It is well known that business practices differ from country to country. So much so that companies will provide cultural training to their employees to help them be successful overseas. There is an understanding that business people need to alter their practices and interactions to comply with local customs. Global dexterity and adaptations are important tools to prevent cultural clashes and miscommunication.
However, cultural clashes can still be prevalent within a single country. Looking at the United States, not only is it a leader in the global economy but also is vast in land and diverse in culture. As a result of being such a large country, each region has their own set of values and way of life. There are great variations between practices within the South, North, East Coast, West Coast and Midwest regions. Each region has their own unique style and values that are sometimes in conflict between one another. As daily life varies so do business practices and their respected business environments. This can also affect how one will succeed in it. This paper will be comparing two regions, the Midwest and East Coast, how their business practices differ and the importance of understanding local culture within one country.
First, let us take a look at the Midwest. The Midwest or America’s Heartland is dubbed to be an area of friendly neighbors and strong family values. The region is a heavy blue collar and working class area, where people rely more on community than individualism. This is in part due to the agriculture and manufacturer economy that thrives there. Big farms and assembly lines require a mass of people to work together in a synchronized flow. This creates a heavy reliance and commordery on counterparts, while diminishing indiuvalism. Midwestern states include: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin. Major cities with booming economies of these states are: Chicago IL, Columbus OH, Detroit MI and Indianapolis IN. The Midwest has a mostest but emerging economy, with some large Fortune 500 companies having their headquarters based there. Two states in the midwest are ranked in the top ten of number of headquarters in the U.S.. Illinois has the most with 38 headquarters and is ranked #4. While is Ohio has 25 headquarters, and ranked #5. As a result, the Midwest is able to be competitive with other cities such as New York, the financial capital of the U.S.. While the Midwest continues to economically grow, they have also developed their own business practices.
The personal values with a rich history of hard agricultural and line work have greatly influenced how business is conducted. Large populations have either worked longer hours in fields or factories performing extensive labor. This has created a strong work ethic and willingness to get the job done. These types of jobs also can only be performed when a team is willing to work together. This sense of comradery can be seen in daily life as Midwesterns are stereotyped to be “nice” people who are willing to go out of the way to help a stranger. The slower pace of life allows time for family and friends. While the relatively lower cost of living allows people to feel more financially secure and empowered.
In contrast to the Midwest and its values, is the fast pace East Coast lifestyle. Major economical states on the East Coast include: Connecticut, New York, New Jersey, Massachusetts and Pennsylvania. New York City, historically and currently the financial capital of the U.S. has cultivated its own way of living and set of values. With financing and investing being its primary industry, work and personal life are inherently fast paced as the market can rapidly change day to day. Companies and firms can experience great losses and gains within hours. This almost creates an insecurity in the workplace which has spilled into the social culture.
A city that never sleeps, things are always changing. Business people and residents always have to adapt to whatever is being thrown at them. Competition is high in all aspects of life. This in part due to its larger size and more diverse population. As the cost of living is extremely high, one can almost not afford to help their neighbors. There is not a sense that everyone is in it together, rather one must fight to stay in the game. New Yorkers are forced to keep an individual mindset and focus first on themselves to survive.
There are clear separations of home values and work values between the Midwest and East Coast. But how do these differences affect business practices and one’s ability to succeed in either environment? Derek Jones, an American University alumni and a director of investment at an asset management firm, explained what happens when a midwest company from Chicago buys a New York firm. Mr. Jones, also an Ohio native has worked in finance for 30 years. 15 years ago, his firm had a drastic change. The New York based firm was a subsidiary for a larger company that's headquarters was located in Switzerland. However the New York based firm was then acquired by a Chicago company in 2007. As the acquisition occurred, he revealed that many of their employees were quite relieved that the firm had been acquired by a Miderwestner company. Why was that?
New York City has a history of hostile takeovers when it came to business acquisitions. These type of takeovers usually result in mass employee and cost cuts to offset losses and reduce expenses. With the business environment already being very competitive and having higher costs of operations, it is only natural to have these extreme changes. However, Mr. Jones found that to be the opposite when his firm was taken over. The purchasing company's headquarters is currently located in Chicago where it was founded. During the acquisition, Mr. Jones noted that there were not any mass employee cuts and that the firm began instilling their Midwestern values on day one. These values included respecting the employees’ work, loyalty and contributions, creating comradery between the firms and instilling a better work-life-balance. As a midwestern himself, Mr. Jones noted that to this day GCM upholds its midwestern values that he is also accustomed to.
Mr. Jones’s midwestern values had almost hindered his initial success in the city. Like many midwesterns who move to higher cost and faster pace of living areas, found it challenging to navigate his way in the finance and business world of New York. Whether a person is moving across country or to a different country, not being familiar with the area can create obstacles and cause one to miss out on opportunities. For example, since the Midwest cost of living is relatively low compared to the rest of the country, that posed a big problem for him. As he was not familiar with average prices of rent, gas and other goods of New York. Unfortunately, he could not differentiate if he was being taken advantage of or being given a reasonable deal in his early years. This was because what he knew he could be paying in the Midwest was not comparable to what he was being asked for in New York. As a result he has missed out on opportunities and felt weary of the people. No one would be able to conduct business if they cannot trust either the person they are in talks with or themselve. At that point he could not confidently recognize a good or bad deal. However, time and experience allowed him to grasp what were smart business moves to make. That is why it is crucial in understanding the local economics and not having the same expectations one would have in their homeland.
Unlike Mr. Jones, I have not yet been able to successfully integrate in East Coast culture. I have spent four years between Maryland and Washington D.C. and have not been able to adjust to the lack of comradery. I enjoy a friendly conversation with a stranger that most New Yorkers would avoid. Even in my college years in Baltimore Maryland, I found it troubling that my fellow classmates did not instinctively hold doors open for people, a standard occurrence in the Midwest. The higher cost of living was also extremely off putting. Young professionals oftentimes are financially struggling to keep up with cost and have to supplement their income. In turn, diminishing one's work life balance.
However, I would like to pursue a career in New York City after graduation. Working for a firm that has a headquarters in the Midwest could be a great option for me, as it may have similar values which could allow me to assimilate faster. I would also have to abandon some of my ideas of what things “should” cost and their actual prices. Having a cultural mentor in the city can help me navigate the transition, as he did the same 30 years ago.
New York also being more diverse in ethnic population than any Midwestern cities, allows me the opportunity to engage more with groups that I have limited access to. For example, being half Cuban, there is not a big population outside New York or Miami. Finding people who have similar cultural backgrounds can be a connecting field and safe space. This could even help me to overcome some barriers I face in mainstream American culture and create a home feeling for me.
Global dexterity is an important topic as it allows for international enterprise and globalization. However, it is also very important to understand business practices and differences on a domestic level. Even though the U.S. is one country, it varies vastly across the plains. A midwestern placed in an East Coast firm may have trouble adapting to the faster environment, competitiveness, change in work life balance and isolating due to the lack of comradery. While on the other hand, an East Coast New Yorker may find business too slow, annoyed with the pleasantries and bored because there are simply not as many activities to participate in. But these barriers can be broken through understanding local customs and abandoning some previous ideas of how things should be.
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