Cross Culturalnegotiation 101130024321 Phpapp01

8/20/2019 Cross Culturalnegotiation 101130024321 Phpapp01

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Cross-cultural Negotiation, Steven Tolliver

Cross-cultural

Negotiation

Steven Tolliver


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Outline:

• Components of negotiation

• Individual negotiation styles

• Negotiation tactics

• Cultural differences in negotiation


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Negotiation:

= the use of dialogue to resolve disputes,

produce agreements or achieve goals

• !a"e a sale of goods or services

• Open ne# mar"et $create a partnership

• Secure supply• !aintain $ e%pand an e%isting &usiness


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Components of negotiation:

• Strategies ' the goals

• (rocess ' #ho, #here, ho#

• )ehavior ' the tactics used

• Su&stance ' the details


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(rior to negotiation: ma"ing contact

*o# do parties +a &uyer and a seller discover each other

Their companies have already &een doing &usiness &efore

current negotiators &ecome involved

Cold-calling

.dvertising and #e& site

!utual associations or intermediaries


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/ocus on interests not positions

.spire to 0oint opportunity finding

Negotiation is primarily a process, not an event

Information is po#er

/raming is a strong determinant of a negotiation

outcome

(reparing for negotiation


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12sta&lish goals:

a.spirational &ase

&3eal &ase

4etermine the other side5s goals:

a6hat are their aspirations

&6hat is their real &ase


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7 (rocess:a6ho #ill participate

&6hat #ill happen if the e%pected parties are

not there or ne# one are present

c 4etermine the setting

d!eans: in person, video-conference,telephone, e-mail


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8 Tactics:a6hat stance #ill &e ta"en

&*o# fle%i&le is it

c 6hat is the tone

dSpecific ploys to &e used


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9 Su&stance:a(repare materials:

i 4raft documents

ii (roduct and price details

iii Terms

iv .dditional information


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Individual negotiation styles:

Shell identified five styles$responses to negotiation11;

Individuals can often have strong dispositions to#ards

numerous styles< the style used during a negotiation

depends on the conte%t and the interests of the other party,

among other factors In addition, styles can change over

time:

• .ccommodating• .voiding•Colla&orating•Competing•Compromising

http://en.wikipedia.org/wiki/Negotiationhttp://en.wikipedia.org/wiki/Negotiation


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Accommodating:

Individuals #ho en0oy solving the other5s pro&lems and preserving

personal relationships< sensitive to the emotional states, &ody

language, and ver&al signals of the other parties They can, ho#ever,

feel ta"en advantage of in situations #hen the other party places little

emphasis on the relationship

Avoiding:

Individuals #ho do not li"e to negotiate and don5t do it unless they

must< they tend to defer and dodge confrontation< ho#ever, they may

&e perceived as tactful and diplomatic



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Collaborating:

Individuals #ho en0oy negotiations that involve solving tough pro&lems

in creative #ays Colla&orators are good at using negotiations to

understand the concerns and interests of the other parties They can,

ho#ever, create pro&lems &y transforming simple situations into more

comple% ones



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Competing:

Individuals #ho en0oy negotiations &ecause they present an

opportunity to #in something Competitive negotiators have strong

instincts for all aspects of negotiating and are often strategic )ecause

their style can dominate the &argaining process, competitive

negotiators often neglect the importance of relationships



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Compromising:

Individuals #ho are eager to close the deal &y doing #hat is fair and

eual for all parties involved in the negotiation Compromisers can &e

useful #hen there is limited time to complete the deal< ho#ever,

compromisers often unnecessarily rush the negotiation process and

ma"e concessions too uic"ly



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Negotiation Tips and Tric"s

1 The Ni&&le Techniue

Customer e%presses surprise #hen price or terms are presented

Salesman might then added e%tras to his offer If the customer

does not flinch again, salesman can assume he has found the

customer5s real &ase

)uyer can counteract this &y referring to a competitor5s offer

7 The /linch

Salesman proposes adding additional cost items after initial deal

has &een reached

)uyer can preempt this tactic &y clarifying all aspects of the

product, service, delivery and other terms &efore discussing the

price


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8 4eferring to *igher .uthority

9 >ood >uy, )ad >uy

2ither side can respond to reuests &y saying that they mustconsult #ith their team or their &oss

Cannot &e used too much or the other side might #ish to stop

present contact and negotiate #ith the real decision ma"er

In a negotiating team, one person pro0ects infle%i&ility and opposition

giving concessions #hile the other mem&er of the team creates the

opposite impression and that they sympathi?e #ith the needs of the

other side The goal is to have the other side give either concessions

or give up "ey information


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@ Set .side

)uyer &egins discussion #ith ma0or demand that the seller must agree to

&efore further items are discussed If successful, the salesman #illsurrender "ey positions or drop prices to continue further negotiations,

#hich can then &e pressed further

Salesman5s response should &e to suggest that the demand &e set aside

in order to focus on the "ey features of their product or service

A *ot (otato Techniue

!a"e one side5s limitation or pro&lem the other side5s pro&lem, too

/or e%ample, BI have a &udget of amountD, BI need to get ED

3esponse: present a solution that is comes closer to solving the

pro&lem to test to see if the pro&lem is real


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F Splitting the 4ifference +T#ice

2sta&lish a gap in positions and get the other party to suggest that yousplit the difference and then do it again

)uyer: Eour price is 1G,GGG, &ut my limit is H,GGG 6hat can #e do

Seller: 6ell, #e are 1,GGG apart, so lets split the difference

)uyer: So the price #ould &e H,@GG I must chec" #ith my company

)uyer consults and says he has tried &ut the company cannot accept it

adding its too &ad &ecause #e are only @GG apart +No# 1,GGG difference is

forgotten

If seller needs to ma"e the sale, he might offer to split the difference again,

ma"ing the final price only 7@G a&ove &uyer5s original position


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The Trade Off Techniue

6hen one side presents a pro&lem or o&stacle, for e%ample Bthe order

#ill &e ready one month later that e%pectedD this presents the other side#ith a chance to e%tract concessions This could include e%tra goods, a

discount on future or past orders, etc &ut it is important not to appear

#illing to accept the pro&lem as e%plained

H The 6al" .#ay TechniueIf one side decides that they must have something, they lose the a

great deal of po#er in a relationship Try to preserve the a&ility to stop

the negotiation if the terms are not #hat is desired

.nnouncing that negotiations are cancelled may cause the other side to

drop their position


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1G .ttac"ing Techniues

The use of criticism +of the other side5s country, company or them

personally may &e a tactic to thro# them off &alance and lose

control emotionally

The other side should try to not get upset and see it as a tactic

Jeep smiling and focus on the real issue


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Cultural differences cause four "inds of pro&lems in

international &usiness negotiations These differences

are manifested in:

•Kanguage

•Nonver&al &ehaviors

•Lalues

•Thin"ing and decision-ma"ing processes

Cultural differences


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(ro&lems of comprehension $ use of BfalsefriendsD #ords, especial in high-conte%t cultures

Kanguage

!isuse of language or using commands


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*igh-conte%t vs Ko#-conte%t

2d#ard T *all, Beyond Culture, Ne# Eor": .nchor)oo"s,1HFA

*igh conte%t: communication dra#s on sharedculture, fe#er #ords need to suggest meaning

Ko#-conte%t: communication is more direct and

e%plicit


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Translators:

Mse to communicate #ith the other side

Mse to gain time in ma"ing responses

Mse to study the non-ver&al communications of

the other side

Internal group conversations should &e allo#edand follo#ed


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.nthropologist 3ay K )ird#histell: less than 8@ of the

message in conversations is conveyed &y the spo"en

#ord #hile the other A@ is communicated nonver&ally

.l&ert !ehra&ian: #here meaning in face-to-face

interactions comes from• F from the #ords used•8 from spea"ing style: tone of voice, loudness, etc

•@@ from facial e%pressions

Nonver&al &ehaviors


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/acial e%pressions2ye contact

(ersonal space

(hysical contact

Silence

Sounds

>estures

Nonver&al &ehaviors or &ody language


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ohn K >raham, (rofessor, !ar"eting and International )usiness, Mniversity of California, Irvine

The (aul !erage School of )usiness


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The *ofstede culture matri%

Geert Hofstede, sociologist/rame#or" for .ssessing Culture:

•Small vs large po#er distance

•Individualism vs Collectivism•!asculinity vs /emininity

+.chievement vs Puality of Kife

•6ea" vs strong uncertainty avoidance•Kong vs short term orientation


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BNegotiating: The top ten #ays that culture

can affect your negotiationD,

- es#ald 6 Salacuse


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1Negotiating goal: Contract or relationship

F9 percent of Spanish respondents claimed their

goal is a contract, vs 88 percent of Indian

e%ecutives

3elationship is goal: reuires investment in getting

to "no# each other and &uilding trust

Contract is goal: efforts are focus on developing

the contract terms


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7 6in Q Kose or 6in Q 6in

Rero-sum: a #inner and a loser vs

!utual gains &argaining

B1GG percent of the apanese respondents

claimed that they approached negotiations as

a #in-#in process, only 88 of the Spanish

e%ecutives too" that vie#D


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8 /ormality vs informality

(erceived lac" of proper repect

.ppearance of coldness

Too close, too soon


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9 4irect or indirect communication

4ifficulty in saying BnoD

Considered rude to argue

Or

.rguments are considered to &e sign ofengagement


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@ Time

(unctuality

(acing and preliminaries

+understanding the other side and &uilding

relationship or specifying contract terms and

details

BTime is moneyD


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A 2motion

.ppropriate display of emotion varies &y culture

Spain South .merica ' 2ngland, >ermany


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F .greements: general or specific

MS: Specific agreements to cover all anticipated

cases and act as guide to &ehavior

China: .greement on general principals and use

the relationship to #or" out any difficulties

Could also &e reflective of po#er dynamic of the

companies, not 0ust nationality


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Top-do#n or &ottom-up negotiation

Start #ith general principals and move to the

details

O3 start #ith specifics and general principals

emerge from details

/rance: )asic principals guide later detailsMS: Specific details form the &asis of general

terms


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H One leader vs group consensus

One "ey decision ma"er:

Complete authority to negotiate

>roup: representatives or specialists from variousinternal departments

One leader: may reach agreements faster

>roup: may anticipate and solve pro&lems &efore

they &ecome emergencies


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1G 4ealing #ith ris"

Share information, try ne# methods, tolerate

uncertainty

apan ' Mnited States

.void moving too fast

/ocus on mechanisms to lessen ris"s

(rovide information +on mar"et, company,proceedures, etc

)uild relationship and trust

!ove step-&y-step not all-at-once


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See" out creative outcomes

Mnderstand cultures, especially your o#n

4on5t 0ust ad0ust to cultural differences, e%ploit them

>ather intelligence and "no# the terrain

4esign the information flo# and process of meetings

Invest in personal relationships

See" information and understanding

!a"e no concessions until the end

6illiam *ernande? 3eue0o and ohn K >raham,

Global Negotiation: The New Rules, Ne# Eor": (algrave !acmillan, 7GG

Creative negotiation:


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Steven Tolliver

steventollivermanfattacom

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