Spain’s essential business principles are saving face, family, closeness, and reluctance to risks. Spaniards are recognized for being more laid back than their European competitors and for having a strong sense of regional pride. Although hierarchies tend to be vertical and rank matters, persons at the third or fourth level below may be in better status or have more impact than higher-ups. Meetings with colleagues in comparable positions and professional ranks are recommended in Spain. Personal and informal relationships are frequently required for the smooth operation of a company in Spain. Furthermore, oral communication is preferred over written communication, and invites to lunch or dinner are great for establishing a relationship. Communication, decision-making, and trust are just a few of the corporate culture elements adopted by Spanish-based organizations such as Ufounders. Ufounders is a startup company that provides an entrepreneur training platform that guides users through the life of their enterprise. A comparison of the business models of Ufounders and LegalZoom demonstrates how various business cultural elements are managed in different areas.
Comparison Between Ufounders and LegalZoom Companies
LegalZoom and Ufounders are both tech startups, even though one is based in the United States and the other in Spain. Since they are both technological firms, they share some elements of how they treat their customers, as each company’s purpose is to guarantee customer satisfaction. However, because of their different locations, there may be some disparities in their work due to, unlike business cultures. As various regions interact differently, regional cultural norms such as how individuals speak may impact a company’s business culture (Guillén et al., 2021). For example, the official national language in Spain is Spanish or Castilian, whereas, in America, it is English (Conaway & Morrison, 2006). Thus, linguistic difference has a massive impact on commercial dealings.
Similarities Between LegalZoom and Ufounders Business Models
Deciding is among the similarities in both companies, whereby decisions are made in leadership groups through unanimous agreement. For example, LegalZoom’s leadership team involves the Chief Executive, Operating, Financial, Technology, Product, Marketing, and Partnership Officers. On the other hand, the management group in Ufounders company includes the CEO, Chairman, Chief Expansion, and Happiness Officer. Furthermore, ‘Deciding’ as a scale tool for mapping cultural differences measures the degree to which a culture is consensus-minded (Guillén et al., 2021). It is commonly considered that the most equitable cultures are also the most democratic. In contrast, most authoritarian cultures allow managers to make independent decisions, which is not always the case (Meyer, 2016). Germans, for example, are more bureaucratic than Americans, yet they are more inclined than their American counterparts to seek group agreement before making judgments.
Another component that is similar in Ufounders and LegalZoom is trust, which is built through business-related activities. Work relations can be easily formed and terminated based on the pragmatism of the circumstance (Guillén et al., 2021). Both organizations’ customer satisfaction ratings show that most consumers have a good reason to trust and enjoy dealing with those companies (Guillén et al., 2021). Ufounders, for example, offers training, an advisory team, and an investor network to aid their clients in launching their businesses as quickly as possible. As a result, clients gain more trust in the product they intend to launch because they may consult professionals in case of a problem. LegalZoom, conversely, ensures customer trust by aiding the more significant small company sector and the general public through their social impact projects. They accomplish it by forming long-term collaborations with nonprofits to help underrepresented groups, frequently left out of the traditional legal system.
In addition, to trust, perceptual integrity (from the head) can be compared with aversive conviction (from the heart). Trust is cognitively formed via work in task-based cultures; therefore, individuals develop mutual trust when they work well together, demonstrate their dependability, and value one another’s contributions (Meyer, 2016). Trust will grow due to a deep affective connection in a relationship-based culture. As a result, trust is established when individuals laugh and rest together, get to know one another intimately and experience a mutual liking.
Another similarity between LegalZoom and Ufounders’ company operations is their communication style, which is concise, precise, and unambiguous. Messages are comprehended and expressed at face value, and repetition is acceptable if it aids in communication clarity (Meyer, 2016). Both companies include Frequently Asked Questions (FAQ) areas where users can quickly locate solutions to previously answered inquiries. Furthermore, they have an online assistance support system that is open 24 hours a day, seven days a week, to react to customer inquiries.
Differences Between LegalZoom and Ufounders’ Business Models
Ufounders and LegalZoom, like any other company, have several variations in how they run their operations. The companies have unique business cultures because they operate in different geographical zones. For example, living in Spain is lively and leisurely, and this pace can be expected in Spain’s business culture. In Spain, the family is the core unit, and individuals will discover that Spanish people also appreciate relationships and authenticity in the professional sector (Conaway & Morrison, 2006). However, one should not anticipate finding the same culture, values, and etiquette throughout Spain. After all, it is a multicultural country that has been impacted by the various foreigners who have occupied it over the centuries. On the other hand, American corporate culture is predominantly entrepreneurial, with employees typically being highly motivated by their professions. The age of business hierarchies does not have a robust cultural attachment or obligation (Conaway & Morrison, 2006). Therefore, people are prone to overlooking variables such as business loyalty in exchange for technical knowledge and brilliance in personnel.
In addition to cultural differences, the corporate negotiating process in Spain is protracted due to their collaborative business culture. Indeed, Spaniards anticipate developing personal relationships and trust with rivals before initiating negotiations (Conaway & Morrison, 2006). They frequently meet business prospects over lunch or during social gatherings. The final judgment on ideas is usually made by senior management. Following a verbal agreement with a corporate in Spain, one can expect a company to formalize the details in a contract; however, regional variances exist across the country. Catalans, for example, favor a professional negotiation strategy in which discounts are not the primary goal (Conaway & Morrison, 2006). On the other hand, the South’s values are more traditional than a formal manner of negotiations. In contrast, corporate conversations and transactions in the United States are frequently backed up by strict legal controls. Risk management is time-consuming, and litigation and contracts are commonly packed with clauses that impose an obligation on the other party. As a result, although delivering similar services, organizations like Ufounders and LegalZoom may differ in how they conduct their businesses due to regional business culture variances.
Business models used in companies may be similar or distinct based on their location and business cultures. Ufounders and LegalZoom are two tech companies located in different regions though they have similar business and cultural elements. Some of the features include decision-making, trust, and mode of communication. The elements are not affected by the regional business culture since the goal of each company is to ensure customer satisfaction. Apart from the similarity in both companies, they also vary differently in regional business cultures, such as business negotiation models and employee relations.
Conaway, A., & Morrison, T. (2006). Kiss, Bow, Or Shake Hands’: The bestselling guide to doing business in more than 60 countries. Adams Media.
Guillén N., Isabel V., & Deckert, C. (2021). Cultural influence on innovativeness-links between “The Culture Map” and the “Global Innovation Index.” International Journal of Corporate Social Responsibility, 6(1), 1-12.
Meyer E. (2016). The culture map. PublicAffairs.