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International Business Negotiations
This document discusses cultural differences that are important to understand in international business negotiations. It identifies three main cultural types - multi-active, linear-active, and reactive - and provides examples of countries that fall into each type. Key aspects of different national business cultures are outlined, including communication style, decision-making processes, and attitudes toward time. Building trust and understanding cultural norms are emphasized as critical for successful cross-cultural negotiations.
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International Business Negotiations
- 1. Business Negotiations Part 5 6 11 2012 1
- 2. Specifics of International Negotiations In international negotiations your skills to identify and understand cultural differences are essential for choosing the right strategy There are more then 200 different national cultures in the world Richard D.Lewis separated them into 3 main cultural types: - Multi active - Linear active - Reactive 2 © Business Negotiations, Osvaldas Čiukšys
- 3. Cultural types (1) 3 © Business Negotiations, Osvaldas Čiukšys
- 4. Cultural types (2) 4 © Business Negotiations, Osvaldas Čiukšys
- 5. Cultural types (3) 5 © Business Negotiations, Osvaldas Čiukšys
- 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 point Hierarchy Many jobs at Planning Focused to one Honor Avoids straight once task contact Human Not planning Results Consistent and Relations Listens all the relations planning time Emotions Permanently Punctuality Straight but Duty and Hides emotions shows emotions polite responsibility Rhetoric 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. In International Negotiationsvery important to understand the other side: Language Behaviour Values Mentality Decision making process 7 © Business Negotiations, Osvaldas Čiukšys
- 8. “The World’s BusinessCultures. 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. Barry Tomalin, MikeNicks “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. UNITED STATES -CULTURAL PROFILE 1. COMMUNICATION STYLE Direct In direct 2. WORK STYLE Formal Informal 3. DISCUSSION STYLE Quick Slow 4. BUSINESS ATTITUDE Progressive Tradicional 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
- 11. BUSINESS IN USA Waysto success Ways to failure Positively and clearly explain who you are Speak in calm British manner and be and what you do sarcastic Communicate and be visible Make statements about gender, race or religion Implement any project in time and in line Tell that Americans lack a sense of humor with its budget Use free and friendly way of Do not tell if there is a threat of the communication project being late Be interested, correct the proposals but Get out for a beer during lunch break do not refuse them Icebreakers Icebergs The glory of their country Start discussion on US foreign policy Good willingness of Americans Criticise Vietnam war The best American movies and television Jokes about sex © Business Negotiations, Osvaldas Čiukšys
- 12. GERMANY - CULTURALPROFILE 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
- 13. BUSINESS IN GERMANY Waysto success Ways to failure Show productivity and punctuality Be disorganized and ignore existing rules Be open and straight Promise and do not deliver Do what you say Do everything without consulting Learn the rules and follow them By pass your direct manager Respect hierarchy Be too familiar in communication with your colleagues Icebreakers Icebergs Be interested in German and European Too early talk about personal life issues Spent your holidays abroad, preferably Germany’s role in World War II with Germans Sport, especially football Remember that England outscored Germany 5:1 in qualification of World Cup 2001 © Business Negotiations, Osvaldas Čiukšys
- 14. GREAT BRITAIN -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
- 15. BUSINESS IN UK Waysto success Ways to failure Be with your work on time, do not Be proud on your achievements dramatize your achievements Be on time to any meeting Speak an hour on your presentation If problem arises – ask for advice, do not Phone to people on business matters at risk to miss the deadline evenings or weekends At the end of the meeting ask what are Let somebody down when it is said that the exact expectations from your work you are a trustful person Go for some bear or sports after office Behave patronisingly with women hours Icebreakers Icebergs British weather Religion, politics and migration Real estate prices – but never ask how Salary and personal wealth much is worth a property of your opponent Complaints about traffic, parking and “Why Brits send their parents to nursing public transportation houses?”
- 16. FRANCE - CULTURALPROFILE 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
- 17. BUSINESS IN FRANCE Waysto success Ways to failure Try to get into French discussion Talk only English regarding a free market and social guarantees Show respect to French culture Ignore French intellectual experience Be sure that your French guests gets good Curse and drink too much food and drinks Keep the formal communication till you Decreasing importance of French suggested to address by names language in a modern world Be logic and consistent while negotiating Refuse a proposal to have lunch or dinner and keep up with your decision together Icebreakers Icebergs Marvellous regions of France Comparison of unemployment rate in France and UK Food and wine Old French – English conflict Six Nations rugby Championship Why you decided to choose a new world wine instead of French one
- 18. RUSSIA - CULTURALPROFILE 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
- 19. BUSINESS IN RUSSIA Waysto success Ways to failure Be patient Criticize Russia Be open and hard during negotiations – Agree to proposed compromise very easy Russians respect power Respect Russian calendar: your proposed Show that your team is not united meeting time can differ from theirs Pay attention to hierarchy – it is Refuse to analyse what is behind a nice important to please higher authority facade Build relations: Russians build their Use permanent pressure tactics business on personal relations Icebreakers Icebergs Russian culture, literature and art Chechnya Russian 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. 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 © Business Negotiations,Osvaldas Čiukšys
- 22. Respect to theculture of the opponent is the key to success 22 © Business Negotiations, Osvaldas Čiukšys
- 23. YOUR COUNTRY Ways toSuccess Ways to Failure Icebreakers Icebergs
- 24. QUESTIONS ? 24