Cross Cultural Negotiation - Japan

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Describes Japanese culture

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  • Cross Cultural Negotiation - Japan

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

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