Note: This article is presented here due to popular demand. Most of the information it contains remains highly relevant today. What is absent from this article, however, are references to the enormous quantity of digital resources available via the Internet which did not exist when this article was first written.

 

Increased awareness and understanding of different global cultures through “intercultural competence” can provide your company or organization with competitive advantages in its international marketing iniatives.
Globalization. International focus. Multilinguilism. Cross-cultural training. Internationalization. These are just a few of the many terms which are encountered with increasing frequency within the business sector today. It is no secret that, all across the planet, the business sector is becoming increasingly “international” in scope.

This increased internationalization of world business is being driven by many factors, including: the reduction of international trade barriers; expanding new markets in other parts of the world, which offer great opportunities to increase one’s business activities; the emergence of new competitor companies and organizations from abroad; and, the formation of international trade alliances.

Perhaps nowhere is this trend toward increasing internationalization of markets more significant than within the hospitality, travel and tourism sectors of the world economy.

Within this increasingly international business environment, those hospitality-sector companies and organizations which possess (or acquire) an understanding of different global cultures can obtain a distinct competitive advantage over those which do not. This is because those which do possess or develop such “intercultural competence” can perform more effectively within international markets. Those which do not develop such skills are more likely to either lose business to others that are more culturally aware, or, possibly, to never identify such international opportunities in the first place.

The significance of intercultural competence is growing due to the increasingly international nature of the global business environment. In fact, it is not uncommon to hear about the creation of a single, truly global marketplace, in which one’s goods and services would be marketed and sold on any part of the planet. While this notion has not been fully realized, the trend in that direction is unmistakable. New communications technologies — the Internet, in particular — are helping to make this a reality.

However, in spite of the increased internationalization of the world’s business environment, it would be a mistake to presume that there is a comparable trend toward creation of a single, global culture.

By contrast, in comparison to the business sector, culture is deeply rooted and resistant to change. In fact, in recent years there has been a strong resurgence of cultural awareness and identity in many parts of the world. This fact is especially obvious within the former “communist” states of Eastern Europe and the Baltic Region, where cultural and national identity surged as Soviet influence was removed.

One result of this was that the former nation of Czechoslovakia was split — peacefully and by mutual agreement — along cultural and linguistic lines — into two separate states: the Czech and Slovak republics, each having its own unique cultural identity. By contrast, cultural identity was taken to violent extremes within the former Yugoslavia resulting in an extremely destructive civil war. In many parts of the world today, one can find other examples of how cultural identity remains an extremely important factor within human society.

Accordingly, as the business sector becomes increasingly international in character, the need to develop “intercultural competence” — defined here as a critical awareness of the distinctive features characterizing a culture other than one’s “home” culture — is becoming ever more necessary. This is certainly true for the combined hospitality, travel and tourism sectors of the economy, which are already to a great extent “international” in character and oriented to worldwide markets.

 

CULTURE DEFINED

Simply defined, “culture” is the sum total of the ways in which a nation or group of people think, act and live. The elements of a culture include its language, religion and customs. Culture is acquired or learned over many years, and is passed down from one generation to the next. Each culture has a unique history which is continually added to with the passing of time.

When one is dealing with individuals from different cultures, a whole range of factors may be present: language; religious influences; historical legacy; geographical factors; customs; and, material culture including clothing, shelter, artistic creations, products). These elements can be considered as “interlocking” components, which, taken together contribute to a culture’s unique identity. For example, a culture’s language, religion and customs cannot be separated from its history, for each is related to the other. Thus it is important to develop a comprehensive viewpoint when learning about other cultures, and not merely to look at comparatively superficial facts, figures and statistics (as useful as these may be).

Understanding how cultural factors may impact international sales and marketing efforts can assist you to establish solid, rewarding, and mutually beneficially international business relationships. However, a misunderstanding of intercultural differences may, by contrast, lead to difficulties which could either spoil new business negotiations or do damage to an existing international business relationship.

 

THE BENEFITS OF INTERCULTURAL COMPETENCE

Whether you are trying to attract new clients from abroad, opening a new property within another nation, or seeking new business opportunities overseas, a clear understanding of the cultural dimensions of the nation or group you are dealing with can help you to act more effectively. Intercultural competence can assist hospitality sector firms with their international sales and marketing efforts in the following ways:

• To identify potential new target markets for your products and services.

• To successfully enter and to develop new international markets for your products and services.

• To create culturally-appropriate marketing, sales and advertising programs.

• To negotiate more effectively with members of different cultures.

• To sustain and enhance existing international business relationships.

 

INTERCULTURAL EFFECTS ON BUSINESS ACTIVITIES

Intercultural differences influence international business activities in many ways. For example, consider the matter of punctuality. In some cultures — the Germans, Swiss, and Austrians, for example — punctuality is considered extremely important. If you have a meeting scheduled for 10:00 and you arrive at 10:07, you are considered “late”. Punctuality is highly valued within these cultures, and to arrive late for a meeting (thus “wasting” the time of those forced to wait for you) is not appreciated.

By contrast, in some southern European nations, and within Latin America, a different somewhat “looser” approach to time may pertain. This does not imply that one group is “wrong” and the other “right”. It simply illustrates that different approaches to the concept of time have evolved for a variety of reasons, over many centuries, within different cultural groups. Culture can (and does) influence the business sector in different parts of the world to produce distinct ways of functioning.

Another example of how cultural differences influence the business sector concerns the presentation of business cards. Within the United States — which has a very “informal” culture — business cards are typically presented in a very casual manner. Cards are often handed out quickly and are just as quickly placed into the recipient’s pocket or wallet for future reference.

In Japan, however — which has a comparatively “formal” culture” — the presentation of a business card is a more carefully-orchestrated event. There, business cards are presented by holding the card up with two hands while the recipient carefully scrutinizes the information it contains. This procedure insures that one’s title is clearly understood: an important factor for the Japanese, where one’s formal position within one’s organizational “hierarchy” is of great significance.

To simply take the card of a Japanese and to immediately place it into one’s card holder could well be viewed (from a Japanese perspective) in a negative light. However, within the U.S., to take several moments to carefully and deliberately scrutinize an American’s business card might also be taken in a negative way, perhaps suggesting that one’s credibility is in doubt. These examples — the sense of time/punctuality and the presentation of business cards — illustrate just two of the many ways in which cultural factors can influence business relationships. They represent only the small tip of a significant and often hidden “iceberg” of intercultural differences which will be encountered with greater frequency as more hospitality-sector business is conducted internationally and with members of other cultural groups.

Contributing further to this situation are advanced communications technologies, particularly the Internet. A marketing presence on the Net now provides “instant” global access to any person, residing on any part of the planet, who happens to have an Internet connection. While the Internet permits one to reach more individuals within new markets worldwide, it also poses some definite challenges: will the members of the different cultural groups appreciate the content of your Web site, or be offended by it? Here is yet another area where access to other cultures all across the planet demands a greater degree of intercultural competence from international marketers.

Many factors are contributing to a more “global” business environment in which more international — and hence intercultural — business activity is occurring. The more that one is aware of the relevant, underlying cultural factors, the better off one will be when functioning within this increasingly international and interconnected global business environment. Better understanding the culture or cultures you are working with allows you to act more effectively within that culture’s unique business and social environments, and may provide you with a distinct competitive advantage.

 

THE GEOGRAPHY OF INTERCULTURAL COMPETENCE

“Intercultural competence” is more prevalent within certain societies and regions of the world for numerous reasons. In Europe, for example, where intercultural competence is relatively common, it is a natural consequence of the geographic proximity of many different cultures (and nationalities) living rather closely together on a relatively “crowded” continent.

A “cross-fertilization” of cultures and languages is a natural consequence of this geographic reality. Mastery of a second (or third) language is common for many Europeans. The need to learn another language is obviously more of a necessity when the people living just a short distance away possess not only a distinct cultural identity, but speak a different language as well.

On the other side of the globe, geographically-isolated Japan, has done an excellent job of developing intercultural competence within its business community. The development of overseas markets for Japan’s goods and services has been an economic necessity for the Japanese. Coming from a very singular culture, with no real counterparts elsewhere in the world, the Japanese have of necessity developed a keen awareness of, and competence in sales and marketing within different cultures worldwide. Frequently, Japanese businessmen are given lengthy cultural and linguistic training before being sent abroad to conduct business. Awareness of other cultures and foreign language competence have surely contributed to Japan’s many well-known successes within international markets.

By way of contrast, intercultural competence among Americans has often been wanting when compared to the efforts mounted by many competitors from abroad. Geography, history and economics helped to create this situation. Relatively isolated by two immense oceans, possessing a large and generally prosperous internal market, and lacking serious foreign competition, the
development of a higher level of international, intercultural competence was often considered by many Americans to be unnecessary.

Today’s more internationally-oriented business environment has changed this situation, and many Americans are now finding it necessary to become more aware of other cultures out of necessity — or to miss many opportunities. Although a number of U.S. hospitality-sector companies have done very well in this regard through the years, there continues to exist a general, relative lack of intercultural competence — including foreign language skills — among many Americans, including some who work within hospitality, travel and tourism companies and organizations.

A popular joke addresses this phenomenon:

“What do you call a person who speaks three languages?” “Trilingual.”

“What do you call a person who speaks two languages?” “Bilingual.”

“What do you call a person who speaks only one language?” “An American!”

This is mildly humorous, and not completely accurate. However, it does point out a certain reality. In general, European, and to some extent Asian, businesses and organizations often do a better job of dealing with other cultures than their American counterparts.

 

DEVELOPING INTERCULTURAL COMPETENCE

Intercultural competence can be acquired — and it is not especially difficult to do. What is often more difficult is to develop an appropriate mental frame of reference for dealing with different cultures, worldwide.

This frame of reference should include the basic awareness that, above all, there are many different ways of organizing societies: many different ways of living, speaking, learning, worshipping and conducting business. It is not necessary that one “like” or admire all of these differences. What is necessary, however, is to develop awareness of the cultural differences which do exist between your “home” culture and those which you are doing business with, or would like to do business with.

Developing such an internationally-focused, culturally-aware perspective can have a positive impact on one’s international sales and marketing efforts. Following are several ways in which you can develop — or enhance — your intercultural competence.

 

Learn The Language

More than just a means of communication, language provides deeper insights into how the members of a particular culture think. If your focus is on several different cultures, it will obviously not be possible to gain high-level proficiency in all of the languages involved. If, however, your business focus is on a single culture you can certainly begin to master its language.

It is true that English has become primary language for conducting business throughout the world. In spite of this fact, native speakers of English should not disregard the many advantages — including a deeper understanding of the culture — which accrue to those who do develop foreign language skills.

Foreign languages can be learned formally at universities, colleges and adult schools, as well as at private language schools, such as Berlitz or Inlingua. In some parts of the U.S., foreign governments may offer subsidized language classes in their native language. More informal routes to developing foreign language competency include self-study media such as audio tapes and interactive CD-ROM discs.

 

Study Geography

A good, basic geographic knowledge of the nation or area you are concerned with provides you with many advantages. By contrast, a lack of such knowledge can be a serious hindrance, for you may lack knowledge necessary to make better, more informed decisions, and you may appear poorly-informed to members of the culture you are dealing with, creating a negative impression.

If, for example, you represent a hotel chain expanding into an foreign market, you will need to know about many geographic factors including: the country’s major cities; the availability of transportation including rail, highway, sea and air; location of major (and perhaps lesser airports); proximity to major gateway cities (within that nation or located in adjacent countries); the locations of competitor properties; and, much more.

A high-quality, detailed map of the nation in which you are interested can be an indispensable business tool. Such a map can be obtained either from a good book or map store, or from the national tourist office of the country in question (usually free of charge).

Geographic knowledge enables you to make better, more informed business decisions. Your international contacts will also respect you more if you are a well-informed, geographically-literate person, who has taken the time to learn about their unique culture/nation.

 

Develop A Historical Perspective

Each culture has its own unique history. Take time to learn about the history of the culture/nation you are interested in. American’s tend to operate with a very short-term focus and the notion of learning about another nation’s history may appear to be an irrelevant luxury. However, far from being an irrelevant academic exercise, history provides extremely useful insights into the reasons that a culture acts and functions as it does today. As this includes a nation’s overall business environment, such information is highly useful to those conducting sales and marketing efforts internationally.

A brief overview of a culture’s/nation’s history can be obtained from a reputable encyclopedia or international almanac. For more detailed information, the country’s consulate general, embassy or tourist board can often supply a booklet or brochure highlighting the major events of its national history. Further information is available on the Internet, and one’s local library should also contain additional resources.

 

Conduct Cultural Reconnaissance

It has often been said that the experience of travel provides an excellent education, for it broadens one’s perspective and provides one with insights one would otherwise never obtain. Simply being present within another culture permits one to experience first-hand, the people, economic climate, customs, and social and business environments of that culture.

Accordingly, plan a familiarization trip to the country or region you are focused on. Meet with your potential business partners. Arrange a study-visit with the relevant national authorities and business organizations before you go. Plan to attend a trade show in that location.

In addition to activities directly related to business, take advantage of as many opportunities to “explore” that society and culture as are appropriate and practicable. Go sightseeing. Ride on public transportation. Walk the streets of major cities. Visit museums and historic sites. Communicate with the local citizens. Patronize local restaurants, cafes, and shops. Develop a sense of what it is like to live and work in that location.

Participation in such activities can be among the most effective way to gain a better understanding of the culture you wish to do business in. The key here is to interact directly with the culture you want to learn more about.

 

Respect Religion

Religion is one of the key components of every culture. As such, it has often played a major role in the way in which a culture has developed and continues to develop today. In some societies, religion continues to play a major role, influencing the conduct of the business sector. In others, its influence will be much less obvious. The world’s major religions (and philosophies) include the following: Christianity; Islam; Hinduism; Buddhism; Judaism; Confucianism; Shintoism; and, Animism.

Be aware of the religious influences that exist within the culture you are focused on. Consider how this may impact the overall conduct of your business dealings, and your sales and marketing programs, in particular. Information of this type is widely available from many of the sources quoted elsewhere in this article.

 

Understand Government, Economy And Society
Conditions within another culture may differ very widely from your home nation. Even among nations which are — in a cultural and economic sense — broadly similar to one’s home culture, the actual differences can be quite pronounced.

For example, relatively few Americans realize that one of the world’s leading “capitalist” nations, Germany, has a very different form of capitalism from that which is practiced in the U.S. Known as a “Sozialmarktwirtschaft” — literally a “social market economy” — the German economy places greater emphasis on protecting citizens from the forces of the “marketplace”.

In Germany, companies tend to take a long-term view with regard to investment; workers are represented on the boards of directors of major companies; there is universal health coverage, and, extensive social benefits are paid to citizens including not only maternity leave, but paid “paternity” leave as well — father’s, as well as mothers, get their opportunity to stay at home with the children!

These factors, taken together, create an overall business climate which is very different from that found within the U.S. The societies of even more “culturally-similar” nations such as Great Britain, or even Australia or Canada, also have many very different ways of doing things from that which Americans are accustomed to.

What should be understood here is that while one expects to find significant differences among more obviously “foreign” cultures — for instance, Japan, Egypt or India — even among those nations which are more culturally similar to the U.S. (such as those of Western Europe), significantly differences may exist. Learn about them because these differences can impact your international business activities.

Information regarding government, economy and politics is easily obtainable from a wide variety of sources including the consulate/embassy of the nation in question, or reference works at your own local library.

 

Gather International Intelligence:

Keeping abreast of the latest developments in your field is obviously essential for your continued success. Keeping abreast of current events relating to the culture/nation in which you are interested can similarly help to ensure your organization’s success in its international marketing activities.

Clip articles from newspapers, magazines and newsletters which relate to the culture you are interested in. Such information need not have a direct hospitality, travel or tourism industry focus. Rather, it can be any type of information which provides useful insights into the issues, attitudes and contemporary trends which are impacting that particular culture. Include such areas as: the economy; politics; foreign policy; education; environment; health care; foreign trade; taxes; legal climate; and, social policies. Such information can help you to broaden your overall awareness of a particular society, thus benefiting your marketing activities as well.

 

Expand Your Reading Horizons:

If you are a native speaker of English, consider expanding the range of English-language publications which you read. If, for example, you generally read American publications, try reading other high-quality English-language publications such as The Financial Times of London and The Economist (also from London). Both provide excellent, in-depth coverage of a variety of international issues, from a different perspective than that of most U.S. newspapers and magazines.

Although Great Britain and the U.S. have much in common, they are also very different societies (and cultures) in many ways. By reading such publications, you will gain new insights into the issues affecting your international marketing efforts. You will also become more conscious of the fact that other societies view many issues in ways that are often quite different from that which Americans are accustomed.

 

Internationalize Your Reading Materials:

Foreign language competency can take you still further, permitting your to read many other international publications which will provide insights into the workings of other cultures. If, for example, your business plans were to include the nation of Sweden, (Scandinavia’s largest economy) you would do well to learn more about that particular nation and its unique culture.

Although many English-language sources of facts, figures and information can be located, if you really want to learn more about Sweden — in terms of current views on world events, business and politics, the economy and the environment, culture and traditions — being able to speak (or at least, to read) the Swedish language will be of great advantage to you. For example, by reading Sweden’s two major, daily newspapers — Svenska Dagbladet and Dagens Nyheter — you can gain priceless insights and information which can help you to more effectively do business within that culture.

Obviously, the same can be said for having foreign language skills which relate to other nations or regions in which you have a business interest. Foreign language competency serves as a “gateway” opening the doors to a whole storehouse of information which would otherwise be denied to you. Official facts, figures and statistics, although useful, can never provide you with the depth of insight you will gain by reading “local” newspapers (and other publications) from the country in which you intend to do business.

Foreign-language publications can often be found at select newsstands within major metropolitan regions, and at some libraries. A nation’s consulate or embassy in the U.S. will sometimes maintain a library which you can visit in order to read such publications. Alternately, if you are clearly focused on conducting business within one particular nation or culture, you could consider subscribing to an appropriate international publication.

 

Study Business And Social Customs:

Business customs are a subset of each culture’s overall customs. In general, outside of the U.S., most cultures are more formal and their members observe many more daily “rituals”. You will need to learn the unique social and business customs which apply to the culture you are learning about. Ideally, this should be accomplished before your first visit or contact with members of that culture.

Included in this area are: appropriate ways of dressing; greetings; negotiating styles; presentation and design of business cards; table manners; local traditions; holidays; sense of time; status and organizational hierarchy; and, much more. There are many excellent books which provide in-depth information about doing business within specific cultures, nations or regions. Visit a good bookstore, or contact your local library to determine what may be available.

 

Leverage Your Creativity:

Be creative in finding other ways to learn more about other cultures. For example, contact the consulate or embassy and find out if they publish a newsletter which would be of interest to you. Determine if they sponsor any culturally-related events — films, traditional holiday celebrations, etc. — which you could attend. If you know someone from that culture, talk to them, ask questions, practice your foreign language skills.

Learn the language and spend your vacation in that country, if that is appropriate and desirable. Go to museums and look at paintings and sculpture stemming from that society. Listen to the music created by members of that society. Eat at restaurants that feature the traditional foods of that country, and become familiar with its national cuisine.

Go to your library (or to a bookstore) and read works created by that society’s writers. Read history from a variety of perspectives to increase your overall awareness of that society and culture. Read biographies of its well-known individuals.

Also consider leisure-time hobbies, interests or activities that you pursue. For example, if you participate in sailing, hiking, painting, writing, flying, investing, golf, chess, or collecting folk art, contact the nation’s consulate or embassy to learn about clubs or organizations in that nation sharing your interests. Contact these groups and establish a friendly relationship based on this mutual interest. Not only is this a great way to learn about another culture, but it can be fun as well!

Finally, use the Internet. A vast and rapidly-growing amount of digital information on almost any topic imaginable can be found on the Internet. Seek out the relevant, international and intercultural resources on the Net that are of value to you. Use the Internet as a new tool for learning and discovery.

 

CONCLUSION

Business, including the hospitality, travel and tourism sectors, is certain to become more internationally-focused during the next decades: more U.S. businesses can expect to do business in Asia; more German companies will conduct business within Eastern Europe; and, Asian firms will spread their influence around the globe. However, these facts must not be taken as a signal that a single global culture is coming into existence. The trend toward a single global marketplace is not being matched by a corresponding trend toward a single global culture. Accordingly, in order to maximize the effectiveness of your hospitality organization’s international operations — be this the management of hotel properties abroad, getting more overseas visitors for your city, state or nation, or negotiating with business people from another culture — the cultural dimension of business must not be overlooked.

In an increasingly competitive, international business environment, intercultural competence, provides you with a strong competitive advantage. By developing a better understanding of the different cultures in which you conduct business, you can better position your company or organization to prosper within the complex, interrelated, emerging global marketplace.

 

This article originally appeared in the HSMAI Marketing Review, the premier publication of the Hospitality Sales & Marketing Association International – HSMAI. To learn more, visit HSMAI at www.hsmai.org.