Impacts of Cultural Differences on Business Negotiations
Ⅰ. Introduction
The business negotiations under different business cultural conditions come to multi-cultural negotiations. With the economic globalization and the frequent business contacts, cultural differences seem to be very important, otherwise they could cause unnecessary misunderstanding, even affect the result of the business negotiations. This means it is very important to know the different culture in different countries and the ways to avoid the culture conflicts in the international business negotiations. The article commences from the definition of the culture in the area of business. Then from the three aspects of communication process, negotiation styles, it explains the influence of cultural differences on international business negotiations, and at the same time it analyzes how to deal with the problems of the business cultural differences correctly in negotiation process . Such a standpoint is emphasized: In the business negotiations between different countries , negotiators should accept the other party's culture, and try to make him be accepted ; then make a correct evaluation with the help of valid communication and discover their real benefits between them . Besides, we should know clearly and try to accept the cultural differences as possible as we can. It is very important for the success of culture negotiations.
正式的文化倾向于有组织的等级制度，在地位和权力方面有主要影响。相比之下，非正式的文化更注重平等的组织，在地位和权利方面没有太大影响。
当一个来拥有非正式文化的谈判人员遇到一个拥有更正式文化的同行时，很多重要的谈判失败
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了，因为那些文化差异已经被搬到了谈判桌上。拥有正式层次文化的商务谈判人员可能被一个陌生的来自非正式社会环境的同行冒犯。另一方面，那些拥有非正式文化的谈判者可能会觉得那些正式的同行沉闷、疏远、自负、或者傲慢。
非正式文化倾向于价值地位平等，正式文化重视价值和层次的差异，忽略这些目的就可能在谈判中引起一系列的问题。
如果都能意识到不同的商业谈判行为都是不同价值观的结果，而不是个人特性引起的，那么，这样的误会就可以避免。
非正式文化的国家有：澳大利亚、美国、加拿大、新西兰、丹麦、挪威、冰岛。
正式文化的地区有：欧亚的大多数地区，地中海地区和阿拉伯世界,拉丁美洲。
E.硬性时间文化与软性时间文化
不同地区的人安排和利用时间的方式不同，在硬性时间社会，守时是重要的，计划和议程都是固定的，并且商业会议很少会被打断。软性时间文化有着明显的差别，人们很少严厉地强调守时从而好多事情都没有在预定的期限内完成。
冲突就产生在一些硬性时间商人认为那些软性时间的客户很懒，还没有原则，与此同时，后者却觉得前者过分受期限的限制是一种傲慢。
硬性时间文化的国家有：北欧和日耳曼欧洲、北美、日本。
软性时间文化的国家有：澳大利亚/新西兰、俄国和大多数站欧洲、东南亚等国家和地区。
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Ⅱ. Different Business Cultures
Different countries, different races have different culture which affect each aspect of society. So in the area of business let us firstly give different culture definition their feathures as the following six.
A. Task-centered vs People-centered
People who are purely task-oriented are concerned entirely with achieving a business goal. They are not at all concerned about the effect which their determination will have on the people with whom they come into contact. They will pursue their business objectives relentlessly; they will go to the limits of morality; as negotiators, they will be very tough , very fighting, very aware of tactical ploys and anxious to make maximum use of them.
American business culture is a very example of task-centered. People don’t want to waste time with the social niceties; they want to get down to business. Another way of classifying this type of approach is to say that it is very specific. People who adopt this approach tend to focus hard on specific issues—this should mean that time is saved and objectives reached most effectively. However, there is always a danger that personal issues can be ignored. These personal issues may be the ones which make or break the deal!
People-oriented managers, on the other hand, are highly concerned about the well-being of those who work for them, or alongside them or above them. This can lead to an almost total neglect of the business goals.
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In this respect, they give time to some small talk before the meeting starts because they believe this will improve communication and lay the basis for possible future relationships. Another way of looking at this is to call it diffuse. A diffuse approach to business will place great importance on all the events which surround the actual discussion on the deal, for example, lunch together, social conversation on the way to the airport, or a chance to meet your partner’s famil .
There are intermediate points between total task-orientation and total people-orientation. It splits this central area into three parts.
low-orientation both to task and to people
But of course such low achievers would hardly be expected to reach the status of negotiators. medium-orientation both to task and to people
This center group is characterized by the continual search for compromise.
high-orientation both to task and to people
This style is characterized by tremendous openness, trust in forms of relationship, great forethought, sound creative decisions.
From the three parts, we recognize also three styles of negotiators we are likely to meet in practice: the fighter, the collaborator , the compromiser.
How should these three distinctive styles of negotiation influence the way we conduct
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our negotiations?
First, we must recognize that the different patterns of behavior are deeply ingrained in the people we are likely to meet. They will tend naturally to follow their set ways of doing things . They will not easily adapt to our approach .
Therefore if we want to adopt an approach different from theirs. We must become the more skilled negotiators, more skilled in doing it our way than they are in doing it their way.
Second, we must take account of the other party’s style in our preparations. The most difficult situation is when we want to negotiate to our advantage but we anticipate skilled fighters and fear being beaten. Then we must prepare our defenses including bids and tactics.
Having prepared in this way, we will have a high degree of readiness to put forward our bids, and subsequently to defend them and to use the tactics we have thought about. More positively, if we anticipate meeting skilled fighters but have confidence in our own skills, if we are not afraid of being beaten, then our preparation and conduct of the negotiation will not need to be based on preparing our defenses. Our preparations now can be restricted to obtaining a clear definition of purpose and aims, without yet going hard on our opening bids.
正式的文化倾向于有组织的等级制度，在地位和权力方面有主要影响。相比之下，非正式的文化更注重平等的组织，在地位和权利方面没有太大影响。
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当一个来拥有非正式文化的谈判人员遇到一个拥有更正式文化的同行时，很多重要的谈判失败了，因为那些文化差异已经被搬到了谈判桌上。拥有正式层次文化的商务谈判人员可能被一个陌生的来自非正式社会环境的同行冒犯。另一方面，那些拥有非正式文化的谈判者可能会觉得那些正式的同行沉闷、疏远、自负、或者傲慢。
非正式文化倾向于价值地位平等，正式文化重视价值和层次的差异，忽略这些目的就可能在谈判中引起一系列的问题。
如果都能意识到不同的商业谈判行为都是不同价值观的结果，而不是个人特性引起的，那么，这样的误会就可以避免。
非正式文化的国家有：澳大利亚、美国、加拿大、新西兰、丹麦、挪威、冰岛。
正式文化的地区有：欧亚的大多数地区，地中海地区和阿拉伯世界,拉丁美洲。
E.硬性时间文化与软性时间文化
不同地区的人安排和利用时间的方式不同，在硬性时间社会，守时是重要的，计划和议程都是固定的，并且商业会议很少会被打断。软性时间文化有着明显的差别，人们很少严厉地强调守时从而好多事情都没有在预定的期限内完成。
冲突就产生在一些硬性时间商人认为那些软性时间的客户很懒，还没有原则，与此同时，后者却觉得前者过分受期限的限制是一种傲慢。
硬性时间文化的国家有：北欧和日耳曼欧洲、北美、日本。
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软性时间文化的国家有：澳大利亚/新西兰、俄国和大多数站欧洲、东南亚等国家和地区。
B. Pioneer vs Bureaucrat
The “pioneer” is the strong individual. He is prominent in his own organization. The sort of man is good at seizing an opportunity, spotting a market, making a profit. He tends to be very dominating, good at improvising, intuitive in his thinking, charismatic in his personality.
A negotiator of this type will be pushful, forceful, ready to take decisions and to come to agreements. He will be distinguishable particularly in the way in which he acts as a team leader: focal point of the team, the one who speaks for the team on all issues, the one who uses his team members to obtain information for himself which he then transmits to other party.
Such a team leader, though usually bubbles with energy, is even able to handle only the content of a negotiation. He cannot at the same time have conscious concern for the procedures of the meeting.
Bureaucracy is the pattern most often found in large organizations. The style of working is systematized. There are books of rules, standardizations, planning, numerous, lots of checking, double-checking and cross-checking. The organization is governed with a clear hierarchy. It is compartmentalized and co-ordinated by the system, the rules, the procedures and the objectives.
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Advantage within a bureaucratic organization comes to the people who are most competent at playing the game according to the rules . This means that their negotiators may be expected to have both objectives and styles of working which are bureaucratic negotiator to fit into the budgetary provisions than the total sum of money involved . For stylized bureaucrats, precise statements are to be agreed at each step . Elegance and conformity are maintained as they go along the negotiating process.
In anticipation of meeting with bureaucratic negotiators, the other party does well to select a team which has both the personality and experience to handle this manner of operating.The team will readily accept the system of approach we have advocated to negotiations; for example, they will follow the procedural discipline of agreeing purpose, plan and pace, their behavior will be impeccable. But the attitude of looking together for joint advantage does not come easily to the systems-minded. They see two sides to represented by the negotiating parties, not one group of parties working towards agreement. Bureaucratic organizations thus tend to have distinctive objectives and to negotiate in the pattern “to our advantage”.
正式的文化倾向于有组织的等级制度，在地位和权力方面有主要影响。相比之下，非正式的文化更注重平等的组织，在地位和权利方面没有太大影响。
当一个来拥有非正式文化的谈判人员遇到一个拥有更正式文化的同行时，很多重要的谈判失败了，因为那些文化差异已经被搬到了谈判桌上。拥有正式层次文化的商务谈判人员可能被一个陌生的来自非正式社会环境的同行冒犯。另一方面，那些拥有非正式文化的谈判者可能会觉得那些正式的同行沉闷、疏远、自负、或者傲慢。
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非正式文化倾向于价值地位平等，正式文化重视价值和层次的差异，忽略这些目的就可能在谈判中引起一系列的问题。
如果都能意识到不同的商业谈判行为都是不同价值观的结果，而不是个人特性引起的，那么，这样的误会就可以避免。
非正式文化的国家有：澳大利亚、美国、加拿大、新西兰、丹麦、挪威、冰岛。
正式文化的地区有：欧亚的大多数地区，地中海地区和阿拉伯世界,拉丁美洲。
E.硬性时间文化与软性时间文化
不同地区的人安排和利用时间的方式不同，在硬性时间社会，守时是重要的，计划和议程都是固定的，并且商业会议很少会被打断。软性时间文化有着明显的差别，人们很少严厉地强调守时从而好多事情都没有在预定的期限内完成。
冲突就产生在一些硬性时间商人认为那些软性时间的客户很懒，还没有原则，与此同时，后者却觉得前者过分受期限的限制是一种傲慢。
硬性时间文化的国家有：北欧和日耳曼欧洲、北美、日本。
软性时间文化的国家有：澳大利亚/新西兰、俄国和大多数站欧洲、东南亚等国家和地区。
C. Relationship-focused vs Deal-focused Cultures
Deal-focused people are fundamentally task-oriented while relationship-focused
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folks are more people-oriented.
Conflicts arise when deal-focused export marketers try to do business with prospects from relationship-focused markets. Many relationship-focused people find deal-focused types pushy, aggressive and offensively blunt. In return, deal-focused types often consider their relationship-focused counterparts dilatory Many relationship vague and inscrutable.
The vast majority of the world’s markets are relationship-oriented; the Arab world and most of Africa, Latin America and the Asia/Pacific region where business people get things done through intricate networks of personal contacts. They prefer to deal with friends and persons or groups who are well known to them and can be trusted. They are uncomfortable doing business with strangers, especially strangers who also happen to be foreigners. Likewise, relationship-oriented firms typically want to know their prospective business partners very well before talking business with them.
In contrast, the deal-focused approach is common in only a small part of the world. Strongly deal-focused cultures are found in northern Europe, North America, Australia and New Zealand, where people are relatively open to doing business with strangers.
Moderately deal-focused cultured could be found in Great Britain, South Africa, Latin Europe, Central and Eastern Europe, Chile, southern Brazil, northern Mexico, and Singapore.
This “Great Divide ” between the world’s cultures affects the way of business conducted from the beginning to the end of any commercial relationship. For starters, the
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way the first approach is made to potential buyers or partners depends upon whether they are in deal-focused or relationship-focused cultures.
In deal-focused cultures, people are relatively open to dealing with strangers. The marketer can make initial contact with the prospective buyer without any previous relationship or connection. Having an introduction or referral is helpful but not essential. Let’s take the united states as an example. Perhaps because they are raised in a highly mobile immigrant society, most Americans are open to discussing business possibilities with people they don’t know. Each year Americans buy over $300 billion dollars worth of goods and services from total strangers, and half of it is business-to-business selling.
In relationship-focused cultures, firms do not do business with strangers. The proper way to approach someone who isn’t yet known is to arrange for the right person or organization to make an introduction. A third party introduction bridges the relationship gap between one and the person or company one wants to talk to. The ideal introducer is a high-status person or organization known to both parties. Embassy officials tend to be accorded high status in relationship-oriented cultured, and of course it is part of their job to promote exports. Chambers of commerce and trade associations are other potential customer or partner, whether via a trade show, a trade mission or a third-party introduction.
正式的文化倾向于有组织的等级制度，在地位和权力方面有主要影响。相比之下，非正式的文化更注重平等的组织，在地位和权利方面没有太大影响。
当一个来拥有非正式文化的谈判人员遇到一个拥有更正式文化的同行时，很多重要的谈判失败
11
了，因为那些文化差异已经被搬到了谈判桌上。拥有正式层次文化的商务谈判人员可能被一个陌生的来自非正式社会环境的同行冒犯。另一方面，那些拥有非正式文化的谈判者可能会觉得那些正式的同行沉闷、疏远、自负、或者傲慢。
非正式文化倾向于价值地位平等，正式文化重视价值和层次的差异，忽略这些目的就可能在谈判中引起一系列的问题。
如果都能意识到不同的商业谈判行为都是不同价值观的结果，而不是个人特性引起的，那么，这样的误会就可以避免。
非正式文化的国家有：澳大利亚、美国、加拿大、新西兰、丹麦、挪威、冰岛。
正式文化的地区有：欧亚的大多数地区，地中海地区和阿拉伯世界,拉丁美洲。
E.硬性时间文化与软性时间文化
不同地区的人安排和利用时间的方式不同，在硬性时间社会，守时是重要的，计划和议程都是固定的，并且商业会议很少会被打断。软性时间文化有着明显的差别，人们很少严厉地强调守时从而好多事情都没有在预定的期限内完成。
冲突就产生在一些硬性时间商人认为那些软性时间的客户很懒，还没有原则，与此同时，后者却觉得前者过分受期限的限制是一种傲慢。
硬性时间文化的国家有：北欧和日耳曼欧洲、北美、日本。
软性时间文化的国家有：澳大利亚/新西兰、俄国和大多数站欧洲、东南亚等国家和地区。
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D. Formal vs Informal Business Cultures
Formal cultures tend to be organized with hierarchies which reflect major differences in status and power. In contrast, informal cultures value more egalitarian organizations with smaller differences in status and power.
Many promising international deals have fallen through when a negotiator from an informal culture confronts counterparts from more formal cultures because these contrasting values conflict at the conference table. Business people from formal, hierarchical cultures may be offended by the breezy familiarity of counterparts from informal, relatively egalitarian societies. On the other hand those from informal culture may see their formal counterparts as stuffy, distant, pompous or arrogant.
Informal cultures are supposed to value status equality, formal cultures value hierarchies and status differences. Ignorance of this distinction can cause serious problems across the bargaining table.
Such misunderstandings can be avoided if both sides are aware that differing business behaviors are the result of differing cultural values rather than individual idiosyncracies
Informal culture: Australia, USA, Canada, New Zealand, Denmark, Norway, Iceland.
Formal culture: Most of Europe and Asia, the Mediterranean Region and the Arab
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World, Latin America.
E. Rigid –time vs Fluid-time Cultures
People look at time and scheduling differently in different parts of the world. In rigid-time societies, punctuality is critical, schedules are set in stone, agendas are fixed and business meetings are rarely interrupted. In direct contrast are fluid-time culture. People has less emphasis on strict punctuality and are not obsessed with deadlines.
Conflict arises because some rigid-time visitors regard their fluid-time partners as lazy, undisciplined while the latter often regard the former as arrogant martinets enslaved by arbitrary deadlines.
Rigid-time business culture: Nordic and Germanic Europe, North America, Japan.
Fluid-time culture: Australia/New Zealand, Russia and most of East-Central Europe, Southeast Asia.
正式的文化倾向于有组织的等级制度，在地位和权力方面有主要影响。相比之下，非正式的文化更注重平等的组织，在地位和权利方面没有太大影响。
当一个来拥有非正式文化的谈判人员遇到一个拥有更正式文化的同行时，很多重要的谈判失败了，因为那些文化差异已经被搬到了谈判桌上。拥有正式层次文化的商务谈判人员可能被一个陌生的来自非正式社会环境的同行冒犯。另一方面，那些拥有非正式文化的谈判者可能会觉得那些正式的同行沉闷、疏远、自负、或者傲慢。
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非正式文化倾向于价值地位平等，正式文化重视价值和层次的差异，忽略这些目的就可能在谈判中引起一系列的问题。
如果都能意识到不同的商业谈判行为都是不同价值观的结果，而不是个人特性引起的，那么，这样的误会就可以避免。
非正式文化的国家有：澳大利亚、美国、加拿大、新西兰、丹麦、挪威、冰岛。
正式文化的地区有：欧亚的大多数地区，地中海地区和阿拉伯世界,拉丁美洲。
E.硬性时间文化与软性时间文化
不同地区的人安排和利用时间的方式不同，在硬性时间社会，守时是重要的，计划和议程都是固定的，并且商业会议很少会被打断。软性时间文化有着明显的差别，人们很少严厉地强调守时从而好多事情都没有在预定的期限内完成。
冲突就产生在一些硬性时间商人认为那些软性时间的客户很懒，还没有原则，与此同时，后者却觉得前者过分受期限的限制是一种傲慢。
硬性时间文化的国家有：北欧和日耳曼欧洲、北美、日本。
软性时间文化的国家有：澳大利亚/新西兰、俄国和大多数站欧洲、东南亚等国家和地区。
F. Expressive vs Reserved Cultures
Expressive people communicate in radically different ways from their more reserved
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counterparts. Expressive people tend to be uncomfortable with more than a second or two of silence during a conversation. In contrast , people from reserved cultures feel at ease with much longer silences. Japanese negotiators, for example, often sit without speaking for what seems like an eternity voluble Mexicans. After three or four seconds the latter feel compelled to say something, anything to fill the awful silence.
Unfortunately the loquacity of expressive people tends to irritate the reticent Japanese, who seem to value the space between the spoken words just as much as the words themselves. Negotiators from reserved cultured do not feel the need to engage in constant blabbing the way many of their expressive counterparts do.
Very expressive cultures: The Mediterranean Region, Latin Europe, Latin America.
Reserved cultures: East and Southeast Asia, Nordic and Germanic.
正式的文化倾向于有组织的等级制度，在地位和权力方面有主要影响。相比之下，非正式的文化更注重平等的组织，在地位和权利方面没有太大影响。
当一个来拥有非正式文化的谈判人员遇到一个拥有更正式文化的同行时，很多重要的谈判失败了，因为那些文化差异已经被搬到了谈判桌上。拥有正式层次文化的商务谈判人员可能被一个陌生的来自非正式社会环境的同行冒犯。另一方面，那些拥有非正式文化的谈判者可能会觉得那些正式的同行沉闷、疏远、自负、或者傲慢。
非正式文化倾向于价值地位平等，正式文化重视价值和层次的差异，忽略这些目的就可能在谈判中引起一系列的问题。
16
如果都能意识到不同的商业谈判行为都是不同价值观的结果，而不是个人特性引起的，那么，这样的误会就可以避免。
非正式文化的国家有：澳大利亚、美国、加拿大、新西兰、丹麦、挪威、冰岛。
正式文化的地区有：欧亚的大多数地区，地中海地区和阿拉伯世界,拉丁美洲。
E.硬性时间文化与软性时间文化
不同地区的人安排和利用时间的方式不同，在硬性时间社会，守时是重要的，计划和议程都是固定的，并且商业会议很少会被打断。软性时间文化有着明显的差别，人们很少严厉地强调守时从而好多事情都没有在预定的期限内完成。
冲突就产生在一些硬性时间商人认为那些软性时间的客户很懒，还没有原则，与此同时，后者却觉得前者过分受期限的限制是一种傲慢。
硬性时间文化的国家有：北欧和日耳曼欧洲、北美、日本。
软性时间文化的国家有：澳大利亚/新西兰、俄国和大多数站欧洲、东南亚等国家和地区。
III. Influences of Different Bussiness Culture on Different Stages of Negotiation
A. Pre-negotiation
It is from this stage on that both sides begin to understand one another’s needs and evaluate the benefits of entering into the process of negotiation. Both sides now gather as
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much information as possible on each other, like the operating environment, involvement of other parties, influencers, competitors and the infrastructure. The main issue here is to define the problem to be jointly solved, for it will both reflect each other’s expectations and is necessary to get commitment from each other, which will then help to achieve a problem-solving situation.
To be environmental factors include politics, religious belief, law regulations, business conventions, social customs, financial state, infrastructures as well as climate. All these elements will directly or indirectly influence the negotiation. Information gathering will to some extent determine the success and failure of the negotiation.
1. Scheduling the First Meeting
The first impression each side makes will most likely have a major effect on the style, progress, and eventual outcome of the negotiations. Scheduling the first round of meetings is an important task for both side and should be handled in a manner that preserves the professionalism of all the attendees.
1.1 Clothing
Related to weather, health, and negotiation style is the issue of proper clothing. Research will supply visitors with the information they need to look the part and feel at ease during negotiations. Dry cleaning and laundry needs should be reviewed before travel, as being rumpled, dirty, or underdressed can undermine your position during important discussions. Negotiation team members should get some information on the
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climatic and cultural clothing requirements prior to departure. Anyhow what really matters is keeping it simple and appropriate.
1.2 Dining
Some business cultures are especially keen on linking business meetings with dining. So arrive prepared to have new dinning experiences. Try a little of what is offered and avoid overindulging from cup or plate. Don’t let the dinner table keep you form making it to the negotiation table.
Hosts should be briefed on any special culinary needs of visitors. These needs may be religious or philosophy based. It is the visitors’ obligation to inform their hosts well in advance of arrival that special diets may be required.
1.3 Holidays and Religions
Negotiation should be planned in accordance with events occurring at the host location as well as the needs of visitors. Inviting a Beijing company to San Francisco during the Lunar New year period will be unwise. Only by monitoring the religious and traditional holidays of all attendees can negotiations proceed without distraction or interruption.
Religious requirements of negotiators must also be considered. Religious biases can be as destructive to discussions as racial, sexual, or cultural prejudices.Before meetings are scheduled, both sides should be briefed on any special needs.
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1.4 Gifts
Gift exchange among business associates is a standard practice in many cultures and is not to be confused with bribery. If negotiations are taking place in such a culture, visitors must prepare accordingly. Because any neglect of this practice shows a lack of understanding. Keeping the gifts small, for transport reasons, and preferably company related. Do not, under circumstances, offer gifts produced or purchased in the host company’s market.
1.5 Issues and positions
Any information upon which there is disagreement can be organized into the negotiation issues. That is to say that the issues are the things on which one side takes an affirmative position and the other a negative position. Issues should be pragmatic, for it is to make a definite judgment about unrealistic issues.
It is important that we should try to negotiate rather than our demands. Our demands are only a one-solution approach to the problems. There may be other solutions. In the course of our negotiation, we may want to change position.
When the other side makes a commitment or sets a limit, one way of handling it would be to ignore it or not comprehend it. Another might be to make casual conversation or a joke so that the seriousness of it may be lost. Humor can serve a vital function in negotiations.
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It is said that your bargaining position should conceal as well as reveal, and as negotiation continue, concessions alternate from each side. A motivating factor to cause such reactions is citing principles and precedents for the other side to work with.
Each position is the sum of all the issues involved. Some negotiations have many issues. Some issues are broader than others. With the resolution of the broader and more important issues, some of the minor ones seem to disappear or be resolved. As new facts are developed in fact-finding and negotiation, the posture that one takes on an issue may change, and so will the position change.
B. Face-to-face Negotiation --the Ways to Influence the Deal
1. Greetings--Open the Meeting
Good negotiating atmosphere is better to be formed at the very beginning of the negotiation. Therefore, both parties should seize the occasion of the first meeting when doing self-introduction or being introduced. Try to behave gracefully and speak clearly to be impressed as kind, natural and honest. This will help shorten the distance between the two parties .
The more formal the culture, the more likely you will confine yourself to use the person’s family name plus any applicable title or honorific.
Visitors to Japan who interact with women should remember that the polite prefix “san” can mean “Miss”, “ Mrs” as well as “Mister”.
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In the USA the saying goes, “ I don’t care what you cal me just as long as you call me for dinner.” Nevertheless physicians and are usually called “Dr.” only when he or she is “on duty”.
Of course even in the informal USA there are hierarchies. Whereas at a Silicon Vallley startup company everyone may be on a first-name basis, in larger, more traditional corporations executives are often addressed as Mr. Miss, Ms, or Mrs. –at least in the office.
Many cultures employ standard expressions as verbal greetings. For instance, Americans often say, “Hi, how are you?” and come Asians and Europeans seem to be confused by this rhetorical question, thinking the yank is actually asking after their health. In fact it’s a meaningless expression calling for the automatic response, “ Fine! How are you?” whereupon everyone gets right down to business.
In fact, Europeans also employ various meaningless syllables when being introduces to someone for the first time. Germans will say something meaning “It is a great pleasure to meet you”. How do they know whether it is going to be such a great pleasure when they don’t even know the person yet?
2.Exchange Working Information
The situation of exchanging working information is decided by different negotiating styles of different cultures. People form different countries have different values, different attitudes and different experience. They have different strengths and different weaknesses form one another. People from different countries have different values, different
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experience. They have different strengths and different weaknesses form one another.
A competent negotiator should develop a style appropriate for his own strengths including the strengths of his particular culture. He should not follow a style in which other people have strengths, but he does not, as that would lead to displaying his natural weakness rather than his natural strengths.
He needs to become aware of what those strengths of his are end to practice the skills of exploiting them.
He needs also to be conscious that other people operate indifferent ways. It is important to respect their different ways without being subservient to them.
2.1 . American
The American style is very direct and they try to demand the same from counterparts. Generally, Americans openly disagree and use aggressive persuasive tactics such as threats and warnings. Americans tend to make concessions throughout the negotiations, settling one issue, then proceeding to the next.Thus the final agreement is a sequence of several smaller concessions. Within the American culture , great respect is attached to economic success. There is concern to acquire the symbols of material success.
The American style of negotiating is possibly the most influential in the world. It is the style which dominates the literature and many other people seek to emulate.
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It is characterized first by personalities which are usually outgoing, and quickly convey sincerity and warmth. Personalities are confident and positive and readily flow into exuberant conversation. The negotiator enters the negotiating room confidently, talking assertively.
The American negotiator, enthusiastically starting negotiations from a strong position, appreciates this attitude of the search for economic gain. His strengths are particularly high in the bargaining phases of negotiation. He naturally moves quickly towards those phases. He is himself adept at using tactics to gain advantage, and expects others to have the same professionalism. Americans do prefer speedy negotiations and get annoyed with too much extraneous socializing or postponement. They are used to cutting deals short just to have time.
Americans make decisions based upon the bottom line and on cold, hard facts. They are use to cutting deals short just to save time. They do not play favorites. Economics and performance count, not people .Business is business.
2.2. British
Britain is an orderly society and punctuality is mandatory. Arrange appointments in advance and present an agenda as early in the process as possible.
Start the bargaining at a point only slightly distant from the projected goal. Leave yourself come negotiating room but don’t be excessive. The British counterpart will have already researched the true value range of the deal.
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The English are reserved rather than expressive or demonstrative in the way they communicate. This is evident in their use of understatement, large space bubble, low-contact body language and restrained gestures.
Americans may find the British process too time-consuming, but for the rest of the world’s business cultures it is quite normal.
The business lunch has institutionalized in Britain. Much negotiation will be done with knife and fork in hand.
2.3 . Australian
The Australians are tough breed and they enjoy competition. They encourage long-term relationships and prefer to work with people they count as friends.
Australians shun formality and are recognized as some of the friendliest business people in the world. Since formalities are minimal, negotiations move at a quick pace. Show up on time and come prepared.
Be direct while negotiating, as the Australians are keen to spot deception and they feel no hesitation to walk away from the table if they feel one is holding back information.
The Australians will haggle , but only to a small degree. Waiting for the price to drop is an Australian pastime. Since Australians tend to dislike bazaar haggling, visiting negotiators will get better results by opening discussions with a realistic bid. The
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negotiating process may take more time than it would in some other deal-focused business cultures, though less than in strongly relationship-focused markets such as Japan.
Australians have well-developed commercial law. Handshakes are an amenity. Signatures mean business.
Because of their relatively small population and remote locale, the Australians have become experienced travelers and negotiators. They research the target economies and companies in great detail, with an eye toward limiting surprises at the table. Be assured that they will know all about the prospective company and culture before the first meeting.
2.4 . Chinese
These are at least two differences in the way of business between Chinese and American business men.
First, Chinese tend to have business negotiations in a rather indirect manner, as opposed to the direct manner of American businessmen. Chinese take time to see whether their prospective business contacts are really reliable as human beings, for example, by inviting them to a part and socializing with them. In contrast, Americans act with “get-down-to-business-first” mentality.
Second, the decision-making process of Chinese companies is considered to be very
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slow and time-consuming.This is because most Chinese companies have the bottom-up decision-making system which involves may people in the decision-making, as opposed to the American companies which usually operate with quick decisions made by the top management.
The Chinese negotiator is distinguished by concern for “ face” and specialization.
The “face” issue is most important. The negotiator must be seen to be negotiating with someone of key status and authority. He must not be forced to lose face by having to withdraw from stance firmly key status and authority. The final agreement must be one that enables him to sustain or preferably improve his face as perceived by his acquaintances.
The specialization means that there will be lots of experts at the negotiation: the technical expert, the financial expert, the shipping expert, and another three experts. Inevitably this leads to protracted negotiations, each expert establishing and safeguarding his face during the negotiations.
The Chinese welcome genuine interest in their families. A present for the son (a small present that has had some thought put into it, not something ostentatious )is precious in contrast to a big business lunch, which is worthless.
2.5 . Japanese
Letters of Introduction are essential for doing business here. As in much of Asia,
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having connections in Japan is the only way to get through the front door, unless one represents an internationally recognized brand name.
Individualism is not a characteristic of Japanese negotiators; they rarely come to the table in groups smaller than three. The person doing the most talking for the Japanese side will most probably not be the person in charge of the negotiations.
The Japanese will not discuss points that are not part of the prearranged agenda. Small talks will be kept to a minimum and inquires into personal lives will rarely be made or accepted.
Japanese negotiators are famous for their ambiguous responses to proposals. They view vagueness as a form of protection from “loss of face” in case things go sour. To maintain surface harmony and prevent loss of face, Japanese rely on codes of behavior such as the ritual of the meishi or the business cards. Japanese negotiators dress and behave formally and are more comfortable with visitors who do likewise.
Many Japanese companies still make decisions by consensus. This is a time-consuming process, another reason on bring patience to the negotiating table. So quick answers to any question or problem are almost impossible.
The Japanese maintain harmony at all costs and will smile the most when they’re the least comfortable at the negotiation table; if the proposal is unacceptable, “no” is not told in a direct manner. Postponements and requests for further research should be understood as a prelude to failure.
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3. Persuasion and Bargaining
In this process, we must be careful not to give the other party too much icing too quickly. However one must also be concerned with making a fair deal in which both parties equally dissatisfied. If it is not possible to cut the cake so that all get their share, then one must bargain in such a way that dissatisfaction is equally shared between everyone. As we start the bargaining process we need to take two steps
Get it clear
Assess the situation
It is vital to establish a clear picture of the other party’s requirements at the start. You must have a clear picture of what bid is being offered, and not why such a bid is being made. It is only after bargaining one should need to know why. One needs increasingly to build an understanding of what will provide satisfaction and how trade can be used as an advantage while continuing to satisfy the other individual.
4. Tactics of Making Concessions and Towards Settlement
There are bargaining caused by culture difference so how do we deal with? That we should learnt to make concessions and towards settlement.
4.1 Tactics of Making Concessions
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Making concessions is the most popular tactics used in the bargaining process to keep the negotiation on going. Making concessions however has a lot to do with many other factors. For example, through thorough calculation one can determine when to concede, what to concede and how to concede. Every concession is very closely to a party’s own interests. Although it depends mainly on the negotiator’s flexible usage of the tactics of making concessions, it also is constrained by some basic principals.
The basic principles that govern concessions in bargaining are :
a. A concession by one party must be match by a concession of the other party. For example: one party wants to match a concession by the other party on a bargaining of price issue. He points out that “If you could see your way to discussing the delivery issue, I suppose that might help us to take a new look at price. How about the delivery issue? Are you negotiable?” In doing so, this party is forcing the other party to match the concession on price issue by making concessions on delivery issues.
b. it’s better for the pace of concession to be as little as possible and the frequency of concession to be slow. What’s more, the pace of concession must be similar as between the two parties. If you give a little, then you must give no more until the other party has given a little in return. If you give more, then the other party will reason that you are in a weak position and will help them to gain confidence in themselves and expect more concession from you.
c. A party should trade their concessions to their own advantage, doing their best to give the other party plenty of satisfaction even if concessions are small. To ensure trade
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concessions to a party’s advantage, one might adopt the following tactics;
listen to the other party very carefully
entertain the other party in a proper way
give the other party detailed specifications
often say sentences like “I’ll take what you say into consideration ” or “I’ll see what I can do”
show the other party how they could also benefit from the agreement settled on the terms that are asked.
d. A party must help the other party to see each o their concessions as being significant.
e. More at a measured pace towards the projected settlement point
f. Reserve concessions until they are needed .
4.2 Tactics Towards Settlement
When the parties become aware that a settlement is approaching. A new mood is established, creating a growth of vitality and energy of the negotiators. At this stage there is a need for each party to make a final offer . characteristics of this final offer are:
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a It should not be made too soon. Otherwise it will be taken as just another concession—one of many still to be hoped for.
b It must be big enough to symbolize closure. Rounding off a sufficient yet not too generous would certainly have the required impact.
c Negotiating to our advantage demands the last halfpenny. If you do not squeeze the final 1/4 per cent off his discount or the final two days off his delivery-he will not have the satisfaction of believing that he has taken you absolutely to the limit.
d Give him that satisfaction
C . Post-negotiation--Deal with the Contract and Followed up Alternating
At this stage, all the terms have been agreed on. The contact is being drawn up and to be signed. However, writing and working of the contract in itself is a kind of negotiating process. For word meaning and business value might differ. If there is some negative feedback from background factors and atmosphere, it might cause another round of face-to-face negotiation. Therefore the terms agreed on should be read to each after the concessions are exchanged. And discussions should be held by means of minutes of the meeting. Or something unpleasant or unexpected might happen in the later on course of implementation of the contract unless both sides paid enough attention to every detail. It’s best to confirm that both sides understand everything they have agreed on before they leave the negotiation table. Note that it is the performance of the contract that is significant, not just the negotiation itself.
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Ⅳ. Conclusion
International business negotiation is playing a more and more important role in modem society. We can see clear that there are great differences in international business negotiation. Specially, culture can influence negotiating styles in numerous ways, because negotiator who may come form one nation is different from another, in language, beliefs, and behaviors. Different cultures employ different ways of doing business. May we think is reasonable and acceptable in our own culture, but is not necessarily acceptable in other cultures. What we consider as effective to an event seem quite the opposite to someone from another culture. As a result, to be an effective negotiator, one should recognize and accept the differences, respect the opponent’s culture, and understand how culture shapes the goals and strategic preferences in three stages of negotiation, which include pre-negotiation, face-to-face negotiation, and post-negotiation. It is crucial to resolve such cultural conflicts and help negotiators to better reach an agreement. In doing so, conflicts may be reduced to the least, or even be eliminated.
Therefore, in the actual process of deepening understanding of cultural differences，in communication process to maintain awareness of the issue, use of various communication skills, and continuing to resolve differences，it will continuously promote business negotiation. D.正式与非正式的商业文化
正式的文化倾向于有组织的等级制度，在地位和权力方面有主要影响。相比之下，非正式的文化更注重平等的组织，在地位和权利方面没有太大影响。
当一个来拥有非正式文化的谈判人员遇到一个拥有更正式文化的同行时，很多重要的谈判失败
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了，因为那些文化差异已经被搬到了谈判桌上。拥有正式层次文化的商务谈判人员可能被一个陌生的来自非正式社会环境的同行冒犯。另一方面，那些拥有非正式文化的谈判者可能会觉得那些正式的同行沉闷、疏远、自负、或者傲慢。
非正式文化倾向于价值地位平等，正式文化重视价值和层次的差异，忽略这些目的就可能在谈判中引起一系列的问题。
如果都能意识到不同的商业谈判行为都是不同价值观的结果，而不是个人特性引起的，那么，这样的误会就可以避免。
非正式文化的国家有：澳大利亚、美国、加拿大、新西兰、丹麦、挪威、冰岛。
正式文化的地区有：欧亚的大多数地区，地中海地区和阿拉伯世界,拉丁美洲。
E.硬性时间文化与软性时间文化
不同地区的人安排和利用时间的方式不同，在硬性时间社会，守时是重要的，计划和议程都是固定的，并且商业会议很少会被打断。软性时间文化有着明显的差别，人们很少严厉地强调守时从而好多事情都没有在预定的期限内完成。
冲突就产生在一些硬性时间商人认为那些软性时间的客户很懒，还没有原则，与此同时，后者却觉得前者过分受期限的限制是一种傲慢。
硬性时间文化的国家有：北欧和日耳曼欧洲、北美、日本。
软性时间文化的国家有：澳大利亚/新西兰、俄国和大多数站欧洲、东南亚等国家和地区。
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