International Business Negotiations

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Aspects of International Negotiations

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International Business Negotiations

  1. 1. Business Negotiations Part 5 6 11 2012 1
  2. 2. Specifics of International NegotiationsIn international negotiations your skills to identify and understandcultural differences are essential for choosing the right strategyThere are more then 200 different national cultures in the worldRichard D.Lewis separated them into 3 main cultural types: - Multi active - Linear active - Reactive 2 © Business Negotiations, Osvaldas Čiukšys
  3. 3. Cultural types (1) 3 © Business Negotiations, Osvaldas Čiukšys
  4. 4. Cultural types (2) 4 © Business Negotiations, Osvaldas Čiukšys
  5. 5. Cultural types (3) 5 © Business Negotiations, Osvaldas Čiukšys
  6. 6. Cultural types (4) Multi active Linear Reactive Brazil, Chile, Argentina , Germany, Switzerland, Japan, China Mexico Luxembourg, Great Britain Vietnam, South Korea Family Speaks all the Facts Speaks to the Intuition Polite time pointHierarchy Many jobs at Planning Focused to one Honor Avoids straight once task contact Human Not planning Results Consistent and Relations Listens all therelations planning timeEmotions Permanently Punctuality Straight but Duty and Hides emotions shows emotions polite responsibilityRhetoric Has many Keeping a Sometimes Harmony Not confronting excuses word emotional Loyalty Frequently Trust in Does not like to Reputation Diplomacy interrupts or institutions loose a face dominates the stops discussion truth Emotions Trust in Law Tries not to Can not loose dominate facts interrupt when the face listening Flexible truth Main thing is Never truth interrupts 6 © Business Negotiations, Osvaldas Čiukšys
  7. 7. In International Negotiations veryimportant to understand the other side: Language Behaviour Values Mentality Decision making process 7 © Business Negotiations, Osvaldas Čiukšys
  8. 8. “The World’s Business Cultures. How to Unlock Them” by Barry Tomalin, Mike Nicks Analysis of main countries/economies of the world (China, USA, Germany, UK, Russia, India, Brazil, France, Italy and Japan) by their business cultures in 10 main features: 1.Communication style 2.Work style 3.Discussion style 4.Attitude to Business 5. Management style 6.Business relations 7.Decision making 8.Basis for Decision making 9.Attitude to time 10.Work – Life balance © Business Negotiations, Osvaldas Čiukšys
  9. 9. Barry Tomalin, Mike Nicks “The World’s Business Cultures . How to Unlock Them” CULTURAL PROFILE 1. COMMUNICATION STYLE Direct In direct 2. WORK STYLE Formal Informal 3. DISCUSSION STYLE Quick Slow 4. BUSINESS ATTITUDE Progressive Traditional 5. MANAGEMENT STYLE Horizontal Vertical 6. BUSINESS RELATIONS Human relations Work 7. DECISSION MAKING Individual Collective 8. BASIS FOR DECISSION MAKING Facts Instincts 9. TIME ATTITUDE Planned Flexible 10. WORK/LIFE BALANCE Living to work Working to live © Business Negotiations, Osvaldas Čiukšys
  10. 10. UNITED STATES - CULTURAL PROFILE1. COMMUNICATION STYLE Direct In direct2. WORK STYLE Formal Informal3. DISCUSSION STYLE Quick Slow4. BUSINESS ATTITUDE Progressive Tradicional5. MANAGEMENT STYLE Horizontal Vertical6. BUSINESS RELATIONS Human relations Work7. DECISSION MAKING Individual Collective8. BASIS FOR DECISSION MAKING Facts Instincts9. TIME ATTITUDE Planned Flexible10. WORK/LIFE BALANCE Living to work Working to live © Business Negotiations, Osvaldas Čiukšys
  11. 11. BUSINESS IN USAWays to success Ways to failurePositively and clearly explain who you are Speak in calm British manner and beand what you do sarcasticCommunicate and be visible Make statements about gender, race or religionImplement any project in time and in line Tell that Americans lack a sense of humorwith its budgetUse free and friendly way of Do not tell if there is a threat of thecommunication project being lateBe interested, correct the proposals but Get out for a beer during lunch breakdo not refuse themIcebreakers IcebergsThe glory of their country Start discussion on US foreign policyGood willingness of Americans Criticise Vietnam warThe best American movies and television Jokes about sex © Business Negotiations, Osvaldas Čiukšys
  12. 12. GERMANY - CULTURAL PROFILE1. COMMUNICATION STYLE Direct In direct2. WORK STYLE Formal Informal3. DISCUSSION STYLE Quick Slow4. BUSINESS ATTITUDE Progressive Traditional5. MANAGEMENT STYLE Horizontal Vertical6. BUSINESS RELATIONS Human relations Work7. DECISSION MAKING Individual Collective8. BASIS FOR DECISSION MAKING Facts Instincts9. TIME ATTITUDE Planned Flexible10. WORK/LIFE BALANCE Living to work Working to live © Business Negotiations, Osvaldas Čiukšys
  13. 13. BUSINESS IN GERMANYWays to success Ways to failureShow productivity and punctuality Be disorganized and ignore existing rulesBe open and straight Promise and do not deliverDo what you say Do everything without consultingLearn the rules and follow them By pass your direct managerRespect hierarchy Be too familiar in communication with your colleaguesIcebreakers IcebergsBe interested in German and European Too early talk about personal lifeissuesSpent your holidays abroad, preferably Germany’s role in World War IIwith GermansSport, especially football Remember that England outscored Germany 5:1 in qualification of World Cup 2001 © Business Negotiations, Osvaldas Čiukšys
  14. 14. GREAT BRITAIN - CULTURAL PROFILE1. COMMUNICATION STYLE Direct In direct2. WORK STYLE Formal Informal3. DISCUSSION STYLE Quick Slow4. BUSINESS ATTITUDE Progressive Traditional5. MANAGEMENT STYLE Horizontal Vertical6. BUSINESS RELATIONS Human relations Work7. DECISSION MAKING Individual Collective8. BASIS FOR DECISSION MAKING Facts Instincts9. TIME ATTITUDE Planned Flexible10. WORK/LIFE BALANCE Living to work Working to live © Business Negotiations, Osvaldas Čiukšys
  15. 15. BUSINESS IN UKWays to success Ways to failureBe with your work on time, do not Be proud on your achievementsdramatize your achievementsBe on time to any meeting Speak an hour on your presentationIf problem arises – ask for advice, do not Phone to people on business matters atrisk to miss the deadline evenings or weekendsAt the end of the meeting ask what are Let somebody down when it is said thatthe exact expectations from your work you are a trustful personGo for some bear or sports after office Behave patronisingly with womenhoursIcebreakers IcebergsBritish weather Religion, politics and migrationReal estate prices – but never ask how Salary and personal wealthmuch is worth a property of youropponentComplaints about traffic, parking and “Why Brits send their parents to nursingpublic transportation houses?”
  16. 16. FRANCE - CULTURAL PROFILE1. COMMUNICATION STYLE Direct In direct2. WORK STYLE Formal Informal3. DISCUSSION STYLE Quick Slow4. BUSINESS ATTITUDE Progressive Traditional5. MANAGEMENT STYLE Horizontal Vertical6. BUSINESS RELATIONS Human relations Work7. DECISSION MAKING Individual Collective8. BASIS FOR DECISSION MAKING Facts Instincts9. TIME ATTITUDE Planned Flexible10. WORK/LIFE BALANCE Living to work Working to live © Business Negotiations, Osvaldas Čiukšys
  17. 17. BUSINESS IN FRANCEWays to success Ways to failureTry to get into French discussion Talk only Englishregarding a free market and socialguaranteesShow respect to French culture Ignore French intellectual experienceBe sure that your French guests gets good Curse and drink too muchfood and drinksKeep the formal communication till you Decreasing importance of Frenchsuggested to address by names language in a modern worldBe logic and consistent while negotiating Refuse a proposal to have lunch or dinnerand keep up with your decision togetherIcebreakers IcebergsMarvellous regions of France Comparison of unemployment rate in France and UKFood and wine Old French – English conflictSix Nations rugby Championship Why you decided to choose a new world wine instead of French one
  18. 18. RUSSIA - CULTURAL PROFILE1. COMMUNICATION STYLE Direct In direct2. WORK STYLE Formal Informal3. DISCUSSION STYLE Quick Slow4. BUSINESS ATTITUDE Progressive Traditional5. MANAGEMENT STYLE Horizontal Vertical6. BUSINESS RELATIONS Human relations Work7. DECISSION MAKING Individual Collective8. BASIS FOR DECISSION MAKING Facts Instincts9. TIME ATTITUDE Planned Flexible10. WORK/LIFE BALANCE Living to work Working to live © Business Negotiations, Osvaldas Čiukšys
  19. 19. BUSINESS IN RUSSIAWays to success Ways to failureBe patient Criticize RussiaBe open and hard during negotiations – Agree to proposed compromise very easyRussians respect powerRespect Russian calendar: your proposed Show that your team is not unitedmeeting time can differ from theirsPay attention to hierarchy – it is Refuse to analyse what is behind a niceimportant to please higher authority facadeBuild relations: Russians build their Use permanent pressure tacticsbusiness on personal relationsIcebreakers IcebergsRussian culture, literature and art ChechnyaRussian achievements Russian critics (even Russians are criticizing their country)Russian great role in World War II Communist period in their recent history © Business Negotiations, Osvaldas Čiukšys
  20. 20. It is said, that in modern business world , when it comes to big contracts of significant value what matters most is TRUST and RELATIONS between parties 20 © Business Negotiations, Osvaldas Čiukšys
  21. 21. 21© Business Negotiations, Osvaldas Čiukšys
  22. 22. Respect to the culture of the opponent is the key to success 22 © Business Negotiations, Osvaldas Čiukšys
  23. 23. YOUR COUNTRYWays to Success Ways to FailureIcebreakers Icebergs
  24. 24. QUESTIONS ? 24

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