...international negotiation. For one country’s negotiators, time is money; for another’s, the slower the negotiations, the better and more trust in the other side. This author’s advice will help negotiators bridge the cultural differences in international negotiation. (This article first ran in the September/October 2004 issue of Ivey Business Journal). International business deals not only cross borders, they also cross cultures. Culture profoundly influences how people think, communicate, and behave. It also affects the kinds of transactions they make and the way they negotiate them. Differences in culture between business executives—for example, between a Chinese public sector plant manager in Shanghai and a Canadian division head of a family company in Toronto– can create barriers that impede or completely stymie the negotiating process. The great diversity of the world’s cultures makes it impossible for any negotiator, no matter how skilled and experienced, to understand fully all the cultures that may be encountered. How then should an executive prepare to cope with culture in making deals in Singapore this week and Seoul the next? In researching my book The Global Negotiator: Making, Managing, and Mending Deals Around the World in the Twenty-First Century (Palgrave Macmillan, 2003), I found that ten particular elements consistently arise to...
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...Negotiation Negotiation Plan Team D (NAC) Walden University Negotiation Plan One of the main challenges in the upcoming negotiations with the USSL is the cultural differences between our countries. In order to overcome this barrier, we have to plan our negotiation approach very careful and detailed. According to Lewicki, Saunders, and Barry (2011), “The dominant force for success in negotiation is in the planning that takes place prior to the dialogue” (Lewicki, Saunders, & Barry, 2011, p. 97). The main issues in the upcoming negotiations are: * Number of vessel used per year * Logistics support during the ocean and ground transportation * Freight cost and terms of payment * Geographic distribution over the Americas and other continents With accordance to the presented issues, the objectives in each negotiation session will be as following. Stage 1: A general agreement on the concept of operations, including reaching of consensus regarding further negotiations. Stage 2: Strategic Objectives. 1. Creation of harmonious relationships, based on the integrity and reliability; 2. Determination of the volume of transportation over the five-year period, including general understanding regarding an obligation per each year; 3. Principal agreement on the financial relations; 4. General agreement regarding potential geographic areas /states...
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...evolved into cross border … and business executives are required to deal with counterparts for from different parts of the world. A high level of cross cultural negotiation skills becomes a prerequisite for success. Thus the importance of understanding cultural diffences becomes critical. Cross cultural negotiations are complex and involve both personal and cultural – they have an impact on both perception of conflicts and the methods used to solve them. Many factors influence the outcome of cross-cultural negotiations and should be considered before entering into negotiations with another culture. Negotiators who understand certain aspects of cross-culture negotiations have the advantage over the negotiator who is not well prepared to negotiate with their foreign counterpart. I will discuss a few negotiation factors which constitute a basic framework for identifying cultural differences that was presented during the cross cultural team presentations. Cultures have different views and reasons for setting their goals in negotiations; for example in North America the goal of any business negotiation is to reach a substantive outcome; time is money and the outcome of reaching an agreement is quick and formal. In Italy, quite the contrary is true; the goal for a negotiation is to focus on building long lasting and trustful relationships. Don’t expect to reach an agreement quickly; negotiations with Italians take long, fostering trust comes before reaching an agreement. Communication...
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...experienced several natural disasters, Japan has learned to continue to push through a complicated system of where there is a great need of dependency and feeling the obligation to work together in the country where survival is quite difficult. Economy Every country has its own form of money, which is called currency. In Japan, their currency is called “Yen”. According to London South East of the History of Japanese Yen (www.lse.co.uk/currency), Japanese coins were first modeled on Chinese coins. 'The word “Yen” plainly means, “circle” and the original coins were rounded and had either a square or round hole in the center of the coin. Since 1871, Yen has been the approved unit of currency in Japan, and the Bank of Japan has been producing the Yen since 1885. Although Yen is the only way that Japan does business when it comes to money, its value to the American dollar is nothing. To give an example of the Yen-US Dollar conversion, 10 Yen only equal 11 cents. As you can see, that is not much at all. So now that we have spoken about the currency used in Japan, lets talk about how Yen...
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...Robert J. Greenleaf Training Management Corporation Princeton Training Press • Princeton, New Jersey MANAGING ACROSS CULTURES NEGOTIATING ACROSS CULTURES NEGOTIATING ACROSS CULTURES Published by: PRINCETON TRAINING PRESS Princeton, New Jersey a division of TRAINING MANAGEMENT CORPORATION 600 Alexander Road Princeton, New Jersey 08540-6011 USA Tel: Fax: Web: Email: (609) 951-0525 (609) 951-0395 www.tmcorp.com info@tmcorp.com Editor-in-Chief: Series Manager: Writer: Cover Design: Interior Design: Monique Rinere-Güven, Ph.D. Talia Bloch Robert J. Greenleaf Donna Lukis Bonnie Jacobs © 2000 TRAINING MANAGEMENT CORPORATION. Managing Across Cultures Series: Negotiating Across Cultures All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. Printed in the United States of America ISBN: 1-882390-911 The Cultural Orientations Indicator®, COI® and TMC’s graphical depiction of our Cultural Orientations Model are registered trademarks of Training Management Corporation; Registration: 2,329,085 and 2,361,803. 4 Training Management Corporation TABLE OF Preface OF CONTENTS TABLE CONTENTS iii Introduction 1 Negotiation Defined Negotiating Across Cultures Chapter One: The Impact of Culture on...
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...case study was depicting a case of culture shock as Mr. & Mrs. Warren Oars lacked knowledge on the Japanese culture and the indifference between the American and the Japanese way of doing business. There are 2 scenarios in the case; the first one is the aggressive approach of Mr. Oars to the Japanese Executive as he was trying to present his proposal of penetrating the Japanese market and the second is the lack of knowledge of Mrs. Oars in of the female role in the Japanese culture as she was so confident that it would be easy for her to be a part of a multinational Japanese corporation because of her well respected lawyer status in the Unites States. The main problem of the American Auto Suppliers company is how they can win over the Japanese market against the Japanese automakers which could affect their market greatly and could be the cause of the companies fall. AAU is now trying to negotiate Japanese executives to partner up their company in order to win over the local consumers but because of Mr. Warren Oats aggressive approach to the Japanese executives it may have cost there company a chance on winning over the Japanese market . There are 2 possible strategic approaches in the case; the first one could be partner up with a rival local company of the Japanese automakers. An advantage to this approach is that you would increase your chances of winning against the Japanese automakers because now you will have 2 different styles in marketing and introducing your product to...
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...Individual Differences in Negotiation Effectiveness There are mainly four factors that influence how effectively individuals negotiate- a) moods/emotions b) Personality c) Culture d) Gender A) MOODS/EMOTIONS- The influence of moods/emotions depends upon the type of negotiation as well. In distributive negotiations, it is seen that negotiators who are in a position of power or have equal status and who show anger, negotiate better results because their anger results in concessions. Negotiators, when angry, feel more focused and assertive when striking a bargain. On the other hand, for those in less powerful position or lesser stature, displaying anger can only lead to bad outcomes. Similarly, anxiety also tends to have an effect on negotiations. For example it was seen that individuals experiencing more anxiety about a negotiation used more deceptions in dealing with others. Moreover, anxious negotiators expect lower outcomes, respond quickly to an offer and exit the process too early, which leads them to obtain worse outcome. These all moods are related to distributive negotiations. In Integrative negotiations, positive moods and emotions appear to lead to more integrative agreements. Positive mood resulting in creativity and productivity may be one of the reasons. B) PERSONALITY TRAITS Personality traits and outcomes are related very weakly. It is seen that negotiators who are extrovert are not very successful in distributive bargaining, because extroverts...
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...In 1931, The Japanese would expand through East of Asia and go would Go west. They would invade many parts of China. In 1937, Japan would sign an act with Germany and Italy to join the Axis Powers. Germany would negotiate with Japan and say that if they defeat the U.S. then they could keep Hawaii and its natural resources so on December 7, 1941 the Japanese would surprise the American Navy in an early day y with an air intrusion. The Japanese would attack the headquarters of the U.S. Navy which is in Pearl Harbor. The Navy actually did intercept a telegraph message from the Japanese saying that they would attack the U.S. but the Navy didn’t know where. After the attack, only half of the Japanese planes that were sent only came back. This would shock the...
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...HOW TO MAKE A SUCCESSFUL NEGOTIATION WITH THE JAPANESE I. OVERVIEW OF JAPAN Japan is an Eastern Asia country, located in the North Pacific Ocean. It is surrounded by the sea, and it is an archipelago of 6,852 islands. The word “Japan” is characterized with “sun-origin”, and then the country is also referred to the name “Land of Rising Sun”. Japan has the tenth largest population in the world, and in worldwide, no others possess the population per square root which is as dense as Japan‟s. Due to a large population as well as the highest density of population in the world, Japanese society is known as the most homogeneous one because Japanese people live with too many other people in the same area, then they have to deal with each other in order to maintain the community balance. Eventually, through hundreds and thousands of years of development, the nation becomes the most homogeneous in the world. Japan is also the 3rd strongest economy in the world, only ranked after China and the US. The nation is also famous for its determination and discipline. After World War II, Japan belonged to the Defeated with Germany and Italy, the country was seriously damaged. However, with the support from the world community (mainly from the US), Japanese economy has risen and developed rapidly during the 70s and 80s. In the 90s of 20th century, Japan became the 2nd strongest economy in the world, but the global economic crisis and the rise of China have made the economy fall behind the two giants...
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...than a difference from the majority. In any culture there is a majority and many minorities. Culture is a set of norms that set standards for a society of what is acceptable behavior. In every culture there are basic standards for social interaction such as personal space distance, eye contact, amount of body language displayed in public, negotiating style, etc. In America, we stand about eighteen inches apart when engaged in normal conversation; prefer very direct eye contact; are pretty demonstrative with body language and negotiate very directly always asking the other party for their bottom line. In other cultures they may stand closer or farther than we are comfortable, may view direct eye contact as rude, be more or less open to displaying body language and negotiate more indirectly. Cultural diversity makes our country richer by making it a more interesting place in which to live. Just think how boring a meal would be without Chinese, Mexican, Japanese, Italian, German, French or Indian food. Cultural diversity also makes our country stronger and better able to compete in the new global economy. People from diverse cultures bring language skills, new ways of thinking, and creative solutions to difficult problems and negotiating skills. Cultural diversity makes the United States a much more interesting place in which to live for all of its...
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...Cathryn Grishaber A Modern History of Japan – from Tokugawa Times to the Present The book was divided into 4 parts providing history and extensive detail of how Japan became who they are today. I have broken down each part with a brief explanation of the importance of each era. Japan overcame so of history’s worst times but regained as an “economic miracle”. 1600-1868: The period of the Tokugawa Polity; medieval political order incorporating economic and social change within a gradual manner. This period saw increasing urbanization, the spread of education and different merchant classes. 1868-1890: The period of the Meiji; rapidly increasing modernization and a dramatic change to political, social, and economic institutions. The new leaders studied the economy and social powers of the Western countries and adopted those for their own purpose of growth. In 1889, a constitution was established to create a parliamentary government to administer power. The merchant classes were equal. The Samurai lost their privileges, while the merchants began to be respected. New Western technologies caused an explosion of industrial productivity and diversification. A national military established. Public education was introduced to teach the skills needed and to incorporate values of citizenship. 1890-1945: Imperial Japan; constitutional policy for industrialization, urbanization, and an increase in mobile society; International status and world power, including imperialism in Asia...
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...The main strategy Intel had was innovation the design of the product and being the first ones to achieve the market with the newest devices. This strategy entailed that the company was positioned at the cutting-edge in investments and infrastructure. Therefore, Intel invested a large amount of money in R&D, and underwent a strong investment in manufacture equipment in the beginning of the firm. This strategy positioned Intel were differently than the rest of competitors, always trying to achieve the first position in the competition. However, the first two products (1101 and 3101), introduced in 1969, did not succeed. In 1971, Intel managed to produce the world best selling semiconductor memory chips. In the years that followed, Japanese companies achieved to overtake to Intel with DRAMS semiconductors, these being more efficient, fast and cheaper than Intel’s. Later on Intel created the second generation of microprocessors and IBM entered in the microcomputers market with the PCs. Within this framework , Intel had to compete with Motorola and establish an alliance with IBM. Then, Intel developed Project Crush as an strategy to win 2000 designs and a contract with IBM. This contracts was achieved,ut Motorola remained as the main competitor because it was dominating the market. Therefore, Intel created the Project Checkmate to be the number one and get more clients in the future. In this context, another strategy was created by the middle managers in the company. They proposed...
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... In reviewing the case analysis two core problems are quite evident along with smaller related problems. First the obvious lack of research into Japanese culture and customs by the entire team of Canada Timber and how this directly affected the trip. Subsets of related issues include the way the exchanging of business cards was handled*1, as well as the presentation of gifts*2. Second the bullish way the Canadians made their presentation and expected an immediate response*3, as well as how rather than wait and let the offer be considered the Canadians immediate response was to reduce price undercutting their own value to the Japanese. Analysis Collectivism Canada Timber was on a very promising tract to complete the transaction with the Japanese manufacturer Bonsai. The CEO of Canada Timber committed many business communication errors with the leaders of the corporation. The Japanese culture is a collectivist – oriented culture. According to Ferraro & Briody (2013), it is important to “emphasize your own sense of loyalty other that of your company,” (p. 36). The culture of Japan is one for honoring your obligations and being loyal to your company. The CEO Tim did not demonstrate loyalty to his company by trying to negotiate a discount to gain the business of Bonsai. In the eyes of the Japanese leader, this was a negative sign for business relations The actions of Bonsai are to maintain a steadfast attitude with emphasis on the GRINGO STYLE ...
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...Introduction International business is not just about nationalities, it is also about cultures. Cultures influence negotiation styles, values and communications. Image a situation where a Japanese supermarket manager negotiating with an American salmon supplier with their own negotiation styles: the Japanese negotiator want to extent the length of negotiation in order to seek the best result of the deal, but the American negotiator treats time as money and he/she wants to quickly reach the agreement (Evans & Richardson, 2010). This essay will firstly discuss the definitions of culture and negotiation, and then it will discuss cultural influence on negotiation and its behaviour; finally it will suggest possible strategies in addressing difficulties caused by cultural differences. This essay will argue that cultural impacts increase the difficulties of cross-culture negotiation, but negotiators can successfully manage the difficulties by increasing their knowledge of different cultures and continuously practise relevant strategies. Culture Culture is a term that can be explained in many different ways. According to Alon and Brett (2007), culture is a process of socialisation that people learn a shared pattern of behaviour and affective understandings. These patterns distinguish one group of people from another. Carrell, Shank and Barbero (2009) also state that culture is not physical elements but the perceptions that members consider them. People from the same culture usually...
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...Different Social and Taboo Cultures and Business Etiquettes and How it Influences the Workplace When going to your workplace, DO NOT eat while on the streets or in public transportations. Breakfast and dinner is normally consumed at the person’s respective house or apartment. Men wear conservative business suits and women are encouraged to keep jewelry to a minimum. Women should not wear high heels if the result is towering over their male counterpart. Bow when meeting, thanking, apologizing or saying goodbye. The 45-Degree Saikeirei Bow is used for moments for sincere apology or to show the highest of respect. The 30-Degree Keirei Bow is used to show respect to superiors. The 15-Degree Eshaku Bow is used for Semi-formal and used for greetings when meeting with people for the first time Call people especially your co-employees with their last name especially when in the workplace and for formality purposes. Add “-san” as a suffix to their last name as a sign of respect. When meeting someone for the first time, especially in the workplace or in a gathering, it is important to give a business card using two hands (Avramova, 2015). It is also important to bring a business exchange gift (especially during a large gathering or informal meeting). It is improper to give flowers as they used in funeral services. Buying any in a set of four is deemed unlucky as well as the number 9. When in a meeting or large gathering, DO NOT introduce yourself. Wait for your superior or co-employee...
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