Bianca Badea - Internation Negotiation - American-German Model

INTERNATIONAL NEGOTIATION:
AMERICAN – GERMAN MODEL
Project coordinator: Student:

Conf. Dr. ANA MARIA BADEA ELENA BIANCA
NEAGU
Bucharest
2018
BADEA ELENA BIANCA – INTERNATIONAL NEGOTIATION: AMERICAN-GERMAN MODEL
“POLITEHNICA” UNIVERSITY OF BUCHAREST

FACULTY OF ENGINEERING IN FOREIGN LANGUAGES
MASTER OF BUSINESS ADMINISTRATION AND ENGINEERING
Approved
Director of department:
Prof. dr. ing. George DRAGOI
MASTER DISSERTATION THEME FOR:

ELENA-BIANCA BADEA
1. Dissertation title:
International Negotiation: American-German Model
2. Initial design data:

- American negotiation analysis model
- German negotiation analysis model
- Comparison between the 2 models
3. Student contribution:
- Analysis of 2 companies corresponding to each model
- Implementation of a particular negotiation situation where both models are visible
4. Compulsory graphical material:

- Graphical charts
5. The paper is based on the knowledge obtained at the following study courses:
- International Negotiation
6. Paper development environment:

- Google Forms, Microsoft Office Package
7. The paper serves as:

- Dissertation Thesis
8. Paper preparation date:

May 2018
Supervisor: Student:
Conf. Dr. Ana-Maria Neagu Elena-Bianca Badea
Academic Honesty Statement
I, Elena Bianca Badea, hereby declare that the work with the title “International
Negotiation: American-German Model”, to be openly defended in front of the master
dissertation examination commission at the Faculty of Engineering in Foreign Languages,
University "Politehnica" of Bucharest, as partial requirement for obtaining the title of
M.Sc. in Business Administration and Engineering is the result of my own work, based on
my research.
The dissertation, simulations, experiments and measurements that are presented are
made entirely by me under the guidance of the scientific adviser, without the implication
of persons that are not cited by name and contribution in the Acknowledgements part.
The dissertation has never been presented to a higher education institution or

research board in the country or abroad.
All the information used, including the Internet, is obtained from sources that were
cited and indicated in the notes and in the bibliography, according to ethical standards. I
understand that plagiarism is an offense and is punishable under law.
The results from the simulations, experiments and measurements are genuine.
I understand that the falsification of data and results constitutes fraud and is punished
according to regulations.
Elena Bianca Badea 15.05.2018

Table of Contents
Contents
Academic Honesty Statement....................................................................................................- 1 -
PURPOSE OF THE PAPER.........................................................................................................3
PART I - NEGOTIATION – GENERAL TERMS........................................................................4
INTERNATIONAL NEGOTIATION BETWEEN USA AND GERMANY.....................................4
AMRICAN NEGOTIATION STYLE..................................................................................................5
GERMAN NEGOTIATION STYLE....................................................................................................7
DOING BUSINESS IN GERMANY.....................................................................................................8
GERMAN – AMERICAN BUSINESS CULTURE.............................................................................9
IMPORTANT ASPECTS....................................................................................................................11
Attitudes and styles.............................................................................................................................................11
Sharing of information.......................................................................................................................................11
Pace of negotiation..............................................................................................................................................12
Bargaining...........................................................................................................................................................12
Decision making..................................................................................................................................................13
Agreements..........................................................................................................................................................13
PART II – THE COMPANIES....................................................................................................14

INTERNATIONAL BUSINESS MACHINES - IBM........................................................................15
Negotiation style...................................................................................................................................................15
TIPS FOR NEGOTIATING WITH IBM:.........................................................................................16

Gartner's T4 Process for IBM-Specific Negotiation Tactics, Templates, T&Cs and Timing..............................16
HOW TO PREPARE FOR AN IBM SOFTWARE NEGOTIATION.............................................18

BMW – BAYERISCHE MOTOREN WERKE.................................................................................19
Business Segments................................................................................................................................................20
IBM – BMW PARTNERSHIP............................................................................................................20

Negotiating environment......................................................................................................................................22
Contract or Relationship?.....................................................................................................................................23
Negotiating Attitude: Win-Lose or Win-Win?.....................................................................................................23
Personal Style: Informal or Formal?.....................................................................................................................23
PART III – CASE STUDY...........................................................................................................23

DEFINING THE TERMS...................................................................................................................24

QUESTIONNAIRE..............................................................................................................................25
RESPONSES and ANALYSIS............................................................................................................31
INTERPRETATIONS.........................................................................................................................38
SELF ASSESSMENT SURVEY.........................................................................................................39
CONCLUSIONS...........................................................................................................................41
BIBLIOGRAPHY.........................................................................................................................43
PURPOSE OF THE PAPER

The purpose of this paper is to discuss different negotiation behaviours present in 2 countries:
Germany and United States. A separate analyze will be performed of each country with its own
separate culture, followed by a comparison between the two negotiation styles. General
behaviours, gestures, styles, communication issues, conflict management, money negotiation,
appearence, presentations and other aspects will be deeply discussed. What it is needed to be
achieved with this general comparison is a more detailed and structured analysis not only
between general business negotiations, but also taking as examples two representative companies
from each country: BMW for Germany and IBM for United States.
In the second part of the paper I will discuss different negotiation behaviours present in 2
companies: IBM, representing United States and BMW representing Germany. A separate
analyze will be performed of each company with its own separate model, followed by a
comparison between the two negotiation styles. General behaviours, gestures, styles,
communication issues, conflict management, money negotiation, appearence, presentations, tools
and other aspects will be deeply discussed.
In the las part of the paper I will discuss a case study about international negotiations based on a
questionare. The questionaire contains 8 questions, all mandatory. The questions are touching the
subject of how American and German persons negotiate and also how they are considered to
negotiate based on people’s opinions. The questionaire was created in order to prove the
previous discussions from Part I and Part II, which state about the negotiation styles between
German and American nationalities but also between these two countries and other nationalities.
PART I - NEGOTIATION – GENERAL TERMS

The term of "negotiation" speaks to the procedure that individuals use with a specific end goal to
fulfil their necessities which are controlled by different parties. Any wish that somebody wants
can turn into a potential circumstance of arrangement. One of the official meanings of
arrangement is the procedure when at least two sections having normal and conflictual goals,
face off regarding the potential outcomes of a conceivable agreement. Likewise, Kennedy said in
1998 that arrangement is the procedure through which we get what we need from the individuals
who additionally need something from us.
In an arrangement situation, which is forever composed and refreshed by the on-screen

characters themselves, a procedure of auxiliary correspondence, in which parts examine wilfully
about their choices, attempting to illuminate the distinctions which exist between them. A
considerable measure of transaction accomplices spotlight to focus the exchange on what is in
the game. An effective route is to centre additionally around how to impart or how to display the
discussion contemplating the interests and the different perspectives for each side.
Influence, acknowledgment, constraint, arrangement, guideline and intervention – these are the 6
transaction choices that the same Kennedy proposes. These catchphrases can be placed by and by
through each progression of a negotiation: setting up the procedure, expanding a technique,
beginning the correspondence, elucidate the places of each partner, the real and the end of the
transaction.
INTERNATIONAL NEGOTIATION BETWEEN USA AND GERMANY

In the presumable circumstance where individuals are confronted to parties originating from
various social conditions, to end up competitive, they need to build up an approach style and a
procedure willing to remember the destination of the association they represent. Individuals from
various nations have diverse methods to assess things, with various dispositions and encounters,
with great focuses or shortcomings.
The American procedure of transaction is observed to be not quite the same as that of the
Germans in a few regards. A standout amongst the most imperative European exchanging
partners of USA is Germany, among France and United Kingdom. The Germans and the
Americans share huge bits of each other's societies, however there are likewise awful moments
when their societies conflict. As a result, the mistaken assumptions which emerge can turn out to
be more genuine in light of the fact that the Americans and Germans take pride in accurately
interpreting the conduct of each other.
Aside from the arrangement of administration contracts, America exchanges with Germany a
huge number of showcasing transactions like capital gear deals, permitting assertions,
appropriate understandings for both mechanical and customer products.
An entire side of all these business exercises is eye to eye arrangements between American
businessmen and officials from Germany. Leaving aside the long history and huge volume of
exchange, promoting transaction is yet delicate viewpoint between these 2 nations. Arranging
with Germans, as well as with other European exchanging partners is essential, however
understudied. Investigations of negotiations practices, expanding purchaser-dealer transaction
and different hypotheses regarding this subject ought to be better broke down by trading experts
before beginning to work with outside partners.
AMRICAN NEGOTIATION STYLE

The American transaction style is the one which is prevailing in the specific literature. The
Americans see the transaction as a focused, solid and helpful process, with a ping-pong
procedure. By and large, the American administrators are down to earth individuals and spotlight
particularly on the acknowledge acquired, competitivity, amplify the benefit, effectiveness,
velocity and high efficiency. Vital qualities in the negotiation procedure for Americans are the
next words: independence, realism, inspirational behaviour as for change and great time
administration.
American moderators are individualists and through negotiations they take after the individual
acknowledgment of achievement. They follow success keeping in mind the end goal to acquire a
high thankfulness inside their association. This style is portrayed by the general population who
uses it. The identities of these individuals are true, warm, certain and idealistic. The moderators
who use it go sure about settlements, talking plainly and beginning quick a discussion. They
approach an immediate style, non-protocolary and a free method for talking which takes after the
showdown. Be that as it may, received choice is to a great degree rational.
Another part of American negotiation is that they centre around what they need to do, straight to
the point, yet at times they disregard the significance of a string association with the opposite
side of the understanding. They invest little energy in the beginning period of the task, where
they need to know the partner. They draw in themselves quickly in the following stage, the one
where the associates as of now begin the trading of data.
The fleeting introduction contrasted with the long haul of different societies is another
imperative trademark. The American mediator begins the procedure with excitement, following
the achievement. They connect an extraordinary significance to the rhetoric's, they are distracted
with the development procedures, transmission of verbal message and on their energy of
influence. The messages transmitted amid the arrangements are unequivocal, clear and direct.
During the discussions, rationality is additionally included. The introduction of their contentions
is extremely all around recorded and sorted out, uncovered such that the intrigue of the partner is
open.
They approach the question of arrangement consecutively, well ordered. The concessions are
made step by step, at first their solicitations conquer a specific adequate way, yet later they will
make new concessions in return for gainful understandings of the contrary part. Their solid
focuses show in arranging the offers and the talks go quick toward this path. The procedure "for
their own preference" suits them extremely well and they anticipate from their accomplice a
similar demonstrable skill. They likewise have an uplifting state of mind in regard to change and
they are prepared to go out on a limb to acquire a significant benefit.
As to timeliness when up close and personal arrangements are included, they put a considerable
measure of complement on being on time at the gatherings. For them, time is a constrained asset,
to a great degree profitable which must be exceptionally very much oversaw. Additionally, if the
opposite party is late for gatherings, they feel offended. The plan of the improvement program is
set up by them in the start of the arrangements. Satisfying on time the conventions is an
imperative part on their method for making business. Regarding the due dates is additionally a
key point about their richness, polished methodology, premium and capacity to make great
offers.
GERMAN NEGOTIATION STYLE

The German negotiation style is an intense one, the moderators are very much arranged,
composed and methodical. Bill Scott said that their readiness for transactions is brilliant. They
will recognize precisely the arrangement they need to finish up, its frame and the alternatives that
will be talked about amid the settlements. The primary likeness with the American style is the
timeliness. At that point, the effectiveness and velocity come beside their methodology. The
offers are introduced clear, firm and definitive. Generally, the offers are not extremely adaptable,
and they are precautionary measures in doing bargains and concessions.
It is extremely normal for a German to quickly organize each understanding into a framework.
This is a quote from the eighteenth century. At the point when in arrangements, the German
partner will dependably be all around arranged and ideally educated. A similar will anticipate
from their contrary which is relied upon to have very much arranged data and actualities
accessible. The worldwide accomplices ought to get ready solid contentions for their position on
the grounds that the more they contend sanely and methodically, the quicker they will have the
capacity to persuade a German businessperson or specialist.
There is an adage in Germany, "You made your bed, now lie in it", which implies that the work
and execution they accomplish in the past will be repaid in the present and future. Singular parts
of the current business will be breaking down altogether by the German business mediators and
examined in detail. They will infrequently ever stray from the arrangement of motivation
focuses, which is a totally unexpected style in comparison to the one displayed previously. They
will stay with the subject in the important framework. For their universal accomplices this is
frequently long and tiring. Nonetheless, the accomplices ought not get fretful or hassling because
this may prompt the end of negotiations. The accomplices ought to rather set up some extra,
persuading points of interest for each part of the business which they can slip into the talk.
The more favourable circumstances they can convey, the quicker the arrangement will be fixed.
Additionally, the sudden option of new subjects ought to be kept away and furthermore the
dialog focuses to the important points. Germans don't care for being amazed, particularly not
amid business gatherings. For the accomplices, it is smarter to illuminate every one of the points
that are essential to them before the gathering and to have them incorporated into the plan.
When the arrangements are done, the concurred subjects will generally become active rapidly.
The remote counterparts ought not fear tedious postponements from the German organizations.
Middle of the road steps and turning points, and in addition understandings, will be obviously set
out in composing and the agreements or assertions will be fixed with a mark. From the minute
on, they consider official and must be changed in extraordinary cases. One ought to not attempt
to proceed with arrangements after an effective arrangement because it can create doubt from the
German business mediator.
With respect to favoured transaction dialect, if the remote accomplice does not ace German yet,
they can likewise consult in English. Relatively every worker in about each German organization
will have the capacity to talk liquid or possibly understandable in English. The German
businessmen will be satisfied however, if the partners know probably the most essential German
expressions.
DOING BUSINESS IN GERMANY

Working together in Germany is an exceptionally crafty action. There are critical things while
consulting with German agents. There are approaches to persuade a distrustful German client to
part with their cash. This subject has been investigated by eco specialists with years of
involvement in worldwide business and they wound up at the conclusion that there are sure do's
and don'ts when managing German individuals.
To persuade German individuals to connect with somebody, to enlist their administrations or to

purchase their item is again a test. Most Westerners expect a provoke answer when they create
an impression or make an inquiry. In a culture that qualities pointedness, similar to Germany, an
American can hope to get clear and positive reaction to inquiries and proposition.
Straightforwardness and explicitness, ethics for the two Americans and Germans, are not envious
to different societies. Americans and Germans will probably begin hoping to confide in the other
party until demonstrated dishonest, while in Latin America and a few sections of Asia
individuals would be slanted to doubt until the point that great confidence is demonstrated.
GERMAN – AMERICAN BUSINESS CULTURE

Organizations need to ponder where they expand their capital. That is presumably the most
imperative choice right now. Would it be advisable for it to be founded on geographic
contemplations, in particular, is it better to put resources into your own particular market or
abroad? Particularly in Asia or third nations? Which item divisions would it be a good idea for
you to put resources into and which ones will keep on growing? On which divisions would it be
a good idea for you to abandon? These are indistinguishable inquiries from 100 years back, just
that the circumstance has turned out to be more intricate. To begin with, in light of the fact that
there are much more topographical markets in which organizations can contribute. Besides,
technology and the mechanical condition had changed profoundly. Interpersonal organizations
like Facebook or Twitter, are underestimated by individuals. One case of innovation changing
things always is the bank business, where banks would need to think about whether they require
a branch on each side of the road.
Another inquiry that may show up for American accomplices of Germany is the thing that will
be diverse in their nations in 15 years. It would be useful for goth partners that there won't be
such a large number of contrasts as the present. Preferably, Germany would keep on having an
indistinguishable culture from today and it will have the same or significantly larger amount of
impact. Obviously, there will be distinctive innovations and maybe unique designs. As a rule,
individuals are probably going to keep doing and as they currently are.
Things may change as far as contrary things that may happen unwillingly of individuals' wants,
for example, catastrophic events. Yet, Germany isn't debilitated by tremors or tidal waves, in any
case. It is difficult to trust that Germany and USA will not keep on cooperating as intently as
they are currently in transoceanic exchange and associations. Toward the day's end, vitality
change is a noteworthy theme in Germany, where vitality preparations are moving, in the
meantime while in USA the vitality forms are getting less. In quite a while from now, USA may
move toward becoming relied upon remote vitality supplies. An organization between the two
nations in view of a suitable settlement, could make German vitality costs more tolerable. The
way that Germany makes business is likewise affected by its history. Over 65 years back,
Germany was crushed, barely any houses were left in the city, since war has demolished to such
an extent. Indeed, even its current history says that toward the start of the century, it was the
unwell country of Europe. The Germans have achieved to remake the greater part of that so
plainly they are sufficiently solid to deal with all kind of issues.
The USA vitality approach is normally affected by outside financial specialists, for example,
China. In any case, Chinese development will back out by one means or another and it will
encounter colossal ecological issues since the nation is not really putting resources into anything
from its own condition, picking rather to put resources into business abroad. It will enthusiasm to
perceive how close USA and Germany will wind up after China's fall.
The American monetary framework is very not the same as the German one. US culture is
fundamentally the same as German culture, yet there are a few contrasts. They can be seen in
basic circumstances of disappointment. Someone bombing in Germany can be pretty much as of
now set in the back quarters. Then again, In the event that some individual flops in the USA, the
Americans take a gander at him with an alternate point of view. Some individual who has
flopped on difficult circumstances has taken in something from the experience, maybe that
individual won't rehash the error next time. This is the reason there is a value culture in the USA
and in Germany a culture of obligation. A value culture makes something, for instance it creates
venter capital which remains for the customary culture of dangers. This was available
additionally when we discussed the American style of arrangement which has as principle
trademark the inclination to go out on a limb so as to amplify its increases. This cash can be
utilized to fuel new thoughts and plans of action for youngsters. In the event that a youthful
business visionary should be established at first with a couple of millions, he will be upheld as
long as he consults with a decent marketable strategy. Regardless of whether this first endeavor
flops, there will at present be bolster for new and better thoughts, implying that a man like this
can attempt once more. All partners can keep working the business and notwithstanding making
benefit after some time. "Fail" is not really even utilized as a part of the USA since
disappointment in any procedure, political, monetary, on any procedure, for example,
transaction, is thought to be a chance to learn and to improve the situation later on.
The worldwide negotiation business between these two nations is additionally impacted by the
degree of the monetary culture of developing markets, affecting the globalization outline. On the
off chance that one investigates the main 1000 worldwide organizations, none of them originate
from Bangladesh for example, or from Arabic nations. Be that as it may, the political thoughts of
these nations are progressively taught in the western world. Regardless of whether in the United
Kingdom or the USA, the administration there have had an entire unexpected instruction in
comparison to 50 years prior. This implies a radical new age of political rulers. Training in the
lower nations is by the by extensively better today. We realize that there is an abnormal state of
joblessness in Saudi Arabia, in any case, instruction in this nation is great. This is additionally
conceivable by the new specialized techniques.
IMPORTANT ASPECTS
Attitudes and styles
To German individuals, the procedure of negotiation is a critical thinking one. It does not make a
difference if the American or the German is in a purchaser position, the two sections in a
business bargain have the duty to close a deal. They can mull over the two advantages on long
haul or close term. The Germans have a tendency to have a helpful stile at the outset however
they will not concur making bargains. This alternative will be their last arrangement in the event
that everything else fizzles. The two nationalities have confidence in the win-win idea and the
trust or regard is a required trademark that the opposite side should claim. While Americans are
more individualists, they may tend here and there to open an encounter and to be persevering
about it, yet this mentality will never work with a German businessperson. In any case, if the
partner brings sensible contentions and extra information, a shared opinion can be found.
Germans relate with expressions of remorse.
Sharing of information
German mediators, conversely with their partners, American negotiators, do not tend to skirt the
initial segment. Despite what might be expected, they can invest a considerable amount of
energy gathering data and points of interest before the genuine procedure begins. They may
make more inquiries, and this is dangerous on the grounds that it can exhaust the American side.
They expect a similar thing about different arbitrators and they are not reluctant to answer or to
share touchy data. Americans, then again, are probably going to abstain from noting this ruler of
inquiries, despite the fact that it might appear as though they are concealing something.
Pace of negotiation
Arrangement between individuals from these 2 nations can be moderate in light of the fact that
the two sections are exceptionally fastidious, and they want to consider things important, despite
the fact that Americans here and there can pick not to design everything so painstakingly, yet
rather to go out on a limb and settle on unconstrained choices. At transaction forms, as well as
their day by day work style, Germans like to be monochromatic. They do not care to be hinder
when they are seeking after their efficient work. They experience their destinations in a similar
way when they are arranging, implying that they will expect each question or administration
independently and they rather talk about the feelings of their partners simply after their
introduction has wrapped up.
Bargaining
Germans don't care for bartering and don't value wheeling and dealing, state of mind which is
really not quite the same as the Americans since when they need to acquire something they can
arrange forcefully. Germans despise the procedure of negotiations and they are doing it simply
because there is no other option. Likewise, if an offer is exhibited, it will once in a while drop
with in excess of 25 percent. The two nationalities can utilize beguiling methods despite the fact
that they are more found of the direct style. So as to purchase additional time they can embrace a
disposition to state that they request the administrator's endorsement. Another system which can
be influencing, is to accompany their best offer toward the start. Germans embrace this technique
regularly when they arrange with Americans, as well as with other remote partners. A mix-up
would be from Americans to trust that they are feigning yet in certainty the offer is intense.
Times of hush may show up in the process because of the way that the two sides will set aside
their opportunity to break down the procedure profoundly. In the event that American individuals
would utilize weight strategies, for example, time weight or terminating offers, Germans would
take it as unseemly unless they truly want to take the arrangement.
In some cases, even Germans, in regards to their quiet soul, may look forceful in mediating. Be
that as it may, in the uncommon events when this happens, they do not do it intentionally or as a
strategical way. At the point when Americans will make hazardous offers, Germans would not
move down scared. On the off chance that tested, they will battle back, particularly in the event
that it is about a huge organization.
Americans are not renowned for being frosty individuals, in spite of the other part, so they may
approach enthusiastic systems, for example, the endeavor to influence Germans to feel regretful
or advance to the individual connections. This may not work with the Germans precisely in light
of the fact that that well-known mentality of theirs for coordinate inquiries, firm position,
blocking and examining. Typically, the offers ought to be likewise composed, not simply talked
in light of the fact that this encourages the two sections to plan better and to monitor each other's
wants.
Concerning negative parts of transaction, for example, debasement or pay off, Germany is
steadier at this section than America. Germans are exceptionally right, clean and they will shut
off the transaction procedure quickly if the partner makes such a proposition.
Decision making
In huge organizations a pecking order is dependably plainly characterized. Extremely settled
lines of expert split the workers into various classifications. Be that as it may, German workers
do not acknowledge specialist as prepared as the Americans. This is on account of the fact that
they do not live with the feeling that the supervisor is better than them, yet with the possibility
that chain of command is useful for negotiate.
Regardless of whether the managers are not thought to be superior to anything the
representatives as a matter of course, the choice are as yet taken by the seniors of the
organization. A decent administration in an organization infers additionally the assignment of
choice and attributions to dependable lower levels. The choice is the most essential advance all
the while, German individuals put an awesome arrangement of accuracy in taking it, some of the
time it is taken by a board of seniors. Therefore, once the choice is taken, it is additionally last
and unnegotiable.
The two sections can begin to apply rules that are viewed as all-inclusive and they do not care for
special cases from the guidelines. Individual sentiments are not liable to be alright in a business
arrangement, despite the fact that Americans at times may attempt. On the in spite of Americans,
Germans are hesitant to put everything on the line. They may take dangerous choices just in the
event that they end up alright with it. Clarifying reinforcement designs, offering more help,
assurances and guarantees.
Agreements
Regardless of whether the gathering is on the web or up close and personal, meeting minutes are
constantly viable for recording what it has been examined. Composed contracts have a more
grounded value than the verbal understandings. Activities that have been settled upon are
required to be executed instantly, regardless of whether the agreements are as yet not marked.
Regardless of whether the Germans do not care for changes, Americans will disconfirm this and
will include statements with conceivable subjects for changes.
At the point when an agreement winds up legally binding, the entire circumstance turns into a
genuine issue for the two sections. Understandings and contracts are normally protracted in light
of the fact that there are determined every one of the points of interest and terms which have
been talked about during the whole procedure of arrangement, including the legitimate issues. At
the point when the agreement is done, the two sides will give their mark, as a lawful prerequisite,
as well as a proof for each other's dedication. In high-positioning German organizations, just the
officials are having expert to sign an agreement.
Lawfully entitled people can survey the terms of an agreement before marking it. This is not
viewed as an indication of question, but instead as a precautious move made by the parts.
PART II – THE COMPANIES

Each organization today exists in a mind boggling web of connections, and the state of that web
is shaped, one hread at once, through transactions. Buying and outsourcing contracts are
consulted with providers. Showcasing game plans are consulted with residential and outside
merchants. The substance of item and administration groups are consulted with clients. Item
improvement settlements are consulted with joint-wander accomplices. It's hard to think about
any business activity that does not require some type of transaction. In spite of the fact that the
result of any single transaction might not have much impact on a business' fortunes, a great
number of arrangements an average organization embraces have, in blend, a huge effect on its
technique and its main concern. Individuals who are counseling on transactions, notwithstanding,
have discovered that organizations infrequently ponder their arranging exercises all in all. Or
maybe, they take a situational orientation, seeing every transaction as a different occasion, with
its own particular objectives, its own particular strategies, and its own measures of
accomplishment. That approach can deliver great outcomes specifically occurrences, yet it can
end up being counterproductive when seen from a higher, more key plane. Working out
favorable terms on an acquirement contract may, for instance, torpedo an imperative long haul
association with a provider. Or then again thinking of an imaginative reaction to one client's
bizarre needs may undermine an expansive market or item methodology.
INTERNATIONAL BUSINESS MACHINES - IBM

International Business Machines Enterprise (usually alluded to as IBM) is an American
multinational innovation organization headquartered in Armonk, New York, United States, with
activities in more than 170 nations. The organization began in 1911 as the Computing-
Tabulating-Recording Company (CTR) and was renamed "International Business Machines" in

1924.
IBM fabricates and showcases PC equipment, middleware and programming, and offers
facilitating and counselling administrations in regions running from centralized server PCs to
nanotechnology. IBM is likewise a noteworthy research association, holding the record for most
licenses produced by a business (starting at 2017) for 24 back to back years. Creations by IBM
incorporate the automated teller machine (ATM), the PC, the floppy disk, the hard disk drive, the
magnetic stripe card, the relational database, the SQL programming dialect, the UPC
standardized tag, and DRAM. The IBM centralized computer, exemplified by the
Framework/360, was the overwhelming registering stage in the 1970s.
Negotiation style
At a current Gartner occasion in Barcelona, examiner Alexa Bona gave a hard-hitting
introduction about the troubles encompassing programming transactions with a portion of the
business' best sellers – to be specific IBM, Microsoft, SAP and Oracle.
Bona said that the reason she chose to focus around these four is – maybe obviously – that these
are the sellers that Gartner gets the most enquiries around (thousands for every merchant) when
clients are looked with an agreement transaction. She said that it likewise appeared well and
good to centre around these four since they are difficult to consult with.
Indeed, one client told Gartner (after the merchant suggested the client as a referral) that dealing
with seller X " was like having to put your hand in a tank of piranhas" since you know you will
get hurt sooner or later.
Programming buying makes various particular issues for the purchaser – it is not your average
purchasing condition. For one, you are not really purchasing and owning the item, you are just
purchasing a privilege to utilize the product for a specific number of representatives. This
implies, not at all like in the event that you were acquiring a physical item, on the off chance that
you are not fulfilled you cannot simply offer it on to another person to recover costs.
Notwithstanding, this is not the greatest issue for purchasers, exchanging is. Bona said that the
first occasion when you purchase programming from a merchant you are in an extremely solid
position to arrange on the grounds that there is programming accessible from various contenders
– great use. In any case, once you have submitted and have been utilizing said programming for
various years the adjust of energy is particularly with the merchant.
TIPS FOR NEGOTIATING WITH IBM:

 Consider competition – Bona said that IBM is especially delicate about its clients
searching somewhere else for elective items and will probably be more adaptable if there
is a danger of progress. She stated: "In the event that you are thinking about an aggressive
switch, continue saying that. BCA, Compuware, BMC, Oracle, whoever – on the off
chance that you are considering it, say it more than once." However, Gartner warns that
in the event that you are taking a gander at competitors to evaluate the advantages over a
long stretch, as these organizations have a tendency to be extremely aggressive in years
one to four, yet not all that great after this.
 Growth – If you have a development design and will develop utilizing IBM items, this
will probably get you extra rebates and concessions. In any case, Gartner cautions that
these arrangements must be unbundled. "These negotiations are clearly predicated on
development presumptions, for various product offerings, so you must have the capacity
to take them out, analyse them, work in the same old thing situations for every one of
those items, at that point get them re-packaged back up" said Bona.
Gartner's T4 Process for IBM-Specific Negotiation Tactics, Templates, T&Cs

and Timing
IBM's special evaluating, authorizing and contract administration for IBM System centralized
computer and Passport Advantage programming challenges innovation acquirement experts.
Gartner's IBM-particular T4 process opens interesting complexities to break down proposition
and arrange bargains that streamline estimating and T&Cs.
 Analysis
o T1 Tactics — Draw in With IT and Business Partners and Outside Specialists to
Recognize Competitors and Elective Arrangements That Undermine IBM's New
and Continuous Income Stream
 Partner Nonattendance Undermines the IBM Focused Item and Solution
Appraisal
 Sound Rivalry Is Fuel for Transaction Availability
o T2 Templates — Utilize Gartner's IBM-Particular RFQ Layout to Reveal

Fundamental Valuing and Terms Points of interest Imperative for Compelling
Proposition Examinations and Transactions.
 IBM's Only Travel Permit Preferred Standpoint Program Must Be Figured
out how to support you.
 An IBM-Particular RFQ Layout Is Required to Distinguish and Uncover
Essential Proposition Examination Detail
o T3 T&Cs — Make and Keep up an IBM-Particular Contract Administration
Matrix and T&Cs Agenda for New and Restoration Transactions by Expanding
on the Network and Agendas in Figures 3, 4 and 5 of This Paper
 The IBM Client Assention Does Not Administer All IBM Programming
 Uncertainty Around Overseeing IBM Understandings Damages Contract
Consistence Administration
 Feeble or Missing T&Cs Agendas Undermine Powerful IBM ELA and
IULA Arrangement Arranging
o T4 Timing — Build up an Arranging System In light of Group Team effort that
includes CxO-Level Administration to Deliberately Time and Settle
Arrangements to Line up With IBM Quarter-End and Monetary Year-End Dates
 CFO intercession may be required for Capex-Opex Investigation
 The C-Suite can assist deliberately time last endorsement to Line up with
IBM Monetary Year-End
On the off chance that an organization would take after Gartner's IBM-Particular T4 Procedure to
acknowledge cost funds and cost shirking and arrange IBM standard declarations and specific
ELA and IULA contracts with T&Cs that ensure your speculations.
HOW TO PREPARE FOR AN IBM SOFTWARE NEGOTIATION
As any Sourcing and Vendor Management (SVM) expert will let you know, programming
transaction with IBM is no basic undertaking. Lately, as IBM has extended its scope of
programming and administrations, its valuing and permitting measurements have developed
progressively muddled, prompting genuine cerebral pains among SVM experts. That being
stated, fruitful arrangement is not inconceivable – in another Forrester report, my associates and I
demonstrate that with planning, tolerance, intensive due tirelessness, and a comprehension of
IBM's permitting and valuing subtleties, it is conceivable to build an arrangement that fulfills all
gatherings.
As a matter of first importance, SVM professionals need to get their work done. While it may not
be conceivable to completely ace the greater part of IBM's authorizing subtleties, you need no
less than an essential comprehension. Some underlying plans to enable you to begin are:
• Watch out for hyperlinks. A portion of IBM's understandings incorporate hyperlinks to their site
and its authorizing strategies, which can be changed at IBM's prudence. Focus on these hyperlinks to
remain cutting-edge on the progressions or incorporate into your assention that any progressions must
be presented to you ahead of time.
• Consider sub limit authorizing to cut your expenses. Both centralized computer and
appropriated items can be conveyed in either full-limit or sub limit mode. In spite of the fact that sub
limit mode requires additional push to screen and oversee, it likewise implies you pay for the real limit
utilized, and more often than not brings about lower programming costs.
 Review how your association as of now licenses IBM items. In case you're as of now an IBM
client, check how you are permitting IBM's items today. You may find that IBM has as of late
changed the way it licenses certain items, so just reasoning you can recharge as before might
not be right.
 Audit your permit use. Run your product resource administration instruments to check what
your real IBM use is and to contrast with your current IBM permit privilege. This can help you
rapidly uncover consistence issues and propose better approaches to oversee licenses and
upgrade sub limit choices.
When you have an essential comprehension of the permitting measurements, it is an ideal opportunity
to consider evaluating. Much the same as with permitting, IBM's evaluating model has turned out to be
additionally confounding as they have extended their item portfolio. In the event that it is excessively
overpowering, you may require, making it impossible to get autonomous market experts keeping in
mind the end goal to expand your insight. A few hints for arranging valuing with IBM include:
• Understand IBM's International Passport Advantage program. Demand that IBM completely
clarify its volume reducing value and where you as of now sit in its different markdown groups.
• Watch for extraordinary discounts from IBM. Once in a while IBM uncovers extraordinary sales
contributions, for example, focused substitution projects or time-limited discounts, so it merits
observing IBM's business movement.
• Consider multiyear arrangements to increase greater sales. Consider multiyear concurrences
with IBM as a motivating force to inspire it to lessen its help/upkeep costs.
• Review a yearly go through top with IBM. Customers regularly overcommit on their yearly
Enterprise Licensing Agreements (ELA) top and after that find that they underspent in the year.
Endeavor to guarantee that you top at the ideal level and don't top too high.
BMW – BAYERISCHE MOTOREN WERKE

BMW (Bayerische Motoren Werke Group) is a one of the main extravagance carmakers in European car
industry. BMW was established on 7th March 1916 by Franz Popp and Max Friz. BMW began by making
plane motors for German armed force up until the finish of WWI in 1918. BMW in this report will take a
gander at BMW's situation in the European car industry and it will likewise investigate the showcasing
blend, trends and issues in the business. BMW is situated in the German territory of Bavaria. BMW is
making and dispersing a progression of effective, premium-evaluated traveler autos and motorbikes. In
1928 BMW acquired their first auto production line at Eisenach/Thuringia and with it, the permit to
manufacture a little auto call, "Dixi". Additionally, it gives money related administration to help overall
deals and dispersion of autos and cruisers. In 2008 the organization sold 1.2 million automobiles under its
biggest image - the BMW.
Business Segments
With its three brands BMW, MINI and Rolls-Royce, the BMW Group is the world's driving premium
producer of cars and cruisers and furthermore it also gives premium monetary and portability
administrations. As a worldwide organization, the BMW Group works 31 creation and get together
offices in 14 nations and has a worldwide deal arrange in around of 140 nations.
BMW needs to distinguish particular attributes to enhance the division territory. In this division BMW
needs to take a gander at this geographic, statistic, behavioral, and financial. Market division gives rules
to organization to grow new advertising system and differing item showcase. BMW three brands BMW,
Mini and Rolls-Royce unmistakably centers around worldwide market.
Segment Automotive
BMW - Driving joy – that is the thing that drives the company. At BMW, driving joy originates from the
ideal blend of lively elements, momentous advancements and amazing plan.
MINI - Maximize the experience while concentrating on the fundamental. Shrewd arrangements with
notable outline energize an existence brimming with important encounters. MINI opens the city,
conveying to the customer’s individual needs.
Rolls Royce - The most select extravagance car producer on the planet. Eminent for incomparable quality,
dazzling hand craftsmanship and careful consideration regarding the detail.
Segment Motorcycle
With interesting items and redid administrations, BMW Motorrad stands for enthusiasm, dynamic
execution, outline, innovation and development
Segment Financial Services

BMW Group Financial Services is one of the main specialist co-ops in the car division: Around 8,000
representatives join forces with the deals and retail association to serve more than four million clients in
about 50 markets.
IBM – BMW PARTNERSHIP

IBM has turned into a service supplier for BMW Financial Services Sector in 2008. The
organization between them is called LIKO. LIKO is the name of the contract between the 2
organizations. It was first marked by the 2 parties for a time of 5 years and it was called LIKO I.
In 2013, the agreement was reestablished with the name LIKO II for a time of an additional 5
years. One year from now this agreement will be likewise ended, so another renegotiation will
begin.
What IBM provides for BMW is second and third level specialized help for BMW Bank
programming applications. This sort of help is given by the Operational Department, yet there
additionally exist the Maintenance Department.
Level 1 support, in spite of the fact that not gave by IBM, is the underlying help level in charge
of fundamental client issues. It is synonymous with first-line bolster, level 1 bolster, front-end
bolster, bolster line 1, and different headings indicating essential level specialized help
capacities. To begin with occupation of a Tier I authority is to assemble the client's data and to
decide the client's issue by breaking down the side effects and making sense of the hidden
problem. When examining the manifestations, it is essential for the professional to recognize
what the client is endeavoring to achieve so time isn't squandered on "endeavoring to fathom an
indication rather than an issue."
For BMW, first-level help is conveyed by on-call team that works broad hours (or every minute
of every day). This call focus goes about as an "underlying sink" for client demands and, if
required, makes an episode to advise different business groups/units to fulfill the client ask (for
instance, mandatory documents not arriving in Online Baking one morning).
Level 2, which is a piece of the Operational division, is a more inside and out specialized help
level than Tier I and thusly costs more as the experts are more experienced and learned on a
specific administration. Specialists in this domain of information are in charge of exploring
raised issues by affirming the legitimacy of the issue and looking for known arrangements
identified with these more mind boggling issues. In any case, preceding the investigating
procedure, it is critical that the professional audit the work request to perceive what has just been
refined by the Tier I expert and to what extent the specialist has been working with the specific
client. This is a key component in meeting both the client and business needs as it enables the
specialist to organize the investigating procedure and legitimately deal with his or her
opportunity.
In the event that an issue is new and additionally work force from this gathering can't decide an
answer, they are in charge of raising this issue to the Level III specialized care group. What's
more, numerous organizations may determine that specific investigating arrangements be
performed by this gathering to help guarantee the complexities of a testing issue are explained by
giving experienced and learned professionals. In IBM, supporting BMW programming, second
and third level groups are not very well separated.
Upkeep office is the largest amount of help in a three-layered specialized help demonstrate in
charge of taking care of the most troublesome or propelled issues. These people are specialists in
their fields and are in charge of not just helping both Tier I and Tier II faculty, however with the
innovative work of answers for new or obscure issues. Note that Tier III experts have an
indistinguishable duty from Tier II specialists in inspecting the work arrange and evaluating the
time officially went through with the client so the work is organized and time administration is
adequately used. On the off chance that it is at all conceivable, the expert will work to take care
of the issue with the client as it might wind up clear that the Tier I and additionally Tier II
specialists just neglected to find the best possible arrangement. After experiencing new issues,
nonetheless, Tier III work force should first decide if to take care of the issue and may require
the client's contact data so the expert can have sufficient time to investigate the issue and
discover an answer.
For every one of these exercises, there is an extremely complex contract between these 2
organizations.
Negotiating environment
The gatherings making this worldwide arrangement are situated at an incredible separation from
each other in various nations. Indeed, even in this time of moment worldwide correspondence
and rapid travel, distance and geographic newness still confound the arranging and execution of
transactions. One side ordinarily needs to travel to the opposite side to negotiate, for our situation
IBM representatives, as suppliers, need to move to the customer keeping in mind the end goal to
have a superior correspondence in complex ventures.
Culture is a moment hindrance to making bargains. Universal business exchanges not just cross-
national limits, they likewise cross societies. Culture is a capable factor forming how individuals
think, impart, and act.
It additionally influences the way they negotiate. Social contrasts between arbitrators can make
hindrances that can obstruct an arrangement. Since IBM US is spoken to in this circumstance by
IBM Romania, the way of life obstruction has been outperformed pretty effectively since
Romanians are great experts, as well as great arbitrators.
Contract or Relationship?
For bargain creators from a few societies, the objective of a business arrangement, as a matter of
first importance, is more often than not to land at a marked contract between the gatherings.
Different societies have a tendency to consider that the objective of a transaction isn't a marked
contract however the production of a connection between the two sides. Despite the fact that the
composed contract communicates the relationship, the embodiment of the arrangement is simply
the relationship. Despite the fact that at BMW, the German representatives are exceptionally
thorough about the agreement part, they are extremely upbeat when the IBM workers make and
keep up a decent association with them.
Negotiating Attitude: Win-Lose or Win-Win?

On account of contrasts in culture or identity, or both, business people seem to approach bargain
making with one of two fundamental states of mind: that an arrangement is either a procedure in
which both can pick up (win-win) or a battle in which, of need, one side wins and the opposite
side loses (win-lose). While arranging an agreement or a venture inside this agreement, IBM will
never make its client feeling like he is in a lose position. The organization's prosperity is worked
over trust for every customer they have, including BMW. State of mind is dependably a win-win
one, this is the reason amid the years they have turns into BMW's main provider for specialized
help on programming administrations.
Personal Style: Informal or Formal?

Individual style concerns the way a moderator converses with others, utilizes titles, dresses,
talks, and communicates with different people. First and foremost, the style amongst IBM and
BMW is formal, yet after various associations, particularly great collaborations, where IBM has
demonstrated its great capacities, normally the style can wind up casual.
PART III – CASE STUDY

For this case study I decided to use as a tool for research a questionaire. The purpose of the
questionaire was to gather information from respondents. The questions that I decided to
formulate are meant to find from respondents’ experiences and opinions what are the
negotiations styles of American and German persons but the questions are also addressed to
check on the opinions of different aspects of negotiation. I also wanted to find out if people are
often put in the situations to negotiate, either in their personal time or at work. There are 12
questions, with a clear structure, starting from the least sensitive one, up to the more detailed
ones at the end of the questionnaire. All questions are mandatory, except for one which has a
long-answer text and they do not have neutral questions. Based on the 50 responses for each
question, I collected statistics and I concluded an analysis based on a comparison between the
results of the questionnaire and the actual known information existing in bibliography regarding
the types of negotiations between Americans and Germans.
DEFINING THE TERMS

1. Collaborative : I win, you win
Aiming Advantages
high will 
Ease the process
not be the 
Ask a large number of questions

Develop diverse methods of taking a look at it; more
first option alternatives
 Both sides are more eager to make the deal successfully
2.  Use fewer irritators
 You will be considered a business partner
Drawbacks
 Might consume more time and more complicated
 May be risky in an early position
Competitive : I win, You lose
Advantages Deal to deal experience
 Realize very fast how to be in 3. Relationship: I lose, You win

advantage
 Committed in light of arrangement
Advantages May be
 Considered a business person risky in
 Considerate
 The best price will motivatetheyou
other side even when the conflict of interest is high an early
Drawbacks  Ask a large number of questions position
 Develop diverse methods of taking a look at it; more alternatives
 Ask not somany Onequestions
side will be willing to make the deal
 Loyalty is out You
of question
will be seen as a business friend
Drawbacks
 May consume more time
4.
Compromise: I lose, You lose
The opportunities will Advantages

be missed  Fins simple, correct ways of seeing
deals
 Share the differences
 Considered the Nice Guy
Drawbacks
 The job will be good but not great
QUESTIONNAIRE
All 12 questions are part of the research process and analysis in a systematic method. It is
addressed mostly to people who have experience in negotiating but not only, as there are also
questions where targets can use their imagination. The method used in collecting the data is a
questionnaire which was active on online social networks for 2 days and gathered 50 answers.
Data collection in this research is primary data but also secondary data. Secondary data was used
in the theory part and primary data is used in this survey. The purpose was to create a survey not
very complicated as most people avoid completing or answering to complex questions. Most of
the questions are multiple choice questions because they are one of the most simple, yet reliable
method of collecting information. In this way, the questionnaire was easy to understand by all
the targets.
The age was necessary in the survey because It has been shown in various scientific disciplines
that opinions on a vast number of topics differ between different age groups. However, because
as age might be a sensitive topic for some people, I decided to use age categories.
The second question was asked because I wanted to see how often people are put in a position to
negotiate. From their responses I could find out how many of the respondents actually do have
some experience in negotiating.
The scope of the third question was to see if people’s experience regarding negotiating is of a
professional nature or a personal nature, as it is in question number 2. Because in the previous
research I talked about the negotiating style of two companies’ representative for each of the two
countries (America and Germany), I decided to formulate a question regarding a professional
working environment.
Question number 4 is designed as a transition between the least sensitive questions and the most
important questions in the survey. Now I introduced the term “foreign”, as a first step towards
international situations.
The next 4 questions are actually the ones with the most interesting results for our subject. I
wanted to know how many people negotiated with a German or an American person. If they did
with one of these 2 nationalities they should give an objective answer on questions number 5 and
6. However, for those who did not have the chance to negotiate with foreigners or they
negotiated with people from other countries different than Germany and USA, I formulated the
questions in such a manner that a subjective answer can be given.
The same approach was used in the last 2 questions, where the respondents were given the
chance to give either a subjective answer or an objective one.
The purpose of question number 9 was to find out which of the presented aspects in an
international negotiation are most important in people’s opinion.
Question number 10 is a long answer question where participants had to describe a situation
from their personal experience where they negotiated. Additionally, they were ask to focus on
their experience with Germans or Americans, if they have one. This question was not marked as
mandatory, since there are people who do not like writing.
The next question is a subjective question regarding the skills that respondents believe would
make a good negotiator. I asked this question because negotiating is not an action for everyone.
You actually need some specific skills in order to be able to do it with success.
Last question from the survey come back to the respondent’s personality. They are asked how
they would prepare for a negotiation. The question requires a response for each row and it
allows multiple choices for a column.
RESPONSES and ANALYSIS
Since the survey was shared on social networks, it was expected that the age of most of the
respondents to be between 20 and 30 years old.
Since only 24% of the people selected that most of the time they are put in a position to negotiate
gives us the result that in a large manner the answers to the following questions are rather
subjective than objective. This means that only 12 people do actually have a real experience in
negotiating.
Even a smaller number of people are using negotiations as part as their job. This sustains even
stronger than before the idea that the answers to the following questions are given in a subjective
manner, not from real life situations. Almost half of the respondents actually negotiated very few
times at their job, probably when they negotiated their salary.
From the transition question between introduction questions and straight to the point questions
we find out that only 16% of the people negotiated with German persons and half of this number,
8% ever happened to negotiate with an American person. Almost half of all the respondents
negotiated with foreigners of other nationality than German and American. Since in our interest
are exactly these 2 countries, the survey’s results cannot be taken into consideration as real fact
statements because they are based on people’s opinions and not on their real experience.
It was already previously mentioned that the results tend to be subjective so probably most of
the people who answered to this question were in the position of the second part of the question:
“do you think”. More than half of the respondents mentioned that they believe a German person
would have a Collaborative style of negotiating.
The same style was chosen for American persons also. People tend to think about a negotiation, a
situation in which both parties have something to win. This, of course, would be the ideal case
and it has been chosen for both American and German people. The next option in both
nationalities was the competitive style, where it is believed that a German person, as well as an
American person would prefer for them to win no matter if the other party involved loses.
Comparing the answers from question 5 and 6, it can be seen that no compromise answer was
chosen for the American people.
It seems that most of the people agree on the fact that negotiating with a German person would
be diplomatic and cold, strictly to each parties’ interests. Only 1 person from 50 decided that for
him/she would be easy to take control over the situation and win the negotiation. From my point
of view, that 1 person either is one of the 16% of the people who chose that they had the change
to negotiate with German people and probably he did it multiple times and he has much
experience with this nationality, he knows their style very well. On the other hand, that 1 person
could be just too optimistic and confident in his strengths.
For the last question, comparing the results with the ones from question 7, it can be seen that
opinions regarding the American negotiation situation are quite different. However, one answer
was the most chosen, coming into the advantage of Americans, as a negotiation with them would
have an optimistic and warm atmosphere. At the same time, an equal number of people believe
that body language would be important, as well as the logical arguments. Only 12% were on the
other side of the story, considering that it is stressful and challenging to negotiate with
Americans.
Clarifying interests is considered by 22 out of 50 people very important and by 19 people very
important. Nobody considered that this aspect is not important at all.
Preparing yourself was considered the most extremely important, by 22 people, while other 18
people considered it very important. Again, no one dismissed this aspect from the positive
outcome of the negotiation.
Taking notes was equally considered to be very important and medium important by 15 people.
Here, only 1 person considered that it is not important at all.
Respecting the rules was equally rated by 18 people as very and extremely important. More
people thought here that respecting the rules is not important at all, even more than taking notes,
3 people in this case.
The fun part comes at the aspect Play dirty when it was equally rated by 3 people as very and
extremely important. Most of them are serious and checked that it is not important at all.
A high majority of people, 21, rated Making concessions with medium importance.
The next question was an open long answer question where the targets had to write with their
own words a negotiation situation in which they participated. The problem with the open
question is that it was not mandatory and not all people had to answer it. Slightly less that 50%
give an answer to this question and some of the participants actually put a great deal of effort
into writing a nice answer.
Here are some of the most interesting answers which also came the closest to the area of interest
of this paper:
1. “Working with a German based automotive partner, I have been set in several instances to negotiate
project ram-ups from a staffing, financing and solutioning point of view. Professionally correct is the
word I would use to best describe the whole experience. Objectives were clear on both sides and
communicated in advance, arguments were well documented and analyzed professionally and replies
were sent in an orderly manner.”
2. “Once, i kept arguing with a German guy. He kept saying a German who can't see should still be
called blind and i was saying he should be called "a not see”.
3. “During a groupwork with a German girl it was very hard to agree on anything as she always wanted
to take the lead and do the whole project her way.”
4. “Tough negotiation with an American person.”
5. “American Person. While I was working as a Pool Concierge and Security at a swimming pool, I had to
make a negotiation between two guest that had an argue about one of them hitting the other person
child unintentionally. Had to make them come to an agreement and not try to sue or call the cops one on
each other.”
6. “I had negotiations with German counterparts as I work on a German project. They are very precise
and if you commit on something they are very keen on delivering what you said. At the same time if you
explain clearly and with strong arguments they are open to negotiations and even concessions.”
In Question number 11, all participants considered the communication skills to be the most
important. This skill was the only one which did not take any qualificative of “Not relevant to
negotiation”. Then , an almost equal number of people, 46 and 47, considered the listening skills
and patience to be the next in good to have while negotiating.
The last question was a personal one asking how the participants prepare themselves for a
negotiation. Most of them checked that they use reports and documentation to present their plan
and also they study the strategy and tactics of the other side.
INTERPRETATIONS
In the possible circumstance where individuals are stood up to accomplices originating from
various social conditions, to wind up aggressive, they need to build up an approach style and a
procedure willing to remember the goals of the association they speak to. Individuals from
various nations have diverse methods for to assess things, with various dispositions and
encounters, with great focuses or shortcomings.
Even if the survey results were pretty subjective, it came up that people’s opinions were quite
like the reality. German people are very diplomatic and cold in their negotiations, they go
directly to the points, they do not like to lose time, and this is an effect of the cause that they do
not like the negotiation process and they do it only because it is necessary.
Respondents answers regarding the American negotiation style was also accurate. Generally, the
Americans are competitive, trying to maximize the profit, but always with a positive attitude.
The American negotiator starts the process with enthusiasm. The personalities of these people
are sincere, warm, confident and optimistic.
SELF ASSESSMENT SURVEY
In the last part of the case study, I asked some of the 50 people who answered the survey to
complete also a self-assessment questionnaire. The questionnaire is a diagnostic which helped
the respondents to find out in which category of negotiation model they belong (win-win, win-
lose, lose-win or lose-lose).
The survey presents a straightforward method with the 4 categories. The targets were required to
answer to 21 questions, pointing the intensity to which they agree to the statements. The options
they had to choose were:
- absolutely disagree
- disagree
- agree
- absolutely agree
The task of the targets was to read all 21 statements and to answer them considering them related
to their own person. Then, they had to give the marks from 1 to 4 to each of them, with no time
limit. The answers were given by each participant in the last column from the table.
The statements were the following:
Nr. Statement Score
1. I always tell the other side which my interests are.
2. I always bring new ideas when the negotiations have stopped with no one
to gain.
3. I am able to make concessions when I negotiate.
4. I can sustain a conflict in a negotiation.
5. It happened many times that I lose my temper in a negotiation.
6. I don’t need to prepare for a negotiation. I make decisions on the spot.
7. I do not like to be sympathetic to other side’s problems.
8. I would better be in a negotiating position with a German rather than an
American.
9. It does not matter who the other side is, I always look after my own
interests.
10. I would feel more comfortable to negotiate with an American person.
11. I do not like raising questions in a negotiation.
12. I give up when the other side does not give anything in order not to create
a conflict.
13. I would rather let the other party sum up the conclusions at the end.
14. I like more to talk than listen when negotiating.
15. A good outcome would be a good agreement for both sides.

16. I am willing to take risks when negotiating with an American person.
17. I can support my arguments strongly even when negotiating with a
German.
18. I do not associate the power with winning
19. I am good at playing dirty and always get what I want
20. I will be ok even with a no outcome situation when negotiating with a
German.
21. I would like to be considered more as a friend rather than a business
partner
After the 15 participants responded to the survey I transferred the score to each of them into the
following scoring structure:
Firstly, the positive outcome:
Win - Win Win - Lose

2 - 1 -
6 - 4 -
8 - 9 -
10 - 11 -
15 - 17 -
16 - 19 -
Total - Total
Secondly, the negative outcome:
Lose - Win Lose - Lose

5 - 3 -
7 - 13 -
12 - 18 -
21 - 20 -
Total - Total -
Each statement was corresponding to one of the 4 models. Then, I added the points given by the
participants to the statements. I divided the 4 models into positive outcomes (where your side wins) and
negative outcomes (where your side loses).
The statistics are as follows:
Win – Win max Win – Lose max equal

6/15 8/15 1/15
Lose – Win max Lose – Lose max equal

5/15 9/15 1/15
The order of the scores was the following:
- for a Win - Lose situation = 20 points

- for a Win – Win situation = 19 points
- for a Lose – Win situation = 12 points
- for a Lose – Lose situation = 12 points
The results for the positive situation show that 8 out of 15 participants would rather be in the Win –
Lose category and the other 6 out of 15 would like the situation where both parties have something to
win.
The results for the negative situation show that 9 out of 15 participants would rather be in the Lose –
Lose situation and the others of 5 out of 15 would be in the Lose – Win situation.
Personally, this comes as a surprise, since the results show that most people would rather see only there
own side’s interests. A bigger number of people chose that only they will be in the winning situation
rather that both sides would have their interests fulfilled. The same thing is happening also for the
negative outcome, where, in the situation that they lose, they would rather see the other side lose also
instead of the other side winning.
CONCLUSIONS
To sum up the most important aspects of negotiation between America and Germany, both
individual characteristics and mutual ones should be taken into consideration. As the global
economy becomes more entrenched and the importance of internationalization becomes self-
evident to American and German businesses, the number of contacts with foreign agents will
escalate. Whether it be buying or selling, the end result often is cross-cultural negotiations.
Even as different approaches to negotiation across national cultures are identified, change is
constant. International business culture tends to privilege Western approaches to negotiation,
centred in problem-solving and linear communication, as do many settings. As Western norms
are balanced with Eastern and Southern values, and local traditions are balanced with regional
and national approaches, negotiation practices continue their global evolution.
To aggregate up the most imperative parts of arrangement amongst America and Germany, both
individual attributes and common ones ought to be thought about. As the worldwide economy
turns out to be more settled in and the significance of internationalization winds up plainly
obvious to American and German organizations, the quantity of contacts with outside operators
will heighten. Regardless of whether it be purchasing or offering, the final product regularly is
diverse transactions.
Indeed, even as various ways to deal with transaction crosswise over national societies are
distinguished, change is steady. Worldwide business culture tends to benefit Western ways to
deal with arrangement, focused in critical thinking and straight correspondence, as do numerous
settings. As Western standards are adjusted with Eastern and Southern qualities, and
neighborhood customs are adjusted with provincial and national methodologies, transaction
rehearses proceed with their worldwide development.
At the point when Eastman Kodak exchanged its server farm activities to IBM, the two
organizations attempted to adjust the arrangement and the relationship. A considerable measure
of cash was in question, and the two sides needed the terms of the arrangement to be to their
greatest advantage. Kodak needed to lessen its costs; IBM needed to expand its incomes. In any
case, the organizations likewise realized that a definitive achievement of the outsourcing course
of action would depend on the wellbeing and transparency of their long haul relationship
They deliberately recognized the terms of the arrangement and the idea of the long haul
relationship they planned to incite. They created two arrangements of issues—one identifying
with the arrangement, the other to the relationship—and consented to keep the two arrangements
of issues isolate constantly.
BIBLIOGRAPHY
- Meaghan Pierannunzi, USIP Press, “American Negotiating Behaviour: Questions and
Answers – http://www.usip.org/publications/2016/10/18/american-negotiating-behavior-
questions-and-answers
- “Business meeting etiquette”- http://businessculture.org/western-europe/business-culture-
in-germany/meeting-etiquette-in-germany/
- Ekateine Makhatadze, “German Negotiation Style” -
http://www.academia.edu/7236229/German_Negotiation_Style
- “Negotiating successfully in cross-cultural situations” -
http://www.freepatentsonline.com/article/Academy-Marketing-Studies-
Journal/209042395.html
- “Negotiating International Business - The Negotiator’s Reference Guide to 50 Countries
Around the World” by Lothar Katz” -
http://www.leadershipcrossroads.com/mat/cou/Germany.pdf
- Nigel C. G. Campbell, John L. Graham, Alain Jolibert and Hans Gunther Meissner – “
Marketing Negotiations in France, Germany, the United Kingdom, and the United States”
- https://www.jstor.org/stable/1251264?seq=1#page_scan_tab_contents
- Michelle LeBaron – “Culture-Based Negotiation Styles” -
http://www.beyondintractability.org/essay/culture-negotiation
- Compare etiquette by country - http://etiquette.wanderbat.com/compare/4-54/Germany-vs-
United-States
- “Stiluri de negociere” - https://www.scribd.com/doc/11553942/Stiluri-de-Negociere
- Mark Bartrick, 2013, “How to Prepare for an IBM Software Negotiation” –
http://spendmatters.com/2013/02/21/how-to-prepare-for-an-ibm-software-negotiation/
- Derek du Preez, 2014, “Top tips for getting leverage when negotiating with IBM”
http://www.computerworlduk.com/it-vendors/how-get-some-leverage-when-negotiating-
with-ibm-microsoft-sap-oracle-3496183/3/
- Howard Raiffa, “The Art and Science of Negotiation” -
https://books.google.co.uk/books?hl=en&lr=&id=y-
4T88h3ntAC&oi=fnd&pg=PA1&dq=negotiation+in+companies&ots=4j6J6FTC6r&sig=
B0Wtgmt_lnZeKy74y1EqJkA197Y#v=onepage&q=negotiation%20in
%20companies&f=false
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in International Buyer–Supplier Arrangements” -
http://www.sciencedirect.com/science/article/pii/S0019850199001182
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predicting price negotiation outcomes in business-to-business contexts” -
http://www.sciencedirect.com/science/article/pii/S0957417412012596
- Danny Ertel, “Turning Negotiation into a Corporate Capability” -
http://www.ecldp.com:8080/ecldp/articles/files/functional_articles/negotiation/Turning
%20Negotiation%20into%20a%20corporate%20capability.pdf
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based on negotiation and cooperation between agents: a case study -
http://ieeexplore.ieee.org/abstract/document/798767/?reload=true
- “Master Research I on International Negotiations” – Bianca Badea, 2017
- Online Survey - https://docs.google.com/forms/d/1Rz5cUmt-
vMqezjU9YtGy76clXhSMpd9chyE6ckf7CVc/edit , 2018
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content/uploads/2014/10/Negotiation-Styles-Questionnaire.doc
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_interpersonal_07_negotiation_skills.pdf
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negotiation-interview-questions 2013
APPENDIX – Complete questionnaire


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INTERNATIONAL NEGOTIATION:

AMERICAN – GERMAN MODEL

Project coordinator: Student:

“POLITEHNICA” UNIVERSITY OF BUCHAREST

MASTER DISSERTATION THEME FOR:

2. Initial design data:

4. Compulsory graphical material:

6. Paper development environment:

7. The paper serves as:

8. Paper preparation date:

The dissertation has never been presented to a higher education institution or

Elena Bianca Badea 15.05.2018

PART II – THE COMPANIES....................................................................................................14

TIPS FOR NEGOTIATING WITH IBM:.........................................................................................16

HOW TO PREPARE FOR AN IBM SOFTWARE NEGOTIATION.............................................18

IBM – BMW PARTNERSHIP............................................................................................................20

PART III – CASE STUDY...........................................................................................................23

DEFINING THE TERMS...................................................................................................................24

PURPOSE OF THE PAPER

PART I - NEGOTIATION – GENERAL TERMS

In an arrangement situation, which is forever composed and refreshed by the on-screen

INTERNATIONAL NEGOTIATION BETWEEN USA AND GERMANY

AMRICAN NEGOTIATION STYLE

GERMAN NEGOTIATION STYLE

DOING BUSINESS IN GERMANY

To persuade German individuals to connect with somebody, to enlist their administrations or to

GERMAN – AMERICAN BUSINESS CULTURE

PART II – THE COMPANIES

INTERNATIONAL BUSINESS MACHINES - IBM

Tabulating-Recording Company (CTR) and was renamed "International Business Machines" in

TIPS FOR NEGOTIATING WITH IBM:

Gartner's T4 Process for IBM-Specific Negotiation Tactics, Templates, T&Cs

o T2 Templates — Utilize Gartner's IBM-Particular RFQ Layout to Reveal

HOW TO PREPARE FOR AN IBM SOFTWARE NEGOTIATION

BMW – BAYERISCHE MOTOREN WERKE

Segment Financial Services

IBM – BMW PARTNERSHIP

Negotiating Attitude: Win-Lose or Win-Win?

Personal Style: Informal or Formal?

PART III – CASE STUDY

DEFINING THE TERMS

Competitive : I win, You lose

Advantages Deal to deal experience

 Realize very fast how to be in 3. Relationship: I lose, You win

The opportunities will Advantages

RESPONSES and ANALYSIS

SELF ASSESSMENT SURVEY

15. A good outcome would be a good agreement for both sides.

Firstly, the positive outcome:

Win - Win Win - Lose

Secondly, the negative outcome:

Lose - Win Lose - Lose

The statistics are as follows:

Win – Win max Win – Lose max equal

Lose – Win max Lose – Lose max equal

The order of the scores was the following:

- for a Win - Lose situation = 20 points