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GHANA INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION (GIMPA)
GIMPA BUSINESS SCHOOLGREEN HILL COLLEGE
INTERNTIONAL BUSINESS SOLUTION
Bsc. OPERATIONS AND PROJECT MANAGEMENT
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AMAZING GROUP 2
DANSOMAN
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Introduction
Determinants of Culture Impact of Culture on Business
Case Study CUBA
Map of Cuba
General Information
Culture and Society
Local Perspective
Cuba Business Dealings
Effects of Culture
Conclusion
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When working in the global commercial environment, knowledge of
the impact of cultural differences is one of the keys to international
business success. Regardless of the sector in which you operate
finance, technology, or computers and consumer electronics
global cultural differences will directly impact on you and the
profitability of your business. Improving levels of cultural
awareness can help companies build international competencies
and enable individuals to become more globally sensitive.
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The quality in a person or society that arises from a concern
for what is regarded as excellent in arts, letters, manners,
scholarly pursuits, etc.
CULTURE
The behaviours and beliefs characteristic of a particular social,
ethnic, or age group: the youth culture; the drug culture.
Culture is a powerful human tool for survival, but it is a fragile
phenomenon. It is constantly changing and easily lost because it
exists only in our minds. Our written languages, governments,
buildings, and other man-made things are merely the products of
culture. They are not culture in themselves.
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THE DETERMINANTS OF CULTURE
REFERENCE: PROF HENRY BOATENG
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IMPACT OF CULTURE ON BUSINESS
Culture affect;
Choice of Goods and Services
General Attitude to Works and Business
Education System
Management of Natural Resources Etc.
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CASE STUDY
"Cuba is beautiful; whoever lover her
Will defends her until death.
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MAP OF CUBA
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GENERAL INFORMATION Official Name : Republic of Cuba
Area : 110 860 square kilometers
Capital : Havana City
Population : About 11 million
Official Language : Spanish
Workforce : 4.7 million.
GDP Per Capita : US$3, 300.
Currencies : Convertible pesos, Cuban Peso.
Ethnicity :65.1% White, 10.1% African,
24.8% Mullato & Mestizo
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GENERAL INFORMATION -CONTD
Work Force: 4.7 million.
Life expectancy: 77 years
Bordering Countries: US Naval Base at Guantanamo Base
Bay.
Climate: The climate in Cuba is similar to that of the Eastern
Caribbean Islands. The rainy season is from May to October.
Natural Hazards : Although droughts are common in Cuba the
coast subject to hurricanes from August to November .This
country averages about one hurricane every other year.
Environmental Issues: Some environmental issues for Cuba
are air pollution, water pollution, and deforestation. The country
also has biodiversity loss
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HAVANA
Guantnamo
Santiago de Cuba city
Havana.
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CULTURE AND SOCIETY
Cuban culture is a colorful and interesting mixture of dissimilar often contrasting factor
and influences. The significant roots in the Cuba nationality are Spanish and African.
Spanish is the official language of Cuba, and was brought to this medical tourism
destination by its former colonial masters who arrived in 1511. The Spanish soon began
to import African slaves, mainly from Guinea, Congo, and Nigeria, and these slaves
brought in their own African dialects to add to the linguistic melting pot. Cuban Spanish
however, is a little different from the version spoken in Spain, with certain variations in
pronunciation. Cuban Spanish has a lot in common with the Venezuelan and Colombian
forms, and especially with the kind of Spanish commonly spoken by Canarians
The Cuban Revolution deeply influenced Cuban culture down to the essential levels of
daily life
Cubans love music. It is part of their culture to
gather together in public places
Drink a chilled beer, have some talk and dance.
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LOCAL PERSPECTIVEGREETINGS
Man greeting Man - Men shake hands when greeting one anotherand usually maintain direct eye contact. Handshakes maylinger. Good friends and family will engage in a firm hug whichmay be combined with a few slaps on the back.
Woman greeting Woman - At a first meeting, women generallyshake hands. Friends and close acquaintances kiss each other onceon the cheek.
Man greeting Woman - At a first meeting aregular handshake will do. Friends, familyand close acquaintances usually share alight kiss on the cheek.
Be formal at first meetings and dont use first names unless invitedto do so.
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- PERSONAL SPACE AND TOUCHING
Cubans prefer standing close to one another while
talking with someone they know. One to two feet
is normal. When meeting strangers this distance is
farther.
There is a fair amount of touching between peoplewhile conversing (between men and men, and
women and women and men and women).
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- MEETINGS & EYE CONTACT
Cubans tend to favor direct eye contact over indirect.
During conversations direct eye contact is common place ratherthan sporadic as it shows a sign of interest and respect towardsthe speaker.
Cubans place more emphasis on people and relationships than tothe strict adherence of set schedules in social situations.
The bus, train, and plane schedules are not adhered
to for the most part, and showing up late to a party
or function is quite common
Views on time
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- GENDER ISSUES
Even though women hold jobs in a variety of professions,
they are still usually expected to do the housework and take
care of the kids when they return home.
Cubans have a very liberal view of sexuality. This holds true
for both sexes.
Its acceptable for women to dine alone and walk alone at
night.
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- GESTURES
Cubans tend to speak very quickly and loudly. They use
their hands and bodies for emphasis when speaking and
tend to be emotionally expressive.
Cubans will point by puckering their lips in the direction
or person they are referring to.
Wrinkling or scrunching up of your nose usually means,
huh or what?
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-TABOOS
Avoid spitting and blowing your nose in public.
Avoid taking pictures of people without asking theirpermission.
Avoid littering. It is against the law.
Actions to avoid: Discussions about politics, which canbe a minefield.
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- LAW AND ORDER
There is no legal drinking age in Cuba. The purchaseage is 16 and not readily enforced.
There is no legal smoking age.
Penalties for possession, acquisition, and traffickingof drugs are severe and include mandatory lengthyimprisonment in local jails.
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- DRESSING
For men: Depending on the situation, a guayabera shirtwith nice slacks may be as formal as it gets. Business
casual for a warm climate should suffice.
For women: A pair of pants and nice shirt shoulddo. Skirts are fine as well.
Jeans and business casual attire are
generally acceptable.
Dress is quite informal in for both
men and women
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WEATHERDifferent Seasons in Cuba
Cuba has two seasons: the rainy and the dry season. Rainy season runs
from May to October while dry season is starts in November and endsin April. December and August are the driest months of the year.
Average temperature = 25.5 degress C
Average of sunny days in a year = 330 days
Average humidity = 78%Average temperature of water during winter = 25 degrees C
Average temperature of water during summer = 28 degrees C
Average rainfull per year = 1,515 mm
Cuba is a country blessed with a sweat climate. You can visit during
the rainy or the dry season and youll get a sunny weather
nonetheless. Bad weather in Cuba does not last longer than three days
that why youre sure to find a perfect day to enjoy and lounge on the
beach.
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CUBAN BUSINESS DEALINGS
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BUSINESS CUSTOMS
GOVERNMENT WORKING HOURS
8:30 AM TO 12:30 PM, 1:30 PM TO 5:30 PM
(MONDAY TO FRIDAY)
8:30 AM TO 12 NOON
(ALTERNATIVES SATURDAYS)
NATIONAL BANK WORKING HOURS8:30 AM TO 12 NOON
(MONDAY TO FRIDAY)
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TITLES AND BUSINESS CARDS
Titles are very important and it is best to addresspeople directly by using their professional title(or Mr., Mrs., or Miss) followed by the surname.
It is advisable, although not required, to haveone side of your business card translated intoSpanish. Present your business card with theSpanish side facing the recipient.
There is no specific ritual surrounding the givingof business cards.
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BUSINESS MEETINGS
Arriving on time for a meeting is important eventhough you may have to wait 30 minutes ormore.
There is usually 5-15 minutes of small talk beforegetting down to business. It is best to allow yourhost to begin the business discussion.
It is considered acceptable to interrupt someonewho is speaking.
Its not unusual for Cubans to keep people
waiting for an hour or more for a meeting.
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NEGOTIATIONS AND CONTRACTS
Cubans value relationship building and harmonyso it is important to avoid hard selling, pressuretactics and any sort of conflict or confrontation.
Decisions are made from the top down and cantake sometime.
Cubans tend to try to tire you out with slow andprotracted bargaining.
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GIFT GIVING AND BRIBES
Gifts are not introduced at first meetings.
When giving gifts it is best to bring something verymodest as anything else could be misconstrued.
Dont try to impress your contact with an expensive
gift that they may not accept for different reasons; it
is more effective to think of a small detail or to invitea person for lunch, make your guest feel comfortablewith your presence and the conversation.
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GENDER PERSPECTIVE IN BUSINESS
Tips for businesswomen:
Cuba is a very macho country where women arentcommonly seen in positions of power andauthority. Proceed slowly and present yourself asrepresenting your company rather than yourself.
If necessary, be prepared to graciously allow a male
employee to step in if you sense a great deal ofuneasiness.
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POSITIVE AND NEGATIVE EFFECT OF CULTURE
Cubans have a great sense of humor, there is always a new joke
on the street, most of the times relating to the political and social
situation in the country. However, when they dont know the
person or there isnt some kind of previous relationship and
confidence, they prefer not to discuss about the government orpolitical and social situation.
Since Socialism isnt a democratic system with freedom of
expression, people are afraid of being labelled as enemies of the
government.
If you have official contact with government officers these topics
should always be avoided.
CONVERSATION
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COMMUNICATION STYLES
Cubans generally maintain a distance whenspeaking with strangers or supervisors in theprofessional environment. In conversationswith friends, coworkers or relatives the
distance is really short and very frequentlythere is physical contact with the hands tomake emphasis
Even when people usually dont keep
constant eye contact, refusing or avoidingany kind of eye contact could be consideredas a sign of dishonesty
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DISPLAY OF EMOTION
Cubans always show their emotions in an open
manner, even in public. Displays of affectionare very common and extensively accepted.
However, even when displays of anger or other
negative emotions are also frequent, its
considered a negative public behaviour and is
widely criticized
RELIGION CLASS AND ETHNICITY
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RELIGION, CLASS AND ETHNICITY
RELIGION-There are different religions that coexist in Cuba; the
most extensive is the Roman Catholic and others. For many years,
the government hardly censured any religious practice, evenlimiting believers access to universities and important positions.
CLASS -Differences in the socialist class are more and more
noticeable in the Sectors. The working class is currently paying the
consequences of a deteriorated economy. Paradoxically, there is agroup of people including high government officers, successful
musicians, athletes and personnel of foreign firms, among others,
who receive important privileges or a guaranteed income in hard
currency.
ETHNICITY-The Cuban identity is very mixed, but most of the
population descendant from Spanish conquerors or Africans
slaves, or a mix of both. Acts of racial discrimination are not very
frequent in the workplace.
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POLITICAL SYSTEM The only Communist party , installed by Dr. Fidel
Castro Ruz s 1959 Revolution led the Country todevelop a severed relationship with major traderssuch as USA and other countries, as a result ofembargo imposed by the USA.
Cubas current Constitution was approved in areferendum in 1976 with 95% backing.
Presidential terms are of 5 years there is no limit onhow many terms a president can
serve. Fidel has been President since 1976.
This sanction has affected the countries effort ininvolving in active business.
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The Cuban Education System
There is general agreement that the level of Cuban
education is very high, but sources disagree as to why:
Those favorable to the Castro government claim that it
is the result of the emphasis placed on education since
the revolution, while anti-Castro sources assert that the
level of education in Cuba has always been high.
Education was compulsory for six years. After that,
students up to age 16 were required to continue their
education at the secondary level or to join the Youth
Movement, which combined study with vocational
training and service.
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The primary level was grades 1 through 6, and was compulsory and
identical for all children. They started at age 6 and attended classes
61/2 hours a day; they studied basic literacy skills and composition
in Spanish, basic arithmetic, and ideological orientation.
The secondary level was grades 7 through 9, 10, or 11, and a student
could choose (or have chosen for him) one of three tracks: general
secondary, teacher training, or vocational training. All tracksprovided instruction in Spanish, mathematics, the sciences, history,
and technical/agricultural production. In the general secondary
schools there were 26 hours of instruction per week, in 9 or 10
subject areas, with no electives. Students could go on to highersecondary schools for an additional three or four years of
education, so a number of Cubans who finished higher secondary
school will have had as much as 15 years of pre-college education.
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AREAS OF INVESTMENT
TOURISM
Tourism in Cuba attractsover 2 million people a
year, and is one of the
main sources of revenuefor the island.
With its favorable climate
beaches, colonial
architecture and distinct
cultural history.
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AGRICULTURAL
Cuban Tobacco ,the best in the
world and ofHigh quality
before sugar.
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INVESTEMENT POLICY
With the exception of defense ,public health
care and education ,all other sectors of the
Cuban economy are opened to Foreign Direct
Investment .
There is a Provision for FDI to cater for broad
areas of investment promotion andincentives for foreign investors
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HEALTH TOURISM AND PHARMACEUTICS
Attracts about 20,000payinghealth tourists, generating
revenues of around $40 million a
year for the Cuban economy.
Cuba has been serving health
tourists from around the world
for more than 20 years. The
country operates a special division of hospitals specificallyfor the treatment of foreigners and diplomats. Foreign
patients travel to Cuba for a wide range of treatment
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CONCLUSION
Doing business with Cuba and capitalizing on what the country has to
offer is the smart thing to do in todays world scenario with Cuban
Foreign Investment law #77 allowing for 100% foreign ownership.
This is just one of the reasons why Cuba is primed to do business
with international entrepreneurs and companies from various
business sectors.
If your business deals with ores and metals like cobalt, nickel, iron
ore, chromium, copper, gold, salt, timber, silica or petroleum Cuba
could be the country which is best suited to do business with you.
Other businesses that could benefit from developing business ties
with Cuba include Tourism, Real Estate, IT, Biotech, and Agriculture,
all of which are sectors that the Cuban government is keen to
develop.
THANK YOU FOR YOUR
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THANK YOU FOR YOUR
PATIENCE VIVA CUBA.