Chapter 19 - Negotiating with international customers, partners, and regulators. After studying this chapter you will be able to understand: The problems associated with cultural stereotypes, how culture influences behaviors at the negotiation table, common kinds of problems that crop up during international business negotiations, the similarities and differences in communication behaviors in several countries,...
International Marketing 15th edition Philip R. Cateora, Mary C. Gilly, and John L. Graham Differences in Language and Nonverbal Behaviors • Americans are near the bottom of the languages skills list • Americans don’t like side conversations by foreigners in their native language • The variation across cultures is greater when comparing linguistic aspects of language and nonverbal behaviors than when the verbal content of negotiations is considered • 15 cultural groups were videotaped and their cultural differences are explained in the next few slides Roy Philip Verbal Negotiation Tactics (The “What” of Communications) Exhibit 19.1 Roy Philip Linguistic Aspect of Language and Nonverbal Behavior (“How” Things are Said) Exhibit 19.2 Roy Philip Differences in Values • Objectivity – “Separating people from the problem” • Competitiveness and equality – Japanese appear to be the best negotiators with the highest profits – Japanese appear to be more equitable with buyers • Time – The passage of time is viewed differently across cultures – These differences most often hurt Americans Roy Philip Differences in Thinking and DecisionMaking Processes • Western approach – sequential • Eastern approach – holistic • Americans – business negotiation is a problemsolving activity • Japanese – a business negotiation is a time to develop a business relationship with the goal of longterm mutual benefit • American buyers should anticipate such a holistic approach and be prepared to discuss all issues simultaneously and in an apparently haphazard order Roy Philip Negotiation Preliminaries (1 of 2) • Checklist for planning international negotiations Assessment of the situation and the people Facts to confirm during the negotiation Agenda Best alternative to a negotiated agreement (BATNA) Concession strategies Team assignments Roy Philip Negotiation Preliminaries (2 of 2) • Aspects of the negotiation setting that should be premanipulated 1.Location 2.Physical arrangements 3.Number of parties 4.Number of participants 5.Audiences (news media, competitors, fellow vendors, etc.) 6.Communications channels 7.Time limits Roy Philip Summary of Japanese, American, and Chinese Negotiation Styles Exhibit 19.4 Roy Philip At the Negotiation Table • Business negotiations proceed through four stages Nontask sounding Taskrelated exchange of information Persuasion Concessions and agreement Roy Philip 10 TaskRelated Information Exchange • Let the foreign counterparts bring up business • Expect a large number of questions but little feedback • Allow periods of silence • Use multiple communication channels • Understand the lack of, or the bluntness of negative feedback • Meet aggressive first offers with questions, not anger Roy Philip 11 Persuasion • Taskrelated information exchange versus persuasion • Avoid threats, warnings, and other aggressive negotiation tactics • Avoid emotional outbursts • Ask more questions • Use third parties and information channels of communication Roy Philip 12 Concessions and Agreement • Write down concessionmaking strategies • Understand differences in decisionmaking styles • In many cultures, no concessions are made until the end of the negotiations Roy Philip 13 After Negotiations • In most countries other than America legal systems are not depended upon to settle disputes • Japan – Contacts primarily contain comments on principles of the relationship • China – Contracts are more a description of what business partners view their respective responsibilities to be • Many foreign CEOs expect a formal contract signing ceremony • Followup communications are very important Roy Philip 14 ... Roy Philip Verbal Negotiation Tactics (The “What” of Communications) Exhibit? ?19. 1 Roy Philip Linguistic Aspect of Language and Nonverbal Behavior (“How” Things are Said) Exhibit? ?19. 2 Roy Philip. .. 5.Audiences (news media, competitors, fellow vendors, etc.) 6.Communications channels 7.Time limits Roy Philip Summary of Japanese, American, and Chinese Negotiation Styles Exhibit? ?19. 4 Roy Philip At the Negotiation Table... approach and be prepared to discuss all issues simultaneously and in an apparently haphazard order Roy Philip Negotiation Preliminaries (1 of 2) • Checklist for planning? ?international? ?negotiations Assessment of the situation and the people