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INTERNATIONAL

BUSINESS
NEGOTIATION
UNITES STATES OF AMERICA
NEGOTIATION
Negotiation is a form of interaction through which individuals, organizations, and
governments explicitly try to arrange (or pretend to do so) a new combination of some of
their common and conflicting interests.

One of the aspects of negotiation is to decide whether there is a requirement for


negotiation. By asking if a negotiation is required it is possible to save from some
unnecessary compromise. The best alternative to a negotiation is to ask Yes or No.

A good general rule is: Do not negotiate till you have to or unless you can obtain some
direct or indirect advantage by doing.
SKILLS NEEDED IN NEGOTIATION

Awareness.
Patience's.
Communication Skills
Conceptual thinking
Root Cause Analytics
Explorer
CROSS CULTURAL NEGOTIATION
To make any successful deal between any two countries, there some kinds of
negotiation have to take place. People of different cultural have to sit together and
share opinion of mutual interest.

Cross cultural negotiation is not just about closing a deal. It influences all the factors
affecting the following proceedings.

Some of the things which effect cross cultural negotiation are:


CONT

Eye Contact : In general in some cultural direct eye contact conveys confidents and
sincerity. In other cultural it's considered trust worthiness and in others it's rude and
generally avoided.
Personal Space And Touch : In some cultural a distances is maintained in a formal
scenario. Touching only takes places between friends and relatives but in some cultural
they try to come closer in formal meeting.
Time : Some cultures are very time conscious for them time is money and punctuality is
crucial. In some cultural if people turn up late it's considered insult. And some others are
not a matter of worry.
Meeting & Greeting : Most official meeting start with a handshake.
USA
NEGOTIATION
U.S. negotiators have a distinctive style: forceful, explicit, legalistic, urgent, and
results-oriented.
A recognizably pragmatic American style is always evident, shaped by powerful and
enduring structural and cultural factors.

Culture significantly influences how U.S. negotiators use language and time.

The United States applies pressure by simultaneously exerting its substantial and
multifaceted resources.
AMERICAN APPROACH

Be competitive in their approach to negotiations, including coming to the table with


a fall-back position but beginning with an unrealistic offer;
Be energetic, confident, and persistent; they enjoy arguing their positions, and see
things universally -- i.e., They like to talk about broad applications of ideas;
Concentrate on one problem at a time;
Focus on areas of disagreement, not areas of commonality or agreement;
Like closure and certainty rather than open-endedness or fuzziness.
HOW TO NEGOTIATE?

They have a sense of time urgency: For Americans, time is money. They want results
and they want them quickly. They do not want to negotiate for a long, extended
period of time

They are informal: You might expect Americans to dress more formally for a
negotiation but they probably won't.

Age doesn't necessarily indicate status: In your negotiation with an American


company, you might find yourself head to head with a young prodigy no more than
30 years of age
CONT

They hate silence: This is an area that you can capitalize on if you are from a culture
like Japan, where silence is used as a strategic and conscious choice.

They will interrupt you: As American culture is less structured around hierarchy, the
floor is often open for anyone to contribute. There is not an order that people need
to follow in terms of who talks when.

Plan to use historical events against your opponent.


CONT

If your point isn't understood, change your strategy and be explicit about what you
are trying to say.

In the U.S., direct eye contact means you are trustworthy, confident and in control. If
you have a very different idea of what eye contact means, be aware that this could
create a challenge in your negotiation with Americans.
INDIA & US
STYLES

US negotiation style says that they should be able to be integrity and should be able
verbally expressive, this quality gives the strength to express the issues and opinions
in an effective manner. Integrity is another aspect on US negotiation all the ethical
codes or the morals are strictly followed this give a clear picture of the structure.

Indian negation styles try to make relationship, winning respect and confidences will
help in making a relationship which is strength as to make the deal be able to be a
successful because a positive environment and trust is created. If the deal showed
is interesting nothing can stop from accepting it for an Indian negotiator because it's
the important to do any work to Indian work cultural
INDIA
In Indian business culture, perceptions of the truth tend to be guided by feelings; a strong
faith in religious ideologies is also common.
An argument appealing to both feelings and faith will often be more convincing to an Indian
than one using only objective facts and empirical evidence.
The boss makes all of the decisions and accepts all of the responsibility. Consequently,
subordinates are often reluctant to accept responsibility.
Interpersonal skills, such as the ability to form friendships, are sometimes considered more
important than professional competence and experience. Nevertheless, there is a deep
respect in Indian culture for people with advanced learning.
Because of the rigid hierarchy in Indian business culture, a subordinate will be able to meet
only with a subordinate, never directly with a counterparts superior.
USA
In American business culture, perceptions of the truth tend to be guided by pragmatism
and hard facts; a strong faith in religious ideologies is usually not expressed at the
bargaining table.
An argument appealing to self-interest and empirical evidence will often be more
convincing to an American than one relying on emotion or notions of altruism.
American bosses often delegate many decisions and assign different levels of
responsibility to subordinates. Indeed, subordinates are normally entrusted with
substantial decision-making authority.
Professional competence and experience are normally considered more important than
interpersonal skills, such as the ability to form friendships. Although persons with
advanced degrees are respected, Americans do not particularly view them with awe.
Because of the looser hierarchy in American business culture, a subordinate will often be
able to meet with a counterparts superior and execute final agreements for his boss.