Due to the rapid development of economics and the inevitable tendency of globalization, more and more business negotiation happens among different people from different countries.
Introduction
Due to the rapid development of economics and the inevitable tendency of globalization, more and more business negotiation happens among different people from different countries. As far as we know, negotiation plays a vital role in business, so there is no exception for international business. According to Holt (1998) that negotiation is a comprehensive concept that suggests a joint effort by two or more parties to find mutually acceptable response to a problem, opportunity or conflict. It can include barging but the aim should be to create a ' win-win' situation.
According to Adjer (2002) there are three strategies: Traditional Approach, Principled Approach and [Cultural] Synergistic approach. Among these approaches, the synergistic approach emphasis on the importance of culture,in the circumstance of the international negotiation which will face a lot of problems about culture, so I would like to choose the third approach: A cultural Synergistic Approach. In this approach, the significance of culture can be seen almost in the every step of the whole process. The main contents of this approach are shown as follows:
.Preparation:
Cross-cultural training
Define interests
2.Relationship Building:
Separate the people from the problem
Adjust to their style and pace
3.Information Exchange:
Exchange task- and participant-related information
Clarify interests and customary approaches
4.Inventing Options for Mutual Gain (appropriate to Both Cultures):
Insets on using criteria appropriate to both cultures
Never yield to pressure
5.Agreement:
Translate and back-translate agreement
If necessary, renegotiate
International negotiation is a bridge to link international planning and implementation. To some extent, the ability to negotiate successfully may very well depend on the efforts being put into preparatory activities. Because negotiation is a key element in the international business corporation, so as a qualified manager in multinationals, he needs to have the knowledge about cultural variance in the process of negotiation. Generally, there are five stages of negotiation, they are: preparation, relationship building, exchanging task-related information, persuasion and concessions and agreement. From my point of view, as a manager of Chinese based multinationals, each step of the process is important especially the initial step-preparation. Good reparation can be embodied in the every stage of negotiation. The more detailed information you have collected about your customer before negotiation, the less waste time you will spend during the negotiation. The influence of culture can be found in every step of our negotiation. I would like to emphasis on the importance of cultural respect in the process which I will negotiate with the customer, who comes from Northern American, Sweden and Japan respectively.
Profile of American negotiator
. Knows when to compromise
2. Takes a firm stand at the beginning of the negotiation
3. Refuses to make concessions beforehand
4. Doesn't reveal everything up front
5. Accepts compromises only when the negotiation is deadlocked
6. Sets up the general principles and delegates the detail work to associates
7. Keeps a maximum of options open before negotiation
8. Operates in good faith
9. Respects the " opponents"
0. States his or her position as clearly as possible
1. Knows when he ...
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Profile of American negotiator
. Knows when to compromise
2. Takes a firm stand at the beginning of the negotiation
3. Refuses to make concessions beforehand
4. Doesn't reveal everything up front
5. Accepts compromises only when the negotiation is deadlocked
6. Sets up the general principles and delegates the detail work to associates
7. Keeps a maximum of options open before negotiation
8. Operates in good faith
9. Respects the " opponents"
0. States his or her position as clearly as possible
1. Knows when he or she wishes a negotiation to move on
2. Is fully briefed about the negotiated issues
3. Has a good sense of timing and is consistent
4. Makes the other party reveal his or her position while keeping his or her own position hidden as long as possible
5. Lets the other negotiator come forward first and looks for the best deal
Source: Hodgetts, R. M. & Luthans, F. (1991) International Management, pp: 131
Northern Americans prefer come straight to the point rather than roundabout the topic, whereas it is the main feature of Chinese culture. Realizing this point, I would not give a lot of holiday words at the beginning of our negotiation; instead, my prologue will target the center of our topic. Normally, the Americans do not like to spend much more time on talking about the weather and other irrelevant affairs. But they are willing to get more information about the work immediately.
During a negotiation, both of the two sides want to take the initiative position. From the above profile we can know that Americans are very reluctant to concession until they have to do some comprise. So if I want to let the Americans make concession willingly, I must hold some chips, which the Americans really want to get it, otherwise, I will in a passive situation. The rich information about my opponent is very significant, after fully understanding the goal that they want to achieve, and then I can arrange my steps in the process of negotiation.
As mentioned in the list, it seems that the Americans like to claim their position as clear as possible at the very early stage of negotiation. In contrast, we Chinese people eager to observe opponent's situation at first and expose our position according to the situation of other side's and the process of negotiation itself. Due to the different customers, I would like to pay more attention to listen to their position. My position should also be clearly defined after knowing opponent's standpoint.
Moreover, U.S. negotiators typically have authority to bind their party to an agreement, so if the right deal is struck the matter can be resolved quickly. This is why deadlines are so important to Americans. They have come to do business, and they want to get things resolved immediately. (Hodgetts, R. M. & Luthans, F. 1991)
Profile of Swedish negotiator
. Very quiet and thoughtful
2. Punctual (concerned with time)
3. Extremely polite
4. Straightforward (they get straight down to business)
5. Eager to be productive and efficient
6. Careful, plodding style
7. Down-to-earth and overcautious
8. Rather flexile
9. Able to and quite good at holding back emotions and feelings
0. Slow at reacting to new (unexpected) proposals
1. Informal and familiar
2. Confident
3. Perfectionist
4. Afraid of confrontations
5. Very private
Source: Deresky, H. (2000) International Management: Managing Across Borders and Cultures, New York: Prentice-Hall, pp: 172
Swedish people heritage the traditional Scandinavian culture, so they emphasis on the prudent usage of time and the efficiency. When taking a negotiation with Swedish, the strong concept of time will bring a good impression and it also indicates a pleasant development of negotiation. Moreover, Swedish also appreciate to get a high efficiency. Sometimes, Chinese like to take 'marathon' style of negotiation which means a very long period of negotiation because we want to know more about the opponent through the salutation but Swedish want to maximum utilization of time. As a result, Swedish would like to get the satisfied result in a limited time. According to Crane (2000) that "[t]hey most often do their best to give short, straight answers to question, trying not to leave ' loose ends' or too much scope for interpretation." As a manager, I should notice the different understand of time of the two countries, so I will try to shorten the time of waste and at the same time I should control the pace of negotiation as well. If I always try to follow the opponent's pace, I will easily to loose my own direction and make my side in a very disadvantages situation.
The profile shows that Swedish are very cautious during a negotiation. Therefore, it means Swedish pay more attention to some little affairs and detailed problems. In my point of view, I should be more careful about minutia and maybe even the expression of every item should be double checked in order to make sure that every little part is perfect. Otherwise, I might lose my go-aheadism because of an ignorance of minor mistake.
Profile of Japanese negotiator
. Emotional sensitivity highly valued
2. Hiding of emotions
3. Subtle power plays; conciliation
4. Loyalty to employer; employer takes care of employees
5. Face-saving crucial; decisions often made on basis of saving someone from embarrassment
6. Decision makers openly influenced by special interests
7. Not argumentative; quiet when right
8. What is down in writing must be accurate valid
9. Step-by-step approach to decision making
0. Good of group is the ultimate aim
1. Cultivate a good emotional social setting for decision making; get to know decision makers
Source: Hodgetts, R. M. & Luthans, F. (1991) International Management, pp: 131
Japanese and Chinese are both belong to Asian culture, so it seems a little bit easier to make business with Japanese because the similarity of culture. Although it makes a little convenience, we still need a good preparation before the negotiation.
Japanese people attach importance to formality, so we should think much about our courtesy. The politeness of action and caution of the usage of words might establish a good start. It also matches a piece of Chinese idiom " A good start is a half way of success." Since then, a formal mutual introduction and the change of gift is very necessary. What's more, business cards are an important part of doing business in Japan and key for establishing credentials. Bring a plentiful supply, since the Japanese counterparts will be keen to exchange them.
Compared with Northern American culture, Japanese culture is much more implicated and indirect. In the process of negotiation, the Japanese may not tell you directly what they want so we have to guess the real meaning from the surface of words and actions.
Furthermore, "Saving face" is an important concept to understand. In Japanese business culture, a person's reputation and social standing rests on this concept. When a person loses his or her composure or otherwise causes embarrassment, even unintentionally ("losing face"), this can be disastrous for business negotiations. From this point of view, it is very near Chinese culture, which is also emphasis on the face saving. During a negotiation, we should realize that the appropriate choice of words and the indirect implication give both sides of the negotiators a step. Sometimes, it is even necessary to pretend that your Japanese colleague understood you. Because in Japanese business protocol, these "face-saving" measures are essential for maintaining cordial relations.
Conclusion
As I mentioned at the beginning of this article, the ultimate aim of international negotiation is to reach a " win-win" result. Every person involves in the negotiation tries his best effort to get more and more closer to the final success. As a manager of Chinese based multinationals, the fully understanding of culture that is playing an important role throughout the whole process of negotiation can not be ignored. As Luthans and Hodgetts (1991) says "in order to negotiate effectively in the international arena, it is necessary to understand how cultural differences between the parties affect the process."
Bibliography
Adjer,N.J (2002) International Dimensions of Organizational Behaviour, fourth edition, U.S.:South-Western.pp: 222
Boyé Lafayette De Mente (2000) Tuning into Japan's Cultural Telepathy, [www[URL:http://www.executiveplanet.com/business-culture/92783609828.html [Accessed 24 March 2003]
Crane, R. (2000) European Business Culture, London: Prentice Hall, pp: 98
Deresky, H. (2000) International Management: Managing Across Borders and Cultures, New York: Prentice-Hall, pp: 172
Hodgetts, R. M. & Luthans, F. (1991) International Management, U.S.A. : McGraw-Hill, Inc. pp: 131
Holt, D. H. (1998) International Management. New York and Orlando: The Dryden Press, pp: 452.
DBA: International Management Assignment 3#
Yi Li
24/03/03
