The document provides guidance on negotiating tactics and strategies when conducting business negotiations with Chinese counterparts. It outlines several tactics Chinese negotiators may employ, such as controlling arrangements, exploiting weaknesses, tripping up counterparts, and managing expectations. It recommends always preparing thoroughly, being able to walk away from deals, playing to Chinese strengths, and controlling emotions. Negotiators should never concede too easily, resolve issues individually, or embarrass the Chinese. Detailed note-taking and understanding Chinese law and culture are also advised. The goal is to understand Chinese negotiation approaches while effectively responding without causing offense.
The “Course Topics” series from Manage Train Learn and Slide Topics is a collection of over 4000 slides that will help you master a wide range of management and personal development skills. The 202 PowerPoints in this series offer you a complete and in-depth study of each topic. This presentation is on "Stick to Your Guns in Negotiations".
The document provides tips and strategies for effective negotiation. It discusses the importance of understanding the other side's interests, detecting hidden agendas, managing internal stakeholders, using tactics like limited authority and exploding offers, avoiding argument dilution, and potentially dividing the other side. The overall message is that negotiations require thorough preparation, flexibility in approach, and awareness of psychological factors to achieve the best outcome.
For some new managers, the idea of giving performance reviews and being responsible for others can be intimidating. For others, there are fears about how to manage people older than them. And then there are others who worry about being accepted by their new team. I too, had these fears. But over time, I have learned a lot from peers, from mentors, and from my own employees. I made some terrible mistakes, and I had some pretty good successes. These nuggets of insight are some of the best personal learnings I’ve had in my management career, and ones which I wish I knew when I started managing people.
The Manager's Resource Handbook is an online source of tools, templates and articles relating to business and management in the global environment. Our mission is the help managers and businesses succeed through the benefit of our experience. You can contact us at http://www.managersresourcehandbook.com.
Here are three tips for selling in China summarized from the document:
1) Know the Chinese market as consumer needs and interests may differ, and government organizations can provide assistance. Senior executives are accessible, so meeting people before entering is essential.
2) Hong Kong can serve as a base for entering China due to its reliable legal/financial infrastructure and experienced local consultants.
3) Building relationships is key in China - take time to understand Chinese culture, work with existing partners, and assist their companies in reciprocation to join networks.
The document provides guidance on working effectively with counterparts from different countries based on cultural characteristics. It discusses approaches to take when counterparts may not be fully qualified, the importance of humility in Chinese culture, how "yes" responses from Indian colleagues usually mean the request is understood but not necessarily a commitment, the significance of personal relationships in Brazil, that meetings with Japanese counterparts are primarily for information gathering, how contracts mark the beginning not the end of negotiations for Chinese counterparts, the emphasis on loyalty in South Korean culture, and fact-based decision making processes in Finland. The document stresses understanding these cultural norms to avoid miscommunication and build strong cross-cultural business relationships.
Culture has a significant impact on business negotiations between parties from different cultures. The negotiation process is more complex and each step, from communication styles to decision making, is influenced by culture. Understanding cultural differences, learning about your counterpart's culture, and finding "win-win" solutions that satisfy both sides are keys to successful intercultural negotiations. Different cultures have their own styles when it comes to preparations, presentations, arguments, agreements, and behaviors before, during, and after negotiations.
Beyond Negotiation 101 for Entrepreneur by Terry HirdEdith Yeung
Terry Hird presented Beyond Negotiation 101 for Entrepreneur at BizTechDay Talks 2010.
Presentation Summary:
You Don't Get What You Deserve, You Get What You Negotiate.
This powerful talk will give you the strategies you need to immediately become a more effective negotiator as entrepreneur.
You will learn:
- Proven negotiation strategies and tactics that you can use to succeed in your very next negotiation;
- Ways to create a confident and commanding presence as a negotiator;
- Effective plan and strategy to win your next negotiation;
- Practical tips to prepare face-to-face, phone or email negotiations, etc
Understanding Chinese cultural business practices helps to prepare your company to handle all the intricacies and tactics that this part of the world brings.
The “Course Topics” series from Manage Train Learn and Slide Topics is a collection of over 4000 slides that will help you master a wide range of management and personal development skills. The 202 PowerPoints in this series offer you a complete and in-depth study of each topic. This presentation is on "Stick to Your Guns in Negotiations".
The document provides tips and strategies for effective negotiation. It discusses the importance of understanding the other side's interests, detecting hidden agendas, managing internal stakeholders, using tactics like limited authority and exploding offers, avoiding argument dilution, and potentially dividing the other side. The overall message is that negotiations require thorough preparation, flexibility in approach, and awareness of psychological factors to achieve the best outcome.
For some new managers, the idea of giving performance reviews and being responsible for others can be intimidating. For others, there are fears about how to manage people older than them. And then there are others who worry about being accepted by their new team. I too, had these fears. But over time, I have learned a lot from peers, from mentors, and from my own employees. I made some terrible mistakes, and I had some pretty good successes. These nuggets of insight are some of the best personal learnings I’ve had in my management career, and ones which I wish I knew when I started managing people.
The Manager's Resource Handbook is an online source of tools, templates and articles relating to business and management in the global environment. Our mission is the help managers and businesses succeed through the benefit of our experience. You can contact us at http://www.managersresourcehandbook.com.
Here are three tips for selling in China summarized from the document:
1) Know the Chinese market as consumer needs and interests may differ, and government organizations can provide assistance. Senior executives are accessible, so meeting people before entering is essential.
2) Hong Kong can serve as a base for entering China due to its reliable legal/financial infrastructure and experienced local consultants.
3) Building relationships is key in China - take time to understand Chinese culture, work with existing partners, and assist their companies in reciprocation to join networks.
The document provides guidance on working effectively with counterparts from different countries based on cultural characteristics. It discusses approaches to take when counterparts may not be fully qualified, the importance of humility in Chinese culture, how "yes" responses from Indian colleagues usually mean the request is understood but not necessarily a commitment, the significance of personal relationships in Brazil, that meetings with Japanese counterparts are primarily for information gathering, how contracts mark the beginning not the end of negotiations for Chinese counterparts, the emphasis on loyalty in South Korean culture, and fact-based decision making processes in Finland. The document stresses understanding these cultural norms to avoid miscommunication and build strong cross-cultural business relationships.
Culture has a significant impact on business negotiations between parties from different cultures. The negotiation process is more complex and each step, from communication styles to decision making, is influenced by culture. Understanding cultural differences, learning about your counterpart's culture, and finding "win-win" solutions that satisfy both sides are keys to successful intercultural negotiations. Different cultures have their own styles when it comes to preparations, presentations, arguments, agreements, and behaviors before, during, and after negotiations.
Beyond Negotiation 101 for Entrepreneur by Terry HirdEdith Yeung
Terry Hird presented Beyond Negotiation 101 for Entrepreneur at BizTechDay Talks 2010.
Presentation Summary:
You Don't Get What You Deserve, You Get What You Negotiate.
This powerful talk will give you the strategies you need to immediately become a more effective negotiator as entrepreneur.
You will learn:
- Proven negotiation strategies and tactics that you can use to succeed in your very next negotiation;
- Ways to create a confident and commanding presence as a negotiator;
- Effective plan and strategy to win your next negotiation;
- Practical tips to prepare face-to-face, phone or email negotiations, etc
Understanding Chinese cultural business practices helps to prepare your company to handle all the intricacies and tactics that this part of the world brings.
1) The document provides tips for effective negotiation, emphasizing the importance of listening over talking, keeping your position and goals private, and never revealing your worst acceptable outcome.
2) It advises acting with initiative if a negotiation situation is developing and using people's personalities and weaknesses to your advantage through patience and playing on their assumptions.
3) The overall goal of negotiation according to the document is to get the best possible outcome for yourself rather than trying to satisfy the other party, as long as it doesn't involve taking advantage of disadvantaged groups.
The document discusses strategies for effective negotiation. It emphasizes the importance of preparation, understanding interests rather than positions, building trust, and focusing on mutual gains. Key points include spending time planning, considering both sides' needs, finding common ground and win-win solutions, seeing issues from the other perspective, separating positions from underlying interests, and providing an acceptable way for the other side to agree to a solution. The goal is using communication strategies like active listening, open questions, and asserting needs to find outcomes that address both parties' wants.
The document provides guidance on negotiation skills and the negotiation process. It discusses preparing for negotiation by understanding what each party wants, their strengths and weaknesses. It also discusses the different phases of negotiation - planning, debating issues, proposing solutions, and bargaining to reach an agreement. During the debate phase, it's important to listen, ask questions to understand the other perspective, and look for areas of agreement rather than arguing opposing views. The goal is to find a mutually beneficial solution to meet both parties' needs.
Persuading, influencing and negotiating skillsMohammed Gamal
This document discusses skills for persuading, negotiating, and influencing others. It explains that persuading involves convincing others to take action, negotiating involves reaching mutually agreeable agreements, and influencing encompasses both. The document provides tips for each skill, such as focusing on others' needs, using logical arguments, and subtly complimenting others. It also discusses laws of influence, such as reciprocity, authority, and social proof. The overall message is that these skills are important for many jobs and situations, and one must understand different negotiation strategies to be effective.
Getting to Yes! Negotiating Agreement Without Giving In - Summary - MemoJustin Fenwick
"Separate the people from the problem."
Members of the Harvard Negotiation Project, Fisher and Ury focused on the psychology of negotiation in their method, "principled negotiation," finding acceptable solutions by determining which needs are fixed and which are flexible for negotiators.
"Focus on interests, not positions."
"Invent options for mutual gain."
"Insist on using objective criteria."
"Know your BATNA (Best Alternative To Negotiated Agreement)"
Preparation is key to a successful negotiation. Some steps in preparation include defining objectives and limits, collecting relevant information, verifying assumptions, and ensuring a congenial environment. The seven-step negotiating process involves preparation, arguing positions, signaling, proposing agreements, packaging solutions, bargaining for a win-win situation, and formally closing the deal in writing if satisfactory. The ultimate objective of negotiation should be a win-win outcome where both parties emerge as winners.
The document discusses various aspects of negotiation including:
- Negotiation is an interactive communication process to reach agreement between two or more parties.
- Successful negotiation requires preparation, understanding interests and alternatives, and managing emotions.
- Different styles of negotiation are discussed like compromising and collaborating to find a win-win solution.
- Cultural differences also impact the negotiation process and must be considered.
598Part 5Strategy Implementation for Multinational Compa.docxevonnehoggarth79783
598
Part 5
Strategy Implementation for Multinational Companies
to sue each other, which seems to be a national sport in the United States. If you go to court, all parties involved lose face. And a system which is built on moral obligations can only work if a high degree of ethical standards are observed. That is why we get so upset, if the Americans equal guanxi with corrup tion. I freely admit that we have the problem of corrup tion in China, but this is because of the abuse of power by bureaucrats, not because of the importance we attach to mutual obligations, which goes back to Confucius. Why do you think overseas Chinese are so successful in so many countries? It is because of trust and sense for obligation, in short because of guanxi.
America might be at the moment the most powerful country in the world, but their values are not as univer sal as they might think. And our American business partners, with their usual combination of arrogance and ignorance, did not follow our advice to build up guanxi with the planning commission and I am sure they would still be waiting today for approval.
Overseas Chinese
Mr. Jones: Considering the difficulty we anticipated to have in communicating with our Chinese counter parts, we had a fellow in our negotiation team who was of Chinese origin. We thought that his fluency in Chinese and his deeper understanding of the Chinese way of doing things would be useful. And indeed, we benefited greatly from his accurate interpretation and prediction of responses from the Chinese. Even though both sides had professional interpreters, his role was appreciated also by the Chinese, as he was able to better interpret conflicting standpoints and mediate between both sides.
However, it didn't take long before we ran into pro blems. Whenever there was some dispute over the contract details, our Chinese counterparts began to pressure him to sort out things in their favor. Never mind that he was born in the United States, was an American citizen and was working for an American company, they just saw him as one of theirs and couldn't grasp that he represented the other side. This was not China against America, this was a nego tiation between two companies and he was an employee of our company, so what did they expect? It's completely ridiculous that the Chinese felt entitled to ask so much from him just because he was of Chi nese origin.
Mr. Wang: There was this U.S.-born Chinese guy on the American negotiation team, and we interpreted
his presence as a sign of sincerity and goodwill on the part of the Americans and their wish to establish a good relationship with us. Finally someone who would appreciate how business is done here. So we focused on trying to make him understand our posi tion. But instead of acting like a bridge between the two sides, he showed no sympathy whatsoever for us. He was coming from rich America and should have had more consideration for our situation. And when he overheard us.
The document provides guidance on negotiation skills and strategies. It discusses that negotiation is a process of finding a compromise where both parties get something they want. Effective negotiation uses a "purple" strategy of both asserting one's own interests but also considering the other party's interests. The negotiation process involves four phases - planning, debating, proposing, and bargaining. During the planning phase, it is important to understand both parties' objectives and interests. In the debating phase, listening is key and one should question positions to understand them rather than make accusations. The overall approach emphasizes finding mutually beneficial solutions over winning at the other's expense.
The document discusses negotiation strategies and techniques. It defines negotiation as using information and power to influence behavior within a tension network. It notes that negotiations aim to satisfy needs and that the ideal outcome is for both parties to benefit. The document outlines techniques for generating competition, meeting needs, using time pressure, commitment, risk-taking, and identifying the other side's true needs rather than just stated positions. It emphasizes creating trust and finding solutions that satisfy both parties in a "win-win" manner.
1. Never rush enthusiastically to a salesperson and make their job of selling easy. Maintain skepticism and indecision in early negotiations.
2. Always react adversely to the first offer and never accept it as fair or interesting. Put the onus on the other side to justify their position.
3. Always ask for more than what you hope to obtain from the start. This gives room to make minor concessions and let the other side feel they have gained something too from negotiations.
In this presentation options for resolving conflict are presented from a psychological, social, scriptural and judicial perspective. A pattern suitable for systemic change is offered.
A key issue in negotiation is framing. Framing allows people to evalromeliadoan
A key issue in negotiation is framing. Framing allows people to evaluate situations, which lead them to pursue or avoid ensuing actions. Framing helps us to focus and organize, while making sense and meaning out of the world around us.
Box 6.1 in your textbook, "Chinese Negotiation Frames", identifies five concepts that someone attempting to negotiate in China should recognize. In which areas do you see similarities to our approach to framing? Where do you see differences?
Your paper should be a minimum of 2 pages, double-spaced in 12 pt. font. Use proper spelling, grammar, and punctuation. Cite your sources.
BOX
6.1
Chinese Negotiation Frames
Although skilled negotiators know that their and their opponents' negotiation frames are shaped through experience and culture, few stop to critically examine the cultural elements that shape others' perceptions about conflict. For example, Catherine Tinsley of Georgetown University has identified the five concepts from Chinese culture that those attempting to negotiate in China should recognize:
Social linkage
. The Chinese believe that people should be viewed in the context of their larger social groups rather than as isolated individuals.
Harmony
. Because people are inherently imbedded in their social network, peaceful coexistence is highly valued.
Roles
. To maintain social harmony, people must understand and abide by the requirements of their role in the relationship network. Roles specify duties, power, and privileges while specifying where in the relational hierarchy an individual falls.
Reciprocal obligations
. Each role specifies the obligations that people expect to fulfill and receive within the social network. These obligations persist over time, solidifying the relational network across generations.
Face
. The value the Chinese place on saving “face” is central to their perception of social interaction. Face is lost if an individual acts in a manner that is inconsistent with his or her role or fails to fulfill reciprocal obligations. Face is so valued that the threat of losing it is the primary force that ensures fulfillment of obligations and, consequently, continuance of the relational hierarchy.
Negotiators approaching discussions with the Chinese would do well to consider the perspective on conflict that these cultural realities have created. For example, individual negotiators often rely on the power of their personal network to achieve desired ends. This perspective, which Tinsley called the “relational bargaining frame,” encourages parties to augment their power by both soliciting the support of powerful people and arguing for the social legitimacy of their position. While those from a more individualistic culture might reject out of hand the argument that a proposed settlement would be unpopular, such an argument would have great power in the more collectivist Chinese culture. Similarly, parties in the relational frame would be more likely to solicit outside op ...
Negotiation pitfalls myths and misconceptionsbenson sibanda
The document discusses several common myths and misconceptions about negotiations. It addresses the misconception that a Best Alternative to a Negotiated Agreement (BATNA) is simply a number, when in fact it is a scenario or situation. It also discusses how making the first offer should not always be ambitious, as this risks impasse or losing credibility. Additionally, identifying precedents does not necessarily help persuade the other side, and negotiations are not always a contest where one side must win or lose. Good negotiators are made, not born, and experience alone does not make a skilled negotiator.
This is part of the top rules for negotiating in China. Continuing on with the list and starting at number six here are the last top rules that you will need to keep in mind when doing business in China.
Negotiation is a process where parties involved try to reach an agreement or compromise on issues through discussion. It can occur in business, legal, and personal contexts. There are generally two types of negotiation: distributive negotiation which involves bargaining for a limited set of resources, and integrative negotiation which aims to expand resources and find mutually beneficial outcomes through cooperation. Effective negotiation requires understanding interests, having a plan, gathering information, and practicing negotiation skills. Training can help improve business negotiation abilities.
Module 11 - NegotiationWhats the benefit of studying this t.docxannandleola
Module 11 - Negotiation
What's the benefit of studying this topic?
Working, perhaps living in different countries, means multiple levels of negotiation. Holding an awareness of cultural impact in your negotiations will enable you to be open and effective. This mindset sets you up for success in a global, interconnected work life.
Readings:
· Adler Ch 9 emphasizes specifics of different negotiation styles likely tied to a range of cultural values
· Adler Ch 10 explores cultural transitions when living in different countries
· Adler Ch 11 suggests an important role for your spouse as you/your family adventure across country borders and cultural values. Although US-centric culture often omits an emphasis on family, when managing professional advancement, family goals are emphasized in other cultures, and underpin important career negotiations.
· Lecture 11 (below)
Review:
· Power Point offers insights on the qualities of a good negotiator, and a checklist for managing the negotiation environment. (Scroll down to locate power point).
· Select 1 video clip or more, to add ideas. (See last section at the end of this web page).
Module 11Negotiations in Multi-Cultural Settings to Bring It All Together
Introduction: Setting the Stage
Keep three key areas in mind discussed in other modules: ethics, motivation, and decision making. Think about how the ideas within these earlier topics also impact conflict and negotiation. The course elements are inter-related -- leadership is about many differing areas of importance in an integrated way.
But a leader must be an agent of change. As a change agent, he or she will navigate through conflict and negotiations in making decisions. Change is improved with effective management of conflict in the organization.
Along with conflicts and negotiating them to solutions, comes stress–let's spend a minute thinking about what stress can do.
Take the use of steel in construction. Steel is a durable, yet flexible material that can accept much stress; enabling stability in a building. The benefit over wood is that in a fire, the stress of the heat won't cause damage as quickly. Yet, should the stress be overwhelming on an increasing basis, the steel too, will cease to function; and the building will fall. Stress is generally a good thing; it allows the building to settle, and it absorbs the effects of weather; but too much stress is not healthy for the building or for leaders and workers. In managing conflict negotiations well, you as a leader will need to also balance time, pace, and communication to find the right level of stress.
At-a-glance Definitions:
Conflict: Difference of view points, opposing perspectives, or a disagreement. As a conflict deepens there is growing understanding of harmful risk and expanded resistance to seeing other opinions.
Negotiation: A process for determining agreement and cooperation. This process is not a bad thing or situation. The need to negotiate suggests awareness that something ca ...
The document discusses the concepts and techniques of power negotiating. It defines power negotiating as winning at the negotiating table while making the other person feel they have won. Some key points covered include overstating initial demands to establish a higher baseline, using techniques like "why not" to apply pressure, developing alternatives to increase leverage, understanding different sources of power, and adjusting approaches for cross-cultural negotiations. A case study example demonstrates how understanding negotiation strategies is important to avoid being taken advantage of in discussions.
A brief about how to do business in different cultures. The statements are made out of interview with seniors about their experiences. Have a look at how does things carry on in different cultures from a business perspective.
This document provides information about business protocols and behaviors in different cultures including British, Japanese, Chinese, South Korean, Arab, Turkish, Indian, and Italian cultures. Some key points covered are:
- The British are punctual, use understatement in communication, and emphasize legal aspects of contracts.
- The Japanese emphasize formality, maintaining harmony, restrained nonverbal communication, and consensus-based decision making.
- The Chinese value maintaining harmony, use guanxi connections, speak more directly in meetings, and may renegotiate contracts.
- South Koreans value hierarchy, punctuality, and restraint in nonverbal communication and expect patience in bargaining and decision making.
- Arabs prefer developing personal relationships, indirect
Leonardo DiCaprio House: A Journey Through His Extravagant Real Estate Portfoliogreendigital
Introduction
Leonardo DiCaprio, A name synonymous with Hollywood excellence. is not only known for his stellar acting career but also for his impressive real estate investments. The "Leonardo DiCaprio house" is a topic that piques the interest of many. as the Oscar-winning actor has amassed a diverse portfolio of luxurious properties. DiCaprio's homes reflect his varied tastes and commitment to sustainability. from retreats to historic mansions. This article will delve into the fascinating world of Leonardo DiCaprio's real estate. Exploring the details of his most notable residences. and the unique aspects that make them stand out.
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Leonardo DiCaprio House: Malibu Beachfront Retreat
A Prime Location
His Malibu beachfront house is one of the most famous properties in Leonardo DiCaprio's real estate portfolio. Situated in the exclusive Carbon Beach. also known as "Billionaire's Beach," this property boasts stunning ocean views and private beach access. The "Leonardo DiCaprio house" in Malibu is a testament to the actor's love for the sea and his penchant for luxurious living.
Architectural Highlights
The Malibu house features a modern design with clean lines, large windows. and open spaces blending indoor and outdoor living. The expansive deck and patio areas provide ample space for entertaining guests or enjoying a quiet sunset. The house has state-of-the-art amenities. including a gourmet kitchen, a home theatre, and many guest suites.
Sustainable Features
Leonardo DiCaprio is a well-known environmental activist. whose Malibu house reflects his commitment to sustainability. The property incorporates solar panels, energy-efficient appliances, and sustainable building materials. The landscaping around the house is also designed to be water-efficient. featuring drought-resistant plants and intelligent irrigation systems.
Leonardo DiCaprio House: Hollywood Hills Hideaway
Privacy and Seclusion
Another remarkable property in Leonardo DiCaprio's collection is his Hollywood Hills house. This secluded retreat offers privacy and tranquility. making it an ideal escape from the hustle and bustle of Los Angeles. The "Leonardo DiCaprio house" in Hollywood Hills nestled among lush greenery. and offers panoramic views of the city and surrounding landscapes.
Design and Amenities
The Hollywood Hills house is a mid-century modern gem characterized by its sleek design and floor-to-ceiling windows. The open-concept living space is perfect for entertaining. while the cozy bedrooms provide a comfortable retreat. The property also features a swimming pool, and outdoor dining area. and a spacious deck that overlooks the cityscape.
Environmental Initiatives
The Hollywood Hills house incorporates several green features that are in line with DiCaprio's environmental values. The home has solar panels, energy-efficient lighting, and a rainwater harvesting system. Additionally, the landscaping designed to support local wildlife and promote
1) The document provides tips for effective negotiation, emphasizing the importance of listening over talking, keeping your position and goals private, and never revealing your worst acceptable outcome.
2) It advises acting with initiative if a negotiation situation is developing and using people's personalities and weaknesses to your advantage through patience and playing on their assumptions.
3) The overall goal of negotiation according to the document is to get the best possible outcome for yourself rather than trying to satisfy the other party, as long as it doesn't involve taking advantage of disadvantaged groups.
The document discusses strategies for effective negotiation. It emphasizes the importance of preparation, understanding interests rather than positions, building trust, and focusing on mutual gains. Key points include spending time planning, considering both sides' needs, finding common ground and win-win solutions, seeing issues from the other perspective, separating positions from underlying interests, and providing an acceptable way for the other side to agree to a solution. The goal is using communication strategies like active listening, open questions, and asserting needs to find outcomes that address both parties' wants.
The document provides guidance on negotiation skills and the negotiation process. It discusses preparing for negotiation by understanding what each party wants, their strengths and weaknesses. It also discusses the different phases of negotiation - planning, debating issues, proposing solutions, and bargaining to reach an agreement. During the debate phase, it's important to listen, ask questions to understand the other perspective, and look for areas of agreement rather than arguing opposing views. The goal is to find a mutually beneficial solution to meet both parties' needs.
Persuading, influencing and negotiating skillsMohammed Gamal
This document discusses skills for persuading, negotiating, and influencing others. It explains that persuading involves convincing others to take action, negotiating involves reaching mutually agreeable agreements, and influencing encompasses both. The document provides tips for each skill, such as focusing on others' needs, using logical arguments, and subtly complimenting others. It also discusses laws of influence, such as reciprocity, authority, and social proof. The overall message is that these skills are important for many jobs and situations, and one must understand different negotiation strategies to be effective.
Getting to Yes! Negotiating Agreement Without Giving In - Summary - MemoJustin Fenwick
"Separate the people from the problem."
Members of the Harvard Negotiation Project, Fisher and Ury focused on the psychology of negotiation in their method, "principled negotiation," finding acceptable solutions by determining which needs are fixed and which are flexible for negotiators.
"Focus on interests, not positions."
"Invent options for mutual gain."
"Insist on using objective criteria."
"Know your BATNA (Best Alternative To Negotiated Agreement)"
Preparation is key to a successful negotiation. Some steps in preparation include defining objectives and limits, collecting relevant information, verifying assumptions, and ensuring a congenial environment. The seven-step negotiating process involves preparation, arguing positions, signaling, proposing agreements, packaging solutions, bargaining for a win-win situation, and formally closing the deal in writing if satisfactory. The ultimate objective of negotiation should be a win-win outcome where both parties emerge as winners.
The document discusses various aspects of negotiation including:
- Negotiation is an interactive communication process to reach agreement between two or more parties.
- Successful negotiation requires preparation, understanding interests and alternatives, and managing emotions.
- Different styles of negotiation are discussed like compromising and collaborating to find a win-win solution.
- Cultural differences also impact the negotiation process and must be considered.
598Part 5Strategy Implementation for Multinational Compa.docxevonnehoggarth79783
598
Part 5
Strategy Implementation for Multinational Companies
to sue each other, which seems to be a national sport in the United States. If you go to court, all parties involved lose face. And a system which is built on moral obligations can only work if a high degree of ethical standards are observed. That is why we get so upset, if the Americans equal guanxi with corrup tion. I freely admit that we have the problem of corrup tion in China, but this is because of the abuse of power by bureaucrats, not because of the importance we attach to mutual obligations, which goes back to Confucius. Why do you think overseas Chinese are so successful in so many countries? It is because of trust and sense for obligation, in short because of guanxi.
America might be at the moment the most powerful country in the world, but their values are not as univer sal as they might think. And our American business partners, with their usual combination of arrogance and ignorance, did not follow our advice to build up guanxi with the planning commission and I am sure they would still be waiting today for approval.
Overseas Chinese
Mr. Jones: Considering the difficulty we anticipated to have in communicating with our Chinese counter parts, we had a fellow in our negotiation team who was of Chinese origin. We thought that his fluency in Chinese and his deeper understanding of the Chinese way of doing things would be useful. And indeed, we benefited greatly from his accurate interpretation and prediction of responses from the Chinese. Even though both sides had professional interpreters, his role was appreciated also by the Chinese, as he was able to better interpret conflicting standpoints and mediate between both sides.
However, it didn't take long before we ran into pro blems. Whenever there was some dispute over the contract details, our Chinese counterparts began to pressure him to sort out things in their favor. Never mind that he was born in the United States, was an American citizen and was working for an American company, they just saw him as one of theirs and couldn't grasp that he represented the other side. This was not China against America, this was a nego tiation between two companies and he was an employee of our company, so what did they expect? It's completely ridiculous that the Chinese felt entitled to ask so much from him just because he was of Chi nese origin.
Mr. Wang: There was this U.S.-born Chinese guy on the American negotiation team, and we interpreted
his presence as a sign of sincerity and goodwill on the part of the Americans and their wish to establish a good relationship with us. Finally someone who would appreciate how business is done here. So we focused on trying to make him understand our posi tion. But instead of acting like a bridge between the two sides, he showed no sympathy whatsoever for us. He was coming from rich America and should have had more consideration for our situation. And when he overheard us.
The document provides guidance on negotiation skills and strategies. It discusses that negotiation is a process of finding a compromise where both parties get something they want. Effective negotiation uses a "purple" strategy of both asserting one's own interests but also considering the other party's interests. The negotiation process involves four phases - planning, debating, proposing, and bargaining. During the planning phase, it is important to understand both parties' objectives and interests. In the debating phase, listening is key and one should question positions to understand them rather than make accusations. The overall approach emphasizes finding mutually beneficial solutions over winning at the other's expense.
The document discusses negotiation strategies and techniques. It defines negotiation as using information and power to influence behavior within a tension network. It notes that negotiations aim to satisfy needs and that the ideal outcome is for both parties to benefit. The document outlines techniques for generating competition, meeting needs, using time pressure, commitment, risk-taking, and identifying the other side's true needs rather than just stated positions. It emphasizes creating trust and finding solutions that satisfy both parties in a "win-win" manner.
1. Never rush enthusiastically to a salesperson and make their job of selling easy. Maintain skepticism and indecision in early negotiations.
2. Always react adversely to the first offer and never accept it as fair or interesting. Put the onus on the other side to justify their position.
3. Always ask for more than what you hope to obtain from the start. This gives room to make minor concessions and let the other side feel they have gained something too from negotiations.
In this presentation options for resolving conflict are presented from a psychological, social, scriptural and judicial perspective. A pattern suitable for systemic change is offered.
A key issue in negotiation is framing. Framing allows people to evalromeliadoan
A key issue in negotiation is framing. Framing allows people to evaluate situations, which lead them to pursue or avoid ensuing actions. Framing helps us to focus and organize, while making sense and meaning out of the world around us.
Box 6.1 in your textbook, "Chinese Negotiation Frames", identifies five concepts that someone attempting to negotiate in China should recognize. In which areas do you see similarities to our approach to framing? Where do you see differences?
Your paper should be a minimum of 2 pages, double-spaced in 12 pt. font. Use proper spelling, grammar, and punctuation. Cite your sources.
BOX
6.1
Chinese Negotiation Frames
Although skilled negotiators know that their and their opponents' negotiation frames are shaped through experience and culture, few stop to critically examine the cultural elements that shape others' perceptions about conflict. For example, Catherine Tinsley of Georgetown University has identified the five concepts from Chinese culture that those attempting to negotiate in China should recognize:
Social linkage
. The Chinese believe that people should be viewed in the context of their larger social groups rather than as isolated individuals.
Harmony
. Because people are inherently imbedded in their social network, peaceful coexistence is highly valued.
Roles
. To maintain social harmony, people must understand and abide by the requirements of their role in the relationship network. Roles specify duties, power, and privileges while specifying where in the relational hierarchy an individual falls.
Reciprocal obligations
. Each role specifies the obligations that people expect to fulfill and receive within the social network. These obligations persist over time, solidifying the relational network across generations.
Face
. The value the Chinese place on saving “face” is central to their perception of social interaction. Face is lost if an individual acts in a manner that is inconsistent with his or her role or fails to fulfill reciprocal obligations. Face is so valued that the threat of losing it is the primary force that ensures fulfillment of obligations and, consequently, continuance of the relational hierarchy.
Negotiators approaching discussions with the Chinese would do well to consider the perspective on conflict that these cultural realities have created. For example, individual negotiators often rely on the power of their personal network to achieve desired ends. This perspective, which Tinsley called the “relational bargaining frame,” encourages parties to augment their power by both soliciting the support of powerful people and arguing for the social legitimacy of their position. While those from a more individualistic culture might reject out of hand the argument that a proposed settlement would be unpopular, such an argument would have great power in the more collectivist Chinese culture. Similarly, parties in the relational frame would be more likely to solicit outside op ...
Negotiation pitfalls myths and misconceptionsbenson sibanda
The document discusses several common myths and misconceptions about negotiations. It addresses the misconception that a Best Alternative to a Negotiated Agreement (BATNA) is simply a number, when in fact it is a scenario or situation. It also discusses how making the first offer should not always be ambitious, as this risks impasse or losing credibility. Additionally, identifying precedents does not necessarily help persuade the other side, and negotiations are not always a contest where one side must win or lose. Good negotiators are made, not born, and experience alone does not make a skilled negotiator.
This is part of the top rules for negotiating in China. Continuing on with the list and starting at number six here are the last top rules that you will need to keep in mind when doing business in China.
Negotiation is a process where parties involved try to reach an agreement or compromise on issues through discussion. It can occur in business, legal, and personal contexts. There are generally two types of negotiation: distributive negotiation which involves bargaining for a limited set of resources, and integrative negotiation which aims to expand resources and find mutually beneficial outcomes through cooperation. Effective negotiation requires understanding interests, having a plan, gathering information, and practicing negotiation skills. Training can help improve business negotiation abilities.
Module 11 - NegotiationWhats the benefit of studying this t.docxannandleola
Module 11 - Negotiation
What's the benefit of studying this topic?
Working, perhaps living in different countries, means multiple levels of negotiation. Holding an awareness of cultural impact in your negotiations will enable you to be open and effective. This mindset sets you up for success in a global, interconnected work life.
Readings:
· Adler Ch 9 emphasizes specifics of different negotiation styles likely tied to a range of cultural values
· Adler Ch 10 explores cultural transitions when living in different countries
· Adler Ch 11 suggests an important role for your spouse as you/your family adventure across country borders and cultural values. Although US-centric culture often omits an emphasis on family, when managing professional advancement, family goals are emphasized in other cultures, and underpin important career negotiations.
· Lecture 11 (below)
Review:
· Power Point offers insights on the qualities of a good negotiator, and a checklist for managing the negotiation environment. (Scroll down to locate power point).
· Select 1 video clip or more, to add ideas. (See last section at the end of this web page).
Module 11Negotiations in Multi-Cultural Settings to Bring It All Together
Introduction: Setting the Stage
Keep three key areas in mind discussed in other modules: ethics, motivation, and decision making. Think about how the ideas within these earlier topics also impact conflict and negotiation. The course elements are inter-related -- leadership is about many differing areas of importance in an integrated way.
But a leader must be an agent of change. As a change agent, he or she will navigate through conflict and negotiations in making decisions. Change is improved with effective management of conflict in the organization.
Along with conflicts and negotiating them to solutions, comes stress–let's spend a minute thinking about what stress can do.
Take the use of steel in construction. Steel is a durable, yet flexible material that can accept much stress; enabling stability in a building. The benefit over wood is that in a fire, the stress of the heat won't cause damage as quickly. Yet, should the stress be overwhelming on an increasing basis, the steel too, will cease to function; and the building will fall. Stress is generally a good thing; it allows the building to settle, and it absorbs the effects of weather; but too much stress is not healthy for the building or for leaders and workers. In managing conflict negotiations well, you as a leader will need to also balance time, pace, and communication to find the right level of stress.
At-a-glance Definitions:
Conflict: Difference of view points, opposing perspectives, or a disagreement. As a conflict deepens there is growing understanding of harmful risk and expanded resistance to seeing other opinions.
Negotiation: A process for determining agreement and cooperation. This process is not a bad thing or situation. The need to negotiate suggests awareness that something ca ...
The document discusses the concepts and techniques of power negotiating. It defines power negotiating as winning at the negotiating table while making the other person feel they have won. Some key points covered include overstating initial demands to establish a higher baseline, using techniques like "why not" to apply pressure, developing alternatives to increase leverage, understanding different sources of power, and adjusting approaches for cross-cultural negotiations. A case study example demonstrates how understanding negotiation strategies is important to avoid being taken advantage of in discussions.
A brief about how to do business in different cultures. The statements are made out of interview with seniors about their experiences. Have a look at how does things carry on in different cultures from a business perspective.
This document provides information about business protocols and behaviors in different cultures including British, Japanese, Chinese, South Korean, Arab, Turkish, Indian, and Italian cultures. Some key points covered are:
- The British are punctual, use understatement in communication, and emphasize legal aspects of contracts.
- The Japanese emphasize formality, maintaining harmony, restrained nonverbal communication, and consensus-based decision making.
- The Chinese value maintaining harmony, use guanxi connections, speak more directly in meetings, and may renegotiate contracts.
- South Koreans value hierarchy, punctuality, and restraint in nonverbal communication and expect patience in bargaining and decision making.
- Arabs prefer developing personal relationships, indirect
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Design and Amenities
The Hollywood Hills house is a mid-century modern gem characterized by its sleek design and floor-to-ceiling windows. The open-concept living space is perfect for entertaining. while the cozy bedrooms provide a comfortable retreat. The property also features a swimming pool, and outdoor dining area. and a spacious deck that overlooks the cityscape.
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Leonardo DiCaprio: The Hollywood Icon
Early Life and Career Beginnings
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Rise to Stardom
DiCaprio's career skyrocketed with his performance in "What's Eating Gilbert Grape" (1993). earning him his first Academy Award nomination. He continued to gain acclaim with roles in "Romeo + Juliet" (1996) and "Titanic" (1997). the latter of which cemented his status as a global superstar. Over the years, DiCaprio has showcased his versatility in films like "The Aviator" (2004). "Start" (2010), and "The Revenant" (2015), for which he finally won an Academy Award for Best Actor.
Environmental Activism
Beyond his film career, DiCaprio is also renowned for his environmental activism. He established the Leonardo DiCaprio Foundation in 1998, focusing on global conservation efforts. His commitment to ecological issues often intersects with his public appearances. including those related to the Super Bowl.
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Negotiating the Chinese way
1. The Research and Development Bulletin
Negotiating the Chinese way
By Andrew M. Williamson, Visiting Tutor, Business School, City College Norwich
Introduction x Exploit your and their weaknesses
This article outlines the protocol and x Exploit your remorse
suggests suitable tactics for business x Trip you up
negotiations with the Chinese, the correct x Embarrass you
observance of which should improve the
x Play you off against your competitors
chances of securing a successful outcome. A
basic knowledge and understanding of x Approach you via a third party
general negotiating techniques has been x Pretend to be annoyed with you
assumed; thus what follows concentrates x Go over old ground with you
purely on the aspects peculiar to China. This x Quote their law at you
article tells it how it is, 'warts and all', since to x Manage your expectations.
do otherwise would be to send the foreigner
to negotiate with the Chinese like Daniel into The extent and manner to which any tactic or
the lion’s den without any hope of survival. response is used may depend on whether
Consequently, some readers may mis- the negotiations are unilateral (i.e. where
interpret some of the remarks as being only one party is trying to buy or sell) or
unkind towards the Chinese, when indeed bilateral (i.e. when both parties are interested
the intention is the opposite, for the following in buying and selling or working in
reasons: partnership). In the latter case, negotiations
are more likely to be conducted as between
x To pretend that anyone does not employ equals in a symmetrical manner (i.e. with as
psychological tactics during business much give as take).
negotiations in order to gain advantage
would be naïve Responding to Chinese negotiating
x What we in the West might consider to be tactics
improper behaviour is not necessarily so Most of the negotiating tactics that the
in China Chinese might employ may involve miànzi
x Causing offence, or 'loss of face' is (‘face’), as described in Williamson (2006)
unbecoming of a Confucian 'Superior and should therefore be countered by playing
Man' (i.e. Chinese gentleman) the Chinese at their own game and not rising
x The Chinese are not alone in this world in to the bait. For these reasons the following
being inveterate hagglers for whom guidelines are suggested.
outsiders are fair game in their efforts to
preserve their collective 'face' and When the Chinese try to control the
advance their collective good. arrangements
Thus, this is an attempt to strike a balance Traditionally, the Chinese prefer to conduct
between understanding why the Chinese and host negotiations with foreigners in
negotiate in a certain way, without being China, in an attempt to cast them in a
judgemental; and knowing how to respond to supplicatory role and thereby make them feel
them, without causing offence. The protocols subservient. Besides costing the foreigners
and techniques described below are time and money, the Chinese can play for
illustrated with a few examples, then time; however, being physically close to the
illustrated by a comprehensive case study. real decision makers with whom the Chinese
negotiators will necessarily have to consult
may speed up the process. This is because it
Chinese negotiating tactics
is neither usual nor the done thing for the
Chinese negotiators may try to: former to attend detailed discussions; but
x Control the arrangements rather appear only at the very end, when all
The Research Centre, City College Norwich 43
2. Volume 5 Number 2 June 2007
is agreed, such as, for the official 'signing remind you of any damage done to China by
ceremony'. They may quibble over minor your country, hoping to persuade you to
details in the initial stages and then cram all ‘make amends’ by conceding terms that you
the important points into the final stages, might otherwise not accept, in order to save
delay proceedings and/or take time out, the ‘face’ of your country. In response refuse
ostensibly to confer in private, or never leave to discuss, and disassociate yourself from
you alone. By doing this they may hope to: such issues showing that you are impervious
coerce you into compromising (out of sheer to such tactics and insist on ‘sticking to the
desperation to reach some form of point’.
agreement before returning home, rather
than none at all), test your bottom line under When the Chinese try to trip you up
pressure, or, make you think that you have The Chinese are inveterate note-takers and
upset them, and thereby force you to reveal may quote back at you something you and/or
your bottom-line concessions in an attempt to your colleague(s) once said and/or agreed,
save your 'face'. In response you should play on and/or off the record, in- and/or outside
the Chinese at their own game by insisting the negotiating room. They may also forget
that some of the negotiations take place in something they said and/or agreed in similar
your home country and tell the Chinese your circumstances. Again, this may persuade you
time-table in advance, and stick to it, unless to concede to their terms, by honouring what
you really have to reach agreement before you and/or your colleague(s) said and/or
returning home. agreed on an earlier occasion, depending on
whether it supports or conflicts with your
When the Chinese try to exploit your and present stance, in order to save your ‘face’.
their weaknesses In response play the Chinese at their own
The Chinese may try to discover and exploit game by keeping your own detailed notes, in
your ‘Achilles’ heel’ as well as reveal and order to ‘retaliate’ and never speak off the
exploit their own. They may: play on your record or talk business outside the
personal and corporate fear of failing to negotiating room.
reach agreement; contrast China’s ‘poverty’
and lack of commercial experience with your When the Chinese try to embarrass you
company’s wealth and experience, or simply The Chinese lay great emphasis on formal
flatter you. In doing so they hope to persuade courtesy, as manifested in their observance
you to concede terms that you would of ritual etiquette, from which business is not
otherwise not accept, out of desperation exempt. They may use this to accuse you of
and/or to save your ’face’ by reaching some breaking the ‘ground rules’ that you agreed
form of agreement before returning home, at the outset; and/or unfriendly behavior. By
rather than none at all. In this situation you doing this they fool you into thinking that you
should resist taking the bait: if they see that have genuinely offended them, and thus,
you are impervious to such tactics, they may persuade you to ‘make amends’ by
desist, and if you really have to reach conceding terms that you would otherwise
agreement before returning home, never let not accept. Remember that the accusations
the Chinese know. are probably a ploy rather than genuine,
keep your own detailed notes, in order to
When the Chinese try to exploit your refute accusations of being devious and
remorse resist taking the bait; If they see that you are
The decline and fall of the Chinese Empire, impervious to such tactics, the Chinese may
and thus of China’s pre-eminence in the desist.
world, is in no small wise due to the
incursions of and invasions by foreign When the Chinese try to play you off
powers during the second half of the against your competitors
nineteenth and first half of the twentieth Besides genuine competition, the Chinese
centuries. The Chinese may choose to are not averse to ‘inventing’ fictitious
44 The Research Centre, City College Norwich
3. The Research and Development Bulletin
competitors, either to imply you are less to. They may quote (allegedly) unpublished
generous and/or co-operative, and/or that commercial codes or say that their superiors
your products and/or services are more will only accept certain contractual terms
attractive, than the competition, or, share (e.g. standard wordings). Thus, they may fool
your competitors’ ‘secrets’ with you; and/or you into conceding terms that you would
imply that they are not negotiating (any otherwise not accept. Instead retain a legal
longer) with your competitors. They may then expert, obtain copies of the Chinese
either persuade you to equal or better the commercial codes and play the Chinese at
competition’s terms which you would their own game by telling them your
otherwise not accept, out of sheer superiors may never accept certain
desperation to reach some form of contractual terms.
agreement before returning home, and/or
test your bottom line under pressure. Or, they When the Chinese try to manage your
may coax from you genuinely confidential expectations
information, by lulling you into a false sense The Chinese may try to either raise or lower
of security. Be prepared for this by knowing your expectations, persuade you to concede
your competitors and play to your strengths terms that you would otherwise not accept,
even by contrasting them with their through fear of losing an apparent ‘done-
weaknesses, if your corporate culture so deal’ at the last moment, or, hide their
allows. inability to deliver as much as you had
originally hoped, and/or increase your
When the Chinese try to approach you via gratitude for whatever crumbs eventually fall
a third party from the Chinese table.
The Chinese may try to use third parties to
convey delicate messages or ‘test the
waters’. By doing this they save their own
‘face’ if the intermediary fails, by denying
(s)he was authorised to act on their behalf;
you should likewise use a go-between in this
situation.
When the Chinese try to pretend to be
annoyed with you
In theory, the Chinese disapprove of
outbursts of anger, however, in practice, they
are not averse to affecting anger if it will help
them get their own way and may accuse you
of some trumped-up charge. This may fool
you into thinking that you have genuinely
offended them, and thus persuade you to
‘make amends’ by conceding terms in order
to save your ‘face’. Remember that the
accusations are probably a ploy rather than
genuine and resist taking the bait.
When the Chinese try to quote their law at
you
The Chinese may assume they are more
familiar than you with their commercial law
and exploit your ignorance of the same to
justify not rejecting anything they do not want
The Research Centre, City College Norwich 45
4. Volume 5 Number 2 June 2007
Dos and don’ts
When negotiating with the Chinese, it is strongly recommend that you ALWAYS:
Prepare beforehand Be prepared for much back-tracking,
repetition, ambiguity and inevitable
misunderstandings
Remember that the final decision(s) may Take detailed notes
be made by persons not at the
meeting(s)
Inflate your price Be able to walk away from the table
Play to the Chinese strengths Know where the exits are
Look for opportunities to empathise with Control your emotions
the Chinese
Display long-term commitment to China Check your ego at the door
Go over every detail of the contract Be careful what you say to the media
When negotiating with the Chinese, it is strongly recommend that you NEVER:
Try to resolve problems individually Assume there is such a thing as ‘China
plc’
Concede too easily Speak off the record
Hesitate to cut your losses Lose your temper
Reject a Chinese position out of hand Lose your patience
Assume that the Chinese may make Embarrass the Chinese
decisions for economic reasons alone
Gloat at a successful agreement
When negotiating with the Chinese, When negotiating with the Chinese,
ALWAYS prepare beforehand ALWAYS inflate your price
Ensure that you gain immediate access to Without being wholly out of line with the
the key Chinese negotiators, to try to help competition, try to inflate your price slightly
them devise language acceptable to their and then give away a lesser amount (say
decision makers. Otherwise you may 15% and 10%, respectively), so that both you
subsequently need to be referred to higher- and the Chinese ‘win’. Otherwise, the
level officials, who may disregard any Chinese may assume that your quote is
agreements you have already reached, and flexible and consequently, continue to haggle
oblige you to start again from scratch. Even if until they secure some concession. Such
you gain immediate access to the key concession may also give ‘face’ to the key
Chinese negotiators, any agreements you Chinese negotiators by allowing them to
reach with them may still need to be report some good news to their superiors,
reviewed and ratified by their superiors. who, in turn, may be more kindly disposed to
ratifying any agreements you reach.
46 The Research Centre, City College Norwich
5. The Research and Development Bulletin
When negotiating with the Chinese, deal with a competitor. The Chinese may
ALWAYS play to the Chinese strengths leave you a way out, however, they may not
Your arguments should give ‘face’ to the necessarily want you to take it. You should
Chinese as the Chinese may remember, leave the Chinese an exit as a way of their
resent and retaliate against your taking saving ‘face’, a sign of your trust and,
advantage of their weaknesses. Always look consequently, a potential means of building
to empathise by being prepared to talk good will. If they take it, the sooner you find
around a subject rather than address it out the better. Leaving yourself an exit may
directly. Some Chinese may still consider it be more tricky, because unless they have left
good manners to take an indirect approach, one for you already they may misinterpret it
although others may be less sensitive and as a lack of commitment on your part.
more direct. Never express, or allow the
Chinese to sense any doubts that you may When negotiating with the Chinese,
have about the ultimate feasibility of the ALWAYS control your emotions and
object of your negotiations, the Chinese may check your ego
misinterpret your hesitancy as insincerity. The Chinese are not only conditioned to
control their own emotions but are also
When negotiating with the Chinese, reputedly able to read your emotions, which
ALWAYS go over every detail of the may put you at a disadvantage in the ‘poker
contract game’ of business negotiations. The Chinese
Ensure that you discuss all the issues, taking do not publicise (i.e. leak) agreements until
all the time necessary and allowed. they are signed, sealed and delivered, they
Otherwise, the Chinese may not fully also dislike surprises and hate public
understand the language nor, consequently, embarrassment.
the terms and/or conditions of the contract,
and/or may identify but consequently keep When negotiating with the Chinese,
quiet about some ambiguity in the contract NEVER try to resolve problems
that may subsequently benefit them and/or individually nor concede too easily
disadvantage you. Be prepared for much Instead follow the Chinese example of, first
repetition, ambiguity and inevitable listening to all the problems and only then
misunderstandings, but avoid ‘pointing the deciding what concessions if any you are
finger’ and remember that the person you prepared to give, always keeping a couple of
rebuke today may be your Joint Venture (JV) concessions up your sleeve, in case you
partner tomorrow! Always take detailed notes need to offer them to close the deal. The
as the Chinese are prone to asking Chinese may not only be non-plussed by
interminable and multiple questions all in one your zeal to please them, but also use it later
long sentence, which you will find much to embarrass you and then prove difficult to
easier to answer if it is transcribed and be persuaded to back-track on previous
broken down into its component parts. concessions, even though they may try to do
the same to you; use silence as a negotiating
When negotiating with the Chinese, tool. Follow the Chinese example of not
ALWAYS be able to walk away from the giving up anything without a fight however
table unimportant to you, since you can use it to
Never get yourself into a position where, the extract something from them, as they would
Chinese sense that, you need to have an you. By conceding something unimportant
agreement as they take advantage by easily, you may run the risk of convincing the
exploiting your position and/or push you to Chinese that you do not value it and will lose
the verge of aborting the negotiations as a its value as a bargaining chip. Never hesitate
ploy for them to determine your true bottom to cut your losses as the Chinese may not be
line, and/or pull out without their losing ‘face’, able to deliver what they promise. However,
when what they may really be after is never reject a Chinese position out of hand,
information to use as a weapon to strike a instead counter any preposterous proposition
The Research Centre, City College Norwich 47
6. Volume 5 Number 2 June 2007
by the Chinese by drawing them into a x “Appeal to a higher-level decision-maker
discussion and/or steering them in a more x Ask the right question; push the right
constructive direction, since a rebuff may button
cause the Chinese a loss of ‘face’. x Be “Mr. nice guy”
x Show respect; be modest
When negotiating with the Chinese,
x Take risks
NEVER assume that the Chinese may
make decisions for economic reasons x Use your guanxi to go through the back
alone door.”
Profit is a relatively new motivator in China, (Seligman, 1997, pp.146-148)
the Chinese have traditionally made
decisions for political reasons, even if the The golden rule
project goes ‘belly up’, the technology may When all else fails, try the three “Fs” - be:
remain in China. Never over-estimate the Firm, Fair and above all Friendly. The
ability of your Chinese negotiators to resolve Chinese may set greater store by building a
the objections of their political rivals, nor, working relationship (‘guanxi’ – see
under-estimate the ability of such rivals to Williamson (2005)) with you than crossing
scupper the negotiations. There is no such every ’T’ and dotting every ‘I’ of an
thing as a corporate China when it comes to agreement. For them, personal trust is more
doing business, everyone is out for what important than paper-based contractual
(s)he can get for themselves or their ‘guanxi’ terms.
circle (Williamson, 2005). When negotiating
with the Chinese, never speak off the record Case Study
and control your emotions at all times. There Keep calm, even when someone asks you
is no such thing in China as speaking off the for an exorbitant favour in exchange for a
record, since: ‘anything you say may be promise that (s)he may not be able to deliver.
taken down and later used in evidence
against you’ when and however it befits Protagonists
them. Always be polite, softly spoken and The four protagonists in this case study are
gentle, although very occasionally, anger can a:
be used to good effect between you and the
x Foreign ‘businessman’ living in China (i.e.
Chinese; playing them at their own game. me)
The Chinese strongly disapprove of outbursts
of anger, which they consider a sign of x Chinese Potential ‘Joint Venture (JV)
weakness, following the teaching of partner’ known to me and with whom I
Confucius that, come what may, the already enjoyed good and direct relations
‘Superior Man’ should never lose his temper, x Chinese ‘Intermediary’ unknown to me or
which is a loss of ‘face’ but always exercise my UK head office (HO), but known to
self-control. When negotiating with the the ‘JV partner’
Chinese, you need to be patient since joint x Foreign ‘third party’ not living in China
ventures, even when all parties may appear known to the intermediary and my HO.
willing, can take several years to negotiate.
When complete, never gloat at the success Day 1 - Tuesday
of an agreement as if you have ‘won’ then One Tuesday, I received, via the ‘third party’,
the Chinese have ‘lost’, which will cause an unsolicited approach from the
them a loss of ‘face’. intermediary, who offered to set up a deal
with the potential ‘JV partner’. As it so
Overcoming objections happened, I had already arranged a meeting
Seligman (1997) suggests the following with the potential ‘JV partner’ early on the
supplementary tactics for overcoming following Monday morning (Day 5).
objections, where not already included
above:
48 The Research Centre, City College Norwich
7. The Research and Development Bulletin
Day 2 - Wednesday have some command of English.
On the Wednesday, when I checked the x Advise him in Chinese on how best to
‘Intermediary’s’ credentials: negotiate with foreigners. Even if the
‘Intermediary’ did not know, the
x The ‘Intermediary’ explained that he:
interpreter might (through his work
- Would be present at the scheduled
exposing him to foreigners) and could,
meeting with the potential ‘JV partner’,
therefore, help save the ‘Intermediary’s’
whom he claimed to know well
‘face’ since there was a fair chance that I
- Wished to help me better understand was unlikely to know Chinese well
the potential ‘JV partner’s’ position so enough fully to understand what was
that both parties might reach a mutually being said.
beneficial agreement.
x The potential ‘JV partner’ denied all Playing the ‘Intermediary’ at his own game
knowledge of the ‘Intermediary’s’ role. (i.e. in order to ‘level the playing field’), I then
also invited my Chinese bi-lingual personal
assistant (PA), to attend in order to:
Day 3 - Thursday
On the Thursday morning, after consulting x Even up the numbers; which suggested
my HO, I reluctantly agreed to meet the subtly to the ‘Intermediary’ that I knew the
‘Intermediary’ on the following morning basic ‘rules of the game’ and was,
(Friday – Day 4), in order to: therefore, no ‘greenhorn’;
x Placate the potential ‘JV partner’ just in x Advise me in English on how best to
case the ‘Intermediary’ really were able to negotiate with the Chinese and thereby
jeopardise the meeting help save my ‘face’, especially as the
‘Intermediary’ was unlikely to know
x Save the ‘face’ of the ‘Intermediary’ by
English well enough fully to understand
not saying “no” (which might have shut
what she was saying
the door to further negotiation)
x Monitor the performance of the
x Please the ‘third party’
‘Intermediary’s’ interpreter, since it was
At the same time, I made it clear to the apparent from the outset that the
‘Intermediary’ that I would only agree to his interpreter might not have a good enough
attending the scheduled meeting with the command of English correctly to translate
potential ‘JV partner’ if the latter also agreed, my nuances. This would also keep in
which, at the time, they had not. check the interpreter’s advice to the
‘Intermediary’
Day 4 - Friday x Demonstrate my seniority (I was Director
On the Friday morning, the meeting took for China of the leading UK insurance
place in my office. company) and re-enforce my ‘face’,
True to Chinese negotiating tactics to try to since, had I not done so, the
gain the upper hand, the ‘Intermediary’ ‘Intermediary’ might have concluded that
brought along an interpreter, probably in I was not senior enough to warrant one
order to: and, thus, not his equal.
x Counter the twin disadvantages of being
Proposal
the guest and not on his own territory by
The preliminaries over, the ‘Intermediary’
‘upping the numbers’ with an ally. Most
claimed that the potential ‘JV partner’ had
such meetings are normally hosted by
three pet major building projects. If I were to
the Chinese and on their own territory, for
finance just one, the potential ‘JV partner’
which reason he probably expected to be
might consider agreeing to a joint venture
outnumbered by ‘hostile’ people.
were another company also to finance one;
x Gain ‘thinking time’, whilst the the potential ‘JV partner’ would have to
proceedings were being translated, since choose between me and that other company.
most educated Chinese in his position Were I or that other company to finance two,
The Research Centre, City College Norwich 49
8. Volume 5 Number 2 June 2007
there would be no contest (i.e. assuming that request for a substantial bribe. Later that
the total value of both projects exceeded that afternoon, about 4 p.m., the potential ‘JV
of the remaining one); were I or that other Partner’s’ secretary telephoned my PA to
company to finance three, well then …! He cancel the meeting scheduled for early the
was giving me first refusal, since, having following Monday morning (Day 5), pleading
done his homework, he considered my a last-minute summons to a high-level
company to be the ideal candidate for the governmental meeting. Such an excuse is
potential ‘JV partner’. not uncommon and frequently genuine,
which in this case, it was subsequently
Response confirmed to be. On informing my HO, I was
My reaction was politely to: told that the ‘Third Party’ had already
Listen attentively, take copious notes and informed them that the ‘Intermediary’ had
ask appropriate searching questions - in complained of my lack of co-operation; a
order to dissemble my incredulity at the charge that the HO flatly denied.
sheer scale and ‘cheek’ of the proposal with
feigned interest as well as ensure the Happy ending
‘Intermediary’ saw that I accurately recorded Some two to three months later, I invited the
the details of the proposal. potential ‘JV Partner’ to a banquet, which
Explain modestly that I could not decide, but they accepted. Some 18 months later, I
would have to refer to my HO immediately, happened to meet by chance a
(in order to save my own ‘face’). Since the contemporary from school who, to cut a long
Chinese have made an art of public story short, turned out to have been the
demonstrations of modesty, prefer collective ‘Third Party’! After a brief conversation, the
over individual decision making as a means ‘Third Party’ retracted his view of my
of taking advantage of collective wisdom and performance; he had no idea of the
do not like to make ‘off the cuff’ decisions, Intermediary’s proposal; which shocked him.
the ‘Intermediary’ would recognise this ploy
as typically Chinese and thus accept it with Footnote
good grace. Even if I had conceded, there was no
Warmly thank the Intermediary for the guarantee that the joint venture would have
opportunity of ‘first refusal’ for such projects, been successful. True, chequebook
in order to build the ‘Intermediary’s’ ‘face’ in negotiating has reputedly worked
true Chinese style by expressions of flattery occasionally in the past, but the Chinese are
and gratitude, albeit false, in front of others. reluctant to bite the hand that feeds it. In
Promise to let him have an early answer, other words, while they can still dangle
rather than say no, in order to save his own carrots and receive presents, why hand over
‘face’ and keep the door open. Since the the carrots?
Chinese refuse politely in a number of ways, As a fellow Chinese academic once said to
including lying, without exactly saying no as a me: why should the Chinese use their own
means of saving ‘face’, avoiding shutting the money, of which he claimed that they had
proverbial door to further re-negotiation and more than sufficient, while the West is
leaving room for further manoeuvre, the prepared to hand theirs over by the
‘Intermediary’ would recognise this ploy as barrowful?
typically Chinese and thus accept it with
good grace. Further information
www.minim.biz
Outcome
After the ‘Intermediary’ left, I immediately References
reported to my HO, which agreed that I had Seligman, S.D. (1997). Decoding with the
acted wholly appropriately; whilst my Chinese. Management Books 2000, UK.
Chinese PA expressed her shock that what Williamson, A.M. (2005). Guanxi: the key to
had just happened was undoubtedly a
50 The Research Centre, City College Norwich
9. The Research and Development Bulletin
doing business with the Chinese. The
Research and Development Bulletin 3(2),
Norwich: The Research Centre, City College
Norwich.
Williamson, A.M. (2006). Miànzi, kèqi and
xiào: insights into the Chinese business
psyche. The Research and Development
Bulletin 4(1), Norwich: The Research Centre,
City College Norwich.
The Research Centre, City College Norwich 51