Report on survey on Foreign Languages and Cultural Needs of Danish Businesses

Author
Lise Damsgaard Jørgensen
Center for Sprogteknologi
Denmark

June 2000
      Revised February 2001

CONTENTS	
1. Background	1
1.1.  Review of Earlier Studies	1
1.2.  Main Issues	1
1.2.1.  Background to language use in your country 	1
1.2.2.  General exporting position:	1
2.  Profile of Sample (The Survey)	2
2.1.  Methodology/Data Collection Techniques	2
2.2.  Profile of Companies	2
2.2.1. Sector	2
2.2.2. Number of Employees	2
2.2.3. Turnover	3
2.2.4. Location of Head Office	3
2.2.5. Export Activity - breakdown of percentage exported	3
2.2.6. Import Profile	5
3.  Current Use of Foreign Languages/Languages in Demand	6
3.1.  Which languages do companies use?	6
3.2.  Which language skills do companies use?	7
3.3.  Available language skills - profile of employees with skills 	8
4.  Language Barriers (‘Un-met’ needs)	9
4.1.  Language Barriers	9
4.1.1.   General Overview	9
4.2.  Cultural Barriers	9
4.2.1. General Overview	9
4.3.  Lost Business	10
4.3.1. General Overview	10
5.  Evidence of Corporate Language Strategies	11
5.1. Language training -	11
5.1.1. Analysis of Past Language Training	11
    5.1.2. Modern Language Tools................................................................................................................ 11
5.2. Employed a Native Speaker 	13
5.2.1.  Breakdown of Job Advertisements	13
5.3.  Language strategies	13
5.3.1.  Breakdown of Strategies	13
5.4.  Use of Translators	13
5.5.  Summary	13
6.  Future Demand/Which Languages and Skills are needed?	14
6.1. Changing Trading Patterns	14
6.2. Future Demand for Language Training	14

This report is a product of the ELISE project which was made possible with the financial assistance of the European Commission under the Leonardo da Vinci programme. The content is the sole responsibility of its authors and in no way  represents the opinions of the Commission or its departments.

1.Background 
1.1. Review of Earlier Studies
The aim of this project is to extend the scope of the EU project ELUCIDATE under the Leonardo da Vinci Programme to other countries which were not covered by the ELUCIDATE project. In the ELUCIDATE project France, Germany, Spain and England were included and the studies were carried out between 1994 and 1997. A predecessor to the ELUCIDATE project was the ‘Flair’ project which took place in 1992 and 1993 in Southern Denmark, the Basque Country, Spain; South-Western Germany; the Northern Netherlands; and the North of England. 
The purpose of this ELISE survey is to analyse the knowledge of foreign languages and cultural background in exporting companies in Denmark.
The same analysis is simultaneously taking place in other European countries, Ireland (North and South), Scotland, Sweden and the Netherlands.
The analysis is based on a survey sent out to chosen exporting companies. 

The results of this investigation are supported by an investigation carried out by Storstrøms Erhvervscenter, funded by the European MLIS programme that analysed the relation between exporting and language knowledge in companies (Undersøgelse om virksomhedernes eksport og sprog, Storstrøms Erhvervscenter). In that report it can be seen that the language skills in specific languages are the same as in this report. The results are also very similar to those of a study carried out by Annette Grindsted, Foreign Language Analysis in Industrial Regions of Europe, Institut for Erhvervssprog, HandelshøjskoleSyd, 1992 (The Flair project).

1.2. Main Issues
1.2.1. Background to language use in Denmark
The Danish language is only spoken by about 5 million people but understood by a large part of the population of the other Scandinavian countries. Therefore, in order to be able to communicate with foreign countries knowledge of other languages is indeed required. English and German are normally mandatory for every pupil in schools nowadays. 
English is widely used by almost all Danes. German is known by most Danes, especially in the younger generation, however the use of German is more common in the southern part of Denmark near the German border.
After English and German, French and/or Spanish are the most taught languages.
1.2.2. General exporting position
Denmark exports to most of the world. Its exporting position varies from industry to industry. Danish companies who wish to export or those who already do, can get a lot of help from various organisations and governmental institutions in order to penetrate new markets or to strengthen their existing position. Some of these organisations are ‘Export Denmark’, ‘Erhvervenes Eksportfremme Sekretariat’ (Secretariat of promoting exports for business) and ‘Udenrigsministeriets eksportservice’ (The foreign ministry’s export service).
2. Profile of Sample (The Survey)
2.1. Methodology/Data Collection Techniques
The questionnaire was sent out to 906 Danish exporting companies. The main criteria for choosing these companies were that the companies were exporters and that they represented different industries within the whole country. The companies were found through the Internet, where industrial organisations have published their member lists, through direct contact to industrial organisations and through the Danish Chamber of Commerce (Dansk Handelskammer). The industries contacted are: clothing, food, electronics, telecommunications, steel, plastic, building, and pharmaceutical industries and they are large sectors in Denmark. 

The questionnaire was mailed out four times from November 1999 to end of March 2000 in order to ensure a sufficient number of answers. Out of 906 questionnaires 6 were returned due to incorrect address or the company having moved. Furthermore, a number of companies were approached in order make them interested in answering the questionnaire. In some cases this was successful, but in most cases SMEs receive some much mail every day that time  only permits them to reply to a very small percentage of non-commercial mail.  After the last mailing period 52 companies had replied and returned the questionnaires. 

2.2. Profile of Companies 
2.2.1. Sector
All sectors that were mailed a questionnaire have generated at least one response. The largest sectors are represented with a larger number of replies than the smaller ones. The replies come from companies all over the country so in that sense the survey is representative for Denmark.

Profile of companies that replied

Sector Name	Denmark	
ENERGY AND WATER	                 2                           4%	
ENGINEERING AND METAL MANUFACTURE	               22                          42%	
FOOD, DRINK AND TOBACCO INDUSTRY	               10                          19%	
MINERAL EXTRACTION AND CHEMICALS	                 3                            6 %	
OTHER MANUFACTURING INDUSTRIES	               10                          19%	
PAPER AND PAPER PRODUCTS	                 1                            2%	
TEXTILE INDUSTRY	                 3                            6%	
UNKNOWN	                 1                            2%	
TOTAL	               52                         100%	

2.2.2. Number of Employees
As it can be seen below the profile of the companies varies a lot. Some companies are very small whilst others are rather large. More than half of the replies comes from so-called small companies. This picture corresponds very well to the distribution of small and medium sized  companies is in Denmark. Compared to the FLAIR report, this survey has less companies with fewer than 50 employees.

No of Employees	No of Companies	%	
0 -9 employees	5	9,62%	
10 - 49 employees	21	40,38%	
50 - 99 employees	5	9,62%	
100 - 249 employees	5	9,62%	
> 250 employees	16	30,76%	
0	52	100,00%	

2.2.3. Turnover
In Denmark there is great awareness of the need to know foreign languages since Danish is not understood by many people (for further details see section 1.2.1 + 3.1). Therefore, language awareness exists in all Danish exporting companies. However, the possibility of implementing this awareness through language strategies, courses etc. increases with the size of the company and its turnover. So the tendency is that the larger companies with bigger turnovers do more to improve language and cultural skills. 

Turnover Range	No of Companies	%	
< 2 mECU	11	21,15%	
2 - 5 mECU	8	15,38%	
5 - 10 mECU	5	9,62%	
10 - 20 mECU	2	3,85%	
> 20 mECU	14	26,92%	
No Response	12	23,08%	
	52	100,00%	
The table shows that about there is many small companies in Denmark and it must therefore be assumed that many companies have problems of implementing a language strategy.
2.2.4. Location of Head Office
67% of the returned questionnaires come from independent Danish companies while the rest come from subsidiary companies with head offices either in Denmark or abroad.

Location of Head Office		
		
Independant Company	35	67,30%	
Head Office in Denmark	6	11,54%	
Head Office Abroad	11	21,16%	
Total	52	100,00%	

2.2.5. Export Activity - breakdown of percentage exported
More than half of the companies export between 50 and 100% of their products which was also the case in the FLAIR project where the survey was concentrated in the Southern part of Denmark.

Percentage of Sales Exported				
				
% of Sales Exported	No of Companies	%		
0 - 9% Exports	2	3,85%		
10 -29% Exports	7	13,46%		
30 -49% Exports	3	5,77%		
50 - 100% Exports	34	65,38%		
No Response	6	11,54%		
Total	52	100,00%		

The table below illustrates where Danish companies have their export markets. As can be seen the largest export markets for Danish companies are in Scandinavia (Norway, Sweden, Finland), and in the countries of Western and Central Europe. The European countries are Germany, United Kingdom, and France. But Danish companies also have good export markets in the United  States of America.

Major Export Markets   (n = 52)				
				
Country/Region	No. of Companies	% of Sample Exporting		
SCANDINAVIA	41	78,84%		
GERMANY	30	57,7%		
FRANCE	15	28,85%		
UNITED KINGDOM	14	26,92%		
UNITED STATES OF AMERICA	9	17,31%		
SPAIN	7	13,46%		
NETHERLANDS	7	13,46%		
ITALY	6	11,54%		
BELGIUM	6	11,54%		
JAPAN	5	9,61%		
POLAND	3	5,77%		
RUSSIA	3	5,77%		
CHINA	3	5,77%		
SWITZERLAND	2	3,85%		
WORLDWIDE	2	3,85%		
MIDDLE EAST	2	3,85%		
LUXEMBOURG	2	3,85%		
FAR EAST	2	3,85%		
AUSTRIA	2	3,85%		
SOUTH AMERICA	2	3,85%		
AFRICA	1	1,92%		
SAUDI ARABIA	1	1,92%		
SOUTH AFRICA	1	1,92%		
THAILAND	1	1,92%		
KOREA	1	1,92%		
MALAYSIA	1	1,92%		
SEASIA	1	1,92%		
CENTRAL EUROPE	1	1,92%		
CANADA	1	1,92%		
IRAN	1	1,92%		

2.2.6. Import Profile
Import activities are less significant than export activities. The survey results are similar to those found in the FLAIR project.

Percentage of Sales Imported			
			
Sales Imported	No of Com.	%	
No Response	16	30,77%	
 0 - 9%	8	15,38%	
 10 - 29%	8	15,38%	
 30 - 49%	3	5,77%	
 50 - 100%	17	32,70%	
Total	52	100,00%	

3. Current Use of Foreign Languages/Languages in Demand
3.1. Which languages do companies use?
The returned questionnaires show that English and German is used by nearly all companies. Only 32,7 % of the returned questionnaires show that French is also used. Other languages such as Spanish and Portuguese are used in 17,3% and 3,9% of cases respectively. The Danish language is similar to the other of the Scandinavian languages and therefore 30,7 % of the companies use Danish/Swedish/Norwegian when exporting to the Scandinavian countries. 
It can be concluded that the results are as expected since they correspond very well to the general picture of which languages Danes use.

In 2.2.5 we saw that Danish companies export to most parts of the world, and it must be concluded that the companies export to countries where the mother tongue is not always English, German, French, Spanish, Portuguese or Danish.

Fig. 3.1 : Languages in use (n=52)
 
The most used languages are, not surprisingly, English and German 

Fig. 3.2 : Most important languages (n=52)

Figure 3.2 shows that English and German are the most important foreign languages for Danish companies. This correlates very well with the languages which are taught in Danish schools.

Fig. 3.3 : Number of languages used

  (n=52)

Danish export companies mostly use at least two languages when dealing with customers, but 
the table above shows that up to five languages are used more or less frequently (English, German, French, Swedish and Spanish). The use of Swedish can be explained by the fact that Sweden is a neighbour country to Denmark and belongs to one of large export markets for Danish companies. The use of the other languages can be explained by the fact these are the most used languages in the world when trading. 

The results above correspond very well to findings in previous surveys.

3.2. Which language skills do companies use? 
										(n=52)	

Language	
Listening	
Speaking	
Reading	
Writing	
Culture	
ENGLISH	86,5%	92,3%	76,9%	84,6%	40,4%	
GERMAN	73,1%	75,0%	61,5%	65,4%	36,5%	
FRENCH	25,0%	25,0%	23,1%	21,2%	9,6%	
SCANDINAVIAN LANGUAGES(Swedish/Norwegian)	30,7%	26,9%	19,2%	15,4%	13,5%	
SPANISH	15,4%	15,4%	15,4%	7,7%	3,8%	
ITALIAN	5,8%	5,8%	3,8%	1,9%	3,8%	
PORTUGUESE	1,9%	3,8%	3,8%		1,9%	
Fig. 3.4 Language skill used

Comparing the table with ‘Major Export Markets with table 3.4 it can be seen that the six biggest export markets (Scandinavian, Germany, France, United Kingdom the United States, Spain) correspond very well to the languages used by Danish companies. In other words there seems to be a tendency to export to markets where the companies speak the language.

The table above shows that Danish companies attach most importance of knowing languages skills for English, German, Scandinavian, and French. This corresponds very well to the results of the tables 3.1, 3.2, and 3.3. 

It can be concluded that the speaking and listening skills are in general more valued by companies than the other 3 skills, reading, writing, and cultural knowledge. None of the companies value cultural knowledge very much.

The emphasis on the skills speaking and listening may be because most trading is done via telephone calls or meetings. 
3.3. Available language skills - profile of employees with skills 
In 88,5 % of the returned questionnaires the companies have employees with foreign language skills. Since Denmark is a small country with a language only spoken by 5-6 million people, it would have been natural if the figure had been higher. But it must be taken into consideration that some of the companies of this survey only export to Scandinavian countries or are so small that the employees are the owners. The owner manages with his/her technical skills.
The FLAIR report does not included Scandinavian languages.

4. Language Barriers (‘Un-met’ needs)
4.1. Language Barriers
4.1.1.  General Overview
On the basis of the returned questionnaires Danish exporters seem well equipped for communicating with foreign countries. However, 28,8 % of the companies state that they have encountered language barriers for different reasons. Out of the 28,8% of the companies which have encountered problems, 3,8 % of the companies say that the language barrier occurs when technical staff negotiates and does not manage as well as they expected in a foreign language. A very large part of the remaining 28,9 % give as reason that they negotiate in a language which is not the native language of the customer or themselves. It seems that problems often occur when Danish companies negotiate with Asian countries.
Out of the companies who are aware that they have encountered language barriers, only 3,8% are aware that this lack of skill has led to the loss of contracts. 

4.2. Cultural Barriers
4.2.1.General Overview
The companies who have experienced language barriers have also encountered cultural barriers. Additional a few companies which have not encountered languages barriers have experienced cultural barriers. So in total 37 % of the companies have experienced cultural barriers.
The cultural barriers are especially met in countries outside Europe like Japan, the Far East, the Middle East and Africa. Some of the barriers are due to lack of language skills, but others are due to all kinds of differences that you can think of: dress code, etiquette, time, the way the meetings are conducted, the way decisions are made, etc.
Cultural barriers are also met when dealing with countries in Europe. In Germany the problem is etiquette, and the form of addressing another person. In Eastern Europe it is very important to show respect. In France it is important to know French and French culture in order to do well.
Strangely enough, Danish companies also encounter problems within the Scandinavian countries. Danes do not think of other customers from other Scandinavian countries as foreigners and they forget that there are differences, which must be taken into account.

Country	No. of Co.s	%	
France	5	26%	
Japan	3	16%	
China	2	11%	
Far East	2	11%	
Iran	5	26%	
(n=19)	12	90%	
Table 4.4 : Cultural Barriers by Country

Comparison with any earlier Study findings

•	Generally Danish companies do not experience language barriers to the same extent as many other countries in Europe for the simple reason that if Danish companies want to make money, they are forced to speak one of the 3 main languages of Europe, English, German or French.
•	English and German are also to be considered to be the most important languages seen with the eyes of Danish companies, closely followed by French and Spanish. However, English must, as in the ELUCIDATE findings,  be considered to be the predominant language in the business world.
•	Compared to the companies consulted in the ELUCIDATE survey, all Danish companies recognise the importance of language skills, and most of them undertake language training. 
•	Half of the companies who do not have a language strategy recognise that they encounter language barriers, but mostly a concrete reason is not given.
•	As in the ELUCIDATE findings, misunderstanding local business etiquette is one of the causes of cultural barriers. However, dress code and the way of addressing the customer are also   major  problems for Danish companies.
•	As in the ELUCIDATE findings, larger companies are more likely to undertake language training.
•	The important role of Scandinavian languages has not been mentioned in the previous studies. 

4.3. Lost Business
4.3.1. General Overview
6% of the sample claim to have lost business due to language and cultural barriers. The reasons given are inability to communicate and lack of cultural affinity

5. Evidence of Corporate Language Strategies
5.1. Language training 
5.1.1. Analysis of Past Language Training

All companies emphasise the importance of language skills when employing new staff, however only 56% of the companies have undertaken language training within the last 3 years. 

Figure 5.1. Analysis of Past Language Training

(n=52)

 English and German are the languages which employees have received most training in during the last 3 years. The training in German was undertaken on the initiative of the companies, while training in English is in many companies on the initiative of the employees themselves. Training in French, Spanish and Italian comes third. For companies who have foreign employees, training in Danish has also been undertaken.
Some companies are only willing to let their employees undertake language courses if the skills are needed in their daily work, otherwise the courses are considered to be partly wasted.
Some companies take it for granted that the employees can manage in English both in speaking and writing.

Most companies agree that language training has improved the performance of the employees and the company. Some even say that the training has improved cultural awareness. Some have only undertaken training lately, so it is too soon to tell the result.

62% of the companies plan to have language training in the next 3 years in the following languages: English, German, French, Spanish and Danish.

The reason for undertaking new or more training can be seen as a consequence of entering new markets (France, Spain, South America, Portugal), or improving existing skills (German, English, Danish).

Some companies have emphasised speaking and writing in language training. These two skills have also been regarded as the most important skills in knowing a specific language, (c.f. table 3.2).

Companies which have undertaken training in the past, also plan to have training in the future. However, several companies which have not trained in the past, plan to do so in the future.
27% of the companies who have undertaken training have experienced language barriers, however, 65,5 % of the companies did not.  This shows that training does improve the skills of the employees and in the long term removes language barriers. All companies having undertaken language training acknowledge the fact that training has improved the skills of the employees.
The training is, in most cases, undertaken in the traditional way. Only 13,5% have tried to use new methods (internet, distance learning, CD-roms) for language training. Several of those who have tried the new methods, did not find them very efficient. Actually only one company says that using new methods combined with more traditional training methods gives improved results.

5.1.2. Modern language tools
In the Danish survey, questions related to the use of modern language tools have been inserted. In the table below it can be seen that only half of the companies use some kind of modern language tool. The most used tool is an electronic dictionary while machine translation is the least used tool. Only 17 % of the sample have received training in using these tools. 17% plan to receive training in using the tools while another 17% plan not to take any training.

Tools	No. of Co.s	%	
Electronic dictionaries	26	50%	
Terminology databases	7	13,5%	
Translation memories	5	9,6%	
Machine translation	3	5,8%	
(n=26)			

The companies have been asked which kind of tools they would take training in, in the near future:

Tools	No. of Co.s	%	
Electronic dictionaries	25	48%	
Terminology databases	19	36,5%	
Translation memories	12	23%	
Machine translation	6	11,5%	
(n=26)	

As can be seen from the table above, many plan to take training in the use of either electronic dictionaries or terminology databases. Training in tools such as translation memories and machine translation is also mentioned, but is clearly not so important.

5.2. Employed a Native Speaker 

5.2.1. Breakdown of Job Advertisements
In the sample 25% of the companies have employed a native speaker for his/her language skills. Only a few of these companies have actually commented on this by saying that it eases their relations with their export customers speaking the language concerned.

5.3. Language strategies 
5.3.1. Breakdown of Strategies

Only 42,3 % of the sample have implemented a language strategy, and the main items in the strategies can be summarized as follows:

•	all directions must be in Danish and English
•	all documentation, minutes etc. must be in English
•	all communication with contacts must be in English or German
•	all subsidiary companies abroad communicate with contacts in the local language
•	all employees must be able to manage in English in speaking and writing
•	all written material for customers must be checked by a language employee before leaving the company
•	the must of using local agents in order be more successful in doing business
5.4. Use of Translators
96% of the sample use translators. The use of translators depends very much on the type of language and the type of translation to be carried out. The more exotic the language is the more translators are used. Emails, faxes, and daily correspondence are often not handled by translators, while handbooks, annual reports, instructions, and contracts are usually translated by translators.

5.5. Summary
There is no doubt that making the effort of having language training reduces the number of problems which companies encounter when exporting. Furthermore, in cases where the company is very attentive to problems which may occur, the problems are often smaller than when companies are less attentive. Some companies put a lot of effort in adapting to local languages and customers either by using local agents or by using other local help.
6. Future Demand/Which Languages and Skills are needed?

6.1.Changing Trading Patterns
50% of the companies plan to begin trading with new foreign languages. 51% of the new foreign countries are in Europe while 13% are in the Far East. 
 
Plans to Begin Trading in new Countries
						
Yes	26	50%				
No	22	42%				
Don’t know
No Reply	3

1	6%

2%				
						
Total	52	100%				

Table 6.1 : Trading Plans By Country 						
		n=26: as % of companies with future trading plans				
						
	Country	No. of Co.s	%(n=26)	%(n=52)		
	Other	14	54%	27%		
	Spain	8	31%	15%		
	Far East
France	7
6	27%
23%	13%
12%		
	Greece
Central Europe	4
3	15%
12%	8%
6%		
	Portugal	2	8%	4%		
	United Kingdom
Germany	1
1	4%
4%	2%
2%		
	Ireland	1	4%	2%		
	Russia	1	4%	2%		

6.2. Future Demand for Language Training 
62 % or 32 companies of the sample claim that they will need language training in the future. Training in English (72%) is given more importance than training in German (69%) and French (34%). There is only a small demand for training in Spanish and Portuguese. The same languages were also needed at the time when the FLAIR report was made.