Stereotypes In Business

Contents

Box 1 Main definitions of “stereotype” in the dictionaries 6

Box 2 Why are stereotypes bad? 9

Box 3 Impact of stereotypes on employees – results of studies 10

Box 4 Main definitions of “culture” in the dictionaries 18

Box 5 First aid kit in cultural awareness 20

Box 6 German culture – key cultural concepts and values 21

Box 7 General characteristics of the German business environment 26

Box 8 Do’s and Don’ts in Business with Germans 30

Box 9 False German Stereotypes 31

Box 10 Differences in business between Northern and Southern Germany 32

Box 11 Best business practices in Germany 33

Box 12 Romanian culture – key cultural concepts and values 35

Box 13 General characteristics of the Romanian business environment 40

Box 14 The Barometer of Entrepreneurship Romania 2012 – main findings 45

Box 15 Do’s and Don’ts in Business with Romanians 45

Figure 1 Europe according to the French 13

Figure 2 Europe according to the Germans 14

Figure 3 Europe according to the British 14

Figure 4 Europe according to the Italians 15

Figure 5 Europe according to the Bulgaria 16

Figure 6 Hofstede country profile – Germany 22

Figure 7 Hofstede country profile – Romania 36

Figure 8 The general image of the central and south-east European countries 43

Figure 9 Romania on the map of corruption 47

Table 1 Subcomponents of the stereotyping process 9

Table 2 Negative versus positive in stereotypes 11

Table 3 Main stereotypes in Europe 16

Table 4 The most corrupted and the most hardworking countries in EU (Economist) 17

Table 5 Negative and positive traits associated with Germans 27

Table 6 Stereotyping in Europe – EU nation most likely to be named 27

Table 7 Anholt-GfK Roper Nation Brands IndexSM 29

Table 8 Negative and positive traits associated with Romanians 41

Table 9 Romanian Values 42

Table 10 Country Brand Index (2012-2013) 43

Argument

We live in a globalized economy, where business is not limited to a single city, not even to a single country. Borders remain only on maps, companies have headquarters in the entire world and people from India answer the request of British clients, on the other side of the globe. Nationalities still do exist and people maintain their identity. However, they learn to blend in and adapt to a multicultural society. However, things are not as simple as they might seem. In this context, the way the other business people are perceived plays an essential role in any attempt to do business in another country.

Stereotypes represent an important topic in the world of business, as they can hinder the success of a partnership. No matter how evolved society is, even if we speak about political correctness, people’s perceptions of others have been formed in time; they are strong and very difficult to change. The motivation behind this theme of stereotypes in business was that it is a very current topic, the centre of many debates and of uttermost importance in the world of globalized business. Thus, the purpose of this paper is to provide a thorough insight into what role stereotypes can play in the business role, not only by outlining the main theories but also with the help of a comparative analysis between the German and the Romanian stereotypes.

The main objectives of this paper are to provide the theoretical background to fully understand the concept of stereotype, its positive and negative impact in business and to provide a comparative analysis between Romania, an Eastern European country and Germany, a country with tradition in business, including also solutions for counteracting stereotypes and confronting the classical stereotypes with reality.

The first chapter of the paper, Stereotyping – theoretical approach, presents the main concepts related to the theme of the paper. Starting with the basic definitions of this term, the chapter continues with the main theories that try to explain the formation of stereotypes. Even though it is mainly perceived as having a negative impact on business, stereotype can also be used in the benefit of companies. This rather unexplored aspect deserves its share in the conceptual analysis of stereotyping. A further insight into how Europe looks like from the stereotypes perspective helps create a better image in the way the most important countries perceive the others and are perceived, being the practical support for the theoretical discussion. Last but not least, the first chapter offers a solution to fighting against stereotypes – cultural awareness.

The second chapter of the paper, Doing business in Germany, analyses the main stereotypes regarding Germans and their impact on business. This part also tries to be a small guide in what concerns the German way of doing business by providing guidelines for business relationships with Germans and the basic do’s and don’ts. By knowing and following certain rule and also by getting an insight into the German business culture, one can insure successful business relationships.

The third chapter, Romania, on the map of business stereotypes, starts from the question whether Romania has a stable business environment with clear business etiquette or things are still done by the ear. Starting from this point, the chapter outlines the main rules that a foreign business partner should respect when dealing with Romanian counterparts and also analyses the main stereotypes regarding Romanians and the truth behind them.

The paper ends with a parallel between the German and the Romanian models, from the point of view of stereotypes and business cultures, emphasizing the great differences that are between the two countries.

Stereotyping – theoretical approach

We live in a globalized economy, where business is taken everywhere; we speak of being politically correct and fight against discrimination. Yet, in this culture bowl there are plenty of biases, prejudices and stereotypes that get mixed up. These affect communication between people and impact on the business by altering relationships and preventing interlocutors from having a clear, objective and mutually advantageous business relationship. For a comprehensive image on the mechanism of stereotypes in business, we need to outline the theoretical fundaments and offer introspection into their impact in the real world, with an emphasis on the European business environment.

Stereotypes – concepts and theories

Should anyone be asked in the street what a stereotype is, he definitely might not give a full, accurate definition but would be able to provide an example from his own culture. Most often, the idea of stereotype would be associated with a partially negative concept. At its basic understanding, the stereotype is defined by most dictionaries in a somehow neutral, simplistic manner, as it can be seen in the box below.

Box 1 Main definitions of “stereotype” in the dictionaries

However, these classical definitions might not be comprehensive enough in order to understand the full concept. The first time that stereotype was used was in 1922 in renowned journalist Walter Lippmann’s “Public Opinion”. He observed that “people often relied on a ‘‘repertory of fixed impressions’’ (i.e., stereotypes) to make sense of an overwhelmingly complex and constantly changing world (Quadflieg& Macrae, 2011:216). The first definition of stereotype was given by Gordon Allport (1954:191) 32 years later: ‘‘exaggerated belief[s] associated with a category.” Nonetheless, this is a very narrow definition, but a good starting point for the other theoreticians and their attempts of explaining stereotypes. For a more comprehensive definition, we have the one offered by Blum (2004:251), according to which stereotypes are “false or misleading generalizations about groups held in a manner that renders them largely, though not entirely, immune to counterevidence. In doing so, stereotypes powerfully shape the stereotyper's perception of stereotyped groups, seeing the stereotypic characteristics when they are not present, failing to see the contrary of· those characteristics when they are and generally homogenizing the group.” Although there are cases when the stereotyped group is associated with a positive trait, in most cases the attributed feature is an undesirable one.

Social psychology, along with cultural and media studies have been the two sciences which have focused their attention on stereotypes and why they are seen as a negative concept. The first thing that must be taken into consideration is the cultural feature of stereotypes. Thus, a certain group is associated with a label and a set of characteristics in a certain sociocultural context, turning stereotypes into cultural entities. On the other hand, from the perspective of social psychology, the individual himself might create his own personal, idiosyncratic stereotype of a group. In this case, we will talk about individual stereotypes. A widely accepted view in social psychology is that stereotyping is an instantiation of the categorization process. We cannot have an impression of a group unless we can tell the difference between the group and some other group. Categorization is the cognitive process by which we detect those differences and similarities (McGarty, Yzerbyt&Spears, 2002:3) We must distinguish, then, between stereotypes as culturally salient entities, and stereotyping as a psychic process that individuals engage in with respect to groups (Blum (2004:251). To this perspective, the stereotypes formed in a cultural and social context are more powerful than the individual ones and have the quality of being much easier to be absorbed by individuals.

There are a few characteristics that stereotypes are bearing:

They involve generalizations, usually about groups;

They are fixed and rigid in what concerns the stubbornness of the individual in holding to the stereotype. There is also a connection between this feature and the other meaning of stereotype, used in printing – texting cast into rigid form for the purposes of repetitive use.

Another important question that should be addressed is why people acquire stereotypes. At the basis of this process stand cognitive biases (when specific groups of people are encountered in roles that call for a particular behaviour (e.g., women working as nurses who are required to show nurturing behaviour), perceivers are likely to infer that persons enacting those roles have corresponding dispositions—rather than that they display efforts of role fulfilment), motivational needs (based on the need to attain and maintain a positive self-image from the groups to which they belong, humans attribute positive qualities to their own groups and negative qualities to out-groups) and social learning mechanisms (stereotypes form an element of cultural heritage that is passed on from one generation to the next through communication, observation, and imitation) (Quadflieg& Macrae, 2011:217-218). In order to better understand how people form and apply stereotypes, researchers have tried to create a map of the stereotyping process, dividing it into subcomponents.

Table 1 Subcomponents of the stereotyping process

(Sherman, Macrae, & Bodenhausen, 2000:156)

If stereotypes are so present in our modern society, why should they be catalogued as such a negative concept? If they are present at the level of every culture does not necessarily imply that they should be accepted as a necessary evil. There are certain reasons why stereotypes have a negative reputation.

Box 2 Why are stereotypes bad?

After almost a century of theoretical approaches to stereotypes and their mechanisms, stereotypes still offer a wide range of variables to be studied. If in 1922, we were barely talking about this concept, the importance of stereotypes is even higher now in a globalized economy. The elimination of physical borders led to a flourishing of stereotypes, which will also evolve, mutating like a virus. In this context, the researching on stereotytive concept? If they are present at the level of every culture does not necessarily imply that they should be accepted as a necessary evil. There are certain reasons why stereotypes have a negative reputation.

Box 2 Why are stereotypes bad?

After almost a century of theoretical approaches to stereotypes and their mechanisms, stereotypes still offer a wide range of variables to be studied. If in 1922, we were barely talking about this concept, the importance of stereotypes is even higher now in a globalized economy. The elimination of physical borders led to a flourishing of stereotypes, which will also evolve, mutating like a virus. In this context, the researching on stereotypes and the way they are formed and impact on today’s society is a must.

Impact of stereotypes on business – merits versus ignorance

When we talk about stereotypes, beyond understanding what they represent and how they work, there is their impact. Everybody has stereotypes that they apply, discrimination is one of the issues that modern society is fighting against, and equality is one of the most important topics discussed at a global level, what happens with stereotypes? In this context in which we are seeking for fair treatment, what impact do stereotypes have? More importantly, how do stereotypes affect the business environment? Do they hinder relationships, or do they have a positive component too?

Firstly, stereotypes may affect the performance of individuals within a company, irrespective of their relationships with external partners. Studies have shown that employees tend to act according to stereotypes, thus unconsciously proceeding according to what was theoretically expected from them.

Box 3 Impact of stereotypes on employees – results of studies

Unfortunately, there are not enough studies within the companies to provide input into how stereotypes function within the working environment as no company would accept that they are stereotyping and allow for researches to be carried with their employees. Moreover, even if companies do perform their own researches, rarely if never make the results public.

Table 2 Negative versus positive in stereotypes

However, an essential aspect of stereotypes in business appears when we take into consideration their impact in international relationships. Do they bring only trouble or do they sometimes help build stronger relationships? We might consider that stereotypes have a critical impact on international relationships. Due to the expansion of multinationals, employees work in a multicultural environment and have to deal with different nationalities sometimes even on a daily basis. Thus, it is very easy to count on the image that we have of the others, without checking the information. From this perspective, the business environment seems to be the perfect place for stereotypes to be used and applied, thus hindering the business activity. However, studies contradict this hypothesis.

In one of the experiments performed at Cornell University (Katz, 1995: 5-10), the main hypothesis was that new, diagnostic information would reduce the impact of stereotypes on assessments. 243 graduates where shown 3 commercials from 3 different countries (Germany, France and Italy), the hypothesis being that when information is available from the commercials, participants will rate those commercials the same, regardless of the country that they were led to believe those commercials were from. Differences between individuals' ratings on the eleven attributes of for each pairing of commercial sets were generated. There was a second analysis, in which participants' ratings of the eleven attributes for each of three commercial sets was used, accompanied by a pairwise comparison of countries. The results were generally consistent with standard American stereotypes of the three countries. Germans were seen as more formal, more technical, less sensual, and less humorous. Italians were seen as more beautiful, artistic, sensual, and unusual. Thus, the conclusion of the study was that stereotypes act as defaults, coming into play when current information is insufficient to render a judgment.

John Jost, an associate professor of organizational behaviour at Stanford Business School, tried to find the connection between stereotypes and responses to and feelings about the larger social scale. His research demonstrated a cause and effect relationship between the exposure to certain stereotypes and subsequent agreements with statements that support the status quo. “Masculine and feminine stereotypes are complementary in the sense that each gender group is seen as possessing a set of strengths that compensate for their weaknesses and that balance out the presumed strengths of the other group. These stereotypes are appealing in part because they satisfy the desire to perceive existing forms of social and economic arrangements as fair, legitimate, and justified. These findings demonstrate the existence of a justification process that is new to the social justice literature.”(Jost, 2003: 499)

Overall, stereotypes do hinder business activity, they decrease the performance of employees, affect the image of companies and the relationships at a cultural level. However, business people should learn how to take advantage of stereotypes. They can be used to boost employee confidence, to counteract the deterioration of employee relationships, to target certain customers, to improve the marketing strategy and to create products designed especially for a specific niche.

Map of European stereotypes

Europe, this culture bowl of the Globe, can be taken as the perfect example in what concerns stereotypes. The most powerful countries have formed during history a certain image, while even the poorer ones are categorized according to some more recent patterns. It is unavoidable that these stereotypes are also used in business. While European Union is trying to harmonize its policies and promote a no-discrimination attitude, fighting against stereotypes is a stronger challenge. They have been created and implemented in time and they have powerful roots.

One of the most creative and out-of-the ordinary attempts of illustrating European stereotypes belongs to a Bulgarian designer living in London, Andrew Cusack. In 2010 he created more maps of Europe according to how some of the main countries view the others. His perfect and realistic illustration of stereotypes was welcome by the entire European community and advertised in some of the most famous publications in Europe.

A first step in analysing these stereotypes is making a comparison between how the great powers of Europe see the others. Thus, French people generally see every other people of Europe in a very relaxed and friendly manner: Romanians are the poor brothers, Spanish are associated with flamenco, Italians are seen as friendly people and even Germans are considered as best friends. The stereotype is not always such a positive one. In case of Bulgaria, its people are seen as poor savages, while British people are viewed as slayers of Virgins.

Figure 1 Europe according to the French

The perspective is a little bit changed from the German perspective, the people being associated more with different national symbols. For Romania, it is the vampires, for Sweden it is Ikea, for Italy it is pizza, for Bulgaria it is schnapps. Finland, just like in the case of French stereotypes is associated with making of cell phones. We can conclude that Germans categorize the other people according to the benefits they can draw from that country, while the French see things more from the social perspective.

Figure 2 Europe according to the Germans

When it comes to an old power of Europe, Great Britain and its stereotypes, the situation is much more tense and ironical. The British see themselves as superior to the rest of Europe, which they consider to be the Evil Federated Empire. Even when we take into consideration the individual stereotypes, the British prefer to maintain in most cases a negative attribute for each country: Romania and Bulgaria are seen as sources of immigrants, Sweden and Norway have trashy pop music and Germans are associated to dirty porn. In the mild category are the Italians, the tanned men with grey hair or Spain, the country where British people require sunscreen. Some countries are associated with positive stereotypes- Finland again with mobile phones, France with shops, Hungary with soup and Poland with beer.

Figure 3 Europe according to the British

The Italian stereotypes are clearly positive or negative: Romanians are thieves; Hungary is a source of pornstars, while Swedish are Nobel prize winners, or they are associated with different cultural patterns: Germans are clock addicts, British is associated with Wembley, Poland is the beer land.

Figure 4 Europe according to the Italians

What happens when we change perspective? How are things from the point of view of a smaller and poorer country? Again, Hungary is seen as the country of porn stars, while Romanians are just the poor neighbours. French are associated with refined things, while most of the other countries are characterized according to some national symbols: Germany with Volkswagen, Italy with spaghetti.

Figure 5 Europe according to the Bulgarians

Cusack is not the only one who has mapped Europe according to stereotypes. Some of the most important ones and the people’s responses are summarized in the table below.

Table 3 Main stereotypes in Europe

(Guardian)

Another example of stereotyping in Europe can be seen in a survey completed in 2012 to establish the most corrupt and the most hardworking people. Only people in eight nations participated – Britain, France, Germany, the Czech Republic, Greece, Italy, Poland and Spain), their answers reflecting the general stereotypes present at the level of these countries.

Table 4 The most corrupted and the most hardworking countries in EU (Economist)

Whatever the stereotypes may be and whatever the perspective we might take, some countries managed to have associated with their image a certain concept as it happens with Germans – their discipline and car industry, French with refined things, Spain with relaxation, Poland with the Catholic religion and plumbing and Romania with poverty or vampire land. These stereotypes seem to be very well implemented in the general mentality and hard to combat.

Cross cultural awareness- the key to success in business

In a globalized world, where stereotypes are proliferating, what is the solution in order to fight against them and be able to lead a smart business? As mentioned in the theoretical approach, stereotypes are used in the absence of information. That is the second resort for anyone who is dealing with a new person, culture, people and does not know enough to engage in communication. Unconsciously, they will use stereotypes to manage the relationship while, instead, they should become culturally aware.

In order to fully understand the concept of cultural awareness, we should focus our attention firstly on what culture is.

Box 4 Main definitions of “culture” in the dictionaries

Thus to be culturally aware implies researching and getting to know the customs, beliefs and social norms of the other people you are interacting with. This is done by developing cultural competency for the employees and the management of the company.

There are certain aspects in business that should be taken into consideration when implementing the cultural awareness (Irimias, 2011: 169-172):

Non-verbal business communication styles such as leaning on the back of the chair is perceived as rude in Europe and America; leg crossing is perceived as threatening or accusatory in Muslim society;

Dress code in business of the specific country must be taken in consideration and respected;

Intercultural business communication: The major differences among business organizations follow cultural patterns that are found among all discourse communities, and some principles of cross-cultural communication can help an outsider to predict an organization’s expectations. For example, Germans, for example, highly rank directness in communication; similarly Americans are in favour of debating issues directly and openly.

Communication barriers must be taken into consideration and eliminated: language, modern technology, stereotyping and prejudice, anxiety, assuming similarity instead of difference, ethnocentrism;

Moreover, in order to fully understand a culture and its way of perceiving reality, one should take into consideration Hofstede’s six dimensions of national cultures:

Power distance: a country’s degree of social equality or inequality. The power distance index measures the extent to which the less powerful members of an organization or institution accept and expect the fact that power is distributed unequally. High power distance would be a sign of great social inequalities.

Individualism: the degree to which individuals are integrated into groups. Individualist societies leave everyone looks after himself. Collectivist societies integrate individuals into cohesive groups.

Masculinity: the distribution of roles between genders. A high masculinity index indicates the country experiences a high degree of gender differentiation.

Uncertainty avoidance: a society’s tolerance for uncertainty and ambiguity. A high uncertainty avoidance index indicates the country has a low tolerance for uncertainty and ambiguity.

Long-term orientation: the degree to which a society embraces long-term devotion to traditional values. A high index would reveal a society that emphasizes tradition and long-term commitments.

Indulgence versus restraint: an indulgent society will allow relatively free gratification of basic and natural human drives related to enjoying life and having fun while a restraint one will suppress gratification of needs and regulates it by means of strict social norms.

Box 5 First aid kit in cultural awareness

Knowing, studying, researching other cultures is the first step in developing cultural awareness and thus fighting against stereotypes. Smart companies will invest in cultural competency training and will emphasize the importance of developing awareness in this field. However, when it comes to stereotypes, it seems there is a long way ahead and cultural awareness is a concept that is just starting to be implemented. Fighting stereotypes that have had decades to be created and applied will take maximum effort not to be eliminated but to be diminished.

Doing business in Germany

Germany, one of the strongest countries in the world, is certainly a state with a reputation. When its name is heard, it is not possible that the words precision, toughness and discipline not to come to mind. Germany is considered to be the economic engine of Europe and they certainly did not get to this stage by doing bad business. Should anyone be fortunate enough to be doing business with a German partner, he should be aware of certain specific details of their culture, details that might hinder or, on the contrary, might boost the relationship.

The German business etiquette

If Germans are associated with strictness and rigidity, how are these two applied when it comes to their business etiquette? Do they expect you to follow their rules completely or do they actually show some signs of flexibility? These are just some questions that one might ask oneself when dealing with German business people.

Before taking into consideration such details, a useful approach would be to create a country profile. This offers an insight into the German character and certain traits that might also apply in business.

Box 6 German culture – key cultural concepts and values

(Gorrill, 2009:1)

As planning, order and facts seem to be the major keywords of the German culture, these should also be reflected in Hofstede’s dimensions. The scores for Germany, are presented in the figure below, followed by a characterization of the country from this perspective (http://geert-hofstede.com/germany.html)

Figure 6 Hofstede country profile – Germany

Power distance – it expresses the attitude of the culture towards the inequalities amongst us. From this point of view, with a score of 35, Germany is among the lower power distant countries. Germany is highly decentralised, with a strong middle class, thus promoting participative communication and challenging leadership in order to show expertise.

Individualism – the degree of interdependence a society maintains among its members. This is one of the dimensions where Germany has a high score – 67, being a truly individualistic society, with a strong belief in the ideal of self-actualization and loyalty based on personal preferences. Another trait resulting from this score is the fact that communication is among the most direct in the world.

Masculinity / Femininity – the degree in which the society is driven by competition, achievement and success, or by caring for others and the quality of life. Not surprisingly, Germany is a masculine society (score 66), where performance is highly valued. People rather “live to work” and draw a lot of self-esteem from their tasks. Managers are expected to be decisive and assertive.

Uncertainty avoidance – the extent to which the members of a culture feel threatened by ambiguous or unknown situations. Germany is among the uncertainty avoidant countries (score 65). Thus, Germans prefer the deductive rather than inductive approaches, that is why they are detail-oriented, focus on certainty and rely on expertise.

Long term orientation – the degree in which society is future-oriented or prefers to take things in consideration on the short term. With a score of only 31, Germans are oriented towards the short-term, exhibiting a great respect for traditions, impatience for achieving fast results

Indulgence/Restraint – this dimension shows how much people in the respective culture feel free to enjoy the simple pleasures of life – acting as they wish, spending money and having fun – or, on the contrary, believe that such enjoyment should be submitted to certain rules. Germany scores 40 on this dimension which shows that, even when they have fun, the Germans prefer to follow some rules.

All these dimensions will mark the way Germans behave in society and not only. They can be traced back to the business etiquette and the rules that German business people apply when dealing with outside partners and not only. When we talk about business etiquette, there are certain steps that one must take into consideration when dealing with a German business person (Katz, 2006: 3).

Initial contacts and introductions

The individual of a higher rank is responsible for introducing anyone who is new to the group. By higher rank, Germans understand the position the person has not his seniority within the company. Names are usually given in the order of first name, family name, the exception being in Southern Germany, where the names are mentioned in the opposite order. One must always use Mr./Ms. or Herr /Frau plus the family name to address someone plus the academic title (if there is one). Such an example would be “Herr Doktor Meier”. Women, except those serving you in restaurants or if obviously still teenagers, should never be addressed as Fräulein. Always use Frau Müller or if she has a title Frau Doktor Müller (Regional Language Network, 2009: 35). One should not expect to go on a first-name basis with their German counterpart. This may never happen. However, if it does, it should come at the initiative of the German partner. Any introduction will be accompanied by a firm handshake, except for the case of women, when men should wait for their initiative. Germans greet and say 'goodbye' to their business partners with a handshake every time they meet. The handshake is followed by the exchange of business cards. Although most German business people speak English, it will be appreciated if the business card is translated into German. Moreover, it should contain the professional title, with an emphasis on seniority. The giving and receiving of the business cards should be done smiling and maintaining eye contact.

Meetings

Appointments are compulsory and should be made 1 to 2 weeks in advance. It is needless to say that punctuality is extremely important. One must be exactly on the time set for the meeting, no matter if it is business or social. Being late, even if it is only by a few minutes, is very insulting to a German executive and could mean a shaky start to any potential business relations (German Center for Market Entry, 2012: 3) Germans are not sociable people when it comes to business. There is a clear separation between the private life and the professional one. Meetings are more formal than, for example in the UK and very formal compared to the American ones. There is no need for small talk, as the interaction will focus mostly on business, especially on the technical details. That is why the interlocutor must be prepared thoroughly for the meeting and should expect many difficult questions so that the German partner may eliminate his uncertainties.

There is no room for interpretations. Without intending to be impolite, Germans tend to be more direct when it comes to expressing views or making statements and will expect the same from the interlocutor. Therefore, “we may be able to deliver” actually means that you can deliver (Regional Language Network, 2009: 36). Humour is to be avoided as much as possible, as it would diminish the seriousness of the meeting and undermine the partner’s intentions. Presentation materials should be attractive, with good and clear visuals, but not too flashy. The presentation should be kept succinct and methodically thought out, including all details the counterparts may consider important. Germans are generally suspicious of hype and exaggerations and may respond negatively to an aggressive sales approach. No matter the critics of the audience, one should keep positive, as Germans tend to look for deficiencies in the products or services and may openly draw attention to them. This does not mean that they do not like the presentation (Katz, 2006:3)

Business dress code

Germans prefer wearing formal business clothing; this means that businessmen will wear formal dark suits, white or blue shirts and solid, conservative ties. The tie or the jacket should not be removed until a German colleague has made this step, irrespective of how warm it is. Businesswomen also dress conservatively, in dark suits and white blouses. Women are recommended to avoid being flashy, especially with large, expensive jewellery or perfumes (German Center for Market Entry, 2012: 3).

Business dinners

Germans usually do not drink at lunch and only really do it in the evenings after consulting their guests. Beer and wine are the usual drinks. Before one starts eating he must wish all the German partners a ‘guten appetit’ (enjoy your meal). Tips are generally between 5 and 10% (Germany trade&invest2013:3)

Gifts

At the beginning of negotiations, business gifts are seldom exchanged but may be given at their conclusion. Gifts to the German host should be simple and rather inexpensive, as Germans consider expensive gifts to be in bad taste. The offered gifts should not be wrapped in black, brown or white. Gift giving marked with the company logo is acceptable (Martin, Chaney, 2006:47). If someone is invited to a German's house, chocolates or flowers are recommended as gifts. There are certain flowers that should be avoided: red roses symbolize romantic intentions, carnations – mourning, lilies and chrysanthemums are used at funerals.

Language

The country’s official language is German, with great variations across different regions, which may complicate the communication for someone who learned German as a foreign language. Many businesspeople speak English, often well, and interpreters are rarely needed. A very important aspect that must be taken into consideration is the fact that many Germans prefer and are more familiar with British English. Speaking in short, simple sentences and avoiding jargon and slang are helpful (Katz, 2006: 2).

Decision making

The German thinking process is extremely thorough, with each aspect of a project being examined in great detail, even if it is a time-intensive process. Thus, planning is essential as after that, the project will flow clearly, with deadlines expected to be honored. German executives tend to be analytical thinkers, requiring lots of facts and examples from the other side to support their position. German businesspeople tend to be traditionally cautious of new ideas and concepts. Institutional change comes very slowly and often quite reluctantly (German Center for Market Entry, 2012: 5). Decision makers are usually senior executives who consider the best interest of the group or organization. They may delegate their authority to lower levels, which is often done in a formal process that includes written approvals. However, decisions are often made by consensus of a group of senior managers, which is why it is important to find or create opportunities to directly influence the decision makers rather than only meeting with subordinates (Katz, 2006: 5).

Agreements and contracts

Although nothing can replace a written contract, one should take into consideration the fact that oral agreements and statements of intent may already be legally binding and are usually dependable. German law makes offers binding unless otherwise noted. It is best to mark the offers with ‘good until …’ or to add a ‘subject to change’ clause. Signing the contract is important not only from a legal perspective, but also as a strong confirmation of the partners’ commitment. Requests to change contract details after signature may be considered as bad faith and will meet with strong resistance. Failure to meet the terms and conditions of a signed contract may trigger legal action against you (ibid: 6)

Besides the business etiquette, any person that would like to do business in Germany should know a few details about the German business environment.

Box 7 General characteristics of the German business environment

Typical German stereotypes in business

As one of the most powerful nations in the world, Germans have not been exonerated from being stereotyped. Some of the traits they are attributed are according to reality and should be taken into consideration when doing business in Germany.

As with everything in life, there are positive and negative features that people generally associate with Germans, stereotypes which are also applied in business.

Table 5 Negative and positive traits associated with Germans

(http://www.dw.de/despite-stereotypes-germany-highly-regarded/a-16694367)

Some of the attributes in the upper table are confirmed by the Pew Report, whose results are systemized in the following table.

Table 6 Stereotyping in Europe – EU nation most likely to be named

(http://marginalrevolution.com/marginalrevolution/2013/05/stereotyping-in-europe.html)

While it is true that some countries might name themselves for the good attributes, the general image of the German people that is illustrated from this report is the one of arrogant, least compassionate but trustworthy people.

What is true in these stereotypes is the fact that Germans also lay great emphasis on politeness, good manners at table and in general. According to a survey (questionnaire applied by Münchner CGC Claus Goworr Consulting asking 600 managers in 2005) about 87% of German managers consider good manners crucial for personal and business success (Hamburg, 2012: 125). This also includes punctuality, which is a golden rule in doing business in Germany.

Overall, Germany has a strong brand, along with its stereotypes. A very important way of measuring its brand is by using the AnholtGfK Roper Nation Brands Index (It measures the image of 50 nations. Each year, approximately 20,000 adults ages 18 and up are interviewed online in 20 core panel countries, both developed and developing all across the globe. Germany has been one of the most powerful countries from this point of view, maintaining its position in the past years in an agitate context. “While the top nations retain their high ranks, in a year of continued economic, social, environmental and political challenges, ordinary people around the world seem less impressed by other people’s countries than they were in 2011,” said Simon Anholt, NBI founder and an independent advisor to over 50 heads of state and heads of government around the world. “When it comes to the NBI scores, two-thirds of the nations have experienced declines of varying degrees this year. With a few exceptions, developed nations, ranking among the top-20, have registered some of the biggest score losses. Japan and Spain, mired in their respective economic malaise, have experienced the greatest score decline. Put simply, the world likes the world a bit less than it did last year.”(GfK, 2012: 2). The attributes that people appreciate in a country and its people are: “democratic, open, and treats its citizens fairly”; “good quality of life and work/life balance”; “respects nature and keeps a clean environment”; “safe and orderly society with well-behaved people”; and “people are warm and friendly.” Taking this in consideration, in 2012, Germany was on the second place, right after the United States, however registering a decrease compared to 2011.

Table 7 Anholt-GfK Roper Nation Brands IndexSM

Overall Brand Ranking (Top 10 of 50 Nations – 2012

(GfK, 2012: 1).

Whatever the stereotypes might be about Germany, their overall image among the other countries of the world is more than good. Once with the financial crisis, Germany has improved the way it is perceived by the others. When it comes to their stereotypes, even in the negative ones there is a positive aspect. They are rigid and obsessed with rules, but this means they do things thoroughly and they are reliable.

Addressing stereotypes in Germany

When we deal with a culture based on rules and great organization, it is more than clear that using stereotypes in business relationships is a great no-no. That might be a capital mistake that the German counterpart might not get over. Any business partner should not only have basic knowledge on the culture of this country, but also on the measures he has to take in order to achieve success in his business relationships.

In order to avoid certain problems that might be drawn from the wring perspective of the German culture, there are some strict rules that one must obey. By following these, one makes sure that the potential failure of a business relationship with a German partner will not be due to intercultural differences and not knowing the business etiquette, but because of simply not agreeing on the terms. The basic do’s and don’ts are presented in the box below.

Box 8 Do’s and Don’ts in Business with Germans

(Gorrill, 2009:3)

In what concerns some of the most popular German stereotypes, the foreign business person has no choice but research them, take them into consideration and act accordingly.

Punctuality

If at all possible always confirm appointments in writing. It is better to be earlier as this may give the added advantage of having time to see how the office or factory is functioning. If there is the great misfortune of being late, the company should be called immediately and announced, even if it is about a small delay of only a few minutes.

Directness

Indeed, Germans are very direct people, often going to bluntness. “Would you mind terribly if…” does not really exist in German, certainly not in such a convoluted way. There is no fuss over politeness as there is in England. Not taking this into consideration might lead to great misunderstandings. Such an example is the following: once when an English contact said “we’ll go away and think about it”, the German delegation were horrified because they thought that that meant they had been “dismissed” and that it spelt the end of the negotiations. (Regional Language Network, 2009: 36). Germans do not find it hard to say “No” or “This is impossible”, which should not be an offense to their partner. Also, interruptions are very common and should be interpreted like the answer was sufficient and needs no further detail (German Center for Market Entry, 2012:5)

Overregulation

It is true that Germany suffers from overregulation and even if some Germans might admit it and even complain about this aspect, this is what gives them a sense of security. The advantages are that usually there is always a law, directive, regulation or norm which covers the product or service that one wants to sell, thus allowing for full transparency in what concerns the norms and the regulations. German industry and businesses are also well organised through Chambers of Commerce and Trade Associations. Other regulatory bodies exist for banking, insurance, the building industry, drugs and medical equipment, etc. The disadvantages include what on occasions would appear to be a certain amount of protectionism. Products already tested in any country to meet safety standards often need to be tested again in Germany, a process which can be both expensive and time consuming (ibid. 44)

Rigidity

One should not expect spontaneity and flexibility from Germans. They also do not appreciate surprises as they interpret them as sudden changes, even if such surprises might result in an improvement of the business relationship.

There are certain stereotypes that even Germans have been trying to fight against, proving that they are wrong. Some of them can be applied in business and should be minded for when interacting with German business people.

Box 9 False German Stereotypes

(http://www.thelocal.de/lifestyle/20130417-49187.html#.UZyAmbVM8Rg)

There are also certain studies that contradict the most common stereotypes about Germans. The consumer research institute Rheingold Salon completed a study called The Double Life of Germans. According to the findings, “The cliche of hard-working, punctual, ambitious Germans is hard to do away with, both in the way Germans perceive themselves and are perceived by others – but Germans are in fact much more diverse, fun-loving and tolerant than the stereotypical image of them would have it. "They are also much slyer and less orderly than popularly thought. You now have openly gay conservative parliamentarians, conservative MPs with multiple cultural identities, and multiple passports” (http://www.guardian.co.uk/world/2012/sep/16/germany-far-removed-from-stereotype).

Besides these stereotypes that should be taken into consideration and followed accordingly, one must take into account also the fact that there might be differences between the way business is done in Northern and Southern Germany.

Box 10 Differences in business between Northern and Southern Germany

One last aspect regards business women. While German society is making progress towards gender equality and 46.6% of the workforce is made up of women, few women have managed to attain positions of similar income and authority as men. As a visiting businesswoman, one should emphasize her company’s importance and her role in it. A personal introduction or a letter of support from a senior executive within your company may also help. As a female business traveller, one should display confidence and assertiveness, however not appearing overly bold and aggressive (Katz, 2006: 6).

Overall, the best business practices when it comes to dealing with business parteners can be summarized as in the box below.

Box 11 Best business practices in Germany

(http://interculturalnow.com/Best-Practice-Doing-Business-in-Germany.html)

All these aspects are essential when doing business in Germany. Ignoring them is not a solution as Germans are not known for their flexibility. Ignoring the intercultural issues and the confirmed stereotypes will lead to the failure of the business relationship and thus losing a very important and reliable partner.

Romania on the map of business stereotypes

Romania has a shot history of a capitalist economy. The communist period did not allow for the development of proper business relationships with outside partners as everything was controlled by the state. Nonetheless, stereotypes regarding Romanians have existed even before the Second World War. After the Revolution, the business environment had the chance to start its own road in a controversial economic environment. Thus, the main question would be, after more than 20 years, has there been any progress in establishing clear business etiquette? Unlike Germany, Romania had less time to create its own rules and this must have had an impact on the way Romanian business people are perceived and the way they act in their relationships with outside partners.

Business etiquette – between concept and reality

Romania’s image abroad has undergone certain changes, not all of them of a positive nature. Even though it is regarded as a country with great potential and it was one of the targets of foreign investors, soon it lost a part of attractiveness as foreign business partners found it hard to perform in our country. Often, words such as corruption and bribe appeared in all the major perception studies, thus impacting the way Romanian business people were regarded by their counterparts.

How does Romania’s country profile look? Irrespective of how negative or, on the contrary, great, the image of our country is, there are certain characteristics that are identified in all the reports.

Box 12 Romanian culture – key cultural concepts and values

(Malinak, 2009:1)

Even after 20 years, Romania did not manage to escape the label of ex-communist country. The Romanians have not yet succeeded in creating a new identity. This should be reflected in Hofstede’s dimensions. The scores for Romania, are presented in the figure below, followed by a characterization of the country from this perspective (http://geert-hofstede.com/romania.html)

Figure 7 Hofstede country profile – Romania

Power distance – it expresses the attitude of the culture towards the inequalities amongst us. From this point of view, with a score of 90, Romania is among the highest power distant countries. Romania is highly centralised, Romanians accepting hierarchy and the fact that each person has its own place. In organizations, even if this will imply inequalities, subordinates will expect the boss to tell them what to do, while the ideal boss is a benevolent autocrat.

Individualism – the degree of interdependence a society maintains among its members. This is one of the dimensions where Romania has a low score –30, being a truly collectivist society, with a strong belief in close long-term commitment to the member group (whether this is a family, or extended relationships). The society fosters strong relationships where everyone takes responsibility for fellow members of their group. This also impacts the business environment, as management is firstly a management of groups, the employer/employee relationships are perceived in moral terms and hiring and promotion decisions take account of the employee’s in-group.

Masculinity / Femininity – the degree in which the society is driven by competition, achievement and success, or by caring for others and the quality of life. Not surprisingly, Romania is a relatively feminine society (score 42), where people rather “work in order to live”. Equality, solidarity and quality in the working life are highly valued. Compromise and negotiation are used to resolve conflict.

Uncertainty avoidance – the extent to which the members of a culture feel threatened by ambiguous or unknown situations. Romania is among the highly uncertainty avoidant countries (score 90). Thus, Romanians prefer to maintain rigid codes of belief and behaviour. Nonetheless, they are intolerant of unorthodox behaviour and ideas. People need rules, even if these do not work, people have an inner urge to be busy and work hard. Although precision and punctuality might be the norm, innovation is usually resisted as security is an important element in individual motivation..

Long term orientation – the degree in which society is future-oriented or prefers to take things in consideration on the short term. With a score of 52, Romanians are somehow oriented towards the short-term, exhibiting a great respect for traditions. This will have a negative impact on the way business is conducted as Romanians will find it difficult to plan for longer periods of time, this implying also the fact that they lack strategic planning and cannot foresee the future.

Indulgence- restraint – this dimension shows how much people in the respective culture feel free to enjoy the simple pleasures of life or consider that even these should be subject of certain rules. Romania scores 20 on this dimension which shows that, even when they have fun, the Romanians prefer to follow rules.

All these dimensions do have a great impact on the way Romanians behave in society and the way they do business. Although, maybe not as clearly defined as in Germany’s case, Romania does have business etiquette that should be taken in consideration by any foreign business partner who would like to invest in this country.

Initial contacts and introductions (Katz, 2006: 1-3)

A first great help in establishing relationships with Romanian business people is to have a local intermediary. This will decrease the culture gap, which will prove very useful as the Romanian business environment is more chaotic than organized. Names are usually given in the order of first name, family name. One must use Mr./Ms. or Domnul/Doamna. Also, formal titles are important. When dealing with a person from the academic field or a high professional, their title should be used, followed by the family name. Even if Romanian colleagues of equal status will prefer their surname to the first name, they will still use the title. First names are primarily used among close friends and family only. There are cases in which older Romanians kiss a woman's hand when meeting them. However, this is not expected of foreign men. Introductions will always be accompanied by handshakes, followed by the exchange of business cards. It is always recommended to have more business cards than needed and not to expect one in return. The business cards should have one side in Romanian and the other one in English and they should mention clearly the professional title (especially if it is a proof of seniority) and doctorate degrees. The giving and receiving of the business cards should be done smiling and maintaining eye contact.

Meetings

Appointments are necessary and should be made 2 to 3 weeks in advance and not during the summer or other holiday periods. Summer is usually a season when business activity is quite low. Punctuality is valued; however it is not always honoured. Being late by more than 10 to 15 minutes without a valid, plausible excuse can be an offense. Meetings are formal and they follow a rigid structure: introductions, handshakes, exchange of business cards. They usually begin with small talk, whose purpose is to establish personal rapport. The initial meetings will be more formal and reserved but it is not a good idea to hurry along with the agenda. The presentation materials need not include fancy graphs or very colourful backgrounds, but rather they should be easy to understand. Romanian business people may exaggerate their capabilities or make questionable promises in order to maintain foreign contacts (Katz, 2008:3). Their physical contact is quite infrequent but they may use extensively the body language.

Business dress code

Conservative attire is important when doing business in Romania. Male business visitors should wear suits on most occasions. Even if ‘overdressed’ is not good, they should make sure that shoes and suit are in good condition. (ibid: 5)

Business dinners

Conversations are kept at a quiet level and emotions are not shown in an open manner.

Gifts

Business gifts are expected, even if the Romanian counterpart might not reciprocate. However, these should not be sent at home, but to the office. If someone is invited to a Romanian’s house, an odd number of flowers, chocolates or liquor are recommended as gifts. Hospitality is an important part of Romanian culture. It is customary to be served a drink of tea, coffee or even brandy as a welcome.

Language

The country’s official language Romanian and French is a popular choice for a second language. Many businesspeople speak English, often well; interpreters are more often needed with older people, such as high-ranking managers. People in this country usually speak soĞ ly. While they may occasionally raise their voices to make a point, they dislike loud and boisterous behavior. (ibid: 2). It is better to speak in short, simple sentences and to jargon and slang (ibid:1).

Decision making

As companies have a very strong hierarchal structure, it is unacceptable to disagree or criticize a superior. Authority is rarely delegated, thus the decisions being made by the seniors. On the other hand, other employees are consulted for consensus, a process which can take a long time. When taking decisions, Romanian business people will rely less on rules, but mostly on the specific situation. They will take into consideration all the aspects, but facts will weigh more than their feelings. When it comes to risky decisions, Romanians would feel more comfortable if they are presented guarantees or contingency plans (ibid:5).

Relationships and respect

People in Romania usually prefer to do business with persons they know and like. The business relationships are more between people, than between companies. This means that, even if the Romanian partner trusts his foreign counterpart, it does not necessarily imply that he will also trust other employees of the partner company. Business relationships are built in the long term but can result in large networks that may last for a lifetime. This will also prove useful when trying to find a third-party partner. One very important aspect that any foreigner should take into consideration is the fact that Romanians do not appreciate of people who like to boast and brag, so keeping modesty is quite important. (ibid: 1). Respect will depend mostly on age and status.

Agreements and contracts

One should not be fooled by the oral commitments made by Romanian counterparts as they are stronger than what could be put in writing. The process of signing the final contract can be a lengthy one and full of changes. Contracts are quite long, with detailed terms and conditions and in many cases, the intervention of local legal expert could prove useful as the country’s laws can change on short notice. That would not be the only legal problem that one might encounter. Sometimes, even signed contracts are not honoured and that will not mean the end of the business relationship with the Romanian partner. Flexibility is expected from the foreign partners, including agreement on modifying contract terms (ibid: 5).

Besides the business etiquette, any person that would like to do business in Germany should know a few details about the German business environment.

Box 13 General characteristics of the Romanian business environment

(Malinak, 2009: 2)

Overview of the main Romanian stereotypes in business

As one of the ex-communist countries, Romania did not manage to get rid of this label. Nonetheless, there are some general stereotypes that affect the country’s image and its business people when trying to establish relationships with foreign partners. However, these are not always included in the negative category.

Table 8 Negative and positive traits associated with Romanians

(http://britishexpat.com/europe/romania/romania-stereotypes/)

The general image of the Romanians that is illustrated from most reports is the one of a people with a troubled history, trying to keep up with the rest of Europe, while fighting poverty and corruption.

This is also confirmed by further research. In her book, Romania’s image under the microscope! Country branding and rebranding, Nicolaescu Luminita (2009:122-129) presents the results of a study involving 427 foreigners and their perception of Romania, a study conducted between August, 1 and September, 10 2007. When asked about the first thing that they associate with Romania, 25% of the answers were related to a personality (mostly Dracula or Ceausescu), 22% to a social problem (varying from friendly and hospitable people to poverty, gypsies and not respecting human rights), 17% to the economic environment (high opportunities, great economic potential) and 14% to the natural environment. In what concerns the business environment, the respondents appreciated the economic and political stability (that is, however, not a dominant characteristic of our country, taking into consideration the crisis and the political tensions), skilled workforce, a low cost of life. On the other hand, they also mentioned the beggars, the bureaucracy, the corruption, the great gap between poor and rich people, a high difference between the capital and the rest of the country, lack of infrastructure in business, high prices and low quality.

In what concerns the characteristics specific to Romania and its people, the respondents made the following associations:

people

positive: hardworking, hospitable, full of life, polite, patriots, Latin spirit, creative, with respect for tradition, entrepreneurship;

negative: a negative attitude to their country, low self-respect, materialistic;

economy

positive: prosperous country, low cost of life, investments, the will to improve the living standards;

negative: developing country, poverty, no respect for the client;

In what concerns the values that Romanians have according to the foreign respondents, they are summarised in the following table.

Table 9 Romanian Values

(Nicolaescu, 2009 : 131)

Overall, Romania has had an unstable image over time. Although it presents certain positive features (such as a great potential and friendly people), corruption seems to be one of the traits that keep persisting. Even comparing with its neighbouring countries, Romania seems to have a worse image than the rest, as can be seen from the following figure.

Figure 8 The general image of the central and south-east European countries

(Nicolaescu, 2009 : 135)

Even in the international branding classifications, Romania does not seem to have a very popular image, especially after the financial crisis. According to Future Brand’s Country Brand Index 2012-2013, Romania was among the countries that registered a decline in its image, especially in the quality of life, just like other Eastern European countries. The economic crisis had a great impact on the way Romania is perceived, taking it back forty places. Thus, in the most recent version of this index, Romania is on the 100th place, long after Bulgaria that is on the 79th place.

Table 10 Country Brand Index (2012-2013)

(Future Brand, 2012: 106)

Whatever the stereotypes might be about Romania, the overall image of the country certainly has more steps to make in order to be improved. Romanians have a long way until they will eliminate or at least reduce some of the stereotypes they have been attributed with, in the meanwhile these will continue to affect the way foreigners conduct business in our country.

Overcoming stereotypes in Romania

If most of the reports, studies and research present Romania as a corrupt country, how can we really characterize the Romanian entrepreneurs? It is clear that they cannot all be considered corrupt, as that is an attribute mostly for the local authorities and from the research mentioned, Romanian business people do not possess such a bad image.

Ernst&Young has released last year The Barometer of Entrepreneurship for Romania, in which a general perspective on Romanian business people is offered, without taking into consideration the stereotypes.

Box 14 The Barometer of Entrepreneurship Romania 2012 – main findings

(Ernst&Young, 2012:1)

Even in an unstable environment, with semi-chaotic business practices and rules that might change too often, there still are certain practices that any foreign business partner should take into consideration for a successful relationship.

Box 15 Do’s and Don’ts in Business with Romanians

(Malinak, 2009:2)

In what concerns some of the most popular Romanian stereotypes, they should be taken in consideration by foreign business people and tackled carefully.

Corruption

While it is true that one of the first words that come to mind when talking about Romania is corruption, this characterizes firstly its public sector, not the Romanian business people. According to the latest statistics, Romania is ranked 66th in Transparency’s Corruption Index with a score of 44. The score indicates the perceived level of public sector corruption on a scale of 0 – 100, where 0 means that a country is perceived as highly corrupt and 100 means it is perceived as very clean. The latest index includes 176 countries and territories. Bulgaria has a lower score of 41 and it is ranked 75th. Hungary is less corrupt with a score of 55.

Figure 9 Romania on the map of corruption

(Transparency International, 2012: 2)

Judging all the business people by attributing them the corrupt label would be a great mistake. There are plenty of Romanian people that are honest and most of them would be glad to do business with foreign partners.

Poverty

While it is true that there is a great discrepancy between the capital and the rest of the country and a great gap between the poor and the rich, foreign business people should take in consideration the fact that many Romanians like to keep an appearance of luxury, “shown by the latest generation mobile phones (which are often more expensive than in the West), unnecessarily flashy cars (in a country with terrible roads), and the relative elegance that especially young women like to affect. Romanians place great importance on appearances, and many of them do not have a culture of saving/investing.” The credit explosion made available resources to the youngsters, also placing them in great debt.

(http://britishexpat.com/europe/romania/romania-tereotypes/#ixzz2V5Dbb8MM)

No matter how much the business people might try and fight against stereotypes, a first step that must be made consists of creating a strong national identity. This, in turn, will help develop a strong image, thus improving Romania’s brand. The lack of direction that characterized Romania’s evolution after the 90’s, the attempts to turn the country into a capitalist one, attempts that sometimes ended with small failures, the lack of strategic planning, all these have had a great impact on the way Romania is perceived. Beyond Dracula’s myth, most Western countries perceive Romania as a poorer brother, an underdeveloped ex-communist country but with great potential. These are the main ideas that any foreign business person would come in mind with when choosing our country as a potential destination for his investments. What Romanians should consider is not only the fact that through their attitude they should try and improve our image and fight stereotypes, but that it is also the duty of their foreign business partners to gain insight into our culture, the business etiquette, the do’s and don’ts. Even though it is in our best interest to attract as many foreign investors, the Romanian business people should also boost their confidence and base their behaviour and attitudes on the assets that the Romanian business environment has to offer.

Conclusions

When mentioning the name of Germany and Romania the image that is created in one’s mind is that of a high contrast. Germans are rigid, highly organized people, extremely efficient and tough, even cold, while Romanians belong to a once communist country, with an unsure national identity, due to the painful past, a country struggling to reach the level of the Western EU members, but lacking a strong, organized, efficient system but rather having a very hierarchal, corrupt one.

This high contrast can be seen in the stereotypes characterizing these two countries. The economic power and strong past are not taken into consideration when people create their own perception of a certain country. Thus, Germany can also be called a victim of stereotyping. On the other hand, all the images associated with this country have a certain positive aspect, especially in business. Even if Germans are seen as cold, rigid, obsessed with punctuality and planning people, these have helped them get to the current level – the main power in Europe, its economic engine. Even if stereotypes are perceived as a negative concept, the ones related to Germany usually inspire respect. Maybe others might not borrow their way of being or might not agree to their direct to blunt way of speaking and formality but they will certainly appreciate the results. The only aspect that Germans are trying to fight against when it comes to stereotyping is the fact that they could be a little bit more flexible than the others perceive them.

When it comes to Romania, the perspective is completely different. Most of the stereotypes have a negative effect on the way Romanian business people are seen and could seriously hinder their relationships with their foreign partners. Their hospitability will enter in contrast with the fact that Romanians have a very hierarchal structure in the companies and prefer formality in the business relationships. Nonetheless, even if hospitable, Romanians are known for the fact that they change the contracts very often (a practice that would be considered inadmissible in Germany) and they even break the contracts. The only aspect that saves Romania’s image is the fact that it is seen as a country with a great potential. From the point of view of doing business, the environment still holds too many characteristics from the communist period – the need for hierarchy, lack of decentralization, the great respect for senior positions accompanied by a low participation of subordinates in the decision making process. It seems that Romania has a longer and tougher battle to fight against stereotypes than Germany. It still has not managed to create a strong and definite image. The business environment is, perhaps, in the period of turning to maturity, which might mean clearer business etiquette, a better image among the Western partners and less stereotypes.

From this point of view, the Romanian business people might wait for Romania to improve its image, diminish the stereotype of corruption and poverty and then reap the benefits by establishing healthier and more beneficial relationships with the foreign business partners. Nonetheless, this process might take a longer time, period in which Romania’s economy might suffer even more. A better solution would be for Romanian business people to fight against stereotypes by themselves, to adopt and implement cultural awareness in their organizations, thus having an active and essential role in improving Romania’s overall image.

References

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Blum, L., 2004, Stereotypes and stereotyping: A moral analysis, in Philosophical Papers, vol. 33, no. 3

Conaway, C., 2005, A psychological effect of stereotypes, in Regional Review Q1 2005

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Documents available online

***Ernst&Young, Press release – The Barometer of Entrepreneurship Romania 2012, available at

http://www.ey.com/Publication/vwLUAssets/Press_Release_Entreprenuers_Speak_Out_7_Feb_2013_(EN)/$FILE/Press%20Realease_Entrepreneurs%20speak%20out_7%20Feb%202013%20(EN).pdf

***Future Brand, 2012, Country Brand Index, available at http://www.futurebrand.com/images/uploads/studies/cbi/CBI_2012-Final.pdf

GFk 2012, Press release – Two thirds of Nations experience reputation decline in 2012 Nation Brands Index, available at http://www.gfk.com/news-and-events/press-room/press-releases/pages/two-thirds-of-nations-experience-reputation-decline-in-2012-nation-brands-index.aspx

***Hofstede, G., 2011, Dimensionalizing cultures: the Hofstede Model in Context, in Online Readings in Psychology and Culture, 2(1). http://dx.doi.org/10.9707/2307-0919.1014

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WEBSITES

***http://www.andrewcusack.com/2010/09/21/stereotype-map/

***http://www.businessdictionary.com/definition/stereotype.html

***http://britishexpat.com/europe/romania/romania-stereotypes/

***http://dictionary.reference.com/browse/stereotype

***http://www.dw.de/despite-stereotypes-germany-highly-regarded/a-16694367

***http://www.economist.com/blogs/graphicdetail/2012/05/greeks-say-they-are-hardest-working-european-nation

***http://geert-hofstede.com/germany.html

***http://www.guardian.co.uk/world/2012/sep/16/germany-far-removed-from-stereotype

***http://interculturalnow.com/Best-Practice-Doing-Business-in-Germany.html

***http://www.macmillandictionary.com/dictionary/british/stereotype

***http://marginalrevolution.com/marginalrevolution/2013/05/stereotyping-in-europe.html

***http://oxforddictionaries.com/definition/english/stereotype

***http://smallbusiness.chron.com/effects-cultural-stereotype-workplace-19193.html

***http://www.thelocal.de/lifestyle/20130417-49187.html#.UZyAmbVM8Rg

=== 3 ===

Romania on the map of business stereotypes

Romania has a shot history of a capitalist economy. The communist period did not allow for the development of proper business relationships with outside partners as everything was controlled by the state. Nonetheless, stereotypes regarding Romanians have existed even before the Second World War. After the Revolution, the business environment had the chance to start its own road in a controversial economic environment. Thus, the main question would be, after more than 20 years, has there been any progress in establishing clear business etiquette? Unlike Germany, Romania had less time to create its own rules and this must have had an impact on the way Romanian business people are perceived and the way they act in their relationships with outside partners.

Business etiquette – between concept and reality

Romania’s image abroad has undergone certain changes, not all of them of a positive nature. Even though it is regarded as a country with great potential and it was one of the targets of foreign investors, soon it lost a part of attractiveness as foreign business partners found it hard to perform in our country. Often, words such as corruption and bribe appeared in all the major perception studies, thus impacting the way Romanian business people were regarded by their counterparts.

How does Romania’s country profile look? Irrespective of how negative or, on the contrary, great, the image of our country is, there are certain characteristics that are identified in all the reports.

Box 1 Romanian culture – key cultural concepts and values

(Malinak, 2009:1)

Even after 20 years, Romania did not manage to escape the label of ex-communist country. The Romanians have not yet succeeded in creating a new identity. This should be reflected in Hofstede’s dimensions. The scores for Romania, are presented in the figure below, followed by a characterization of the country from this perspective (http://geert-hofstede.com/romania.html)

Figure 1 Hofstede country profile – Romania

Power distance – it expresses the attitude of the culture towards the inequalities amongst us. From this point of view, with a score of 90, Romania is among the highest power distant countries. Romania is highly centralised, Romanians accepting hierarchy and the fact that each person has its own place. In organizations, even if this will imply inequalities, subordinates will expect the boss to tell them what to do, while the ideal boss is a benevolent autocrat.

Individualism – the degree of interdependence a society maintains among its members. This is one of the dimensions where Romania has a low score –30, being a truly collectivist society, with a strong belief in close long-term commitment to the member group (whether this is a family, or extended relationships). The society fosters strong relationships where everyone takes responsibility for fellow members of their group. This also impacts the business environment, as management is firstly a management of groups, the employer/employee relationships are perceived in moral terms and hiring and promotion decisions take account of the employee’s in-group.

Masculinity / Femininity – the degree in which the society is driven by competition, achievement and success, or by caring for others and the quality of life. Not surprisingly, Romania is a relatively feminine society (score 42), where people rather “work in order to live”. Equality, solidarity and quality in the working life are highly valued. Compromise and negotiation are used to resolve conflict.

Uncertainty avoidance – the extent to which the members of a culture feel threatened by ambiguous or unknown situations. Romania is among the highly uncertainty avoidant countries (score 90). Thus, Romanians prefer to maintain rigid codes of belief and behaviour. Nonetheless, they are intolerant of unorthodox behaviour and ideas. People need rules, even if these do not work, people have an inner urge to be busy and work hard. Although precision and punctuality might be the norm, innovation is usually resisted as security is an important element in individual motivation..

Long term orientation – the degree in which society is future-oriented or prefers to take things in consideration on the short term. With a score of 42, Romanians are more oriented towards the short-term, exhibiting a great respect for traditions. This will have a negative impact on the way business is conducted as Romanians will find it difficult to plan for longer periods of time, this implying also the fact that they lack strategic planning and cannot foresee the future.

All these dimensions do have a great impact on the way Romanians behave in society and the way they do business. Although, maybe not as clearly defined as in Germany’s case, Romania does have business etiquette that should be taken in consideration by any foreign business partner who would like to invest in this country.

Initial contacts and introductions (Katz, 2008: 1-3)

A first great help in establishing relationships with Romanian business people is to have a local intermediary. This will decrease the culture gap, which will prove very useful as the Romanian business environment is more chaotic than organized. Names are usually given in the order of first name, family name. One must use Mr./Ms. or Domnul/Doamna. Also, formal titles are important. When dealing with a person from the academic field or a high professional, their title should be used, followed by the family name. Even if Romanian colleagues of equal status will prefer their surname to the first name, they will still use the title. First names are primarily used among close friends and family only. There are cases in which older Romanians kiss a woman's hand when meeting them. However, this is not expected of foreign men. Introductions will always be accompanied by handshakes, followed by the exchange of business cards. It is always recommended to have more business cards than needed and not to expect one in return. The business cards should have one side in Romanian and the other one in English and they should mention clearly the professional title (especially if it is a proof of seniority) and doctorate degrees. The giving and receiving of the business cards should be done smiling and maintaining eye contact.

Meetings

Appointments are necessary and should be made 2 to 3 weeks in advance and not during the summer or other holiday periods. Summer is usually a season when business activity is quite low. Punctuality is valued; however it is not always honoured. Being late by more than 10 to 15 minutes without a valid, plausible excuse can be an offense. Meetings are formal and they follow a rigid structure: introductions, handshakes, exchange of business cards. They usually begin with small talk, whose purpose is to establish personal rapport. The initial meetings will be more formal and reserved but it is not a good idea to hurry along with the agenda. The presentation materials need not include fancy graphs or very colourful backgrounds, but rather they should be easy to understand. Romanian business people may exaggerate their capabilities or make questionable promises in order to maintain foreign contacts (Katz, 2008:3). Their physical contact is quite infrequent but they may use extensively the body language.

Business dress code

Conservative attire is important when doing business in Romania. Male business visitors should wear suits on most occasions. Even if ‘overdressed’ is not good, they should make sure that shoes and suit are in good condition. (Katz, 2008: 5)

Business dinners

Conversations are kept at a quiet level and emotions are not shown in an open manner.

Gifts

Business gifts are expected, even if the Romanian counterpart might not reciprocate. However, these should not be sent at home, but to the office. If someone is invited to a Romanian’s house, an odd number of flowers, chocolates or liquor are recommended as gifts. Hospitality is an important part of Romanian culture. It is customary to be served a drink of tea, coffee or even brandy as a welcome.

Language

The country’s official language Romanian and French is a popular choice for a second language. Many businesspeople speak English, often well; interpreters are more often needed with older people, such as high-ranking managers. People in this country usually speak soĞ ly. While they may occasionally raise their voices to make a point, they dislike loud and boisterous behavior. (Katz, 2008: 2). It is better to speak in short, simple sentences and to jargon and slang (ibid:1).

Decision making

As companies have a very strong hierarchal structure, it is unacceptable to disagree or criticize a superior. Authority is rarely delegated, thus the decisions being made by the seniors. On the other hand, other employees are consulted for consensus, a process which can take a long time. When taking decisions, Romanian business people will rely less on rules, but mostly on the specific situation. They will take into consideration all the aspects, but facts will weigh more than their feelings. When it comes to risky decisions, Romanians would feel more comfortable if they are presented guarantees or contingency plans (ibid:5).

Relationships and respect

People in Romania usually prefer to do business with persons they know and like. The business relationships are more between people, than between companies. This means that, even if the Romanian partner trusts his foreign counterpart, it does not necessarily imply that he will also trust other employees of the partner company. Business relationships are built in the long term but can result in large networks that may last for a lifetime. This will also prove useful when trying to find a third-party partner. One very important aspect that any foreigner should take into consideration is the fact that Romanians do not appreciate of people who like to boast and brag, so keeping modesty is quite important. (ibid: 1). Respect will depend mostly on age and status.

Agreements and contracts

One should not be fooled by the oral commitments made by Romanian counterparts as they are stronger than what could be put in writing. The process of signing the final contract can be a lengthy one and full of changes. Contracts are quite long, with detailed terms and conditions and in many cases, the intervention of local legal expert could prove useful as the country’s laws can change on short notice. That would not be the only legal problem that one might encounter. Sometimes, even signed contracts are not honoured and that will not mean the end of the business relationship with the Romanian partner. Flexibility is expected from the foreign partners, including agreement on modifying contract terms (ibid: 5).

Besides the business etiquette, any person that would like to do business in Germany should know a few details about the German business environment.

Box 2 General characteristics of the Romanian business environment

(Malinak, 2009: 2)

Overview of the main Romanian stereotypes in business

As one of the ex-communist countries, Romania did not manage to get rid of this label. Nonetheless, there are some general stereotypes that affect the country’s image and its business people when trying to establish relationships with foreign partners. However, these are not always included in the negative category.

Table 1 Negative and positive traits associated with Romanians

(http://britishexpat.com/europe/romania/romania-stereotypes/)

The general image of the Romanians that is illustrated from most reports is the one of a people with a troubled history, trying to keep up with the rest of Europe, while fighting poverty and corruption.

This is also confirmed by further research. In her book, Romania’s image under the microscope! Country branding and rebranding, Nicolaescu Luminita (2009:122-129) presents the results of a study involving 427 foreigners and their perception of Romania, a study conducted between August, 1 and September, 10 2007. When asked about the first thing that they associate with Romania, 25% of the answers were related to a personality (mostly Dracula or Ceausescu), 22% to a social problem (varying from friendly and hospitable people to poverty, gypsies and not respecting human rights), 17% to the economic environment (high opportunities, great economic potential) and 14% to the natural environment. In what concerns the business environment, the respondents appreciated the economic and political stability (that is, however, not a dominant characteristic of our country, taking into consideration the crisis and the political tensions), skilled workforce, a low cost of life. On the other hand, they also mentioned the beggars, the bureaucracy, the corruption, the great gap between poor and rich people, a high difference between the capital and the rest of the country, lack of infrastructure in business, high prices and low quality.

In what concerns the characteristics specific to Romania and its people, the respondents made the following associations:

people

positive: hardworking, hospitable, full of life, polite, patriots, Latin spirit, creative, with respect for tradition, entrepreneurship;

negative: a negative attitude to their country, low self-respect, materialistic;

economy

positive: prosperous country, low cost of life, investments, the will to improve the living standards;

negative: developing country, poverty, no respect for the client;

In what concerns the values that Romanians have according to the foreign respondents, they are summarised in the following table.

Table 2 Romanian Values

(Nicolaescu, 2009 : 131)

Overall, Romania has had an unstable image over time. Although it presents certain positive features (such as a great potential and friendly people), corruption seems to be one of the traits that keep persisting. Even comparing with its neighbouring countries, Romania seems to have a worse image than the rest, as can be seen from the following figure.

Figure 2 The general image of the central and south-east European countries

(Nicolaescu, 2009 : 135)

Even in the international branding classifications, Romania does not seem to have a very popular image, especially after the financial crisis. According to Future Brand’s Country Brand Index 2012-2013, Romania was among the countries that registered a decline in its image, especially in the quality of life, just like other Eastern European countries. The economic crisis had a great impact on the way Romania is perceived, taking it back forty places. Thus, in the most recent version of this index, Romania is on the 100th place, long after Bulgaria that is on the 79th place.

Table 3 Country Brand Index (2012-2013)

(Future Brand, 2012: 106).

Whatever the stereotypes might be about Romania, the overall image of the country certainly has more steps to make in order to be improved. Romanians have a long way until they will eliminate or at least reduce some of the stereotypes they have been attributed with, in the meanwhile these will continue to affect the way foreigners conduct business in our country.

Overcoming stereotypes in Romania

If most of the reports, studies and research present Romania as a corrupt country, how can we really characterize the Romanian entrepreneurs? It is clear that they cannot all be considered corrupt, as that is an attribute mostly for the local authorities and from the research mentioned, Romanian business people do not possess such a bad image.

Ernst&Young has released last year The Barometer of Entrepreneurship for Romania, in which a general perspective on Romanian business people is offered, without taking into consideration the stereotypes.

Box 3 The Barometer of Entrepreneurship Romania 2012 – main findings

(Ernst&Young, 2012:1)

Even in an unstable environment, with semi-chaotic business practices and rules that might change too often, there still are certain practices that any foreign business partner should take into consideration for a successful relationship.

Box 4 Do’s and Don’ts in Business with Romanians

In what concerns some of the most popular Romanian stereotypes, they should be taken in consideration by foreign business people and tackled carefully.

Corruption

While it is true that one of the first words that come to mind when talking about Romania is corruption, this characterizes firstly its public sector, not the Romanian business people. According to the latest statistics, Romania is ranked 66th in Transparency’s Corruption Index with a score of 44. The score indicates the perceived level of public sector corruption on a scale of 0 – 100, where 0 means that a country is perceived as highly corrupt and 100 means it is perceived as very clean. The latest index includes 176 countries and territories. Bulgaria has a lower score of 41 and it is ranked 75th. Hungary is less corrupt with a score of 55.

Figure 3 Romania on the map of corruption

(Transparency International, 2012: 2)

Judging all the business people by attributing them the corrupt label would be a great mistake. There are plenty of Romanian people that are honest and most of them would be glad to do business with foreign partners.

Poverty

While it is true that there is a great discrepancy between the capital and the rest of the country and a great gap between the poor and the rich, foreign business people should take in consideration the fact that many Romanians like to keep an appearance of luxury, “shown by the latest generation mobile phones (which are often more expensive than in the West), unnecessarily flashy cars (in a country with terrible roads), and the relative elegance that especially young women like to affect. Romanians place great importance on appearances, and many of them do not have a culture of saving/investing.” The credit explosion made available resources to the youngsters, also placing them in great debt.

(http://britishexpat.com/europe/romania/romania-tereotypes/#ixzz2V5Dbb8MM)

No matter how much the business people might try and fight against stereotypes, a first step that must be made consists of creating a strong national identity. This, in turn, will help develop a strong image, thus improving Romania’s brand. The lack of direction that characterized Romania’s evolution after the 90’s, the attempts to turn the country into a capitalist one, attempts that sometimes ended with small failures, the lack of strategic planning, all these have had a great impact on the way Romania is perceived. Beyond Dracula’s myth, most Western countries perceive Romania as a poorer brother, an underdeveloped ex-communist country but with great potential. These are the main ideas that any foreign business person would come in mind with when choosing our country as a potential destination for his investments. What Romanians should consider is not only the fact that through their attitude they should try and improve our image and fight stereotypes, but that it is also the duty of their foreign business partners to gain insight into our culture, the business etiquette, the do’s and don’ts. Even though it is in our best interest to attract as many foreign investors, the Romanian business people should also boost their confidence and base their behaviour and attitudes on the assets that the Romanian business environment has to offer.

=== argum ===

Argument

We live in a globalized economy, where business is not limited to a single city, not even to a single country. Borders remain only on maps, companies have headquarters in the entire world and people from India answer the request of British clients, on the other side of the globe. Nationalities still do exist and people maintain their identity. However, they learn to blend in and adapt to a multicultural society. However, things are not as simple as they might seem. In this context, the way the other business people are perceived plays an essential role in any attempt to do business in another country.

Stereotypes represent an important topic in the world of business, as they can hinder the success of a partnership. No matter how evolved society is, even if we speak about political correctness, people’s perceptions of others have been formed in time; they are strong and very difficult to change. The motivation behind this theme of stereotypes in business was that it is a very current topic, the centre of many debates and of uttermost importance in the world of globalized business. Thus, the purpose of this paper is to provide a thorough insight into what role stereotypes can play in the business role, not only by outlining the main theories but also with the help of a comparative analysis between the German and the Romanian stereotypes.

The main objectives of this paper are to provide the theoretical background to fully understand the concept of stereotype, its positive and negative impact in business and to provide a comparative analysis between Romania, an Eastern European country and Germany, a country with tradition in business, including also solutions for counteracting stereotypes and confronting the classical stereotypes with reality.

The first chapter of the paper, Stereotyping – theoretical approach, presents the main concepts related to the theme of the paper. Starting with the basic definitions of this term, the chapter continues with the main theories that try to explain the formation of stereotypes. Even though it is mainly perceived as having a negative impact on business, stereotype can also be used in the benefit of companies. This rather unexplored aspect deserves its share in the conceptual analysis of stereotyping. A further insight into how Europe looks like from the stereotypes perspective helps create a better image in the way the most important countries perceive the others and are perceived, being the practical support for the theoretical discussion. Last but not least, the first chapter offers a solution to fighting against stereotypes – cultural awareness.

The second chapter of the paper, Doing business in Germany, analyses the main stereotypes regarding Germans and their impact on business. This part also tries to be a small guide in what concerns the German way of doing business by providing guidelines for business relationships with Germans and the basic do’s and don’ts. By knowing and following certain rule and also by getting an insight into the German business culture, one can insure successful business relationships.

The third chapter, Romania, on the map of business stereotypes, starts from the question whether Romania has a stable business environment with clear business etiquette or things are still done by the ear. Starting from this point, the chapter outlines the main rules that a foreign business partner should respect when dealing with Romanian counterparts and also analyses the main stereotypes regarding Romanians and the truth behind them.

The paper ends with a parallel between the German and the Romanian models, from the point of view of stereotypes and business cultures, emphasizing the great differences that are between the two countries.

=== bibl ===

References

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German Centre for Market Entry, 2012, Meeting German Business Partners, Universität Berlin

Germany Trade&Invest, 2013, Practice of Negotiation, Germany, Federal Ministry of Economics

Gorril, J. R., 2009, Doing business in Germany, Communicaid

Hamburg, A., 2012, Good manners and their role in international business, in International Journal of Academic Research in Business and Social Sciences April 2012, Vol. 2, No. 4

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Jost, J., Kay, A., 2003, Exposure to Benevolent Sexism and Complementary Gender Stereotypes: Consequences for Specific and Diffuse Forms of System Justification, GSB Research Paper No. 1789 

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Katz, L., 2008, Negotiating international business – The negotiator’s Reference Guide to 50 countries around the world, Booksurge

Malinak, C., 2009, Doing business in Romania, Communicaid

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McGarty, C., Yzerbyt, V., Spears, R., 2002, Stereotypes as explanations, The formation of meaningful beliefs about social groups, Cambridge University Press

Nicolaescu, L., 2009, Romania’s image under the microscope! Country branding and rebranding, The Academy of Economic Studies

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Documents available online

***Ernst&Young, Press release – The Barometer of Entrepreneurship Romania 2012, available at

http://www.ey.com/Publication/vwLUAssets/Press_Release_Entreprenuers_Speak_Out_7_Feb_2013_(EN)/$FILE/Press%20Realease_Entrepreneurs%20speak%20out_7%20Feb%202013%20(EN).pdf

***Future Brand, 2012, Country Brand Index, available at http://www.futurebrand.com/images/uploads/studies/cbi/CBI_2012-Final.pdf

GFk 2012, Press release – Two thirds of Nations experience reputation decline in 2012 Nation Brands Index, available at http://www.gfk.com/news-and-events/press-room/press-releases/pages/two-thirds-of-nations-experience-reputation-decline-in-2012-nation-brands-index.aspx

***Hofstede, G., 2011, Dimensionalizing cultures: the Hofstede Model in Context, in Online Readings in Psychology and Culture, 2(1). http://dx.doi.org/10.9707/2307-0919.1014

Stroessner, S., Good, C., 2005, Stereotype threat: an overview, available online at http://www.arizona.edu/sites/arizona.edu/files/users/user14/Stereotype%20Threat%20Overview.pdf

WEBSITES

***http://www.andrewcusack.com/2010/09/21/stereotype-map/

***http://www.businessdictionary.com/definition/stereotype.html

***http://britishexpat.com/europe/romania/romania-stereotypes/

***http://dictionary.reference.com/browse/stereotype

***http://www.dw.de/despite-stereotypes-germany-highly-regarded/a-16694367

***http://www.economist.com/blogs/graphicdetail/2012/05/greeks-say-they-are-hardest-working-european-nation

***http://geert-hofstede.com/germany.html

***http://www.guardian.co.uk/world/2012/sep/16/germany-far-removed-from-stereotype

***http://interculturalnow.com/Best-Practice-Doing-Business-in-Germany.html

***http://www.macmillandictionary.com/dictionary/british/stereotype

***http://marginalrevolution.com/marginalrevolution/2013/05/stereotyping-in-europe.html

***http://oxforddictionaries.com/definition/english/stereotype

***http://smallbusiness.chron.com/effects-cultural-stereotype-workplace-19193.html

***http://www.thelocal.de/lifestyle/20130417-49187.html#.UZyAmbVM8Rg

=== concl ===

Conclusions

When mentioning the name of Germany and Romania the image that is created in one’s mind is that of a high contrast. Germans are rigid, highly organized people, extremely efficient and tough, even cold, while Romanians belong to a once communist country, with an unsure national identity, due to the painful past, a country struggling to reach the level of the Western EU members, but lacking a strong, organized, efficient system but rather having a very hierarchal, corrupt one.

This high contrast can be seen in the stereotypes characterizing these two countries. The economic power and strong past are not taken into consideration when people create their own perception of a certain country. Thus, Germany can also be called a victim of stereotyping. On the other hand, all the images associated with this country have a certain positive aspect, especially in business. Even if Germans are seen as cold, rigid, obsessed with punctuality and planning people, these have helped them get to the current level – the main power in Europe, its economic engine. Even if stereotypes are perceived as a negative concept, the ones related to Germany usually inspire respect. Maybe others might not borrow their way of being or might not agree to their direct to blunt way of speaking and formality but they will certainly appreciate the results. The only aspect that Germans are trying to fight against when it comes to stereotyping is the fact that they could be a little bit more flexible than the others perceive them.

When it comes to Romania, the perspective is completely different. Most of the stereotypes have a negative effect on the way Romanian business people are seen and could seriously hinder their relationships with their foreign partners. Their hospitability will enter in contrast with the fact that Romanians have a very hierarchal structure in the companies and prefer formality in the business relationships. Nonetheless, even if hospitable, Romanians are known for the fact that they change the contracts very often (a practice that would be considered inadmissible in Germany) and they even break the contracts. The only aspect that saves Romania’s image is the fact that it is seen as a country with a great potential. From the point of view of doing business, the environment still holds too many characteristics from the communist period – the need for hierarchy, lack of decentralization, the great respect for senior positions accompanied by a low participation of subordinates in the decision making process. It seems that Romania has a longer and tougher battle to fight against stereotypes than Germany. It still has not managed to create a strong and definite image. The business environment is, perhaps, in the period of turning to maturity, which might mean clearer business etiquette, a better image among the Western partners and less stereotypes.

From this point of view, the Romanian business people might wait for Romania to improve its image, diminish the stereotype of corruption and poverty and then reap the benefits by establishing healthier and more beneficial relationships with the foreign business partners. Nonetheless, this process might take a longer time, period in which Romania’s economy might suffer even more. A better solution would be for Romanian business people to fight against stereotypes by themselves, to adopt and implement cultural awareness in their organizations, thus having an active and essential role in improving Romania’s overall image.