BUSINESS CULTURE OF SPAIN
MADE BY:-
RISHAB JAIN
RAVINDER KUMAR
APOORV JAIN
AMAN AGGARWAL
The Spain in figures
• Official name – Kingdom of Spain
Population – 40, 397, 842*
Official languages – Castilian Spanish,
Catalan, Galician and Basque
Currency – Euro (EUR)
Capital city – Madrid
GDP – purchasing power parity $1.07
trillion*
GDP per capita - purchasing power parity
$27, 000
• Describing approaches to business in Spain at
the beginning of the twenty- first century is not
an easy task
• After the Franco era, Spanish industry has seen
fell under the umbrella of the INI (Instituto
Nacional de Indistria)
• INI ran many of the traditional industries in Spain and was
characterised by inefficiency and over-bureaucracy
• Recent years have seen the emergence of new indigenous
Spanish organisations, managed by a new, younger breed of
management
• These new companies have brought different attitudes and
approaches to Spanish industry
BUSINESS CULTURE
• When conducting business in Spain, it is essential to ascertain
exactly what type of company you are dealing with
• It is usually possible to put organisation into one of four main
categories:
i. PYMES (pequenas y medianas empresas) which are small, often family
firms
ii. INI or the government controlled sector which is being scaled down
iii. The MNC sector with many well established subsidiaries (although not
very large in size)
iv. The native Spanish sector which is beginning to reassert itself through
mergers and increased levels of investment from a developing stock
market
• The key issue which will bind most companies within
Spain is the power and influence of hierarchies.
• Spanish managers interviewed show the highest
attachment to the idea of the importance and
necessity of hierarchy within an organisation
Values and attitude
• Little point in getting irritated and even less point in
trying to complain.
• Spanish are tolerant, easy-going and even
welcoming.
• The Spanish close sense of personal space and
animated means of expression and communication
can be seen as part of this emotion directed culture
MANAGEMENT STYLE
• The style of a manager is of great importance.
• Much greater weight is placed on personal attributes than on
mere technical excellence
• Spanish managers have been described as
'benevolentautocrats'
• Instructions tend to be specific and task-oriented with
detailed explanations of how to achieve the end result.
Business meetings
Spain does not really have a meetings culture
In the first meeting, Spaniards will want to become
acquainted with you before proceeding with business.
It is unlikely that a meeting will stick closely to a detailed
agenda.
• Traditionally, when meetings do occur they often seem to be
for the purpose of communicating direct instructions from boss
to subordinates.
• Spaniards, who are highly individualistic, will express their
views freely and forcefully which can lead to the impression
that meetings are almost anarchic.
Business Meeting Etiquette
• Appointments are mandatory and should be made in
advance, preferably by telephone or fax. Reconfirm in writing
or by telephone the week before.
• Decisions are not reached at meetings. Meetings are for
discussion and to exchange ideas
Relationships & Communication
The Spanish prefer to do
business with those they know
and trust.
Face-to-face contact is preferred
to written or telephone
communication.
Avoid confrontation if at all
possible. Spaniards do not like to
publicly admit that they are
incorrect.
Communication style
• A manager will inform those that he feels he should
inform
• Most Spanish body language is self-explanatory.
• Greetings consist of a handshake and a kiss on both
cheeks.
• Spanish men maintain longer eye contact with
females
TEAM WORK
Spaniards often find the team role a difficult one
Spaniards rarely say that they are in competition with colleagues
They frequently express 'jealousy' of colleagues and that is not a
healthy emotion in a team environment.
Communication between team members might even be through the
boss to avoid confusion or duplication of activities
Dress code
The way you look is important in Spain and this fact is borne
out by the way in which people dress for work.
Styles of dress will vary from industry to industry
Business dress is stylish yet, conservative.
Dress as you would in the rest of Europe.
Elegant accessories are important for both men and women.
The importance of appearance should not be taken underestimated
Lightweight fabrics will make much more comfortable.
GIFTS
• If invited to a Spaniard's home, you can bring
chocolates, pastries, or cakes; wine, liqueur,
or brandy; or flowers to the hostess.
• If you know your hosts have children, they
may be included in the evening, so a small gift
for them is always appreciated.
Successful Entertaining
Successful Entertaining
Lunch is the main meal of the day and business discussions and
deals are often conducted during working lunches
These lunches can often last more than two to three hours
The meals are often quite large with a number of courses and
wine being served.
BUILDING RELATIONS
• Do not be surprised to be taken outside the
office to a coffee house during the day
• These chats over a coffee are one of the best
places to build relationships
• It is still customary to leave a tip of about five
to ten per cent tip in restaurants.
Present your business card to the receptionist upon arriving.
Have one side of your card translated into Spanish.
Hand your card so the Spanish side faces the recipient.
Business Negotiation
Spaniards place great importance on the character of the person with whom they do
business.
You may be interrupted while you are speaking.
Spaniards are very thorough. They will review every minute detail to make certain it is
understood.
Spain is, traditionally, a male dominated business society
[Link] at meal times is an important
part
Recently femaleof the relationship
managers building
were relatively uncommon process
in anything other than family-run
firms.
[Link] have extremely strong eye
It is still unusual to meet women in very senior positions.
contact. Good eye contact is important as it
builds trust.
They are making rapid strides in middle-management areas
[Link] is important to be seen as relaxed and
Foreignapproachable
women working in Spain are unlikely to encounter any form of gender
discrimination.
1. As the future is volatile and uncertain, detailed long-
term planning is somewhat irrelevant
2. Spanish business culture is varied and undergoing
rapid and fundamental changes.
3. Managers are expected to manage. Instructions are
given and managers expect them to be adhered to.
4. Respect is earned through the display of good character and
personality.
5. Traits such as sincerity, courage and strong leadership are
all appreciated.
6. Meetings are often for the dissemination of information or
the issuing of instructions rather than for open debate.
7. Agendas, when used, will not necessarily be
adhered to. They can be seen to creativity
and debate.
8. Dealing with people is more important than
punctuality.
9. Information is given on a 'who needs to
know' or 'who do I want to know' basis.
[Link] can be theatrical in style. If
you are sincere in your convictions, show it.
[Link] emphasis is placed on the spoken than
the written word.
[Link] language in Spain is more expansive
than in many other parts of the world.
EXPERTS SAYS
• Experts say Spaniards are poor time managers, work too long
• Spaniards on the whole have long working hours.
BUT NOW
The day would begin at 7am, and finish at 3pm;
• Spanish Working Hours set itself the goal of reducing working
hours and increasing output.
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Thank you!!!
12/07/21 USA vs SPAIN 29