olv waver 21 november 2006 week van het internationaal ondernemen oekraine en roemenië 1 we open...

OLV Waver21 november 2006

Week van het Internationaal OndernemenOekraine en Roemenië 1

We open your markets in Central and Eastern Europe



Using opportunities in Romania and Ukraine

Peter Vanduyfhuys

Managing-director

Eastwards



Who is Eastwards?

Eastwards Opening MarketsExpertise for making business in Central and Eastern Europe- Start-ups- Market research- Partner search

Eastwards Languages- Only Central and Eastern European languages- translating and interpreting- all Slavic and Baltic languages, Romanian and Hungarian

www.opening-markets.com



Flemish business (wo)man

Me, objective

Me, Flemish

Me, Flemish

Central European business (wo)man

Me, SE European

Me, objective

Me, SE European

How do we see the other?



Flemish business

(wo)man

Me, who knows how it has

to be doneHim her, who thinks (s)he

knows how it has to be done

SE European business (wo)man

Him her, who does not know

Me, who is not going to co-

operate

Our relationship



1. Understanding the culture

Quote: “Werk je goed in Polen, denk dan niet dat je daarom de Oekraïners of Roemenen begrijpt.”


Week van het Internationaal OndernemenOekraine en Roemenië

Understanding the culture

Central and Eastern Europe is a complicated puzzle with:

- Ethnic group- History- Industrialisation- Religion- Membership of the EU- Language



• Slavic countries:

East Slavic: Russia, Ukraine, Belorus, SlovakiaWest Slavic: Poland, Czech republic South-Slavic (Balkan): Bulgaria, Serbia, Croatia, Slovenia, …

• Non-Slavic: Romania (Latin), HungaryLithuania, Latvia, Estonia (Rus. Min.)

Slavic-non Slavic



History

• GermanWest Poland

• RussianRussia, Ukraine, Belarus, Lithuania, Latvia, Estonia, Central and Eastern Poland

• Austrian-HabsburgCzech Republic, Slovakia, Southern Poland, Croatia, North Romania, Hungary, north Serbia, Slovenia, West Ukraine

• Turkish Bulgaria, southern Serbia, Bosnia• Italian-Venice

Dalmatian coast, Istria

RUS

AT

DE

TR



Industrialisation

• 18th-early 19th century UK, Belgium

• 19th centuryAustro-Hungarian empire

• After World war IRussia

• After World war IIPoland, Romania, Bulgaria, …



• Catholic Poland, Czech Rep., Slovakia, Hungary, Lithuania, Croatia, Slovenia, BIH

• OrthodoxRomania, Bulgaria, SCG, BIHRussia, Ukraine, Belorus,

• IslamBIH, Bulgaria

• ProtestantLatvia, Estonia

Religion

Cath

Prot

Orth

Isl



Language

• Latin group – Latin script Romanian (close to Italian)

• Slavic group – Latin scriptPolish, Czech, Slovak, Slovenean, Croatian

• Slavic group – Cyrillic scriptRussian, Ukrainean, Bulgarian, Serbian, Macedonean

Limited language knowledge!

Eastwards Languages is a translation agency specialised in Central and Eastern European languages, including Polish, Hungarian, Russian, Czech, Romanian, …

Info:

[email protected];

www.opening-markets.com

Tel.: +32(0)9 265 05 60

Fax: +32(0)9 265 05 69



EU membership

• Member: Poland, Czech Republic, Hungary, Slovakia, Slovenia, Latvia, Estonia, Lithuania

• Member on 01/01/2007Romania, Bulgaria

• Membership askedCroatia, Macedonia, Turkey

• Might followSerbia, Montenegro, …



The Romanian or Ukrainean, … does not exist. Differences between:- ethnic- regions- major cities and the country side- men/women- religion- generations- influence from outside

Understanding the culture



Romania• Romanians• Hungarians

(Transylvania)• Roma

Ethnic

Ukraine• Ukrainians speaking

Ukrainian (west)• Ukrainians speaking

Russian (Kiev)• Russians (east)



Romania• Bucuresti• Romania hart (Valahia,

Moldova, …)• Norhtern-western

Romania (Timisoara, Cluj, ..)

Regions

Ukraine• Kiev • Ukrainean west (Lviv, …)• Krim (Sebastopol)

• Russian east (Donetsk, Odessa(?), …



Romania• Bucharest

(dynamic city)• Timisoara

(economic hub)• Huge differences

in development

City versus countryside

Ukraine• Kiev (modern capital)• Lviv (cultural,

educational centre• Cities in the east:

heavy industry



• Romanians: orthodox with western calendar

• Ukrainians: orthodox with eastern calendar

• Hungarians in Romania: catholic

Religion



• Romania: EU (01/01/2007) and NATO member

• Ukraine: balancing between east and west with largely: – West + Kiev dominantly

pro western– East dominantly pro

Russian

Influence from outside



Ease of

doing business

starting hiring /firing

getting credit

Poland 75 114 49 65

Hungary 66 87 90 21

Czech Rep 52 74 45 21

Slovakia 36 63 72 13

Ukraine 128 101 107 65

Romania 49 7 101 48

Belgium 20 37 23 48

Best = 1 Singapore Canada US UK

Classification on global scale; 1 is the best; 155 the worst

Source: worldbank; doing business in 2006

Ease of doing business in:



Reality: corruption

0

1

2

3

4

5

6

B CZ PL IT RO

Corruption perception index

Source: www.unicri.it

10=clean

0=corrupt



Reality: corruption

0

1

2

3

4

5

6

7

8

9

BE BG CZ SK HU PL RO RU UA

Corruption perception index

Source: www.transparency.org

10=clean

0=corrupt



2. Some theory

Quote: “In order to be succesfull, select that/those country(ies) to work in, with a mentality that best matches the way you like to work and live.”



1. Language (inc. codes, cues)2. Non-verbal signals (dress,

gestures, body movement, silences)

3. Cultural values - inc. cultural identity), customs, beliefs

4. Expectations of behaviour (based on socialisation process)

5. Ethnocentrism

6. Stereotyping preconceptions

7. Prejudice, discrimination, racism

8. Lack of knowledge about another culture

9. Environment in which communication takes place

10. Lack of sensitivity to differences between people

Bron: Society and culture association

Society and culture association (A): source of intercultural misunderstandings



Example: symbol



Bron: Robin Julian, Monte Sant Angelo College 1999

The culture iceberg

Iceberg: what we see is only 10 % of it all



Cultuurverschillen volgens Geert Hofstede: de dimensies

1. Hierarchie: egalitair hiërarchisch

2. Individualisme: individueel groep

3. Risico: laag hoog

4. M/V: mannelijk vrouwelijk

5. Termijn: lange korte



• Mogelijkheid tot deelnemen in beslissingsproces, versus beslissing word opgedrongen

• Inspraak in beslissingen, of louter uitvoeren: democraat versus autocraat

• Initiatief nemen

-> belangrijk om te weten wie je gesprekspartner moet zijn

Hierarchie

80

54

95

40

38

35

68

0 20 40 60 80 100

China

Japan

Rusland

USA

Nederland

Duitsland

Frankrijk

Hoge score = beslissingen vooral van bovenuit opgedrongen



Individualisme

•Wordt meer belang gehecht aan de belangen van het individu of aan de belangen van de groep?

•Iedereen zorgt voor zichzelf versus de groep zorgt voor haar leden

•Bv. Sterke familiebanden-> Belangrijk voor je verkoopsargumenten-> deel worden van de groep

20

46

50

91

80

67

71

0 20 40 60 80 100

China

Japan

Rusland

USA

Nederland

Duitsland

Frankrijk

Hoge score = veel belang voor individu



Risico

•Hoeveel zekerheid heb je nodig?

-> veel staat/weinig staat-> niet tolerant/tolerant tov andere meningen, godsdiensten, …

-> bepaalt of je lange tijd nodig zal hebben vooraleer je verkoopt (vertrouwen wekken) of zal kunnen verkopen louter met sales argumenten

50

92

90

46

53

65

56

0 20 40 60 80 100

China

Japan

Rusland

USA

Nederland

Duitsland

Frankrijk

Hoge score = nood aan veel zekerheid



Mannelijk/vrouwelijk

•Assertief (m) tegenover zorgende aanpak (v)

•Competitief: mannelijke culturen mikken op resultaat

•Vrouwelijke culturen leggen de klemtoon op relatie met anderen, harmonie, zorgen voor anderen

•Speelt vooral voor mannen, IBM studie toont aan dat vrouwen hier minder culturele verschillen vertonen dan mannen

-> Bepaalt de manier van verkoop: investeren in relaties, of investeren efficientie (tijdsefficiëntie)

50

95

40

62

14

66

43

0 20 40 60 80 100

China

Japan

Rusland

USA

Nederland

Duitsland

Frankrijk

Hoge score = mannelijk



Korte/Lange termijn visie

•Manier waarop men de toekomst ziet

•Geduld, en standvastigheid•Onvoorspelbaarheid/ voorspelbaarheid

•Voorbeeld: China versus Taiwan

-> Investeer je op lange termijn, of incasseer je vandaag

100

80

10

29

44

31

30

0 20 40 60 80 100

China

Japan

Rusland

USA

Nederland

Duitsland

Frankrijk

Hoge score = Denken op lange termijn



5D model van Geert Hofstede

Bron: Geert Hofstede, Cultural dimensions



5D model van Geert HofstedeBron: Geert Hofstede, Cultural dimensions



Cultural differences

Geert Hofstede: country scores



Which countries to choose?

Which approach are you most comfortable with?

Paper loving Ukrainians?Chatting Romanians?

Bad experiences are mostly caused by cultural differences

Quote: “The Czech are as different from the Romanian as the Belgians from the Spanish”



Directness: direct indirect(Usa, UK) (UA, RO)

Consensus: autocratic consensus(BG, RO) (Czech

Republic)

Emotions: non-emotional emotional(Czech Republic) (UA, RO)

Which country: Cultural differences



We open your markets in Central and Eastern Europe



Romania – quick overview

• 22 million people • Romanian (and Hungarian)• Minorities: Hungarians and Roma• Orthodox• GNP 2003: +4,90% 2004: + 8,30% • Wages (D = 100): 6• Corporate tax: 16 %• Ease of doing business: 49th place• Corruption: 85th place



Ukraine – quick overview

• 49,8 million people • Ukrainians and Russians• Orthodox• GNP 2003: + % 2004: + % • Wages: cheap• Ease of doing business: 128th

place• Corruption: 107th place



Romanians: latin people

• Bucharest main hub• Metropolitan plans for Bucharest• Timisoara second best develloped city (It and automotive)• Difficult economic transition period• Good computer specialists, high

potential for IT• Low wages and eager to work• Corruption still a problem• Member of the EU in 2007 • The hype on Belgian business

meetings



Ukrainians: Slavs

• Kiev by far main hub• Mentality differences between

Heavy industrialised east, and Kiev and Ukrainian west

• Still balancing between East/west• Difficult economic transition period• IT outsourcing• Low wages• Corruption is a problem• Not all legislation in place



• Metropolitan plans

for Bucharest• Highway

construction?• Shopping mall

construction• Office space in

Bucharest: +40% in 2005





• Business people can be quite suspicious –> gain trust

• Small companies often afraid to take risk

• Prices and conditions are negotiable

• Talk with the main decision maker

• Titles and positions are highly regarded

• Dinner or lunch invitations follow after business meetings

• Don’t complain about Romania, even if your partner does all the time

• Emotions



• Still looking for their place in Europe

• Invest in relationships (informal) and personal contact

• Confirm and reconfirm meetings

• Get used to “outside forces”

• Be ready for surprises

• Talk with the main decision maker

• Titles and positions are highly regarded

• Dinner or lunch is part of business (toasts)

• Emotions

Ukrainians: Slavs



Contact

Main office Eastwards

Nieuwbrugkaai 97 - B-9000 Gent

Tel.: +32 9 265 05 60

Fax: +32 9 265 05 69

E-mail: [email protected]

Web: www.opening-markets.com

Agnieszka Stefanienko +32 9 265 05 61

Peter Vanduyfhuys +32 9 265 05 62

Farida Barki +32 9 265 05 63

Interpreting dep.:

Opening markets:

Translations dep:



Investing?

Transport and logistic infrastructure

55 31 9 3 2

Telecommunication 51 34 10 3 2

Wages 50 35 10 2 3

Skilled workforces 50 35 10 3 2

Closeness of target market 48 27 15 7 3

Taxes 45 38 9 4 4

Stable social climate 40 41 12 6 1

Governmental support 23 40 24 10 3

Very import.

Import. +- Not import.

?

Bron: E&Y



Investing: wages

0 €

500 €

1.000 €

1.500 €

2.000 €

2.500 €

CZ SK PL RO BG UA

Comparison wage costs for engineers, including social contributions, expressed in euros



0 €

500 €

1.000 €

1.500 €

2.000 €

2.500 €

CZ SK PL RO BG UA

Comparison wage costs for workmen, including social contributions, expressed in euros

Investing: wages



Investing: wages

Weekly pay in €

Germany = 100

Poland 147,00 20

Czech Republic

145,00 20

Romania 66,00 9

Bulgaria 37,00 5

Median gross weekly private sector earnings pre tax – feb 2006

Source FedEE

olv waver 21 november 2006 week van het internationaal ondernemen oekraine en roemenië 1 we open...

Documents

olv waver

slavic slide

culture slide

tr slide

eastern europe slide

eu language slide

romania latin

east slavic