Cross Border Negotiation

1. Made by:
Kathleen Colaco-38
Deepika Bhatt-45
Deepthi Sekaren-46
Devyani Saxena-47
Ekankita Agrawalla-50
Gulrukh Nasim-59

2. Cross-border negotiations are highly affected
by cultural differences that go far deeper than
surface behaviors and cultural characteristics.
The author examines how the processes
involved in negotiations and the ways people
from different cultures reach agreements
affect cross-border negotiations.

3. This is the process of knowing who are the
players involved in the decision making and
what are the roles that they play. This process
is further broken down into further steps:
 Who are the players?
 Who decides what?
 What are the informal influences that can
make or break a deal?

4. Here it is important to know the players who
will take part in the negotiation process.
Cases are:
- merger of Travelers and Citicorp
-merger of GE and Honeywell

5.  Despite knowing the player, there is a failure
to understand each player’s role i.e. who
owns which decision.
 Leads to increase in cost.

6. 1- Pirelli’s failure in having effective control
over Continental’s shares thus faced a
humiliating defeat.
2-U.K.-based Voda-fone’s successful acquisition
of Germany’s Mannesmann is another
example.

7.  Decides whether the deal is a ‘yes’ or a ‘no’.
 Examples
 keiretsu in Japan
 Allianz in Germany
 Powerful families of Italy

8.  Lack of knowledge about informal influences
 Underestimation of foreign legal systems
 Difference in theory and implementation.

9. 35% 42%
20%
MAJOR PLAYERS
Major Influencers
1
2
3
WHO DECIDES WHAT

10. Negotiation not only deals with the people involved in
the process but while negotiation one is seeking to
influence the outcome of an organizational process.
The process can take one of the following forms:
 Top down
 Consensus
 Coalition

11. “Real boss” scenario
 No meaningful delegation exist
 Unilateral decision making power
• Do not reveal key information to subordinates.
• Avoid a powerless agent who acts as a messenger or emissaries.
• the best way to negotiate in this case is to directly talk to the boss
or with people outside the process who have close ties or
influence over the boss.
• in some cases, even after some delegation of authority going
directly to the top is sometimes effective. this strategy must be
used cautiously as it can backfire when subordinates have
opportunities to sabotage the deal
• imputing omnipotence to these powerful bosses can be risky
sometimes , eg: negotiating with US president also made the other
parties understand the limits of presidential power which could
prevent the deal from transpiring as expected ; even in
authoritarian countries translations of deals into actions on
ground level is not done.

13.  It is a general agreement about an idea or
opinion that is shared by all the people in a
group.
 The consensus process takes place in
various forms such as agreement among
members from the negotiating team and the
broader enterprise which includes
stakeholders and governments.

14.  First: consensus cultures often focus on
relationships rather than deals
 Second: consensus process go hand in hand with
the inexhaustible demands for information which is
detailed, repeated and multifaceted
 Third: approach should be designed to help
proponents in clearing their doubts by giving them
sufficient data and arguments that they may find
useful.
 Fourth: Move towards a informal interactive session
from the bargaining table with the other side
 Finally, you need to manage your expectations on
how long the deal will take

15. U.S
Companies
Yangtze Valley
Planning
Office (YVPO).
CONSENSUS EXAMPLE

16.  A temporary union between two or more
individuals or groups for a common aim or
goal. A relatively common practice utilized in
multi party negotiations, it is used to gain
advantage in the negotiation process.
 Win-win situation

17. 1. Closely attend to each other's needs and
interests(BATNA)
2. Put forward proposals that incorporate
valuable tradeoffs (Anticipating coalitional
behavior)
3. Suspend criticism and explore creative but
nonbinding ideas(Managing group
interactions)
4. Agree on problem-solving
procedures(Clarity about the
group's decision rules is crucial)

18.  Winning coalition: are those whose support,
translates into victory
 Blocking coalition: are those that have
interests; no one can ultimately overrule and
can bring a proposal to a halt .
Eg: Pirelli
Governance processes : taking a close look at
the key players and how they work together
can anticipate opportunities ,obstacles as well
as appropriate sequence the approach.