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1、Cultural Differences in Business Negotiation Unit 14LOGOYour site hereIn todays class, we willdefine cross-cultural negotiationdiscuss the impact of cultural differencesunderstand strategies & guidelines4. ConclusionLOGOYour site hereI. Defining Intercultural NegotiationNegotiationIntercultural Nego

2、tiation Moran & Stripp (1991)LOGOYour site hereNegotiationa modern definition of negotiation is two or more parties with common (and conflicting) interests who enter into a process of interaction with the goal of reaching an agreement (preferably of mutual benefit). There must be both common interes

3、ts and issues of conflict. Without common interests there is nothing to negotiate for, without conflicting issues there is nothing to negotiate about. Intercultural NegotiationAccording to Moran & Stripp (1991), intercultural negotiation involves discussions of common and conflicting interests betwe

4、en reasons of different cultural backgrounds who work to reach an agreement of mutual benefit. They further explain that negotiations take place within the context of the four Cs: LOGOYour site hereFour CsSub titleSub titleCommon InterestConflicting InterestsCompromiseCriteriaLOGOYour site hereCommo

5、n interest considers that both parties in the negotiation share, have, or want something that the other party has or does.Areas of conflicting interests include payment, distribution, profits, contractual responsibilities, and quality. Compromise includes areas of disagreement. Although a win-win ne

6、gotiated settlement would be best for both parties, the compromises that are negotiated may not produce that result. The criteria include the conditions under which the negotiations take place. LOGOYour site hereSub titleMono-cultural negotiationIntercultural negotiationLOGOYour site hereII. The Imp

7、act of Cultural Differences on International Business NegotiationsCase StudyLOGOYour site hereCase Study The marketing manager of a U. S. knitwear firm was delighted with a multi-million-dollar for mens underwear it received from a department store chain in Saudi Arabia. The jockey shorts were packa

8、ged in the usual way (three pairs to a package, with a picture of a male modeling the briefs) and sent off to the customer in Saudi Arabia. However, Saudi customs officials were shocked to see a near totally nude man on packages that would be displayed in plain sight of Saudi women and children. Con

9、sequently, to satisfy Saudi customs officials, the entire shipment of mens briefs had to be sent back to the United States for repackaging, costing the firm thousands of dollars. LOGOYour site here1) What was wrong with the packages of mens underwear shipped to Saudi Arabia?2) What do you think woul

10、d be a proper way to package the underwear in order to be accepted by Saudi Arabians?LOGOYour site hereIII. The Top Ten Ways Culture Affects Negotiating StyleLOGOYour site here1. Negotiating GoalAmerican executivesAsian executivesTo arrive at a signed contractTo build a long-lasting relationshipLOGO

11、Your site here2. Negotiating AttitudeWin/LoseWin/WinDistributive bargainConfrontational processIncompatible goalsIntegrative bargainCelebrative/problem-solving processCompatible goalsLOGOYour site hereCase StudyOnce a U. S. automobile parts manufacturer was shown on television trying to make a sale

12、to some Japanese automobile firms. He was dressed in a boldly patterned cardigan sweater; his hosts were all in dark suits and white shirts. The TV camera caught a few of the hosts repeatedly looking at his sweater with something like alarm in their eyes, and looking away again. Finally it was repor

13、ted that he failed to make even a single sale. 3. Personal StyleLOGOYour site here1) Do you think the sweater the U. S. salesman wore was a factor in his failure to make a single sale? What was wrong with it?2) If you had been there, how would you have reacted to the causally dressed salesman? LOGOY

14、our site here3. Personal StyleInformal NegotiatingAmericansMexicansChineseSpanishLOGOYour site here4. CommunicationAmerican negotiatorsChinese negotiatorsLets put our cards on the table.Lets go to the point.LOGOYour site hereLOGOYour site hereLINEAR-ACTIVE MULTI-ACTIVEREACTIVE Talks half the time Ta

15、lks most of the time Listens most of the time Polite but direct Emotional Polite and indirect Partly conceals feelings Displays feelings Conceals feelings Confronts with logic Confronts emotionally Never confronts Dislikes losing face Has good excuses Must not lose face Rarely interrupts Often inter

16、rupts Doesnt interrupt Job-oriented People-orientedVery people-oriented Sticks to the facts Juggles the facts Statements are promises Sometimes impatient ImpatientPatient Plans ahead step by step Plans grand outline only Looks at general principles Limited body language Unlimited body language Subtl

17、e body language Does one thing at a time Multi tasks Reacts to partners action Punctuality very important Punctuality not important Punctuality important Truth before diplomacy Flexible truth Diplomacy over truth Compartmentalizes projects Lets one project influence another Sees the whole picture LO

18、GOYour site here7. Form of Agreement_ prefer very detailed contracts because they can refer to _ when new situations arise. The essence of the deal is _._ prefer general contract because they can refer to _ when new situations arise. The essence of the deal is _.Americansthe contractthe contractChin

19、esethe relationshipthe relationshipLOGOYour site hereagreed strategy8. Building an Agreement: Bottom up or Top downInductive(specific general)small detailssettlementDeductive(general specific)detailsLOGOYour site here10. Risk Taking (Uncertainty Avoidance)High-uncertainty-avoidance culture:“What is

20、different, is dangerous.”Portugal, Greece, Peru, Belgium, and Japan. Uncertainty AvoidanceLow-uncertainty-avoidance culture:“What is different, is curious”Denmark, Sweden, the United States, Finland, Netherlands and Ireland. .LOGOYour site hereNegotiating Style of Asian and the Western CountriesTopi

21、csAsian CountriesWestern CountriesNegotiating GoalNegotiating AttitudePersonal StyleCommunicationSensitivity to TimeEmotionalismForm of AgreementBuilding an AgreementTeam OrganizationRisk TakingrelationshipcontractWin-winWin-loseformalinformalindirectdirectlowhighlowhigh/lowgeneralspecificdeductivei

22、nductive/deductivegroup consensusone leaderrisk averserisk takerLOGOYour site hereMulticultural Negotiation Quiz1. People from which country are likely to take the longest to get down to negotiations?A. Canada.B. The United States.C. Japan. D. Mexico.LOGOYour site hereMulticultural Negotiation Quiz2

23、. For which group is a negotiating deadline likely to be the shortest?A. Mexicans. B. Asians. C. Americans. D. British. LOGOYour site hereMulticultural Negotiation Quiz3. The group that is most likely to be late for a negotiation session is _. A. Japanese B. Mexican C. German D. American LOGOYour site hereMulticultural Negotiation Quiz4. In which culture would relationships likely be the most important factor i

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