DOING BUSINESS ABROAD

ITALY



Ciucean Cristina Maria
MIG, I

Table of contents:

Introduction
Business Environment
Italian Management Style
Italian Society and Culture
Etiquette, Customs and Protocol in Italy
Conclusion

Italian Facts and Statistics

Location: Southern Europe, bordering Austria, France, Vatican City, San Marino,
Slovenia, Switzerland
Capital: Rome
Population: 60.6 million
Ethnic groups: Italian (includes small clusters of German-, French-, and Slovene-
Italians in the north and Albanian-Italians and Greek-Italians in the south)
Religions: predominately Roman Catholic
Language: Italian (official)
Year of EU entry: Founding member
Government type: republic, since June 2, 1946.
Currency:

Italys role in the Construction of a United Europe

Italy has been one of the leading actors in the long and not always easy undertaking
of building a Europe without borders and trade barriers. Italy hosted many of the
key events in the communitys history, such as the signing of the EEC (European
Economic Community) and Euratom Treaties in Rome in 1957.

Business Environment
Background to Business in Italy and Business Structures

Italians are famous for their sense of family
The Italian economy has a greater percentage of small and medium sized,
family-run businesses than any other European state.

Italian Management Style
Being a Manager in Italy

Family-owned companies
It is commonplace to find relatives working in the same company, often in
the same department.
Although business is taken quite seriously, the family and the good of the
group are often more important than following the rules.



The Role of a Manager

In Italy, as in other hierarchical societies, managers may take a somewhat
paternalistic attitude to their employees.


Working environment - Work ethic in Italy

Italians work to live, and not vice versa.
Private sector workers work more hours per day than officers, who devote
their entire career improving the art of working as little as possible.
The ownership of a business is very appreciated in Italy.

Italian Society and Culture
Italian Family Values
The family = centre of the social structure and provides a stabilizing influence for
its members.
North - generally only the nuclear family lives together;
South - the extended family often resides together in one house.

Italian attitude towards other cultures
Regional attitudes
The French do not like us, but neither do we
Same with the Germans" We tolerate each other

Italian Style
Fashions and fashion design are trademarks of Italy
Good clothes are a signature of success
Bella Figura describes the ability to present oneself well and behave with an air
of demure and formality and is a key element in Italian business culture

Etiquette, Customs and Protocol in Italy
Doing Business - Relationships and Communication

Official language- Italian, English is spoken by many businesspeople.
The Vatican and its policies, World War II, the Mafia are to be avoided.
Good topics: Italian culture, art, food, wine, family, and films.
You will always be introduced to older people and women first.
In introductions and departures, shake hands individually with everyone in a group.
Italians won't hesitate to greet people they know with a warm embrace.
Italians prefer face-to-face contact. Eye contact should be direct.
Italians are intuitive. Therefore, make an effort to ensure that your Italians
colleagues like and trust you.
It is rare to see Italian business people eating as they walk along the streets.
Hospitality plays a key role in Italian business culture, and usually involves a
restaurant dinner. Refusing an invitation of any kind is considered an insult.






Business is often conducted over a long lunch, which can last up to three hours.
Familiarity is very important in Italian business culture.
Italians are extremely expressive communicators.

Doing Business Etiquette

"Time is money"
Foreign businessmen/women should be punctual for business appointments,
although the Italian executive may not be.
Handshakes are common for both sexes, and may include grasping the arm
with the other hand.
When interacting, little personal space is left between people .
Do not expect quick decisions or actions to take place, as the Italian
bureaucracy and legal systems are rather slow.
When doing business in Italy, dress to impress. Italians like to make an
impression with their clothes. What you wear speaks volumes about the kind of
person you are.



Doing Business - Punctuality

Italians are usually relaxed around issues relating to time. Being late with a good
reason will not have any negative consequences.

Doing Business - Meeting and Negotiations

Italians prefer to do business with someone they know and trust.
Appointments are mandatory. To arrange a meeting write, in Italian, first. Follow
this up with a phone call, fax or e-mail. The best time for meetings is between 10 -
11 a.m. and after 3 p.m. Avoid August as most businesses will run on skeleton staff
due to holidays.
The usual handshake with direct eye contact and a smile suffices between strangers.
Italians are guided by first impressions.
Negotiations can be slow. Demonstrating a sense of urgency is seen as a sign of
weakness. At the beginning of a meeting avoid business and concentrate on some
small talk.
Have all your printed material available in both English and Italian.
Decisions are not reached in meetings. Meetings are meant for a free flow of ideas
and to let everyone have their say.
Hierarchy is the cornerstone of Italian business. Italians respect power and age.

Doing Business - Business Entertaining

Invitations to lunch and dinner are to be expected when doing business there.
Dining does have certain protocol in Italy. Major etiquette tips are that the most
honoured guest sits at the middle of the table or on the right of the host; the host
always pays; pass dishes to the left; keep your knife in the right hand and fork in the
left and do not answer phone calls at the table.


Gift Giving Etiquette

When invited to someone's home, bring gift-wrapped chocolates, pastries,
or flowers.
If you bring wine as a gift, make sure that it is of excellent vintage, as many
Italians are wine connoisseurs.
Gifts are usually opened when received.

Dining Etiquette
If invited to an Italian house:

If an invitation says the dress is informal, wear stylish clothes that are still
rather formal, (jacket and tie for men and an elegant dress for women.)
Punctuality is not mandatory. You may arrive between 15 minutes late if
invited to dinner and up to 30 minutes late if invited to a party.
If you are invited to a meal, bring gift-wrapped such as wine or chocolates.
If you are invited for dinner and want to send flowers, have them delivered
that day.

Italian Dress Code
Dressing well is a priority in Italy.
Fashions and fashion design are trademarks of Italy.
Men should wear fashionable, high quality suits.
Shirts may be colored or pin-striped, and they should be paired with an Italian
designer tie.
Women dress in quiet, expensive elegance.
Quality accessories such as shoes and leather goods will make a good impression
with the Italians.

Business Cards
Business cards are exchanged after the formal introduction.
To demonstrate proper respect for the other person, look closely at their business
card before putting it in your card holder.
It is a good idea to have one side of your business card translated into Italian.
Italians often have two different business cards, one with business credentials for
formal relationships, and another with personal information for less formal
relationships.


Conclusion - Do's and Don'ts

DO maintain eye contact while talking.
DO shake hands with everyone when being introduced during a business or social
meeting. Men should wait for women to extend their hand first.
DO ensure that you knock before entering an office in Italy and always close the
door behind you.
DON'T appear impatient or rush your Italian colleagues in their business
negotiations. Italians may see this as a sign of weakness.
DON'T give a business gift until you receive one first.
DON'T be surprised if during business meetings your Italian colleagues speak
simultaneously or interrupt one another.





THANK YOU!