When conducting business in another nation it is important to understand the local culture. Switzerland is a nation that has adopted other countries’ ways but maintains a distinct cultural and economic identity. Culture is the total of a people’s peculiarities in a particular place. Some examples of such areas include communication and education.
Social economic and cultural Aspects
When travelling or conducting business abroad, one must respect the local culture. Culture is a shared set of values that separates one group from another while reflecting the community’s collective identity (Volonte, 2015). Values vary by country and even by region within a country. Large changes in culture are seldom adopted quickly, but rather over decades (Volonte, 2015). Switzerland is a crossroads of Europe. Plateau and mountain cultures have separate languages and traditions (Miloevi, 2016). Few Swiss national traditions exist owing to the adoption of other major European cultures. Several things come to mind while contemplating in the Swiss Army Knife (Miloevi 2016).
Communication
Each of Switzerland’s four official languages has regional dialects. 35% German, 16% French, 14% Italian, 1% Romansh (Diem et al., 2021). It is predominantly spoken in Romansh-speaking areas. Newspapers, television, and radio should also be addressed. The Swiss press is free. Unless required by law, journalists are not required to reveal their sources (Diem et al., 2021). Newspapers are provided in several languages. Television, radio, and the internet are all popular in Switzerland. SAME BUSINESS CONTROLS BOTH NETWORKS, ONE FOR EACH OF THE THREE Many locations have cable, however, it is limited due to the small yet diverse programming market (Diem et al., 2021).
Connection between Switzerland to American culture and commerce
Study of Hofstede First, one must understand the culture and business practices of the nation in question. A Hofstede analysis may assist you understand organizational culture (National Culture, n.d.).The PDI is the first component. The PDI measures how a society deals with inequality (National Culture, n.d.). The collective viewpoint is individualism versus collectivism (IDV). The UAI assesses a society’s comfort with uncertainty and ambiguity (National Culture, n.d.). Indulgence vs. restraint: a Hofstede study (IVR).
A society’s inclination for indulgence or stricter social norms (National Culture, n.d.). The primary difference between the US and Switzerland is in planning. Switzerland scores more logically. Traditions may be adjusted to new circumstances in pragmatic nations (Country Comparison, n.d.). This reflects a considerably different societal view in the US than in Switzerland. A more normative society, the US values traditions and norms above societal change (Country Comparison, n.d.). Individualism vs. collectivism received the most marks. Switzerland is a free society. Individuals should be self-sufficient rather than relying on the community in such a society (Country Comparison, n.d.). Professionally, in the US, information is expected to be shared often and informally, not always in a sequential manner (Country Comparison, n.d.). The uncertainty avoidance index and masculinity versus femininity. The US avoided ambiguity below average.
The US needs less limitations and is more accepting to alternative perspectives (Country Comparison, n.d.). Because of recent terrorist attacks, the NSA and TSA are more closely monitoring Americans than ever. A more macho culture, the US is perceived. Work procedures reflect a goal-achieving mindset, and success and rewards are often acknowledged (Country Comparison, n.d.). When promoted, people relocate to better and newer areas. The attitudes of the French and German regions of Switzerland differ in this subject.
Unconventional behavior or ideas are seldom tolerated in Switzerland (Country Comparison, n.d.). A male-dominated society like the US. This civilization emphasizes workplace equality, competition, and performance (Country Comparison, n.d.). The power distance index and indulgence had the closest scores, separated by two points. Many Swiss people place a high emphasis on leisure (Country Comparison, n.d.). The USA adores overindulging. The US scored 40, while Switzerland scored 34. These two civilizations believe in decreasing inequity and decentralizing power (Country Comparison, n.d.). The power imbalance is seen differently in the French and German sections of Switzerland. French people tolerate hierarchy better than Germans (Country Comparison, n.d.).
Political Analysis
International investors are attracted to Switzerland because of its economic and political stability (Nordea Trade, 2021). Switzerland also wants to improve domestic trade. Historically, tax rates varied depending on the business’s kind and/or location. A new federal legislation demands taxation of companies in all cantons regardless of nationality starting January 2020. (Nordea Trade, 2021). While all cantons must provide the same rate, each canton may determine its own. Money inflow is one thing a corporation should examine when evaluating a country’s potential worth. Switzerland got $107,322 billion in 2017, but lost $53,151 billion in 2018. (Nordea Trade, 2021). Inflows were -$21,740 billion USD in 2019. (Nordea Trade, 2021). Another aspect to consider is FDI stock. This value has stayed stable at 1.3 trillion USD (Nordea Trade, 2021). Doing business in every country has pros and cons. With close relations to the EU, a sophisticated and technologically advanced market, and a strategic position. As stated earlier, Switzerland is known for its economic as well as political stability. Additionally, Swiss market has grown intensely competitive despite its small size (Nordea Trade, 2021). Because the economy depends on trade, businesses must conform to strict regulations (Nordea Trade, 2021).
Economic and SWOT-Analysis
One of the most common SWOT analyses is the one used in business. Switzerland is a popular business location with several benefits. Switzerland’s industrial base is solely limited by its size (Organization for Economic Co-operation and Development, 2006). And it’s not just about money. Switzerland is known for its innovative biomedical devices and treatments. Also, some of the country’s universities are world-class (Organization for Economic Co-operation and Development, 2006). Their finest schools help produce the workforce that will drive innovation and growth. Weaknesses should be included in a SW Swiss grads are limited despite an outstanding educational system. In the meanwhile, access to higher education remains restricted (Organization for Economic Co-operation and Development, 2006).
Leadership may have to come from outside the country because of a lack of master’s prepared company Switzerland’s economic development seems to be behind while a SWOT analysis of Swiss company showed certain flaws, there are also opportunities. Zurich’s scientific and medical industries may grow. Most of the country’s PhDs are foreign (Organization for Economic Cooperation and Development, 2006). Because biomedical and pharmaceutical firms are among the country’s most profitable, it’s likely that many of these jobs are available inside them. If Switzerland pushed for wider access to higher education, maybe more people would have these degrees. Workplace impressions of Switzerland by foreigners may also be improved.
Increasing international relations with nearby countries is another major option for Swiss business growth. Businesses in Switzerland may offer regional clusters or international alliances to grow and develop (Organization for Economic Co-operation and Development, 2006). Switzerland and Austria, for example, are popular destinations for financial transactions. The two countries’ economy and global stature would benefit from a combined enterprise. Several obstacles jeopardize Swiss business growth. Globalization is prominent.
Conclusion
In terms of company hierarchy, the Swiss are generally egalitarian, whereas many enterprises in the French cantons are centralized. Businesses appreciate rigid hierarchy, and subordinates are expected to do what their superiors say. The decision-making system is decentralized, so leaders are accessible to subordinates. Also, corporate leadership attitudes are often more casual. Switzerland is regularly mentioned in international business discussions. It is a trusted partner in financial transactions. Many perceive Switzerland to have a friendly tax climate and open government processes. Because of its neutrality and pro-business stance, Switzerland is home to several international organizations including the Red Cross and the UN.
References
Diem, A., Egli, E., Maissen, T., & Wachter, D. (2021, February 14). Switzerland. Encyclopedia Britannica. Retrieved February 17, 2021, from https://www.britannica.com/place/Switzerland
Milošević, Ž. (2016, September 17). The customs and culture of Switzerland: the living tradition, a survived past. Retrieved February 17, 2021 from http://www.diplomacyandcommerce.rs/the-customs-and-culture-of-switzerland-theliving-tradition-a-survived-past/
National Culture (n.d.). Retrieved from https://hi.hofstede-insights.com/national-culture
Nordea Trade (2021). Foreign direct investment (FDI) in Switzerland. Retrieved from https://www.nordeatrade.com/dk/explore-new-market/switzerland/investment
Organization for Economic Co-Operation and Development (2006). OECD reviews of innovation policy: Switzerland. Retrieved March 8, 2021, from http://www.oecd.org/science/inno/37631312.pdf
Volonte, C. (2015, January). Culture and corporate governance: the influence of language and religion in Switzerland. Management International Review, 55(1), Pages 77+. Retrieved from https://bi-gale-com.ezproxy.liberty.edu/global/article/GALE%7CA405169221? u=vic_liberty&sid=summon
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