Issues in International Business: France Market Analysis for BreadTalk

This report provides a comprehensive analysis of international business issues, focusing on the potential market entry of BreadTalk Group Limited's Floss Bun product into France. The report begins with a rationale for selecting France, highlighting its strong economy, qualified workforce, and strategic location within the European Union. A detailed cultural analysis of France follows, covering language, religion, values, and political/economic background, along with an examination of its business culture. The report then compares the business cultures of France and Singapore, focusing on negotiation styles, business mentalities, body language, and business etiquette. Furthermore, it utilizes Hofstede's cultural dimensions to evaluate France's cultural profile, including power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence. The analysis provides insights into the French market and offers recommendations for BreadTalk's international expansion strategy. The report concludes that France is a favorable country for BreadTalk's business expansion due to its strong economy, qualified workforce, and infrastructure.

Running Head: ISSUES IN INTERNATIONAL BUSINESS
Issues in International Business

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Contents
Introduction......................................................................................................................................2
Rationale for the Country of Choice................................................................................................2
Cultural Analysis of France.............................................................................................................2
Business Culture of France..............................................................................................................3
Hofstede’s Cultural Dimensions......................................................................................................5
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
Different aspects of the social and cultural life of a specific market can be clearly analyzed with
the help of market cultural analysis. The companies can easily understand the behavior of the
consumers and their buying practices and patterns through the analysis of the market culture.
This market cultural analysis report has been prepared for BreadTalk Group Limited. BreadTalk
Group Limited is a multinational food and beverage corporation from Singapore headquartered
in Paya Lebar, Singapore. Floss Bun is a product of BreadTalk which will be introduced in
France which is a European country. This report focuses on the rationale behind selecting France
as the host country, cultural analysis of France, its business culture along with the Hofstede’s
cultural dimensions. The report further provides the differences between the business culture of
Singapore and France.
Rationale for the Country of Choice
France has been selected as the host country as it appears to be advantageous for the business of
BreadTalk. This is due to the fact that the people living in France have a good purchasing power.
Also, France has a population of 6.71 crores and a GDP of US $ 2.583 trillion as per the records
of the year 2017 (The World Bank, 2018). It provides that France has a strong economy and
sizeable market. Moreover, productive and highly qualified workforce is available in France who
can work up to 35 hours per week and are known for their high productivity. This highly
qualified workforce is the result of good education system of France. Also, France has a good
infrastructure system in place with high speed rail networks that connects France with other
cities in Europe. The strategic location of France allows the businesses in the country to further
extend their operations to European Union (EU) counterparts.
Cultural Analysis of France
The cultural analysis of France i.e. the host country highlights a number of cultural components
which can severely impact the business establishment in France. The culture of every society is
unique which is often reflected in the in different elements of such society. The term culture can
be elaborated as the set of shared goals, practices, attitudes and values which plays an important

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role in the characterization of an institution or organization (Stahl and Tung, 2015). Following
are some of the cultural components of France:
Language- French is the official language of France which is also the first language of 88% of
the population. Some people in France also speak Flemish, German, Italian and Basque
(Zivkovic, Bozic- Miljkovic and Mihic, 2017).
Religion- Catholicism is the France’s predominant religion. Approximately 64 % of the
population of France has identified itself as Roman Catholic. Moreover, Buddhism, Islam and
Judaism are the other religions which are followed in France. However, there are some people
(comprising 23 % to 28% of the population) who have not subscribed to any of the religion.
Values- The French people easily gets offended when they come across any negative comments
regarding their country. Their attitude towards the foreigners is often interpreted as rude.
Political and Economic Background- Different political behaviors have been witnessed in past by
France. Now firmness is claimed by France in real administration, government, education and
legal structures. The principle of equality, liberty and fraternity were developed and blown out in
the world at the time of French revolution (Ehrmann, 2015).
Industrial Revolution- France adopts an indecisive approach towards authority through which
power is challenged by the employees. The centralization of rules brings an ease in the teamwork
performed in the organizations in France. Industry also has the strength in the form of the trade
unions.
Communication- The use of some basic French phrases are made by the French people during
their conversations. However, they praise the efforts of a person and switch back to English
language if they find out that someone is struggling with French.
Business Culture of France
There is a difference in the business culture of each and every country. The business culture of
France has been described below with the help of the following points and the same has been
compared with the business culture of Singapore.

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Business Negotiation- Formality and aloofness is considered to be the key components of the
business negotiation in France. The initial posture of French towards new products and new
ideas is also condescending. Moreover, French people do not regard their counterparts as equal.
This means that they are considered either better or worse than them. Decision making process
undertaken by the French businesses is very time consuming. Verbal agreements do not have
binding value in their culture.
On the other hand, Singaporeans conduct their business meetings by way of mastering indirect
communication and patience. They are tough negotiators when it comes to deadlines and money.
The counterparts are also encouraged for asking questions and responding positively and
decisions are made accordingly.
Business Mentality- The business mentality of French people provides that appointments must be
taken by the visitors at least two weeks in advance. The appointments are usually scheduled by
the businesses between 11.00 to 15.30 and avoid scheduling the meetings at the time of August
as it is their common vacation period. In France, a handshake is used as a way of greeting others.
First names are used by the colleagues in the organization who are of the same age and are
working at the same level. Monday to Friday comprise the working days of the employees in
France and the working hours are generally from 8:30- 9:30 to 17:30- 19:00. The French people
tend to focus on establishing the long term business relationships.
On the other hand, Singapore usually follows the business hours from 8:30 to 17:30 pm from
Monday to Friday. A formal request is usually sent in Singapore for the purpose of organizing
business meetings such that it is appropriate for the business partner as well. Furthermore, a list
is prepared of all the members who will attend the meeting along with highlighting the area of
their expertise.
Body Language- Body language plays an important role in the business culture. Eye to eye
contact is maintained while talking to other people. Furthermore, patting and touching is
regarded as normal in the business etiquettes of France. Approval is signified by the raising of
thumb by the French people while a circle made by the first finger or thumb is a negative
impression.

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On the other hand, the people of Singapore are generally are of reserved nature. An important
role is played by their body language in honoring a person. Honesty is maintained by the
Singaporeans in their conversations along with professionalism and politeness.
Business meetings and meals- France prefer punctuality when it comes to business meetings.
However, a delay of ten minutes from the assigned time is not regarded as late. France considers
business lunches as the best practice of forging business relationships (Vagts, Koh, Dodge and
Buxbaum, 2015). On the other hand, punctuality is given more preference in Singapore. The
delay of 10- 15 minutes is also not allowed.
There is also a difference in the dressing standards of Singapore and France. In Singapore, men
wear a full sleeves shirt with pants and tie and women wear a blouse and skirts. On the other
hand, French dress up using dresses, coats and ties. Giving gifts are considered as the usual
business practice in case of Singapore, while in France giving gifts is not regarded as
appropriate.
Hofstede’s Cultural Dimensions
The culture of France has been evaluated below with the help of Hofstede’s cultural dimensions:
Figure 1 Hofstede's Cultural Dimensions of France
(Source: Hofstede Insights, 2018)

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Power Distance- Power Distance can be defined as the degree to which the organizations which
are less powerful in the country accept and expect the unequal distribution of power. France
scores 68 in this dimension which provides that there is certain degree of dependency among the
individuals of France. The children are raised to be emotionally dependent and that dependence
is later transferred on to the superiors in the workplace. Therefore, France is a society in which
high degree of inequalities has been accepted. There is geographic distribution of power and is
not only centralized to companies and government.
Individualism versus Collectivism- This dimension addresses the fundamental issue relating to
the extent of interdependence maintained by the society among its members. The score of France
in this dimension is 71 which make it an individualist society. In France, the workers and the
associations formed by them do not know each other. The workers always maintain a difference
between their personal life and work life. Furthermore, the workers feel pressurized when they
are emotionally dependent on their leaders (Moore, 2016).
Masculinity versus Femininity- This dimension provides what motivates people i.e. whether they
want to be the best (Masculine) or liking what they do (Feminine) (Beugelsdijk, Maseland and
Van Hoorn, 2015). The score of France in this dimension is 43 which mean that the culture of
France is somewhat feminine. This is indicated by the practices adopted by the businesses in
France i.e. 35 hour working week, welfare system, five weeks of holidays every year and its
main focus on the quality of life. Unique characteristics are maintained by the French culture.
The working class in France is regarded as Masculine while the upper class is Feminine. This
characteristic of France is different from those possessed by other countries.
Uncertainty Avoidance- This dimension defines the extent to which threat is felt by the members
of the culture from unknown and ambiguous situations and therefore institutions and beliefs have
been created for the purpose of avoiding these (Minkov and Hofstede, 2014). France scores high
(86) in this dimension which provides that surprises are less preferred in the French society.
Preference is given to structure and planning. French people like to receive all the necessary
information before negotiations and meetings. In this way, the French people are good in the
development of complex systems and technologies in a stable environment. There is a strong
need for the development of rules, regulations and laws for structuring life in France (Burke,
2017).

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Long Term Orientation versus Short Term Orientation- This dimension provides that some links
are required to be maintained by every society with its own past along with handling the
challenges of the future and present. Moreover, different priorities are given to these two goals
by the societies (Bakir, Blodgett, Vitell and Rose, 2015). High score (63) has been obtained by
France in this dimension which, in turn, makes it pragmatic. Societies which possess a pragmatic
orientation, people believe that truth depends a lot on the situations, time and context. They
further show an ability to easily adapt their traditions to changed conditions and situations. They
also possess a string propensity to invest and save along with prudence and persistence in
achieving results (Hofstede Insights, 2018).
Indulgence versus Restraint- This dimension defines the degree to which the impulses and
desires are controlled by the people. France scores 48 in this dimension. This dimension along
with the dimension of Uncertainty Avoidance implies that the people of France are less relaxed
and do not take any steps for enjoying their lives. The score of France is also not high in the
happiness indices.
Conclusion
Therefore, it can be concluded that BreadTalk should expand its business in France as it appears
to be a favorable country due to its population, strong economy, highly qualified workforce and
good infrastructure system. This report focused on the cultural analysis of France along with its
business culture and compares it with the business culture of Singapore. This report further
analyses France on the basis of Hofstede’s cultural dimensions.

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References
Bakir, A., Blodgett, J.G., Vitell, S.J. and Rose, G.M., 2015. A preliminary investigation of the
reliability and validity of Hofstede’s cross cultural dimensions. In Proceedings of the 2000
Academy of Marketing Science (AMS) Annual Conference (pp. 226-232). Springer, Cham.
Beugelsdijk, S., Maseland, R. and Van Hoorn, A., 2015. Are Scores on H ofstede's Dimensions
of National Culture Stable over Time? A Cohort Analysis. Global Strategy Journal, 5(3),
pp.223-240.
Burke, P., 2017. Popular culture in early modern Europe. Routledge.
Ehrmann, H.W., 2015. Organized business in France (Vol. 2283). Princeton University Press.
Hofstede Insights. 2018. Country Comparison, [Online]. Available at: https://www.hofstede-
insights.com/country-comparison/france/ [Accessed on: 4 December 2018].
Minkov, M. and Hofstede, G., 2014. A replication of Hofstede’s uncertainty avoidance
dimension across nationally representative samples from Europe. International Journal of Cross
Cultural Management, 14(2), pp.161-171.
Moore, F., 2016. Transnational business cultures: Life and work in a multinational corporation.
Routledge.
Stahl, G.K. and Tung, R.L., 2015. Towards a more balanced treatment of culture in international
business studies: The need for positive cross-cultural scholarship. Journal of International
Business Studies, 46(4), pp.391-414.
The World Bank. 2017. GDP (current US$), [Online]. Available at:
https://data.worldbank.org/indicator/NY.GDP.MKTP.CD [Accessed on: 4 December 2018].
Vagts, D.F., Koh, H., Dodge, W.S. and Buxbaum, H.L., 2015. Transnational business problems.
West Academic.

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Zivkovic, D., Bozic- Miljkovic, I. and Mihic, S., 2017. Knowledge of French language and
culture: A precondition for improving economic relations between Serbia and
France. Ekonomika, 63(3), pp.43-53.