VPINTERNATIONAL BUSINESS

INTERNATIONAL BUSINESS NEGOTIATIONS

BUSINESS NEGOTIATION

Business Negotiation is the process of discussion by which two or more parties aim to reach a mutually acceptable agreement

International Business negotiation

The deliberate interaction of two or more social units originating from different nations, that are attempting to

define or redefine their interdependence in a business matter.

WHEN TO NEGOTIATIE

Two or more parties must make a decision

Parties are committed to peaceful means for resolving their disputes

There is no clear or established method for making the decision

EXAMPLES

Company-company

Company-government

Solely interpersonal interactions over business matters such as

sales, licensing, joint ventures, and acquisitions

THE NEGOTIATION PROCESS

FRAMEWORK OF IB NEGOTIATIONS

NEGOTIATION STAGES

Pre- Negotiati

on - preparation and

planning

Actual negotiation - face-to-face

interaction

Post- stages -

concessions,

compromises,

evaluating the

agreement, and

following-up.

TYPES OF NEGOTIATIONS

1.Distributive bargaining (win/lose)

Ex..labor management

2. Integrative negotiation(win/win)

Ex. Business negotiation

CULTURE NEGOTIATIONS

It provides the contex

t for negotiation

Culture consists

of traditiona

l (i.e. historically derived

and selected) ideas and

values

Differ from

culture to

culture

Negotiating style

EXAM

OBSERVABLE BEHAVIORCan learn a lot, but likely to focus on do’s and don’tsOften leads to superficial understanding

SHARED VALUESRequires inferences from observed behavior and learning about a cultureMore powerful, because values drive (partially) behavior

SHARED ASSUMPTIONSVery abstract – these drive our values but are very hard to determineVery powerful, helps truly understand a culture

Cultural Values on International Business Negotiation Process

PROFILE OF AN INDIAN NEGOTIATOR

Looks for and says the truth

Is not afraid of speaking up and has no fears

Exercises self-control

Seeks solutions that will please all the parties involved

Respects the other party

Neither uses violence nor insults

Learns from the opponent and avoids the use of secrets

CULTURAL DIFFERENCES AFFECTING OTHER NEGOTIATION PROCESSES

Relationships orientation

Emotional Aspects

Decision Making Frame

Contracts

Women’s issues

Misinterpretation

REFERENCE

International Business by John D. Daniels

Thank You

The success of international

business

relationshi

ps depends on

effective

business

culture

negotiations