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Negotiation Styles  Hofstede and E&W Journal Marketing[sav lecture b]
Negotiation Styles  Hofstede and E&W Journal Marketing[sav lecture b]
Negotiation Styles  Hofstede and E&W Journal Marketing[sav lecture b]
Negotiation Styles  Hofstede and E&W Journal Marketing[sav lecture b]
Negotiation Styles  Hofstede and E&W Journal Marketing[sav lecture b]
Negotiation Styles  Hofstede and E&W Journal Marketing[sav lecture b]
Negotiation Styles  Hofstede and E&W Journal Marketing[sav lecture b]
Negotiation Styles  Hofstede and E&W Journal Marketing[sav lecture b]
Negotiation Styles  Hofstede and E&W Journal Marketing[sav lecture b]
Negotiation Styles  Hofstede and E&W Journal Marketing[sav lecture b]
Negotiation Styles  Hofstede and E&W Journal Marketing[sav lecture b]
Negotiation Styles  Hofstede and E&W Journal Marketing[sav lecture b]
Negotiation Styles  Hofstede and E&W Journal Marketing[sav lecture b]
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Negotiation Styles Hofstede and E&W Journal Marketing[sav lecture b]

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  • 1. Western Approaches<br />East-West Negotiation Styles<br />
  • 2. East vs. West Styles: Hofstede 1991<br />
  • 3. Hofstede’s E-W Research<br />Power Distance (respect for authority)<br />Collectivist/Individualist (concern for group)<br />Masculinity/Femininity (assertiveness/competitiveness)<br />Uncertainty Avoidance (comfort in unstructured situations)<br />Time Orientation (short versus long term outlook)<br />
  • 4. Notable Cultural Differences & Negotiation Process Expectations<br />Individualism & Power Distance<br />Eastern: Group based & clear hierarchical decision making structure.<br />Western: More individualistic, non-structured decision making.<br />Long-Term Orientation<br />Eastern: Patient but persistent, willing to re-negotiate contracts to achieve long-term objectives.<br />Western: Time is money and opportunity lost if not implemented according to plan. Success measured in quarters (earnings reports), not decades (5 yr planning cycles).<br />
  • 5. Western Approaches to Negotiation<br />It is more common for a negotiation to be considered a contract versus an ongoing relationship<br />“It’s only business”<br />Assume that the deal will result in a contract that will be adhered to.<br />Contract guides the relationship.<br />Law enforces the contract (third party/entity)<br />
  • 6. Communication Styles<br />High-Context Asian Cultures<br />Information transmitted via multiple methods (words, symbols, rituals, practice)<br />Unspoken, but clearly transmitted/understood.<br />Low-Context Western Cultures<br />More direct control of explicit information transmission and distribution (value).<br />Individuals control information (value) and expect to use this for an advantage, to excerpt power, to be rewarded for their unique effort.<br />
  • 7. Western Focus of Negotiations<br />Making a sale/deal– product, process, service<br />Procedural Orientation: Sequential<br />New sale, re-order, change order<br />Sellers influence buyer based on current status of sale, features & benefits of the sale.<br />ROI, savings, efficiency -- synergies, opportunity<br />Outcome:<br />Verbal agreement<br />  contract <br />  compliance.<br />
  • 8. Western Tools for Negotiating<br />Large Sales:<br />RFI, RFQ, RFP (Request for Information / Proposal)<br />Size: 5-500 pages, 10-60 day response, legal binding<br />Presentation, Modification, Negotiation, Contract phases<br />Joint Ventures:<br />Memorandum of Understanding (MOU)<br />Memorandum of Intent (MOI)<br />Shareholder Agreement<br />
  • 9. Western Process<br />Typically the best prepared (advance) in negotiations (Marshall, Diplomat)<br />
  • 10. Marriage?<br />
  • 11. Template: Shareholder Agreement (ITC)<br />37 Pages - Outline to be completed<br />Definitions of:<br /> Purpose<br /> Representatives<br /> Liability<br /> Investment/Profits<br />Contingencies:<br /> Hardship<br /> Death of a party<br /> Relief from performance<br /> Liability for early withdrawal<br />Resolution of disputes<br />Applicable law<br />Ancillary Agreements: IP / Know How / <br />
  • 12. Perceived advantage:<br />He who has the pen, controls the negotiation outcome….<br />Use who’s draft copy?<br />Establishes an anchor (ch. 2).<br />
  • 13. Questions?<br />
  • 14. Group Discussion<br />How many have negotiated with Westerner’s? What was it for?<br />What was the experience like?<br />What do you remember?<br />What did you like / dislike?<br />What did you learn?<br />
  • 15. Summary<br />Western negotiation models are typically based more on transactions…<br />Technical process (stages)<br />Technical analysis (features, benefits)<br />Predictable<br />An objective Economic Exchange…(ROI)<br />

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