Business language research

The following business language research publications provide an insight into the demand for and provision of language skills in the West Midlands.

Languages for the leisure and tourism industry in the West Midlands

Key language stats and priorities for the West Midlands leisure and tourism industry. (West Midlands Tourism Cluster Report, 2006; West Midlands Visitor Economy Strategy, 2008; International Passenger Survey, 2009).

According to the West Midlands Tourism Cluster Report (2006), the largest groups of international visitors are:

Republic of Ireland 12%
Germany 12%
USA  10%
France 10%
Spain  6%
Netherlands  6%
Poland 5%
Australia 4%
Belgium 3%
Canada 3%

There is no strategy currently in place for promoting the West Midlands to international visitors but the West Midlands Visitor Economy Strategy (2008) identifies the following priority regional markets:

• USA/Canada and Germany – two of the largest visitor groups
• Spain and Italy 
• China and India 
• 2012 stimulated
• Inwards investors from Japan and Scandinavia (linked to AWM investment activity, which is currently being disbanded) 

Key requirements for businesses in the tourism sector are likely to be:

• cross cultural awareness training for international visitors (including English-speaking guests)
• visitor information and language skills in German and French
• visitor information in Spanish, Italian and Dutch

Languages in West Midlands' Businesses 

A survey of the language needs and priorities of 517 businesses in the Food & Drink, Leisure & Tourism, Business & Professional Services and Passenger Transport sectors.  (RLN WM and Coventry University: Assessment of employer demand for foreign language and cross cultural skills in West Midlands business, 2007).

A survey of 517 businesses in the Food & Drink, Leisure & Tourism, Business & Professional Services and Passenger Transport sectors.  

30% of the respondents felt their language skills were insufficient for their business needs and 14.5% of the businesses identified problems which had arisen because of their lack of foreign language skills or cross cultural misunderstandings.

However, while businesses acknowledged the usefulness of international communication skills, these were generally not incorporated into company policies or strategies.

The most frequently used languages for business were not the ones that were generally represented amongst respondents’ staff.  The following languages were identified as being the most useful to employers for international trade:

• French
• German
• Spanish
• Italian

Languages in Schools

The most recent statistics from the CILT survey of languages in schools.(Source: CILT – The National Centre for Languages Key Stage 4 survey, October 2010).

Overall, the take up of languages has continued to decline and the latest figures for 2010 show that 43% of pupils at KS4 took a Languages GCSE.  In terms of overall pupil percentages this breaks down into:

French 25% pupils 
German 10% pupils 
Spanish 9% pupils 
Other languages 4% pupils 

Of those that sat Languages GCSE the A – C pass rates were 71% (French), 75% (German) and 74% (Spanish).

Importance of Cultural Awareness in Business and Practical Implications

This paper offers one of the most practical overviews on how cultural difference can have concrete implications on doing business.  A summary of the key points is detailed below:

It summarises the key areas where misunderstandings are likely to arise:

Explicitness of communication – some cultures (Anglos, Germanics and Scandinavian) emphasise the practice of “saying what you mean and meaning what you say” where things are spelled out clearly.  Other cultures (Japanese, Arabs and French) rely much more on a tacit understanding of “how things are done” and non-verbal cues, for example “that may be difficult” may be a polite way of saying “under absolutely no circumstances”.

This can mean that Japanese can find Westerners to be offensively blunt while Westerners can find Japanese to be secretive.

Acceptability of multi-tasking – some cultures (German) tend to value doing one thing at a time.  Others (French, USA) like to do several things at once.  For example, the former can interpret constant interruptions during a business meeting as insulting, while the latter can find closed doors and unavailability as being cold and unfriendly.

Past vs future orientation – past-oriented cultures (China, Britain and Japan) emphasise traditional values and ways of doing things.  They tend to be conservative and slow to change.  Future-oriented societies (USA and – increasingly – Brazil) tend to be optimistic about the future and can shape it through their actions, so view management as a process of planning, shaping and controlling rather than going with the flow.

Time – in some cultures (Germany, USA) time is viewed as a limited resource which must be used wisely and punctuality is valued.  In others (India, Africa, Latin America) time is viewed as a plentiful and no special importance is placed on keeping strictly to time but a greater emphasis is placed on relationships and trust to do business.  Time-limited cultures don’t have time to build trust so tend to rely more strongly on legal and regulatory controls.

Hierarchies – some cultures (US, Israel) tend to have “flat” hierarchies and superiors and subordinates often interact socially as equals and often call each other by their first names.  In other cultures (most agrarian countries) a much higher level of respect is generally accorded to superiors.  

The importance of the individual vs the group – in individualist cultures (USA) individual uniqueness, initiative and self-determination are valued and valued.  Collectivist cultures (Japan, The Philippines) expect people to identify with and work well in groups which protect them in exchange for their loyalty and compliance.  Things often take longer as group consensus and involvement are important.

ELAN: Effects on the European Economy of Shortages of Foreign Language Skills in Enterprise (2007)

CILT – the National Centre for Languages was involved in an EU project to quantify the impact that the lack of foreign languages had on enterprise.  This is the first cross-European study undertaken to date and the report was launched by the European Commission on 23 February 2007.

The study attempted to estimate the cost to EU business of not having foreign language skills. The data in the study was based on a sample of 2,000 small and medium-sized enterprises (SMEs) across Europe, correlated with information from 30 multinational companies and a group of experts from the countries involved, and supplemented by a set of case studies.

The research showed that a significant proportion of European companies are losing export business through lack of language skills and intercultural skills. The study suggests that increasing investment to develop language skills across the EU would produce far-reaching economic benefits, especially in terms of a positive impact on SME productivity and export performance.

Key findings include:

• 11% of exporting SMEs believe they are losing or have actually lost business because of their lack of foreign language skills
• there is a clear link between languages and export success
• firms are each losing an estimated €325k over 3 years because of a lack of language skills
   

The report confirms the importance of English as the world business language but highlights that other languages are used extensively as intermediary languages. In particular, the analysis reveals that there is a need for a range of other languages if business relationships are to be built successfully. Those cited as being the most important include the main European languages, such as German, French and Spanish, but increasingly also other world languages like Mandarin, Arabic and Russian.

While the report highlights a number of interesting issues, it is important to remember that the sample of companies interviewed per country was relatively low: around 70 in each case.

Click to read more about the study:

•    Executive summary 
•    Full report
 

Talking World Class: The Impact of Language Skills on the UK Economy (2005)

A publication produced by CILT, the National Centre for Languages, in 2005 which highlights the benefits of language skills in terms of business competitiveness, enterprise and employability and attempts to make “the economic case for languages”.

The publication brings together data from a variety of existing sources as well as fresh analysis.  It aims to inform policy-makers, support the objectives of the National Languages Strategy, engaging employers and stimulate demand for language skills amongst businesses, the education and public sectors.  The report looks at international trade patterns from a linguistic perspective and highlights existing good practice in successful businesses.

The study confirms the UK’s place at the bottom of the list of 28 European countries in terms of foreign language competence within businesses and examines gaps in current skills and the extent of business lost as a result.  The report quotes a British Chamber study that companies that are “proactive in their export approach” typically increase sales by £290k per year.  However, the report does not specify how much of this may be down to languages, which somewhat undermines the economic case.

Talking World Class emphasises other potential gains to be had by boosting the level of language skills British companies, although these are not generally quantified.  It cites increased business competitiveness, enterprise, employability and relationship-building both domestically and internationally as key benefits. 

Talking Sense: A Research Study of Language Skills Management in Major Companies (2005)

This study of language skills and strategies in large companies was commissioned by the Learning and Skills Council as part of its support for implementation of the Government’s national strategy for languages for England.

The research comprised two parallel exercises: a telephone survey of major multinational companies involving approximately 50 respondents in each of the UK, France and Germany, and a series of interviews with senior personnel in six UK-based companies identified as examples of best practice.

The best-practice companies identified were:

• AstraZeneca
• BMW Group
• Deutsche Bank
• Eversheds
• Gazeley Properties (a wholly owned subsidiary of Walmart)
• GlaxoSmithKline
   

The six case studies were drawn together, cross-referenced to the findings of the telephone survey and used as the basis for a series of recommendations that could improve companies’ access to language skills and support both the enhancement of business competitiveness in the UK and the future employability of individuals from the UK.

The study concluded that British companies are more likely to take a short term view and fill skill gaps with recruitment rather than training. 

To find out more you can:

Read the executive summary
Read the final report )
 

British Academy Report: languages matter more and more

With over 71% of employers not satisfied with the foreign language skills of young people, and 75% of the world population currently not speaking English as a first language, the British Academy has called on UK universities urgently to address the growing mismatch between supply and demand in language skills.  'Language Matters More and More', a 2010 Position Paper by the British Academy Policy Centre, highlights the increasing severity of the languages deficit. The situation has worsened since the Academy’s previous warning in Language Matters (2009), and the paper therefore recommends ways that Vice-Chancellors take action by:

• Providing language training to meet the needs of their researchers
• Encouraging and enabling students to take time out of their studies to work or study abroad
• Making provision for students to study a language while studying for a non-language degree
• Working collaboratively to sustain languages at a time of considerable fiscal restraints.

At a Central London launch event on 9 February, Professor Nigel Vincent, Vice-President for Research and Higher Education Policy at the British Academy, said:

“This is a challenging time for UK students, and we should be making their transition from university to the globalised world easier, not harder. The British Academy has voiced its concern over the growing language deficit for some years, and the gloomy statistics speak for themselves. We need decisive action if we are to remedy this worsening situation."

You can find out more by:

- reading the press release on the British Academy website
 

Importance of cultural awareness in business and practical implications

(source http://www.analytictech.com/mb021/cultural.htm)

Many analyses of cultural differences are highly academic but this paper offers one of the most practical overviews on how cultural difference can have concrete implications on doing business. 

It summarises the key areas where misunderstandings are likely to arise:

Explicitness of communication – some cultures (Anglos, Germanics and Scandinavian) emphasise the practice of “saying what you mean and meaning what you say” where things are spelled out clearly.  Other cultures (Japanese, Arabs and French) rely much more on a tacit understanding of “how things are done” and non-verbal cues, for example “that may be difficult” may be a polite way of saying “under absolutely no circumstances”.

This can mean that Japanese can find Westerners to be offensively blunt while Westerners can find Japanese to be secretive.

Acceptability of multi-tasking – some cultures (German) tend to value doing one thing at a time.  Others (French, USA) like to do several things at once.  For example, the former can interpret constant interruptions during a business meeting as insulting, while the latter can find closed doors and unavailability as being cold and unfriendly.

Past vs future orientation – past-oriented cultures (China, Britain and Japan) emphasise traditional values and ways of doing things.  They tend to be conservative and slow to change.  Future-oriented societies (USA and – increasingly – Brazil) tend to be optimistic about the future and can shape it through their actions, so view management as a process of planning, shaping and controlling rather than going with the flow.

Time – in some cultures (Germany, USA) time is viewed as a limited resource which must be used wisely and punctuality is valued.  In others (India, Africa, Latin America) time is viewed as a plentiful and no special importance is placed on keeping strictly to time but a greater emphasis is placed on relationships and trust to do business.  Time-limited cultures don’t have time to build trust so tend to rely more strongly on legal and regulatory controls.

Hierarchies – some cultures (US, Israel) tend to have “flat” hierarchies and superiors and subordinates often interact socially as equals and often call each other by their first names.  In other cultures (most agrarian countries) a much higher level of respect is generally accorded to superiors.  

The importance of the individual vs the group – in individualist cultures (USA) individual uniqueness, initiative and self-determination are valued and valued.  Collectivist cultures (Japan, The Philippines) expect people to identify with and work well in groups which protect them in exchange for their loyalty and compliance.  Things often take longer as group consensus and involvement are important.

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