Business negotiations
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Business negotiations vary significantly across different Asian countries in terms of goals, attitudes, communication styles, and team structures. In India, negotiations are a cultural norm and involve flexibility, direct communication, and an emphasis on family and bureaucracy. Japanese negotiations focus on documentation, long pauses, broad agreements, and rarely involve concessions. Chinese negotiations involve extensive pre-negotiation lobbying and relationship building, as well as post-negotiation implementation and re-negotiation.
Business negotiations
- 1. Business Negotiation in different countries
- 2. COUNTRY SPECIFIC? Globalization Culture affects negotiating style Competitive edge for companies
- 3. Business Negotiation: Asian Perspective
- 4. Goal Contract Relationship OR Asians believe in creating relationships
- 5. Attitude Win/Win Win/Lose Indian & Chinese consider negotiations as win/win situation
- 6. Personal Styles Formal Informal Chinese & Indians have different perception here
- 7. Communication Direct or Indirect Indirect Direct Asians are strongly in favor of direct way of communication
- 8. Team Organization Different Asian country has different view about team organization Indian prefer team organization & Chinese go for one leader approach
- 9. Video
- 10. India Negotiation strategy Negotiations are Part of the Indian Culture - Bargaining is ingrained into the Indian way of doing business Language - English has become the standard business language used in India Bureaucracy - be ready to face delays. Be ready to face family – family is integral part of an Indian . Responsibility lies on the top - When it comes to decisions and ultimate responsibility, the buck truly stops with management. Be flexible - As with other cultures, be prepared to be flexible at the negotiating table Be ready with their words - many Indians will not flat out say, "no" during a negotiation or business transaction but they expect you to be very direct
- 11. Japan Negotiation strategy Negotiation style - Japanese have a difficult time saying ‘NO’ Documentation - Written contracts are required. Long pauses - Japanese often remain silent for long periods of time. Understanding - Japanese prefer broad agreements and mutual understanding so that when problems arise they can be handled flexibly. Facilitator needed - Using a Japanese lawyer is seen as a gesture of goodwill. Concession no! no! - Japanese seldom grant concession. Contracts are not final - Japanese do not see contracts as final agreements so they can be renegotiated.
- 12. China Pre negotiations Lobbying - Lobbying before the Chinese government is most important activity for foreign firms Presentation – Giving attractive & informative presentation is vital step towards a formal negotiation session. Trust building – The Chinese attach a great importance to trust building in business negotiations Persuasion – Chinese use a variety of persuasion techniques Concessions & agreements – Formal negotiations ends with concessions of both parties Hierarchy - final agreements are signed in front of higher officials Formal negotiations
- 13. China Post negotiations Implementations & new rounds of negotiations – Negotiations in china almost always extends to post negotiation stage
- 14. Just be simple & Say AAL IZZ WELL