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CulturalDifferencesinBusinessNegotiation Unit14 LOGO Yoursitehere Intoday sclass wewill definecross culturalnegotiation discusstheimpactofculturaldifferences understandstrategies guidelines 4 Conclusion LOGO Yoursitehere I DefiningInterculturalNegotiation NegotiationInterculturalNegotiationMoran Stripp 1991 LOGO Yoursitehere Negotiationamoderndefinitionofnegotiationistwoormorepartieswithcommon andconflicting interestswhoenterintoaprocessofinteractionwiththegoalofreachinganagreement preferablyofmutualbenefit Theremustbebothcommoninterestsandissuesofconflict Withoutcommonintereststhereisnothingtonegotiatefor withoutconflictingissuesthereisnothingtonegotiateabout InterculturalNegotiationAccordingtoMoran Stripp 1991 interculturalnegotiationinvolvesdiscussionsofcommonandconflictinginterestsbetweenreasonsofdifferentculturalbackgroundswhoworktoreachanagreementofmutualbenefit TheyfurtherexplainthatnegotiationstakeplacewithinthecontextofthefourC s LOGO Yoursitehere FourCs Subtitle Subtitle CommonInterest ConflictingInterests Compromise Criteria LOGO Yoursitehere Commoninterestconsidersthatbothpartiesinthenegotiationshare have orwantsomethingthattheotherpartyhasordoes Areasofconflictinginterestsincludepayment distribution profits contractualresponsibilities andquality Compromiseincludesareasofdisagreement Althoughawin winnegotiatedsettlementwouldbebestforbothparties thecompromisesthatarenegotiatedmaynotproducethatresult Thecriteriaincludetheconditionsunderwhichthenegotiationstakeplace LOGO Yoursitehere Subtitle Mono culturalnegotiation Interculturalnegotiation LOGO Yoursitehere II TheImpactofCulturalDifferencesonInternationalBusinessNegotiations CaseStudy LOGO Yoursitehere CaseStudy ThemarketingmanagerofaU S knitwearfirmwasdelightedwithamulti million dollarformen sunderwearitreceivedfromadepartmentstorechaininSaudiArabia Thejockeyshortswerepackagedintheusualway threepairstoapackage withapictureofamalemodelingthebriefs andsentofftothecustomerinSaudiArabia However SaudicustomsofficialswereshockedtoseeaneartotallynudemanonpackagesthatwouldbedisplayedinplainsightofSaudiwomenandchildren Consequently tosatisfySaudicustomsofficials theentireshipmentofmen sbriefshadtobesentbacktotheUnitedStatesforrepackaging costingthefirmthousandsofdollars LOGO Yoursitehere 1 Whatwaswrongwiththepackagesofmen sunderwearshippedtoSaudiArabia 2 WhatdoyouthinkwouldbeaproperwaytopackagetheunderwearinordertobeacceptedbySaudiArabians LOGO Yoursitehere III TheTopTenWaysCultureAffectsNegotiatingStyle LOGO Yoursitehere 1 NegotiatingGoal LOGO Yoursitehere 2 NegotiatingAttitude LOGO Yoursitehere CaseStudyOnceaU S automobilepartsmanufacturerwasshownontelevisiontryingtomakeasaletosomeJapaneseautomobilefirms Hewasdressedinaboldlypatternedcardigansweater hishostswereallindarksuitsandwhiteshirts TheTVcameracaughtafewofthehostsrepeatedlylookingathissweaterwithsomethinglikealarmintheireyes andlookingawayagain Finallyitwasreportedthathefailedtomakeevenasinglesale 3 PersonalStyle LOGO Yoursitehere 1 DoyouthinkthesweatertheU S salesmanworewasafactorinhisfailuretomakeasinglesale Whatwaswrongwithit 2 Ifyouhadbeenthere howwouldyouhavereactedtothecausallydressedsalesman LOGO Yoursitehere 3 PersonalStyle LOGO Yoursitehere 4 Communication LOGO Yoursitehere LOGO Yoursitehere LOGO Yoursitehere 7 FormofAgreement preferverydetailedcontractsbecausetheycanreferto whennewsituationsarise Theessenceofthedealis prefergeneralcontractbecausetheycanreferto whennewsituationsarise Theessenceofthedealis Americans thecontract thecontract Chinese therelationship therelationship LOGO Yoursitehere agreedstrategy 8 BuildinganAgreement BottomuporTopdown Inductive specificgeneral smalldetailssettlement Deductive generalspecific details LOGO Yoursitehere 10 RiskTaking UncertaintyAvoidance LOGO Yoursitehere NegotiatingStyleofAsianandtheWesternCountries relationship contract Win win Win lose formal informal indirect direct low high low high low general specific deductive inductive deductive groupconsensus oneleader riskaverse risktaker LOGO Yoursitehere MulticulturalNegotiationQuiz 1 Peoplefromwhichcountryarelikelytotakethelongesttogetdowntonegotiations A Canada B TheUnitedStates C Japan D Mexico LOGO Yoursitehere MulticulturalNegotiationQuiz 2 Forwhichgroupisanegotiatingdeadlinelikelytobetheshortest A Mexicans B Asians C Americans D British LOGO Yoursitehere MulticulturalNegotiationQuiz 3 Thegroupthatismostlikelytobelateforanegotiationsessionis A JapaneseB MexicanC GermanD American LOGO Yoursitehere MulticulturalNegotiationQuiz 4 Inwhichculturewouldrelationshipslikelybethemostimportantfactorinnegotiations A American B German C SouthAmerican D Canadian LOGO Yoursitehere MulticulturalNegotiationQuiz 5 Whichgroupwouldprobablybetheleastanimatedduringnegotiations A Japanese B German C Mexican D American LOGO Yoursitehere 6 Whichcultureismostlikelytousegroupdecision makingduringnegotiations A Japanese B German C Canadian D American MulticulturalNegotiationQuiz LOGO Yoursitehere MulticulturalNegotiationQuiz 7 Whennegotiat

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