international negotiations
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International Negotiations
Student Handout
Distance Learning
Slide Order
NegotiationsDefinition:
1. Two or more parties must make a decision about their interdependent goals and/or objectives.
2. The parties are committed to a peaceful solution.
3. There is no clear method or procedure for making a decision.
Negotiations
Definition:
A process in which one party tries to change the attitudes and/or beliefs of another party.
Negotiations
Definition:
A method of conflict settlement.
Elements of a Negotiation
ActorsStructureStrategy ProcessOutcome
Distributive Bargaining
Positive Bargaining ZoneExample
Negative Bargaining ZoneExample
BATNA
Best Alternative To a Negotiated Agreement
“Plan B”
Integrative Bargaining
Win-Win Negotiations
Mutual Gains Bargaining
“Getting to Yes”
Integrative Bargaining
Problem solving vs. fighting
Both parties working towards a solution
One party doesn’t gain at the loss of another party.
Integrative Bargaining
Characteristics:Open flow of information
Search for solutions
Parties understand conflicting & common goals
Understand each other’s point of view
Integrative Bargaining
Separating the people from the problem
Focusing on interests not on positions
Insisting on objective criteria
Inventing options for mutual gain
Short vs Long Term PlanningIs the substantive outcome important?
Is the relation-ship important?
YES NO
YES
CollaborateWin-WinLong term
AccommodateYield-WinLong term
NO
CompeteWin-LoseShort term
Culture
Definition
Culture is a set of meanings, values and beliefs that characterize national, ethnic, or other groups and orient their behavior.
DefinitionTrue values will be revealed through
behaviorCulture is a substitute for instinctCulture Answers questions before they
are raisedCulture is a bearer of social norms a
guide to behavior or triggers specific actions in a particular situation
Definition
The basis of understanding other cultures comes from the comparison to our own culture.
“A fish does not know how essential it is to live in water until it is taken out of it”
Iceberg Theory
Iceberg Theory
Iceberg Theory
Points of CultureBeliefs, values, ideas
Language
Customs (habits)
Rules / Laws
Family patterns
Artifacts (art, architecture)
History
Points of CultureSocial Groups (status and gender)
Position in the world
People
Environment
Space & Time
Ability to change
Personality
Subcultures
Age
Profession
Industries
Education
Interests
and so on …
Stereotypes
National Negotiating StylePower DistanceCollectivism / IndividualismMasculinity / FemininityUncertainty AvoidanceConfucian Dynamism
Parts of International Negotiations
Actors
Structure
StrategyApollonian – conflict avoidanceDionysian – elicit conflict
Parts of International Negotiations
Process
Outcome
Research
Books, Magazines, Periodicals
Who?
Where?
What is their background?
Research
Internet
Respectability of the site
Verify the information
Who?
Where?
What is the background
Research
Natives of the country
Who?
What is their background?
What is the relation or knowledge to your culture?
Research
People from your own country that have been to the foreign country
Who?
What is their background?
Why were they there?
What experiences did they have?
Negotiating Globally
Negotiating Globally
1. Individual Characteristics
2. Situational Contingencies
3. Strategic & Tactical Processes
Individual Characteristics
Qualities of good negotiators differ culture to culture.
Individual Characteristics
Communication
Direct / Indirect
Emotionalism
High / Low
Individual Characteristics
Risk Taking
Buyer / Seller Relationship
Situational ContingenciesLocation
Physical Arrangements
Participants
Time Limits
Situational Contingencies
Status
Personal Style
Informal / Formal
Strategic & Tactical Processes
Integrative Bargaining
Win – Win Negotiations
Structure of International Negotiations
1. Preparation
2. Relationship Building
3. Information Exchange
4. Persuasion
5. Concessions
6. Agreement
Extras
Dynamics of International Business
Negotiations
External Stakeholders
Competitors
CustomersDemand vs. Boycott
Labour Unions Reduce vs. Increase
Employment Organised Business Organisations
Shareholders
Immediate Stakeholders1. Negotiators
• Personality• Background• Experience• Culture• Attitude• Knowledge• Personal Benefits
2. Company’s Managers, Employees, BoD
• Financial• Career (Promotion)• Ego• Prestige• Wages / Salary• Economic Security
Integrative Bargaining
Win-Win Negotiations
Mutual Gains Bargaining
“Getting to Yes”
Integrative Bargaining
Separating the people from the problem
Focusing on interests not on positions
Insisting on objective criteria
Inventing options for mutual gain
What do we need to do?TRUST
Location
Timing
Obfuscation (confusion)
Positioning
What do we need to do?Surprises
Avoid “us” versus “them”
Agendas / Plans of action
Emotions
Bridge Building
What do we need to do?Choose your team carefully
Don’t think you are right and they are wrong
BE OPEN TO OPTIONS
Team Negotiations
Team Negotiations
Negotiating Individually
Versus
Negotiating in a Team
Team Negotiations
Define Roles:
Speakers
Decision Makers
Observers
Team Negotiations
How many negotiators should be on a team?
Too many
Too few
Match the number of the other side
Team Negotiations
Common goal, strategy
Uniform
Don’t contradict
Common reactions
Team Negotiations
Changes (how to deal with them)
Don’t pass notes or whisper
Use Breaks
Too Few
Too Many
Team NegotiationsTrust
Good Cop/Bad Cop routine
Define the leader
Define the different styles
Languages
Team NegotiationsTips
Less negotiators is betterDefine Roles
Don’t change the speakerBackup speakers
Be cohesive
Negotiate with a team as a team!
Interpreters
Interpreters
Immediate Barrier
Who will provide?
Lose feeling & reactions
Interpreters
Pay attention to negotiator not interpreter
Ask advice
Check & verify everything
Interpreters
Listen
Wait
Speak slowly
Do not interrupt
Take notes
Be prepared for longer negotiations
Verify everything agreed upon
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