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Lesson 15 Chapter 8Slide 1Title Page – different business cultures and negotiations. A business negotiator should have some understanding of different cultures, customs and business conventions of different countries.Slide 2There are two main rules of international business. The first is that the seller is expected to adapt to the buyer. The second is that the visitor is expected to observe the local customs. To observe the local customs doesn’t mean to copy the local behavior, just be yourself. But of course, you should include being aware of local sensitivities and generally honoring local customs, habits and traditions.Slide 3One classification of organizational style distinguishes between people who are task-oriented and people who are people-oriented. People who are purely task-oriented are concerned entirely with achieving a business goal. They are not concerned about the affect that their actions have on the people that they will come into contact with. As negotiators they will be very tough, very aware of tactical ploys and anxious to make maximum use of them. The American business culture is usually very task or achievement oriented.Slide 4People-oriented persons, on the other hand, are highly concerned about the well-being of those who work for them or around them. 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.Slide 5This can be a great divide between business cultures. Deal-focused people are basically task-oriented while relationship-focused people are more people-oriented. Conflicts can arise when deal-focused export marketers try to do business with prospect from relationship-focused markets.Slide 6Many relationship-focused people find deal-focused types pushy, aggressive and offensively blunt. In return, deal-focused types often consider their relation-ship focused counterparts vague and unintelligible.Slide 7The vast majority of the worlds markets are relation-ship oriented. The Arab world and most of Africa, Latin America and the Asian Pacific region are where business gets done through intricate networks of personal contacts.Slide 8Spatial behavior means personal space. Every human being is surrounded by an invisible envelope of air called a ‘space bubble’ which varies in size according to where in the world they grew up and the particular situation of that culture.Slide 9Among business people all over the world the handshake is the most common form of physical contact. Make sure you make a good impression with your handshake.Slide 10Climate and culture both play a role in our dress behavior. In the tropical and desert climates, businessmen will often wear an open necked shirt and cotton trousers. But even in those markets it may be safer to wear a suit coat to the first meeting, just in case. In most parts of the world, business women can choose between a good dress, suit, or blouse and skirt. For men, a dark suit, nice tie and dark socks will cover most meetings with high status individuals.Slide 11In most European cultures the custom is to greet people with a kiss. Some cultures kiss up to three times and it can be uncomfortable. If you do not feel comfortable with kissing or being kissed the people will understand, remember it is part of their culture so they are treating you as they would treat a fellow countryman. If you do decide to kiss you don’t actually touch a persons face, you kiss the air a couple of millimeters away. The British kiss once, the French twice while the people from the northern part of Europe kiss three times.Slide 12In Asian countries a business card is treated with respect. It is usually given and received with both hands. Other countries treat it a lot more casually, don’t take this offensively, it doesn’t mean that they don’t respect you or your business card.Slide 13Do you give a gift to a foreign business contact? Some cultures are very uncomfortable with receiving gifts and some companies have very strict policies on their staff receiving gifts, especially if they are in a purchasing position. If you do give a gift make sure it is wrapped nicely. Some cultures will be offended with some gifts. The Chinese for example believe that a gift of a clock or a watch is bad luck. Usually it is good manners to open the gift in front of the giver and express your appreciation.Slide 14Title Page -Wining and DiningSlide 15Many people have individual preferences for eating food. For example Muslims do not drink alcohol or eat any pork product. Jewish people also only eat kosher food which is prepared in a certain way. Most Hindus are strict vegetarians and so are Buddhists. Knowing the fundamental element of local business protocol shows your counterpart that you are a serious and committed potential supplier or partner. Making fewer mistakes will give you an edge over your less conscientious competitors.Slide 16Title Page – Etiquette in eating.Slide 17The napkin should be placed on your lap. In a high class restaurant the waiter will do this for you. You should never tuck your napkin into your collar.Slide 18When eating soup you should choose the rounded spoon if you have a selection. Dip the spoon away from you into the soup bowl and this will also prevent any drips from falling on you. As you near the end of the soup, tilt the bowl away from you to scoop, not toward you. Slide 19Which knife or fork do I use? Usually at a western style dinner you will be given at least three courses. A good rule to remember is to start the first course with the outer utensils, the second course with the next set and keep going until all the courses are done. Each course has a clean set of cutlery.Slide 20When you are finished eating a course put your knife and fork together across your plate. This will signal the waiter to take away the plate. If you are just having a rest from eating and you haven’t finished rest your knife and fork on the edges of your plate.Slide 21Title Page – Wine EtiquetteSlide 22Wine is classified into two categories – red and white. Red wine is served at room temperature while white wine is served chilled. Red and white wines are served in different glasses as a rule. When holding a wine glass it should be held by the stem, this prevents your body heat from affecting the temperature of the wine. If you prefer not to drink just tell the host. If you do decide to drink it is wise to keep an eye on how much you drink, being drunk could spoil your reputation and also cause a lot of embarrassment.Slide 23Title Page – Now we will look at the different negotiating styles of different cultures.Slide 24The American style is very direct and they try to demand the same from their 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 at a time and then proceeding to the next. The American negotiator enters the negotiating room confidently and talking assertively. The Americans make decisions based upon the bottom line and on cold, hard facts. They do not play favorites. Economics and performance count, not people. Business is business.Slide 25German negotiators are known for very thorough preparation. In other words, in particular the German preparation for negotiations is superb. They are also well known for sticking to their negotiating positions in the face of pressure tactics. When dealing with Germans be prepared to get right to the point. The German negotiator will put the issues and the bids clearly, firmly and assertively. When negotiating with German people expect them to take more time than the Americans but less time than Asian negotiators.Slide 26French negotiators are reputed to have three main characteristics in international dealings. Firmness, and an insistence on using French, and a decidedly lateral style in negotiating. The French are very expressive. They love to argue. Expect the negotiation decision to take longer than in most Western countries.Slide 27The British are old hands at international business. Their history of negotiation in international business goes back centuries. The depth of their knowledge is without comparison. When you negotiate with the British your presentation should be detailed and to the point. Britain is an orderly society and it is very important to be punctual. Arrange appointments in advance and prepare an agenda as early as possible.Slide 28Russians have clear agendas and no strategy or tactic is off limits. When arriving at a negotiation have clear objectives and make only a few concessions early in the discussions. If you play by their rules you will lose. Be ready for hardball tactics, a tough, sometimes confrontational approach with emotional outbursts. When dealing with Russians use patience, patience and more patience.Slide 29The Australians are a tough breed of people and they enjoy competition. They encourage long term business relationships and they prefer to work with people that they count as friends. Australians shun formality and are recognized as some of the friendliest business people in the world. Negotiations move at a quick pace, so show up on time and come prepared. When dealing with an Australian be direct, the Australians can spot deception and lies and they will walk away from the negotiation if they feel people are not being honest. The Australians will bargain but only to a small degree. They do a lot of research and will know all about prospective companies and culture before the first meeting.A handshake is only a pleasantry a signature means business.Slide 30Chinese tend to have business negotiations in a rather indirect manner, as opposed to the direct manner of the American businessman. Chinese take time to see whether their prospective business contacts are really reliable human beings, for example, by inviting themto a party or dinner first. Also the decision making process of the Chinese is considered to be very slow and time consuming. This is because most Chinese companies have many levels of decision making. The Chinese negotiator is distinguished by their concern for ‘face and specialization.Slide 31Letters of introduction are essential for doing business in Japan. As in much of Asia, having connections in Japan is the only wayto get through the front door, unless one represents an internationally recognized brand name. Individualism is not a characteristic of Japanese negotiators. They usually negotiate in teams of at least three people. The Japanese will not discuss points that are not part of the prearranged agenda. Small talk will be kept to a minimum and inquiries into personal lives will be rarely made or accepted.Slide 32Koreans often make emotional pleas part of their negotiating style. They are not beyond painting themselves as poor, humble peasants. In reality the Koreans only respect hard line, strong opponents. Speak clearly and simply. Koreans are known as tough negotiators. When calculating your first price, allow some room for bargaining. Women play a very subservient role in Korean business.Slide 33Indian negotiators like to build a comfortable relationship with people before starting any negotiations. Be prepared for a long drawn out negotiation. The Indian loves to bargain, so remember to give a higher price at the first negotiation. Be aware that most traditional Indian food is eaten with fingers rather than a knife, fork or chopsticks.Avoid using your left hand for passing items, especially food. The left hand is considered dirty because it is used by Indians for personal hygiene.。
