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Cross Cultural Negotiation - Japan
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Cross Cultural Negotiation - Japan

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Describes Japanese culture

Describes Japanese culture

Published in Economy & Finance , Business
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  • 1. CROSS-CULTURAL ISSUES IN NEGOTIATIONS JAPAN
  • 2. Agenda
    • Introduction
    • The Culture
    • Implications for Negotiation
    • Post Negotiation
  • 3. Agenda
    • Introduction
    • The Culture
    • Implications for Negotiation
    • Post Negotiation
    RP
  • 4. Introduction Not sufficient to only know language; critical to understand crucial differences in cultural values
  • 5. Agenda
    • Introduction
    • The Culture
    • Implications for Negotiation
    • Post Negotiation
  • 6. Business organization
      • Hierarchical and Bureaucratic
      • High degree of harmony and cooperation
      • Key focus on quality
      • Information oriented
    Focus on building long term relationships and emphasize on long term benefits
  • 7. Seniority system
      • Based on factors like age, sex, family name, occupation, physical features and birthplace
      • Titles are extremely important - signifies prestige and respect
      • Hierarchy legitimates the use of power
    Japanese will always examine relative positioning in negotiation
  • 8. Decision making
      • Centralized
      • ‘ Ringi’ system – all members involved in the process
      • Often slow – unwillingness to take risk and avoids on the spot decision making
      • Long term perspective
    Try to deal with higher ranks and in groups, factor in delays
  • 9. Other aspects
      • Punctuality- always be on time
      • Indirectness critical in communication and avoid conflicts
      • Private people and uncomfortable with physical contact
      • Japanese less pressured by deadlines, slowdown as complications develop – threatened by stressful situations
    Avoid excessive assertiveness, may be viewed as aggressive
  • 10. Agenda
    • Introduction
    • The Culture
    • Implications for negotiations
    • Post Negotiation
  • 11. Pre-negotiation
      • Meet socially before beginning formal negotiation – avoiding social conversation may lead to bad impression
      • Establish and maintain harmony (Wa) – important aspect of Japanese social life
      • Exchange of business cards (Meishi) - use both hands, spend 20-30 seconds on examining their card
    RP Emphasize on building trust and long term relationship
  • 12. Information exchange
      • Wait for counterpart’s signal before starting negotiation
      • Japanese are information oriented - offer detailed explanations before making actual proposal
      • Ensure to discuss long term generalized goals
      • Use informal channel of communication to get the true feeling of the Japanese
    Be patient and persistent and ready with information!!
  • 13. Persuasion
      • Patience and intelligence in collecting information without giving anything away is their style of negotiation
      • Avoidance strategies like non verbal expressions and silence used often – negotiator should not appear desperate
      • Avoid using aggressive tactics and threats. Negotiator asking for high price may destroy the trust built
    RP Maintain “Wa” at all time
  • 14. Concession and agreement
      • Make the first proposal and receive counter proposal – focus on reciprocity
      • Japanese examine all issues simultaneously in a more holistic approach
      • Concessions are made only near the end of the talks and usually all at once – basic goal of long term mutual benefit
      • Customary to give the buyer a discount (called sabitsu) when agreement is reached - to demonstrate friendship and sincerity
    Settle overall agreement first and then details
  • 15. Agenda
    • Introduction
    • The Culture
    • Implications for negotiations
    • Post Negotiation
  • 16. Post-negotiation
      • Fundamental approach is to emphasize the relationship being created
      • Specific items of a contract always open to renegotiation if the circumstances change
      • Signing manifested by ceremonial meetings and exchange of gifts
    Emphasize win-win situation and help increase the size of the pie
  • 17. Munches!!
      • Over 90% of the Japanese population buys a comic-magazine daily
      • Frogs are the symbol of good luck in Japan
      • Japanese drink tea with almost every meal
      • Heavy traffic – In Tokyo, a bicycle is usually faster than a car for most trips up to 50 minutes
    Emphasize win-win situation and help increase the size of the pie
  • 18.