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Doing Business Abroad: The French Example
By Cherie Zeringue, MSME, BSBmE, MBA Although this article deals mainly with doing
business with French firms, the experience gained can lead to lead
to doing business in other countries. When doing business abroad,
ask yourself, What effect does the countrys history and its place
in the world economy have on conducting business? What about
typical organizational dynamics and power structure?
It often helps to understand the evolution of circumstances leading
to the current environment. To gain understanding of the French
culture, you must understand their view of history--the role of
France and the US.
In terms of expansion of civilization and global trade, the US
is a relative newcomer. For centuries, France dominated worldwide
commerce. The rise of the British after Napoleon's fall, the
decline of the French language as the global language of business,
the Japanese emergence on the European economic scene, and--perhaps
most insidious of all to the French--the Americanization of the
world--contribute to feelings of resentment. Despite these recent
setbacks, much of French industry still carries the view that the
French have the intellectual right to succeed globally.
Communication
The French language is well-suited to their culture. In
conversation, the French are exact, logical, formal, and quick (one
of the most rapidly spoken languages on earth at 350 syllables a
minute vs. English at 200). The precision of the language leaves
little room for ambiguity or hedging. French systems tend to reward
those who use their language well. Most people in leadership
positions within French firms can be expected to be extremely
articulate, think rapidly on their feet, and engage the full
spectrum of their language. Conversely, many Frenchmen and other
Europeans view American English as full of tough talk, quips,
exaggeration, and preoccupation with getting action. Some
linguistic historians theorize that this situation in the US
evolved due to heavy immigration to congested Eastern cities when
bluntness and overstatement were needed to communicate among
non-English-speaking peoples.
Organizational Dynamics
French companies are hierarchical, moderately steep, pyramidal
organizations. Decision-making is more centralized and occurs
higher in the organization than is typical in the US. The CEO
normally has extensive powers. French managers will typically have
less specialization, wider horizons on the business, and a better
grasp of issues than their English-speaking counterparts in the US
or Great Britain. The manager's status is based on family, age,
education, and professional qualifications, with an emphasis on
speaking ability and mastery of the French language.
An elitist education system funnels individuals of various
classes into a highly structured selection process with extremely
difficult entry hurdles at each level. The system creates a
life-long club of executives who maintain relationships, share
ideas and information, and often see to each other's interests.
This system goes significantly beyond any US "old boys' network" to
advance its members while preserving the system.
In general, the French are more focused on status and rank than
are Americans. Their strong focus on creating organization
structures is matched by an ability to evade and supplant them with
informal parallel practices: "Une regle rigide, une pratique molle"
("a strict rule, but a lenient practice"). Opaque organizations
result: clear structures with many ad hoc, pragmatic procedures
with implicit rules and tacit understandings. To Americans, this
creates a seemingly paradoxical, hard-to-understand business
approach.
Much of the real work is done through informal channels. Seeming
organizational slack in French companies can facilitate power
struggles. Generally, power and authority are regarded as coming
from the person exercising them, not from his/her role in the
organization. Personal interactions drive a lot of the work and
decisions. Individualism is strong.
Hopefully, this example will help you in researching the culture
of the country in which you will be doing business. Cherie Zeringue, MSME, BSBmE, MBA, owns Growth Solutions, a marketing and sales consulting company in Salt Lake City, Utah. Contact her at growthsolutions@hotmail.com 

Table Of Contents - December 2003
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