The Impact of Cultural Differences on International Business Negotiation Style.doc

毕业论文（设计）The Impact of Cultural Differences onInternational Business Negotiation StyleThe Impact of Cultural Differences onInternational Business Negotiation Style 1. Introduction2. Culture differences2.1 The definition of culture2.2 The role of culture in business negotiation2.3.2 Individualism and collectivism 2.3.3 Cross-cultural communication2.3.4 Different decisions in making approaches 3.1 Negotiation style of United States3.2 Negotiation style of United Kingdom3.3 Negotiation style of Japan3.4 Negotiation style of Korea3.5 Negotiation style of China4. Achieving effective negotiations through effective negotiation strategies4.1 Be aware of cultural differences4.2 Suggestions for developing effective business negotiation strategies5. ConclusionReferences3. Introduction With the development of economy and the entering into the World Trade Organization, companies and enterprises in China have been taking part in international business negotiations. What does negotiation mean? Does it only mean to communicate or bargain with other people? The answer is not complete. Negotiation is the process by which at least two parties with common or conflicting interests try to reach an agreement of mutual benefit. This definition indicates that negotiations take place within the context of the four Cs: common interests, conflicting interests, compromise, and criteria (Moran and Stripp, 1991). From the definition, people know that negotiation is one of the most important processes in business trade. It directly relates to the result of the business. A successful negotiation may help people get the business, or even get much profit than they have expected. On the contrary, it may also make people lose the chance. So, business negotiation plays an important role in business trade. While, in cross-cultural business negotiation, negotiation teams often encounter conflicts between both sides benefits and cultures, which are mainly caused by culture differences. As some business negotiation styles are affected by cultures to some extent, negotiation teams from different cultural backgrounds adopt different negotiation strategies according to different cultural views, values and behaviors, etc. These images, assumptions, values, beliefs and expectations differ across cultures, giving rise to various conflicts in the course of business negotiation. In order to get a satisfactory result in a business negotiation, the thesis aims to introduce how culture differences impact on intercultural business negotiation and particularize several countries negotiation styles in the purpose of avoiding conflicts and adopting appropriate strategies.4. Culture differences2.1 The definition of cultureDefinitions of culture are as numerous and often as vague as definitions of negotiation itself. Faure and Rubin define culture as “as a set of shared and enduring meanings, values, and beliefs that characterize national, ethnic, or other groups and orient their behavior.” (1993:3) Hall and Hall regard culture as“a system for creating, sending, storing, and processing information evolved by human beings and differentiating them from other life forms. ” (1987:157) Hofstede defines culture as “the collective programming of the mind which distinguishes the members of one group or category of people from another.” (1991: 260) Culture is an emergent concept which appears at the group, not individual, level. Culture concerns what people valuetheir shared common social structural interests and their psycho cultural interpretations (Ross, 1993.)The impact of culture on the negotiating process intrigues both scholars and practitioners. So, some scholars would confine the concept of culture to the realm of ideas, feelings, and thoughts. For example, one definition offered by two experts is that Culture is a set of shared and enduring meanings, values, and beliefs that characterize national, ethnic, and other groups and orient their behavior(Faure and Sjostedt, 1993:3.)Others would have culture also encompass behavior patterns and institutions common to a given group or community. E.Adamson Hoebel, a noted anthropologist, defined culture as the integrated system of learned behavior patterns which are characteristic of the members of a society and which are not the result of biological inheritance(1972:7.)2.2 The role of culture in business negotiationThere are many factors that have certain impacts on negotiation. However, cultural differences are one of the most important factors. For negotiations involve communication, time, and power and all these variables are differed by cross-cultures, cultural difference is a determinant to decide which kind of strategies and tactics should be used in international business negotiation.As Brett says, “A successful instance of international negotiation is largely dependent on the extent to which the negotiating parties are capable of understanding the negotiating patterns of their counterparts who come from another culture” (2000).Therefore, cultural differences create a challenge to the negotiators involved, and demand understanding as well as flexibility. Assessing these differences exactly and handling the consequences properly are essential ability for success in international business negotiations. Culture has influence over all the basic elements of negotiation including behavioral predispositions of the actors. For example, some cultures focus on group, some to the contrary. And this will in turn influence peoples attitude toward power distance among social members, peoples basis for trust, peoples goal orientation, peoples way of making decisions and peoples tendency to take risks.Culture has impacts on peoples perception of negotiation and consequently the strategies they take. Some cultures regard the negotiation as a problem-solving process and are more likely to adopt an integrative strategy, while some others tend to see it as a competition and have a strong aversion to the concept of “compromise”. People from some cultures are long-term oriented and they can sacrifice short-term profits if they can sense future gains; whereas people from some other cultures are short-term oriented and try to get what they want in the one-off deal.Culture also plays an important role in the negotiation process. Culture is part of the environmental context because culture is to some extent beyond the control of the individuals. It works like a silent language in which individual behaviour can be meaningfully interpreted, cultural differences are obstacles to successful negotiations because the silent language does not work anymore. Consider for instance the different meanings of the phrasing “Yes” in Japan or in America: in America it means approval, in Japan it only indicates understanding. Or another example: in Western Europe people interpret a nodding of the head as a sign of consent. Shaking the head means disapproval. In some cultures, such as in Bulgaria, it is the other way around. When my friend Boris from Bulgaria repeatedly shook his head to whatever I said, it was just his way of saying “I have understood you!”The mode or style of negotiation is also determined by culture. If two people sit together at a table to discuss in a polite and rational way a conflict between them, it implies already a cultural assumption: a debate based on rational arguments is the best way to solve a dispute. Sometimes a good screaming at each other, a hug or a bottle of whiskey will settle a dispute just as well. In some cultures like the Maori in New Zealand, screaming is used to greet a stranger, but it is no sign of hostility. In some cultures, the consumption of alcohol is better means of solving conflicts then rational dispute. 2.2 The role of culture in business negotiationCulture difference means the differences of history, politics, economy, tradition and custom between different countries, areas and nations. In international business negotiations, although sometimes members from the other party wear the same and speak the language as others do, they may pursue different paths of logic, have different ways of thinking, follow different criteria, or take different decision-making process. Thus, the major differences in business cultures are as follow:2.2 The role of culture in business negotiationPeople from different cultures may have different ways of handling time and have different expectation towards time. Edwards.T.Ho divides the mode of time using into two ways, which are singleness mode and diversified mode. Singleness mode is focus on the speed and the time using on the special thing only. North American and middle European have such characteristic. While, diversified mode emphasize using the same time on different jobs. Middle East and Latin culture have this point. During the business negotiation, Americans place great value on time. Using time efficiently is a critical goal and admired measure of skill. Time dominates how meetings are planned, phone calls are made and meals are scheduled. They will tend to be impatient when the negotiation slows down. To them, foreigners who do not respect this time orientation are viewed as less professional or less sophisticated than those who do. However, in some other cultures especially those of Middle East and some parts of South America, people view time in a more relaxed way. In business negotiations, people in these cultures move at a deliberately slow pace, engaging in casual talk before getting to the main issue. It is easy to see how such different view of time can cause serious miscommunication problems to people from different cultures. So, when the negotiators who use different mode of time usage come at the same business, they need to adjust their mode of time usage in order to establish a harmony relationship.2.3.2 Individualism and collectivism Western countries prefer to compete and to encourage people work individually and to spark plug people to develop themselves actively. They will be full of confidence to their personal ability and express their confidence and honor entirely after they made a great success. People call this as individualistic cultures. Individualistic cultures prefer linear logic and tend to value open conflict. By contrast, in Eastern countries, they encourage people to obey the rules of society. Juste-milieu is very popular, so they prefer express themselves implicitly and communicate with people with condescension. But, in global economy era, excess condescension is not appreciated by international culture.2.3.3 Cross-cultural communicationCross-cultural understanding is the key to effective cross-cultural communication. It is essential for people to be aware of the problems in the cross-cultural communication and makes great efforts to overcome them for better results. For instance, in the way of say hello, Chinese people like to ask something about personal situation, such as the name, occupation and so on. While to western people, it is a taboo for a stranger to ask people about their private affairs. So, people should pay attention to the way and content of saying hello to western people. In terms of expressing ones thanks to people, the Chinese will be very humility. On the contrary, western people will accept the appreciation liberally and be affirmative to their values. During communication, Americans prefer to point out the problems directly. Compared with the Japanese who are very cautious and polite, they will use euphemism to express the objection. For the serving mode, western people like to help themselves and feel free to each other. People in China will serve the customers fervidly, but excess enthusiasm will be treated as impolite in western countries. Therefore, knowing the impact of different cultures on business communication will have great help in understanding and coping with the custom of different countries, which will yield twice the result with half the effort in business communication.2.3.4 Different decisions in making approaches When locked in negotiations, it is important to take the differences in the decision-making process between cultures and consideration. In some cultures where power is decentralized (United States, Australia) decisions will be made quickly, and often by a single individual. However, in cultures with collectivist values (Japan, China), decisions need to be made by consensus and will take longer. For example, when faced with a complex negotiation task, Americas tend to divide the large task into a series of smaller task. Issues such as prices, packing and delivery may be settled once at a time. For them, progress in the negotiation is measured by how many issues have been settled. So, the Americans usually list the possible effects and estimate the magnitude of their costs and benefits as accurately as possible. While in Japan, decision-making is quite different from that in America. In Japanese decision-making style, everyone must be convinced, not only decided by one person. The Japanese will start with trying to define the question or problem, beginning with input from the lower rankthe people who may be directly affected by the decision. Keeping in mind that the Japanese objective is preservation of group harmony, the question would be framed as a decision to increase market share or simply grow revenue. 2.3.4 Different decisions in making approaches Different nations have divergent negotiating stylesstyle shaped by each nations culture, geography, history and political system. The negotiation style one uses so effectively at home can be ineffective and inappropriate when dealing with people from other nations, as no one can usually avoid bringing along his or her own national assumptions, images or other attitudes into the negotiation. Several negotiation styles of different countries will be illustrated in order to give people a reference.3.1 Negotiation style of United StatesAmerica has made a great success and played an important role in todays international business trade. Therefore, the negotiation style of United States also has great effects in the world. For people have a lot of opportunities to negotiate with the Americans, it is no doubt that learning the negotiation style of United States is very important for us.As a whole, Americans are very fervor, straightforward, extravert and casual. They like to express their feelings or idea directly. Thus, they have several characteristics in doing business negotiation. First, without hesitation and come straight to the point. During the negotiation, Americans prefer to point out problems directly and discuss problems one by one. Americans will state their view frankly and be very persistent in order to strive for as much profit as possible. When they can not accept other peoples suggestion, they will say “No” or express their feelings without hesitation. “Yes” or “No” should be stated very clear, both the same to Americans and the negotiate opponents. Americans will be very appreciated the opponents who show as straightforward and be able to express their idea frankly. Second, to be energetic, confident and efficient. Americans often give an impression of being energetic and full of confidence to people, especially in business negotiation. Americans pay more attention to the values towards time, because they think time is money. They would like to use less time to do more things. Therefore, Americans will make a schedule before and carry it out in order to improve the efficiency. Third, focus on benefit. The purpose of Americans doing business is to get as much benefit as they can. They will not take the private relationship into consideration when doing business. Furthermore, Americans attach importance to the validity of contract. They care much about whether the business is carried out strictly according to the contract or not. No matter what the relationship is, the benefit of economy will be divided clearly. Forth, focus on everything. Americans will not discuss only on the productivity or sell, they will focus on the whole things about the project, such as the design, exploitation, price and so on. So, Americans would like to state a major dealing term first and come to the embranchment in detail. Last, Americans not only care about the quality, but also care about the packing of the product. Good quality is the basic request for the product. But the packing of products is an important factor of showing and stimulating countrys consumption. Thus, Americans pay more attention to improve their products quality and packing level, at the same time, they also have strict demand on the quality and packing of the import products. For the reasons above, people should be very confident and state their points directly when negotiate with Americans. Besides, they should also have eye contact with them to show their respect. Be patient and try to be more conscious with legal issues.3.2 Negotiation style of United KingdomThe United Kingdom is currently the boom economy of Europes major players. High growth and low unemployment seem to vindicate the U.K.s standoffish approach to the European Union and its single currency policy. Britain has been a top player in international trade and its certainly its first global practitioner. There is one saying that “The sun never sets on the British Empire”. While, the British are experts in international business. Their history of negotiation in that area goes back centuries. The depth of their knowledge is without comparison. They still give people an impress of superiority, restrained and not easy-going. So the British often to be calmness, they will keep a certain distance with the opponent when they first met. As time went by, they will approach the opponents and get