...International Marketing Managerial Guidelines for Successful Cross-Cultural Negotiations In international business, understanding the culture is the most important factor that determines success in that foreign market. This will be the foundation for the negotiations and should be addressed prior to any meetings. A company needs to combine the best aspects of each organization to the respective cultures in the foreign market. The negotiations will be successful if the negotiating parties establish an open relationship and gain mutual trust. Several factors to consider prior to negotiating in international business are minimizing distrust and stereotyping, overcome communication issues, and relationship development. (Ready) Minimizing distrust and stereotyping is a common issue that can deeply affect any negotiations. This can be rooted from the idea of assuming the values and mannerisms of the culture in the foreign market. For example, when McDonald’s decided to enter the market in India, they did not assume their beef burgers were going to be accepted in this mainly vegetarian environment. They did their research and adapted their restaurants to the marketplace by offering chicken sandwiches as opposed to beef burgers. They embraced the culture and established a level of trust with the consumers by respecting their culture. (McDonalds) Overcoming communication issues can relate to verbal and well as non-verbal communication. Some cultures prefer direct and...
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...April 2005. Categories: Global Business. * Share on LinkedIn * Share on googlePlus * Share on facebook * Share on twitter * Share by email When Enron was still – and only – a pipeline company, it lost a major contract in India because local authorities felt that it was pushing negotiations too fast. In fact, the loss of the contract underlines the important role that cultural differences play in 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...
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...what is fair and equitable, understanding each other’s message and form of communication, and even the procedures that will be used to conduct negotiations are but a few of the hurdles that negotiators will encounter. Negotiation is further complicated when the parties find themselves negotiating across dissimilar cultures. Culture is a powerful factor in shaping how people think, communicate and behave. It therefore affects how they negotiate. In business arena, negotiations are crucial aspects of inter-organizational relationships like joint ventures, mergers and acquisitions, licensing and distribution agreements, and sales of products and services. As the proportion of foreign to domestic trade increases, so does the frequency of business negotiations between people from different countries and cultures. To successfully manage these negotiations, businesspeople need to know how to influence and communicate with members of cultures other than their own. This paper investigates the impact of culture on negotiations. It begins by defining negotiation, cross cultural negotiation, culture, including a discussion on how culture is imbedded in negotiation orientations, processes and styles around the globe. Finally, it attempts to analyze the influence of cultural differences on and approaches to negotiations and the importance of ascertaining and identifying the players in business negotiation and the processes...
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...relationship with a new customer. After Breezy decides to go offshore, it will have to go through the negotiating process, which involves five steps. Breezy then, must have capabilities of how an offshore business is organized, consider the many different costs and risks involved in the implementation and decide how it will finance the project. The report also talks about how Breezy will have to modify its corporate strategy. Finally, the report concludes with the best reccomendation for Breezy to maintain its competitive advantage. 1. In exploring the possibility of developing a relationship with offshore car manufacturers, what questions should Breezy be asking? a) Who are the suppliers of carburators and air filters that Breezy will be competing against? This is an important question when conducting an external analysis of the players in the Industry because Breezy will be able to design a strategy that will make their products different from competitors. b) What are the car manufacturers human, financial, physical and organizational resources and capabilities? Breezy should be asking and investigating the firms that it plans on partnering abroad because they would not want to d business with car manufacturers that are not financially stable or have a bad organizational culture. c) How is the business done in the country (Brazil or India)? Breezy must consider the different business styles deriving from different countries in order to succeed in the global market. d) Does the car...
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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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...Business, socio- economic and cultural environments of India Introduction India has emerged as a potential and a diversified market for the Western firms and other foreign investors. Earlier establishing a business in India was a challenging assignment, but economic reforms, brought in by different Indian governments over a period of time, have smoothen the course of entry for Western multinationals and other business magnets. Still it is considered difficult and a different proposal to do business in or with India, mainly because of its different business and socio- economic culture. Western multinationals/ investors dealing with India so far had to adopt major changes in their business style in order to serve effectively to their customers. This write up examines in detail the prevalent business, socio- economic, and cultural environments that western multinationals have to face in India, as well the implications of their adopted major changes in business practices to succeed in India. Despite revolutionary changes since independence of India, the basic business style has remained the same as of family controlled businesses. Leading business families, from Birlas and Tatas to Reliance, keep total control on business of companies promoted by them. Major management posts in these business houses are always held by responsible family members. Though joint family system is slowly disappearing, but still there is a common tendency in Indian families to own a business. Another...
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...(Duarte & Snyder, 2006). Global Tech Corporation is an Information Technology (IT) outsourcing firm that provides help desk and customer support functions. Global Tech specializes in taking the work that other companies do not have the resources to complete on their own and helps them to get the jobs completed. Product deliverables include software consulting, website design and maintenance, e-mail servers, help desk and customer support functions. The company is headquartered in the United States, and has four branch offices in China, India, Philippines and Ireland. In order for Global Tech Corporation to function profitably all over the world the company must learn what the cultural barriers are in each country they have an office located, what leadership barriers there are and what leadership styles would work best in each country. The following will discuss how Global Tech has overcome cultural barriers, the organizational makeup, leadership styles, and production of the corporation. ORGANIZATIONAL DESCRIPTON When entering the corporate world in the 21st century it is important to realize that we are at an incredibly turbulent part in history. The world is experiencing natural disasters, wars, terrorism, approaching limits on natural resources. It is not an easy time to enter the global landscape and try to be a competitive company; however our corporation Global Tech has strived to continue its corporate outposts in four different countries around the world while being...
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...person’s own cognitive world and cultural conditioning. When negotiating internationally, this translates into anticipating culturally related ideas that are most likely to be understood by a person of a given culture. Discussions are frequently impeded because the two sides seem to be pursuing different paths of logic; in any cross-cultural context, the potential for misunderstanding and talking past each other is great. When one takes the seemingly simple process of negotiations into a cross-cultural context, it becomes even more complex and complications tend to grow exponentially. It is naive indeed to venture into international negotiation with the belief that “after all people are pretty much alike everywhere and behave much as we do.” Even if they wear the same clothes you do, speak English as well as (or even better than) you, and prefer many of the comforts and attributes of American life (food, hotels, sports), it would be foolish to view a member of another culture as a brother in spirit. That negotiation style you use so effectively domestically can be inappropriate and when dealing with people from another cultural background; in fact its use can often result in more harm than gain. Heightened sensitivity, more attention to detail, and perhaps even changes in basic behavioral patterns are required when working in another culture. Different cultural systems can produce divergent negotiating styles—styles shaped by each nation’s culture, geography, history, and...
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... Introduction In its basic form, negotiation is a method of conflict resolution. It is a problem-solving process in which two or more parties attempt to resolve their disagreement or conflict in a manner, and through a process, that is mutually agreeable. Whereas the general concept of negotiation is easy enough to understand, in practice it can be an extremely difficult proposition. Opposing views about what is right and wrong, disagreement on what is fair and equitable, understanding each other’s message and form of communication, and even the procedures that will be used to conduct negotiations are but a few of the hurdles that negotiators will encounter. Negotiation is further complicated when the parties find themselves negotiating across dissimilar cultures. “Culture is a powerful factor in shaping how people think, communicate...
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...a process, that is mutually agreeable. Where as the general concept of negotiation is easy enough to understand, in practice it can be an extremely difficult proposition. Negotiation is further complicated when the parties find themselves negotiating across dissimilar cultures. “Culture is a powerful factor in shaping how people think, communicate and behave. It therefore affects how they negotiate” .Our presentation investigates the impact of culture on negotiations. It begins by defining culture, to include a discussion on how culture is imbedded in an individual through their mental models and values. It then breaks out the four dimensions of culture identified by Geert Hofstede. A general overview of negotiations follows the culture. It includes a definition of negotiations and discusses the range or continuum of negotiation styles. The section on negotiations closes with an overview of negotiation skills to include the actors and their frames of reference. The final idea provides a description of how culture impacts negotiations. First, it overlaps four elements of negotiations; actors, structure, strategy, and process with Hofstede’s dimensions of negotiation. Then, a summarization of cultural affects on specific negotiation styles is provided. Defining Culture Working Definitions Olivier Faure attributes the 20th century French writer and politician Herriot, with this definition of culture: it is “what remains when one has forgotten everything” (5:2). Faure’s reason...
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...guides are co-authored by experts in international business etiquette, who are available to answer your questions on the discussion board. Essential business culture guides for the international traveler Argentina Australia Austria Belgium Brazil Canada Chile China Colombia Denmark Egypt France Germany Hong Kong India Indonesia Iran Ireland Israel Italy Japan Jordan Malaysia Mexico Netherlands Peru Philippines Poland Portugal Russia Saudi Arabia Singapore South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Turkey United Arab Emirates United Kingdom United States Venezuela Yemen The Executive Planet™ guides to doing business worldwide each contain the following articles: Let's Make a Deal - negotiating tactics, the value of connections, recommended business card style and content, business card protocol, sitting and presenting yourself in meetings, language for brochures and promotional material, pace of business, preferred presentation styles, final agreements, thinking styles, adherence to company policy, and more business culture info . . . Prosperous Entertaining - typical mealtimes throughout the day, best venues for business entertaining, punctuality for social events, dinner table seating etiquette, mealtime etiquette, importance of alcohol, toasting, guidelines for hosting a...
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...1. Understand the relationship between strategic management and leadership 1.1 Air India comes directly under the Ministry of Civil Aviation, Government of India. The Board of directors and CMD have to work under the guidance of bureaucrats and politicians. What in your opinion have been the influence and effect of such a leadership and the strategic management and decisions taken on Air India over a period of time? (Criteria 1.1 Explain the link between strategic management and leadership) Next page 1.1.1 The Initial Surge • The airline made a net profit of US$2 million and increased revenue by 15% in the 2005 financial year. This success initially showed how Air India was flourishing in the earlier years under the Indian Government. • They were following the Trait Theory and the leaders are characterized with some specific activities. 1.1.2 The Influence • To ensure its business and technical staff could maintain and use the system, the company sent 40 employees to Oracle University. They were more employee oriented leaders, but when gradually, the Ministry of Civil Aviation had to work under the guidance of bureaucrats and politicians, they became more product oriented leaders the amount of losses were huge. • With this drastic change we could sum it up as follows With reference to Behavioral Theory, within the managerial grid , we can observe a shift from A to C With reference...
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...Negotiation: the Chinese style Tony Fang School of Business, Stockholm University, Stockholm, Sweden Abstract Purpose – To examine the nature of Chinese business negotiating style in Sino-Western business negotiations in business-to-business markets involving large industrial projects from a social cultural point of view. Design/methodology/approach – A conceptual approach developed from personal interviews. Findings – This study reveals that the Chinese negotiator does not possess an absolute negotiating style but rather embraces a mixture of different roles together: “Maoist bureaucrat in learning”, “Confucian gentleman”, and “Sun Tzu-like strategist”. The Chinese negotiating strategy is essentially a combination of cooperation and competition (termed as the “coop-comp” negotiation strategy in this study). Trust is the ultimate indicator of Chinese negotiating propensities and role choices. Research limitations/implications – The focus of this study is on Chinese negotiating style shown in large B2B negotiations with Chinese SOEs. Originality/value – Differing from most other studies on Chinese negotiating style which tend to depict the Chinese negotiator as either sincere or deceptive, this study points out that there exists an intrinsic paradox in Chinese negotiating style which reflects the Yin Yang thinking. The Chinese negotiator has a cultural capacity to negotiate both sincerely and deceptively and he/she changes coping strategies according to situation and context...
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...AFTER THE SELECTION PROCESS - Evaluation Making an appointment decision should be seen as a distinct step in the process, and like all the other steps, it should be conducted in a planned and systematic process and records kept. When the decision is finalized, it needs to be communicated to the person to whom the offer of employment is to be made and to the unsuccessful candidates. Many managers do not realize that the verbal offer constitutes a legal binding contract, so care and attention needs to be given to its form and content. Similarly the way in which the decision is communicated to the unsuccessful candidates needs consideration. Without due care and attention, damage can be caused and grounds given for complaints. Feedback to the rejected candidates can help reduce the disappointment because it can give unsuccessful candidates practical information about what to do differently in future and how to enhance their skills and experience. For the appointed candidate, it provides the beginning of their development in their new job. Making Win-win decisions The final decision to appoint or reject candidates is usually made after an interview. The information collected throughout the previous selection activities can be collated to form a report on each candidate. This report will include an assessment on each candidate against the pre-determined selection criteria and recommend which aspects are in need of further exploration. What interviewers look for ...
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...Cultural Impact on Business: A Case Study on Coca Cola’s Cultural Issues in India admin August 20, 2012 Blog No comments Socio Cultural barriers faced by coca cola in India Coca – cola, the world’s largest selling soft drink company had established its strong presence in the world since 1886. Coca-Cola is the first international soft drink brand to enter the Indian market in the early 1970’s. Till 1977 Coca-Cola was the leading brand in India; later, due to FERA (Foreign Exchange Regulation Act), they left India and didn’t return till 1993. Coca-Cola had to face many issues regarding its quality, resource exploitation and market exploitation along with price-quality trade-offs. People all over India are challenging Coca-Cola for its abuse of water resource. Coca-Cola had affected both quality and quantity of ground water. Due to its waste extracts, Coca-Cola was criticized for polluting the nearby fresh water and ground water and soil; because of this issue, farmers are suffering from water scarcity. Despite all these social and cultural issues, customers are using Coca-Cola due to its strong brand reputation all over the world. This is because Indians are now using more soft drinks and the youngsters are more in this category. However, with many studies and policy changes, Coca-Cola will be able to establish its brand reputation and increase its market share in the near future. This report is prepared from an organizational point of view. The point here is to prepare a report...
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