International Business Negotiations

Business Negotiations
Part 5
6 11 2012

1

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

Cultural types (1)

3

Cultural types (2)

4

Cultural types (3)

5

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

In International Negotiations very
important to understand the other side:
Language
Behaviour
Values
Mentality
Decision making process

7

“The World’s Business Cultures. 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


Barry Tomalin, Mike Nicks “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

UNITED STATES - CULTURAL PROFILE
Direct In direct
2. WORK STYLE
Formal Informal
3. DISCUSSION STYLE
Quick Slow
Progressive Tradicional
5. MANAGEMENT STYLE
Horizontal Vertical
7. DECISSION MAKING
Facts Instincts
9. TIME ATTITUDE
Planned Flexible


BUSINESS IN USA
Ways to 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


GERMANY - CULTURAL PROFILE
Direct In direct
2. WORK STYLE
Formal Informal
3. DISCUSSION STYLE
Quick Slow
5. MANAGEMENT STYLE
Horizontal Vertical
7. DECISSION MAKING
Facts Instincts
9. TIME ATTITUDE
Planned Flexible

BUSINESS IN GERMANY
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

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

GREAT BRITAIN - CULTURAL PROFILE
Direct In direct
2. WORK STYLE
Formal Informal
3. DISCUSSION STYLE
Quick Slow
5. MANAGEMENT STYLE
Horizontal Vertical
7. DECISSION MAKING
Facts Instincts
9. TIME ATTITUDE
Planned Flexible


BUSINESS IN UK
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

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?”

FRANCE - CULTURAL PROFILE
Direct In direct
2. WORK STYLE
Formal Informal
3. DISCUSSION STYLE
Quick Slow
5. MANAGEMENT STYLE
Horizontal Vertical
7. DECISSION MAKING
Facts Instincts
9. TIME ATTITUDE
Planned Flexible

BUSINESS IN FRANCE
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
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

RUSSIA - CULTURAL PROFILE
Direct In direct
2. WORK STYLE
Formal Informal
3. DISCUSSION STYLE
Quick Slow
5. MANAGEMENT STYLE
Horizontal Vertical
7. DECISSION MAKING
Facts Instincts
9. TIME ATTITUDE
Planned Flexible

BUSINESS IN RUSSIA
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

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

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

21

Respect to the culture of the opponent
is the key to success

22

YOUR COUNTRY
Ways to Success Ways to Failure


International Business Negotiations

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