Transcript Document

Chapter 19
Negotiating with International Customers,
Partners, and Regulators
McGraw-Hill/Irwin
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Introduction
• Face-to-face negotiations are an omnipresent activity in
international commerce
• Once global marketing strategies have been formulated,
then the focus of managers turns to implementation of the
plans
• Plans are always implemented through face-to-face
negotiations with business partners and customers from
foreign countries
• Some of these negotiations can become quite complex,
involving several governments, companies, and cultures
• Business negotiations between business partners from the
same country can be difficult
• This chapter discusses the challenges and opportunities
of international business negotiations
The Pervasive Impact of Culture
on Negotiation Behavior
Companies and countries do not negotiate—people do
•
(1)
(2)
(3)
(4)
Cultural differences in negotiation
styles can cause problems in
international at the levels of:
Language
Nonverbal behaviors
Values
Thinking and decision-making
processes
Implications for Managers and Negotiators
•
Four steps lead to more efficient and effective international
business negotiations, which include:
1.
2.
3.
4.
selection of the appropriate negotiation
team
management of preliminaries,
including training, preparations, and
manipulation of negotiation settings
management of the process of
negotiations, that is, what happens at
the negotiation table
appropriate follow-up procedures and
practices
Negotiation Teams
•
Criteria for selecting successful negotiators include:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Maturity
Emotional stability
Breadth of knowledge
Optimism
Flexibility
Empathy
Stamina
Willingness to use team assistance
Listening
Influence at headquarters
Negotiation Preliminaries
•
Many companies in the United States provide employees
with negotiations training on:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Language skills
Social and diplomatic skills
Knowledge specific to the diplomatic
profession
Including diplomatic history and
international relations
Law
Economic
Politics
International organizations
Foreign policies
Planning For International Negotiations
•
The following checklist ensures proper preparation and
planning for international negotiations:
1.
2.
3.
4.
5.
6.
Assessment of the
situation and the
people
Facts to confirm
during the negotiation
Agenda
Best alternative to a
negotiated agreement
Concession strategies
Team assignments
Negotiation Setting
•
There are at least seven aspects of the negotiation setting that
should be manipulated ahead of time if possible:
1.
2.
3.
4.
5.
6.
7.
Location
Physical arrangements
Number of parties
Number of participants
Audiences (news media,
competitors, fellow vendors, etc.)
Communications channels
Time limits
At the Negotiation Table
•
Differences in the expectations held by parties from different
cultures are one of the major difficulties in any international
business negotiation
•
Everywhere around the world we have found that business
negotiations proceed through four stages:
• Nontask sounding
• Task-related exchange of
information
• Persuasion
• Concessions and agreement