Cross Cultural Negotiation and Conflict

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MGF3681: International Management
Week 6:
Cross-Cultural Conflict
and Negotiation

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Week 5 Lecture
• Define each of the five (5) conflict management styles.
• Identify and briefly describe the six (6) steps in the
international negotiation process.
• Explain four (4) ways in which cultural differences can affect
the key negotiating processes.
• Define five (5) of the seven personal characteristics needed to
be a successful international negotiator.

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Conflict Management Styles
• Competition
– A style with which one prefers to deal head on with the conflict
• Avoidance
– Entails avoiding as long as possible for any disagreements
• Accommodation
– Involves high concern with the interests of others, sometimes at the
expense of one’s own interests
• Compromise
– Involves characteristically suggesting middle positions that involve both
partners giving up something to reach an agreement
• Collaboration
– Involves inventing new and creative options for dealing with conflict in
which both parties win

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Conflict Management Styles
You, and another junior associate, have been working on a vital client
project for the last month. It is due the 2nd of April. It’s Thursday
before Good Friday, the project is not complete. Your manager has
just informed you that a junior associate will be need to work over the
Easter break. Both yourself, and the other junior associate, have
plans to visit family over this period. Because of the complexity of the
project, it is not possible to split the work. One person is required to
complete the task.
Who will cancel their plans and work on the project?

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The Impatient America Sales Manager
It appears that the sales manager did not follow the commercial
attaché’s instructions. What do you believe were the attaché’s
instructions?
The sales manager was sent to a foreign country to negotiate a
business contract. Discuss what should have been done before
he or she was sent to the foreign country.
Structure: What are the problems, what theory does it link to, what
are the recommendations (hint this will help you in the exam)

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Week 6 Lecture
• Contrast foreign, minireplica and transnational subsidiaries.
• Define Global Product and Global Area structures and give an
example of when an organisation would use each one.
• What is an export department? What is an international
division? What are the advantages in having an international
division?
• Describe, using examples, of how a matrix structure works in
an international organisation.
• Evaluate the arguments in the centralisation / decentralisation
debate.

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Next Week
• Print out Australia Case Study