Page 261 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes As for thinking and decision making, Western business executives tend to address complex
negotiations by breaking deals down into smaller issues and settling them sequentially;
in many Eastern cultures a more holistic approach is taken in discussions.
Much care must be taken in selecting negotiation teams to represent companies in meetings
with foreigners. Listening skills, influence at headquarters, and a willingness to use team
assistance are important negotiator traits.

The importance of cross-cultural training and investments in careful preparations cannot
be overstated. Situational factors such as the location for meetings and the time allowed
must also be carefully considered and managed.
All around the world business negotiations involve four steps: nontask sounding, task-
related information exchange, pervasion, and concessions and agreement. The time spent
on each step can vary considerably from country to country.

Americans spend little time on non-task sounding or getting to know foreign counterparts.
Particularly in high-context cultures, it is important to let the customers bring up business
when they feel comfortable with the personal relationship.
Task-related information goes quickly in the United States as well. In other countries, such
as Japan, the most time is spent on the second stage, and careful understandings of partners
are focused upon. Persuasion is the most important part of negotiations from the American
perspective.
Aggressive persuasive tactics (threats and warnings) are used frequently. Such persuasive
tactics, although they may work well in some cultures, cause serious problems in others.
Finally, because Americans tend to be deal oriented, more care should be taken in follow-
up communications with foreign clients and partners who put more emphasis on long-
term business relationships.

14.7 Keywords

Distributive Perspective: The assumption underlying distributive bargaining strategies is that
one party gains at the expense of the other.

Formal Written Contracts: A formal written agreement is a legal document summarizing
obligations between parties. It is also referred to as a “contract” when it is legally enforceable.
Integrative Perspective: The assumption underlying integrative bargaining strategies is that
there is opportunity for both parties to gain from a negotiated agreement because they place
different values on the issues being negotiated and can find effective trade-offs by conceding
less important issues to gain on more important ones.
Internal Decision-Making Process: This process refers to the manner in which a negotiating
team reaches decisions.
Negotiation: Negotiation is a dialogue between two or more people or parties, intended to
reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue,
to craft outcomes to satisfy various interests of two people/parties involved in negotiation
process.
Risk Averse: Risk averse negotiators are hesitant to proceed with proposals that may have
unknowns and/or contingencies associated with them.

256 LOVELY PROFESSIONAL UNIVERSITY