Andorra Culture of Business

By | July 24, 2022

Subchapters:

  • Introduction
  • Addressing
  • Business Meeting
  • Communication
  • Recommendations
  • Public Holidays

Introduction

According to animalerts, the culture of business negotiations in Andorra has southern European characteristics.

A personal approach, interpersonal relationships and ideally knowledge of the language (Spanish, French, English is possible for the younger generation) are important.

In order to establish high-quality business partnerships, it is necessary to count on the necessity of several personal negotiations with the partner company.

Addressing

Andorran business relationships are based on a personal approach.

In the beginning, telephone contact is recommended. Even in the initial correspondence phase, telephone communication should not be neglected.

In order to establish cooperation and sign a contract, it is a good idea to spend time on repeated face-to-face meetings, first in the office, then over lunch in a restaurant.

Although routine matters are handled by e-mail, business relationships emerge from face-to-face meetings.

The address begins with the abbreviation for Mr./Mrs. (Seňor/Seňora), followed by the first or both surnames.

Andorrans have two surnames – one after the father, the other after the mother (e.g. Joan Martí Pujol). Mostly, however, the first name after the first name (Sr. Martí) is used in the address. The initial address is always in the form of an exhortation.

In subsequent negotiations and correspondence, only the first name is often used, and in the Czech context, the first name is also used earlier. This happens spontaneously, not as with us by offering to poke.

The company does not suffer from titles, but from social status within the corporate hierarchy.

In particular, high-ranking persons tend to be respected.

Andorrans also have more respect for older people.

Business meeting

It is advisable to request an appointment at least a few days in advance.

The first contact should definitely be made by phone.

The details are then resolved through e-mail communication. However, it is good not to neglect telephone contact before the meeting.

Because of the clearly defined hierarchy in companies, it is necessary to expect that more representatives of the company will participate in the meeting, both the business partner and his superior.

Andorrans are very tolerant of a well-groomed appearance. Therefore, it is recommended to wear a classic suit with a tie, which will correspond to fashion trends, for a business meeting. Clean, polished shoes are also a matter of course. Attention should also be paid to the haircut, and for women to appropriate make-up.

The first meeting takes place in the company’s office, but others can already take place in a restaurant over lunch or in a cafe.

Business cards are exchanged at the beginning of the first meeting.

Shops are then closed during business dinners or lunches in the restaurant.

As for spending on lunch/dinner, it depends on the nature of the meeting. In most cases, it is announced in advance who will invite whom.

If you want to give gifts at the meeting, choose smaller ones. If you want to gift your partner, we recommend a bottle of quality alcohol. If your partner gives you a gift, unwrap the gift and express your pleasure.

The negotiation team should include a representative of the sales department, ideally a director, as well as at least one technical employee who will be able to present the offered product from a technical point of view.

The age or gender composition of the team in Andorra does not matter.

Communication

Andorrans are communicative and open people.

However, they usually behave professionally in business meetings and do not show too much emotion. Establishing business cooperation often takes a longer time than we are used to. However, if the company succeeds in agreeing cooperation with a local company, it acquires a reliable and loyal business partner and can count on long-term cooperation.

In business relations, Andorrans prefer clear and concise negotiations. The company representative should always be well prepared for the meeting. After getting to know each other, it goes to the heart of the matter. At the beginning, a short presentation of the company and its achievements is expected. It is also appropriate to mention the economic positives of the Czech Republic. It is good to argue clearly without unnecessary details and returning to previous topics. Don’t forget to summarize the content at the end.

During the meeting, it is necessary to take into account coffee breaks, during which informal conversations take place. The most appropriate topic for informal conversation is probably family. You can also talk about hobbies, gastronomy or sports. When communicating, it is desirable to avoid topics related to politics, separatist tendencies of some regions, faith and other controversial topics.

As far as the issue of time is concerned, working hours in Andorra are more relaxed and different from customs in the Czech Republic. Andorrans have a lunch break between 14:00 and 16:30. It is therefore not recommended to call at this time. However, a lot of things can be resolved during lunch with your partner. Sometimes the lunch break is even longer and can turn into a business dinner. Businesses usually work until the evening hours, workers are available until 7 p.m. On the contrary, at 8 o’clock in the morning you will rarely find someone in the company. It is advisable to plan a business meeting from 9:00 in the morning at the earliest. Although Czechs are prejudiced against Andorrans’ punctuality, they usually arrive on time for business meetings. A delay of about ten minutes from both sides is tolerated. It is also a good idea to keep an eye on national and regional holidays, during which work is not normally done.

Although English is increasingly penetrating business relations, especially in larger companies, Spanish is still preferred. It is recommended to bring an interpreter with you to the meeting, who can also be recommended by the Embassy of the Czech Republic in Madrid. As for business materials, it is definitely worthwhile to have them prepared in Spanish as well. In general, the smaller the company, the lower the language skills. English is sufficient for the initial e-mail conversation. Most of the upper management can speak English, however, during negotiations, Andorrans feel significantly more comfortable in their native language.

During business meetings in the office, it is not common to serve alcohol, however, during a business lunch or dinner, wine in particular becomes an integral part. Of course, it is necessary to maintain a reasonable measure. In Andorra, it is not customary to invite business partners to your home. The same is not expected from a Czech sales representative. Most meetings take place in offices, or in less formal environments, in restaurants or cafes.

Although the overwhelming majority of people in Andorra are Catholic, faith does not translate into business relations.

Recommendation

There is generally a lot of competition in the market. The discussion about prices tends to be long and tough. Andorran merchants are very price conscious and have a clear idea of ​​the right price. It is important to prepare your arguments for the meeting and keep a reserve in the margin for unexpected costs.

It is also recommended to act quickly and confirm the binding price decision in writing as soon as possible.

However, price is not always necessarily the deciding factor. Very often the product design also decides the success. It is therefore good to pay attention to the appearance of brochures and websites. These should be modern and understandable.

When entering the Andorran market, it pays to use a local distributor who has a network of business partners. Before concluding an exclusive contract, it is possible to use the so-called test period, during which the company has the opportunity to check the partner’s business abilities. Some companies also go the route of establishing a branch or representative office.

When implementing this variant, it is advantageous to cooperate with a local accounting or tax firm. It is also advisable to check your potential partners in Andorra and have the draft contract reviewed by a local lawyer.

The Andorran market is once again seeing the growth of the middle and lower class, increasing the demand for new quality brands at a reasonable price. Given that this is a highly competitive market, companies that offer innovative, modern, design and at the same time affordable solutions can succeed in particular.

Before entering the market, it is always necessary to map it.

Public Holidays

Major Andorran holidays:

  • January 1 – New Year
  • January 6 – Three Kings
  • February 28 – Carnival
  • March 14 – Constitution Day
  • April 15 – Good Friday
  • April 18 – Easter Monday
  • May 1 – Labor Day
  • June 6 – Pentecost
  • August 15 – Assumption of the Virgin Mary
  • September 8 – Feast of the Patron Saint of Andorra (Meritxell)
  • November 1 – All Saints’ Day
  • December 8 – Immaculate Conception of the Virgin Mary
  • December 25 – Christmas
  • December 26 – Saint Stephen’s Day

Andorra Culture of Business