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Cross Cultural Negotiation
Cross Cultural Negotiation
Cross Cultural Negotiation
Negotiation
Outline:
• Components of negotiation
• Individual negotiation styles
• Negotiation tactics
• Cultural differences in negotiation
Negotiation:
= the use of dialogue to resolve disputes,
produce agreements or achieve goals.
Cold-calling
1. Establish goals:
a. Aspirational base
b. Real base
telephone, e-mail.
Preparing for negotiation
3. Tactics:
a. What stance will be taken?
b. How flexible is it?
c. What is the tone?
d. Specific ploys to be used?
Preparing for negotiation
4. Substance:
a. Prepare materials:
i. Draft documents
ii. Product and price details
iii. Terms
iv. Additional information
Individual negotiation styles:
Avoiding:
Individuals who do not like to negotiate and don’t do it unless they
must; they tend to defer and dodge confrontation; however, they may
be perceived as tactful and diplomatic.
Individual negotiation styles:
Collaborating:
Individuals who enjoy negotiations that involve solving tough problems
in creative ways. Collaborators are good at using negotiations to
understand the concerns and interests of the other parties. They can,
however, create problems by transforming simple situations into more
complex ones.
Individual negotiation styles:
Competing:
Individuals who enjoy negotiations because they present an
opportunity to win something. Competitive negotiators have strong
instincts for all aspects of negotiating and are often strategic. Because
their style can dominate the bargaining process, competitive
negotiators often neglect the importance of relationships.
Individual negotiation styles:
Compromising:
Individuals who are eager to close the deal by doing what is fair and
equal for all parties involved in the negotiation. Compromisers can be
useful when there is limited time to complete the deal; however,
compromisers often unnecessarily rush the negotiation process and
make concessions too quickly.
Negotiation Tips and Tricks
1. The Nibble Technique
Salesman proposes adding additional cost items after initial
deal has been reached.
Buyer can preempt this tactic by clarifying all aspects of the
product, service, delivery and other terms before discussing the
price.
2. The Flinch
Customer expresses surprise when price or terms are presented.
Salesman might then added extras to his offer. If the customer
does not flinch again, salesman can assume he has found the
customer’s real base.
Buyer can counteract this by referring to a competitor’s offer.
3. Deferring to Higher Authority
Either side can respond to requests by saying that they must
consult with their team or their boss.
Cannot be used too much or the other side might wish to stop
present contact and negotiate with the real decision maker.
Buyer: Your price is 10,000, but my limit is 9,000. What can we do?
Buyer consults and says he has tried but the company cannot accept it
adding its too bad because we are only 500 apart (Now 1,000 difference is
forgotten)
If seller needs to make the sale, he might offer to split the difference again,
making the final price only 250 above buyer’s original position.
8. The Trade Off Technique
When one side presents a problem or obstacle, for example “the order
will be ready one month later that expected” this presents the other side
with a chance to extract concessions. This could include extra goods, a
discount on future or past orders, etc. but it is important not to appear
willing to accept the problem as explained.
Announcing that negotiations are cancelled may cause the other side to
drop their position.
10. Attacking Techniques
The use of criticism (of the other side’s country, company or them
personally) may be a tactic to throw them off balance and lose
control emotionally.
The other side should try to not get upset and see it as a
tactic. Keep smiling and focus on the real issue
Cultural differences
Or
Punctuality
“Time is money”
6. Emotion