrochemical industries. However, Algeria still has a severe shortage of skilled workers and is heavily dependent on foreign technologies. The government's National Bureau of Scientific Research operates 18 research centers in biology; anthropology; oceanography and Fisheries; astronomy, astrophysics, and geophysics; renewable energy; arid zones; technology transfer; and other fields.

6 Environmental FranceAlgeria The Ministry for the Environment is the principal environmental agency. Water pollution is a serious problem in France due to the accumulation of industrial contaminants, agricultural nitrates, and waste from the nation's cities. France's cities produce about 18.7 million tons of solid waste per year. Air pollution is a significant environmental problem in France, which had the world's eleventh highest level of industrial carbon dioxide emissions in 2002. In 2001, 13.5% of France's total land area was protected; these areas include both national and regional parks, as well as 8 biosphere reserves, 2 World Heritage Sites, and 15 Wetlands of International Importance. The greatest threat of extinction to France's flora and fauna involves its plant species. Of 4,000-plus species, 86 are endangered. Extinct species include Perrin's cave beetle and the Sardinian pika. Algeria's principal environmental problem is encroachment of the desert onto the fertile northern section of the country. To impede desertification, the government in 1975 began a project to erect a "green wall" of trees and vegetation 1,500 km (930 mi) long and 20 km (12 mi) wide along the northern fringes of the Sahara. Other significant environmental problems include water shortages and pollution. The small amount of water available in Algeria is threatened by regular droughts. The problem is further complicated by lack of sewage control and pollutants from the oil industry, as well as other industrial effluents. Endangered or extinct species include the Barbary hyena, Barbary leopard, Barbary macaque, and Mediterranean monk seal.

7 Legal FranceAlgeria Basic principles of the rule of law were laid in the Napoleonic Code. In agreement with the principles of the Declaration of the Rights of Man and of the Citizen law should only prohibit actions detrimental to society. France uses a civil legal system; that is, law arises primarily from written statutes; judges are not to make law, but merely to interpret it (though the amount of judge interpretation in certain areas makes it equivalent to case law). French law is divided into two principal areas: private law and public law. Private law includes, in particular, civil law and criminal law. Public law includes, in particular, administrative law and constitutional law. France does not recognize religious law, nor does it recognize religious beliefs or morality. Laws can only address the future and not the past (ex post facto laws are prohibited) ; and to be applicable, laws must be officially published in the Journal Officiel de la République Française. The Algerian legal system is based on French and Islamic law. The Algerian constitution provides that judicial power is independent. Procedure law organizes the judicial power into three levels of courts: Daira tribunals are courts of first instance for civil and certain criminal matters., Wilaya Courts in each province organized into 4 chambers constituted by 3-judge panels that must hear all cases; have appellate jurisdiction over lower court decisions in civil suits. Highest level of judiciary is Supreme Court. Law reporting through Journal Officiel. Constitution adopted 19 th November 1976; undergone several amendments. Article 2 affirms Islam as official state religion. The High Islamic Council is in charged in particular to encourage and promote the ijtihad (case-law in Moslem right); to give its opinion in comparison with the religious regulations on what is subjected to him; to present a periodic report of activity to the President of the Republic.

8 Power Distance Individualism Masculinity Uncertainty Avoidance Long Term Orientation

9 Power Distance FranceAlgeria (Arab World) France scores 24% higher than the world average. Higher power distance societies are more centralized with tall, hierarchal organization structure featuring a high proportion of supervisors who give orders at the lower levels. The high Power Distance ranking is indicative of a high level of inequality of power and wealth within the society. The population have an expectation and acceptance that leaders will separate themselves from the group and this condition is not necessarily subverted upon the population, but rather accepted by the society as their cultural heritage. 8068

10 Individualism FranceAlgeria (Arab World) France’s score of is 65% more than the world average. Democracy, individual initiative and achievement are highly valued. The relationship of the individual to organizations is one of independence on an emotional level, if not on an economic level. Individualism is the lowest Hofstede Dimension for the Arab World. Compared to a world average ranking of 64, it reflects a Collectivist society as compared to Individualist culture and is manifested in a close long-term commitment to the member 'group', that being a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules. 3871

11 Masculinity - Feminity FranceAlgeria (Arab World) France has a low masculinity score which is 14% below the world average. This means that the country places more emphasis on caring for others and quality of life. The Masculinity index is the third highest Hofstede Dimension. It is only slightly higher than the 50.2 average for all the countries included in the Hofstede MAS Dimension. This would indicate that while women in the Arab World are limited in their rights, it may be due more to Muslim religion rather than a cultural paradigm. 5243

12 Uncertainty Avoidance FranceAlgeria (Arab World) France’s UAI score is 34% higher than the world UAI average. The French strongly resist changes to their traditional beliefs and institutions. The high Uncertainty Avoidance Index, indicates the society’s low level of tolerance for uncertainty. In an effort to minimize or reduce this level of uncertainty, strict rules, laws, policies, and regulations are adopted and implemented. The ultimate goal of these populations is to control everything in order to eliminate or avoid the unexpected. As a result of this high Uncertainty Avoidance characteristic, the society does not readily accept change and is very risk adverse. 6886


14 High Context vs. Low Context Cultures FranceAlgeria Both countries are High Context Cultures: High-context communication tends to be indirect and more formal. Many of the meanings being exchanged during the encounter do not have to be communicated through words. Words are not so important as context, which might include the speaker’s tone of voice, facial expression, gestures, posture—and even the person’s family history and status. Flowery language, humility, and elaborate apologies are typical. People are very homogeneous; cultures change little over time because of traditions and history. Meaning is conveyed through status, age, sex, education, family background. People in these cultures emphasize interpersonal relationships. Developing trust is an important first step to any business transaction. According to Edward Hall, these cultures prefer group harmony and consensus to individual achievement. And people in these cultures are less governed by reason than by intuition or feelings.

15 Greetings Gifts Names, Titles & Business Cards Dining Etiquette Business Meetings Business Communication Dress Etiquette

16 Greetings FranceAlgeria 1.The handshake is a common form of greeting. 2. You are expected to say 'bonjour' or 'bonsoir' (good morning and good evening) with the honorific title Monsieur or Madame when entering a place and 'au revoir' (good-bye) when leaving. 3. Friends may greet each other by lightly kissing on the cheeks (number of kisses depends on the region). 1. Algerians greet each other with lengthy affairs. -In addition to the handshake one is obliged to ask about family, work, the house, the weather  This is all part of cementing a relationship and showing concern for others. For example, you may see people continue to hold hands after the initial handshake is a sign of warmth. 2. When meeting women initially nod and wait to see if a hand is extended. -Avoid prolonged eye contact with women and do not ask personal questions. -For women visiting Algeria note that religious men may not shake your hands - this is not a sign of disrespect but quite the opposite. 3. Friends and family will also exchange kisses on the check.

17 Gifts FranceAlgeria 1.Flowers should be given in odd numbers but not 13, which is considered unlucky. 2. If you give wine, make sure it is of the highest quality you can afford. The French appreciate their wines. 3.Gifts are usually opened when received. 1.Gift giving is a part of Algerian culture that is used to cement relationships. -The gesture of giving is more important than the gift. 2. In social settings some of these tips may come in handy: - When invited to an Algerian's home, bring pastries, fruit, or flowers. -Roses or tulips make good gifts. -Violets symbolize sadness. -Children will always appreciate sweets! -Never bring alcohol 3. Gifts are not usually opened when received. 4. Give gifts with the right or both hands.

18 Names, Titles & Business Cards FranceAlgeria 1. First names are reserved for family and close friends. Wait until invited before using someone's first name. 2. Business cards are exchanged after the initial introductions without formal ritual. - Include any advanced academic degrees on your business card. -French business cards are often a bit larger than in many other countries. 1. The use of titles is important in Algeria due to the hierarchical nature of the society. -When introduced to someone, try to call them by their honorific, professional, or academic title and their surname. 2. As most people speak French and Arabic titles may be in either. -Common titles are "doctor", "professor", and "lawyer" in English or "docteur", "professeur", and "avocat" in French. Some religious scholars may be called "Sheikh“. 3. There is no formal ritual surrounding business cards. - Always use the right hand to give and receive.

19 Dining Etiquette FranceAlgeria 1. If you are invited to a French house for dinner: -Arrive on time. Under no circumstances should you arrive more than 10 minutes later than invited without telephoning to explain you have been detained. -The further south you go in the country, the more flexible time is. -Dress well. The French are fashion conscious and their version of casual is not as relaxed as in many western countries. 2. Table manners: -The fork is held in the left hand and the knife in the right while eating. -If there is a seating plan, you may be directed to a particular seat. -Do not begin eating until the hostess says 'bon appétit'. -If you have finished eating, cross your knife and fork on your plate with the fork over the knife. -Do not rest your elbows on the table, although your hands should be visible and not in your lap. -Finish everything on your plate. -Leave your wineglass nearly full if you do not want more. 1.Algerians love both hospitality and food. If you are invited to home consider it an honor. 2.Remember your host will more than likely be a Muslim so there are some initial facts to be aware of: - Don't bring alcohol - Remove shoes at the door - Men and women will be seated separately -Dress modestly (especially women) -It would be polite for a woman to offer to help the hostess with the preparation / clearing This will most likely be declined, but the offer will be appreciated. 3. Table manners -There are several ways of dining such as sitting at low couches around a big table or on mats on the floor around a low table. -Try and wash your hands before and after the meal. -Food is usually eaten by hand. -Couscous is eaten with a tablespoon while stew is eaten with a fork. -Only use the right hand for eating and for passing dishes. -You will be urged to take more food. -Leave food on your plate or it will be filled up again.

20 Business Meeting FranceAlgeria 1. Appointments are necessary and should be made at least 2 weeks in advance. -Appointments may be made in writing or by telephone and, depending upon the level of the person you are meeting, are often handled by the secretary. -Do not try to schedule meetings during July or August, as this is a common vacation period. -If you expect to be delayed, telephone immediately and offer an explanation. 2. Meetings are to discuss issues, not to make decisions. -Avoid exaggerated claims, as the French do not appreciate hyperbole. 1. Appointments are necessary and should be made as far in advance as possible and confirmed a day or two before the meeting. -It is best to avoid scheduling meetings during Ramadan. -Remember Fridays are a Muslim holiday so most companies will be closed. 2. Try to arrive at meetings on time and be prepared to wait. -Algerian businesspeople who are accustomed to dealing with international companies often strive to arrive on time, although it is often difficult for them to do so in such a relationship driven culture. - When you enter a room with people always greet the eldest first. The move around the room from your right greeting people individually. 3. In general, Algerians have an open-door policy, even during meetings. -you may experience frequent interruptions. Others may even wander into the room and start a different discussion. You may join in, but do not try to bring the topic back to the original discussion until the new person leaves. 4. French and Arabic are generally the language of business, although some companies use English.

21 Business Communication FranceAlgeria 1. French business behavior emphasizes courtesy and a degree of formality. - Mutual trust and respect is required to get things done. -Trust is earned through proper behavior. -Creating a wide network of close personal business alliances is very important. 2. If you do not speak French, an apology for not knowing their language may aid in developing a relationship. -It is always a good idea to learn a few key phrases, since it demonstrates an interest in a long-term relationship. 3. The way a French person communicates is often predicated by their social status, education level, and which part of the country they were raised. 4. In business, the French often appear extremely direct because they are not afraid of asking probing questions. 5. Written communication is formal. Secretaries often schedule meetings and may be used to relay information from your French business colleagues. 1 The importance of personal relationships can not be underestimated. Always invest in building trust and rapport. 2. You will notice that Algerians do not leave a great deal of personal space between each other. If someone stands close to you or holds your arm, do not back away. 3. Preserving honor/reputation is very important. -Algerians will try to preserve their reputations telling people what they think they want to hear even if it is not the truth. -It is important to bear this in mind when communicating with Algerians, i.e. do not cause them to lose face especially in public. 4. Within Algeria the "you scratch my back and I scratch yours" mentality works. Try and do favors for people as this will mean they owe you one back.

22 Dress Etiquette FranceAlgeria 1. Business dress is understated and stylish. -Men should wear dark-colored, conservative business suits for the initial meeting. -How you dress later is largely dependent upon the personality of the company with which you are conducting business. -Women should wear either business suits or elegant dresses in soft colors. -The French like the finer things in life, so wear good quality accessories. 1. Business attire is formal and conservative. -Men should wear dark colored, conservative business suits for the initial meeting. -In the heat of the summer, it is often possible to dispense with the suit jacket, although it is best to err on the side of formality. -Women should wear business suits or dresses. -Women must be careful to cover themselves appropriately. Skirts and dresses should cover the knee and sleeves should cover most of the arm.

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