Business negotiations

Business Negotiation in different countries

COUNTRY SPECIFIC? Globalization Culture affects negotiating style Competitive edge for companies

Business Negotiation: Asian Perspective

Goal Contract Relationship

OR

Asians believe in creating relationships

Attitude

Win/Win

Win/Lose

Indian & Chinese consider negotiations as win/win situation

Personal Styles

Formal Informal

Chinese & Indians have different perception here

Communication• Direct or Indirect

Indirect Direct

Asians are strongly in favor of direct way of communication

Team Organization

Different Asian country has different view about team organization Indian prefer team organization & Chinese go for one leader approach

Video

India• Negotiation strategy

Negotiations are Part of the Indian Culture - Bargaining is ingrained into the Indian way of doing business

Language - English has become the standard business language used in India Bureaucracy - be ready to face delays. Be ready to face family – family is integral part of an Indian . Responsibility lies on the top - When it comes to decisions and ultimate

responsibility, the buck truly stops with management. Be flexible - As with other cultures, be prepared to be flexible at the

negotiating table Be ready with their words - many Indians will not flat out say, "no" during a

negotiation or business transaction but they expect you to be very direct

JapanNegotiation strategy

• Negotiation style - Japanese have a difficult time saying ‘NO’• Documentation - Written contracts are required.• Long pauses - Japanese often remain silent for long periods of time. • Understanding - Japanese prefer broad agreements and mutual understanding

so that when problems arise they can be handled flexibly.• Facilitator needed - Using a Japanese lawyer is seen as a gesture of goodwill. • Concession no! no! - Japanese seldom grant concession. • Contracts are not final - Japanese do not see contracts as final agreements so

they can be renegotiated.

China• Pre negotiations

•Lobbying - Lobbying before the Chinese government is most important activity for foreign firms•Presentation – Giving attractive & informative presentation is vital step towards a formal negotiation session. •Trust building – The Chinese attach a great importance to trust building in business negotiations

•Persuasion – Chinese use a variety of persuasion techniques• Concessions & agreements – Formal negotiations ends with concessions of both parties • Hierarchy - final agreements are signed in front of higher officials

•Formal negotiations

China• Post negotiations

•Implementations & new rounds of negotiations – Negotiations in china almost always extends to post negotiation stage

Just be simple & Say

AAL IZZ WELL