South Africa business etiquette and potential

BY (Group 8) Amitav Pattnaik Balaji Ramamurthy Chetan Goenka Jemi Varghuese Johnson Chacko SOUTH AFRICA SOCIAL ETIQUETTE South Africa is a land of rich culture and has many different ethnic groups. Due to this diverse character, it is also known as the Rainbow Nation. The traditional African society was made up of tribes where each tribe was almost equivalent to a nation. The tribe was considered to provide both financial and emotional security to its people. It is this attribute of a tribe that is now reflected in a family. Hence, the family is the basic unit in South African society. It is said that people from Johannesburg consider those from the country side to be less sophisticated. They hold materialistic values, and are interested in what a person owns rather than the character of the person. People from Cape Town are very proud of their city, and have a greater attitude about their city when compared to the rest of the country. GIFT GIVING/RECEIVING ETIQUETTE  Generally, South Africans give presents for birthdays and on Christmas. Two birthdays, 21 and 40 are celebrated and a lavish gift is given. Wrapping a gift shows that one has taken extra effort.  Usually, one does not spend more than fifty U.S. dollars on the gifts. Gifts such as cigars, whisky, wine, a souvenir from your hometown, or flowers can be given. However, carnations are sometimes associated with funerals.  Gifts are opened as and when it is received. It is polite to send a thank you note. DINING ETIQUETTE If one is invited to a South African’s house:  One should make sure they arrive on time.  One should contact the hostess ahead of time to see if she would like you to bring a dish.  One should wear casual clothes, though it is a good idea to check with the hosts in advance. One should not wear jeans or shorts unless they have spoken to the hosts. In Johannesburg, casual is dressier than in other parts of the country. In South African urban cultures, people usually wear typical Western attire.  Offer to help the hostess with the preparation or clearing up after a meal is served. FOOD/DRINKS  One should not cut bread rolls. Instead, break them into small bite-sized pieces on a side plate.  If you’re done eating, one should not leave food on the plate  One should their knife and fork on the plate to indicate that they are still eating.  One should put their napkin on their lap upon being seated. TIPPING  Tip 10-20% at a restaurant, but do check the bill to ensure that the tip hasn't been included already.  Tip tour guides and bus drivers at the end of the day. Usually it is R10.00 per person on a day tour. The guide and driver will split it.  Do pay hotel porters R3.00 a bag BODY LANGUAGE AND GESTURES  One should shake hands upon meeting someone.  There tends to be touching of arms, shoulders and hands when interacting with a South African. There is more expression and excitement when an exciting story is being narrated.  People often hold hands (including men with men) and touch you on your arms or chest. Family members communicate with the same personal space as complete strangers.  Keep your hands and arms at your sides when standing or keep them loosely folded on your lap when sitting.  One should beckon by extending the arm and waving towards them and tell people to go away by waving away from them.  Thumbs up signifies well done or that everything is okay.  Gratitude is shown by placing both hands together with fingers pointing up. TIME  Giving value for time varies from place to place in South Africa. In Johannesburg, people covet their time more while in coastal cities,people are generally more laid back.  Though buses and trains tend to run on time, meetings may start up to 2 hours later than scheduled in certain areas.  Taking your time is an important part of the culture. It is said that what takes an hour in a more time oriented country, may take an entire day in South Africa. BUSINESS ETIQUETTE Although South Africa is culturally diverse, the white male culture still dominates to a certain extent in the corporate arena. Following below sums up the business etiquette of the South Africans;  Most South Africans, regardless of ethnicity, prefer face-to-face meetings to more impersonal communication mediums such as email, letter, or telephone.  When speaking about any topic, eye contact is important, so is frequent nodding to indicate you are listening. Do maintain eye-contact at all times, especially when shaking hands with your South African business colleagues. This is an essential part of developing trust. Some women do not shake hands and merely nod their head, so it is always best to wait for a woman to extend her hand.  Men may kiss a woman they know well on the cheek in place of a handshake.  To generalise, English-speaking South Africans tend to adopt a rather polite and formal manner of address. Black South Africans are less informal and more personal when greeting those they do not know.  The concept of time and the approach taken towards it differs between the white and black cultures living in South Africa. For the majority of white South Africans, time is viewed in a more formal manner. However, black South Africans may have a more flexible approach.  South Africans commonly use the terms “black” and “white” when referring to race in their speech and, while not intended to be offensive, these terms are often interpreted as racist by people from other countries.  Titles are not used in South African business settings. However, some honorary doctorates may wish to be addressed using the title ‘Dr.’ When addressing a female colleague, it is advised to avoid using the term ‘Miss’ in business circles. If the female’s marital status is not known, it is best to leave those terms out as they may cause offence.  South Africans are transactional and do not need to establish long-standing personal relationships before conducting business, however networking and relationship building are crucial for long-term business success. South Africans are very open to discussing issues around politics, economics and sport, in particular golf, rugby, soccer and cricket.  South African businesses adopt a less strict policy when it comes to corporate gifts and it is not unusual to have a gift presented to you. Such gifts are not usually intended to be a “bribe” and refusal may offend, so it is often better to accept the gift.  The overall aim during business negotiations in South Africa is to reach a general consensus. South Africans prefer to see a fair, win-win situation where all sides gain something from the deal, and for this reason, confrontations and aggressive bartering over prices should be avoided. IMPORTS TO SOUTH AFRICA 2009-10 2009-2010 S.No. Commodity (US $ Million) MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION; 542.43 1 BITUMINOUS SUBSTANCES; MINERAL WAXES. 2 PHARMACEUTICAL PRODUCTS 145.26 3 VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING STOCK, AND 140.34 PARTS AND ACCESSORIES THEREOF. 4 ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF; SOUND 89.46 RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS,AND PARTS. 5 ORGANIC CHEMICALS 53.75 6 NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL 52.55 APPLIANCES; PARTS THEREOF. 38.59 7 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, KNITTED OR CORCHETED. 8 PLASTIC AND ARTICLES THEREOF. 32.38 9 TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES. 29.65 10 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, NOT KNITTED OR 28.73 CROCHETED. 11 IRON AND STEEL 26.93 EXPORTS OF SOUTH AFRICA 2009-10 2009-2010 S.No. Commodity (US $Million) COAL BRIQUETTES OVOIDS & SIMILAR SOLID FUELS MANUFACTURED FROM 970.91 1 COAL DIPHOSPHORUS PENTAOXIDE PHOSPHORIC ACID & POLYPHOSPHORIC ACIS 663.23 2 W/N CHEMICALLY DEFINED 3 PLTNM UNWRGHT/SEMI MNFCTRD/PWDR FORMS 489.53 MN ORES & CONCENTRATS INCLDNG FERRUGINS MN ORS & CONCNTRTS 218.87 4 WTH MN CNTNT 20 PERCNTOR MORE CALCULTED ON THE DRY WEIGHT 5 FERROUS WASTE AND SCRAP,REMELTING SCRAP INGOTS OF IRON OR STEEL 170.32 6 COPPER ORES & CONCENTRATES 109.78 7 UNWROUGHT ALUMINIUM 107.78 8 DIAMONDS W/N WRKD BUT NT MOUNTED/SET 72.73 9 CHEMICAL WOOD PULP DISSOLVING GRADES 38.13 10 FLT-RLLD PRDCTS OF STAINLESS STL OF WDTH>=600 MM 30.27 POTENTIAL EXPORTS FROM INDIA TO SOUTH AFRICA India can be a potential exporter of (TELEPHONE SETS, INCLUDING Mobile TELEPHONES – HS Code (8517) to South Africa. We base our judgment from the fol owing figures. The total imports of Telephone Sets and Mobile Telephones by SA in 2009-2010 is USD 2.38 Bil ion The total exports of Telephone Sets and Mobile Telephones by India in 2009-2010 are USD 2.60 Bil ion. India is not a party to the total imports of telephones by South Africa and thus can be a trade partner if a company starts exporting telephones made in India to South Africa. REFERENCES:  http://www.kwintessential.co.uk/resources/global-etiquette/south-africa-country-profile.html  http://www.communicaid.com/south-african-business-culture.asp  http://www.vayama.com/south_africa-etiquette  http://www.culturecrossing.net/basics_business_student.php?id=187