CROSS-CULTURAL ISSUES

IN NEGOTIATIONS
JAPAN

Agenda

Introduction

The Culture

Implications for Negotiation

Post Negotiation

Agenda

Introduction

The Culture

Implications for Negotiation

Post Negotiation

Introduction

Not sufficient to only know language; critical

to understand crucial differences in cultural
values

Agenda

Introduction

The Culture

Implications for Negotiation

Post Negotiation

Business organization

Hierarchical and Bureaucratic

High degree of harmony and cooperation

Key focus on quality

Information oriented

Focus on building long term relationships and

emphasize on long term benefits

Seniority system

Based on factors like age, sex, family name, occupation,

physical features and birthplace

Titles are extremely important - signifies prestige and

respect

Hierarchy legitimates the use of power

Japanese will always examine relative

positioning in negotiation

Decision making

Centralized

Ringi system all members involved in the process

Often slow unwillingness to take risk and avoids on the

spot decision making

Long term perspective

Try to deal with higher ranks and in groups,

factor in delays

Other aspects

Punctuality- always be on time

Indirectness critical in communication and avoid conflicts

Private people and uncomfortable with physical contact

Japanese less pressured by deadlines, slowdown as

complications develop threatened by stressful situations

Avoid excessive assertiveness, may be viewed

as aggressive

Agenda

Introduction

The Culture

Implications for negotiations

Post Negotiation

Pre-negotiation

Meet socially before beginning formal negotiation

avoiding social conversation may lead to bad impression

Establish and maintain harmony (Wa) important aspect

of Japanese social life

Exchange of business cards (Meishi) - use both hands,

spend 20-30 seconds on examining their card
R
P

Emphasize on building trust and long term

relationship

Information exchange

Wait for counterparts signal before starting negotiation

Japanese are information oriented - offer detailed

explanations before making actual proposal

Ensure to discuss long term generalized goals

Use informal channel of communication to get the true

feeling of the Japanese

Be patient and persistent and ready with

information!!

Persuasion

Patience and intelligence in collecting information without

giving anything away is their style of negotiation

Avoidance strategies like non verbal expressions and

silence used often negotiator should not appear
desperate

Avoid using aggressive tactics and threats. NegotiatorRP

asking for high price may destroy the trust built

Maintain Wa at all time

Concession and agreement

Make the first proposal and receive counter proposal focus

on reciprocity

Japanese examine all issues simultaneously in a more holistic

approach

Concessions are made only near the end of the talks and
usually all at once basic goal of long term mutual benefit

Customary to give the buyer a discount (called sabitsu) when

agreement is reached - to demonstrate friendship and
sincerity

Settle overall agreement first and then details

Agenda

Introduction

The Culture

Implications for negotiations

Post Negotiation

Post-negotiation

Fundamental approach is to emphasize the relationship

being created

Specific items of a contract always open to

renegotiation if the circumstances change

Signing manifested by ceremonial meetings and

exchange of gifts

Emphasize win-win situation and help

increase the size of the pie

Munches!!

Over 90% of the Japanese population buys a comicmagazine daily

Frogs are the symbol of good luck in Japan

Japanese drink tea with almost every meal

Heavy traffic In Tokyo, a bicycle is usually faster than a

car for most trips up to 50 minutes

Emphasize win-win situation and help increase the size

of the pie