UNIVERSITY OF FINANCE - MARKETING

FACULTY OF COMMERCE
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GROUP ASSIGNMENT

Module: International Business Negotiation

TOPIC: STEPS IN INTERNATIONAL BUSINESS

NEGOTIATION

Group No:
Semester: II FOR EXAMINERS ONLY
Grade (in number):
Academic year: 2022-2023
Lecturer: Ta Hoang Thuy Trang, MBA ………………..
Submission date: ……. Grade (in words):

………………..

Ho Chi Minh City, Oct 2022

 UNIVERSITY OF FINANCE - MARKETING
FACULTY OF COMMERCE
----------------------------

GROUP ASSIGNMENT

TOPIC: STEPS IN INTERNATIONAL BUSINESS NEGOTIATION

Group No:
No. Student’s full name Student ID
1 Dương Tuấn Thông 2021008970

2 Đặng Huy Hoàng 2021009053

3 Vũ Quỳnh Anh 2021009019

4 Trần Võ Hoàng Anh 2021007782

5 Lê Thị Kiều 2021008892

Cohort:

Estimated Presentation Time: 60 minutes

Ho Chi Minh City, Oct 2022

 EVALUATION OF SUPERVISING LECTURER

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Ho Chi Minh City, October 10th 2022

Supervising Lecturer
(Full name and Signed)

Ta Hoang Thuy Trang, MBA

Table of Contents

1. Introduction .......................................................................................................... ii
2. Steps in international business negotiation ....................................................... iii
2.1. Stage 1: Pre- Negotiation.............................................................................. iii
2.1.1. Preparation ............................................................................................. iii
2.1.2. Planning ................................................................................................... iv
2.2. Stage 2: Face-to-Face Negotiation ............................................................... vi
2.2.1. Create exposed air .................................................................................. vi
2.2.2. Create trust for partners ......................................................................... viii
2.2.3. Show our goodwill ................................................................................ viii
2.2.4. Partner exploration ................................................................................ ix
2.2.5. Change plans if necessary ........................................................................x
2.3. Stage 3: Post-Negotiation ...............................................................................x
2.3.1. Cultural factors....................................................................................... xi
2.3.2. Strategic Factors .....................................................................................xv
3. Conclusion ............................................................................................................xx
4. Case study of apple's apology in China .............................................................xx
REFERENCES ..................................................................................................... xxii
 1. Introduction
The negotiations are interpersonal interactions over any business issue as the
negotiation may relate to the conclusion of a sale contract, issue of licenses, entering
of joint ventures or acquisition of one entity by another.

Negotiation is a process where two or more parties with different needs and
goals discuss an issue to find a mutually acceptable solution. Negotiation is a
dynamic, complex and difficult skill to master. In business, negotiation skills are
important in both informal day-to-day interactions and formal transactions such as
negotiating conditions of sale, lease, service delivery, and other legal contracts.

The international business negotiation process under the program is divided

into three different stages with different specific steps.

Stage 1: Pre Negotiation

Stage 2: Face-to-Face Negotiation

Stage 3: Post Negotiation

A negotiation becomes successful, when there is a smooth flow of the

negotiation process in all the three stages.

A process stage will refer to a specific part of the process and include all
actions and communications by any party regarding the negotiations conducted in
that stage:

“The pre-negotiation stage becomes important since it is the starting point in

international negotiations”1 (Roy J. Lewicki (Litterer, 1994)). In the pre-negotiation
stage, the parties try to understand each other's needs and requirements through
information gathering and informal meetings between the two sides.

“The negotiation stage involves a face-to-face interaction, methods of

persuasion, and the use of tactics. At this stage negotiators explore the differences in

1
Negotiation – Roy J. Lewicki (Litterer, Joseph A, et al, 1994)
preferences and expectations related to developing an agreement,”2 (Swierczek, April
2006). The negotiation is face-to-face negotiation and the post-negotiation remain is
the stage where the parties have agreed on most of the issues and agreed on the form
of the contract, terms and signing of the contract.

2. Steps in international business negotiation

2.1. Stage 1: Pre- Negotiation
“The pre-negotiation stage, which involves the preparation and planning, is the
most important step in the negotiation”3 (P. Ghauri, 19 December 1996)

2.1.1. Preparation
Both parties will find out the other party, thereby gathering relevant
information about each other as well as about the contract to be negotiated, the
operating environment and strengths, the involvement of other third parties, the party
influence the negotiation, the opponent's competitors.

There is an element of complexity in international negotiations such as

infrastructure, exchange rate fluctuations, different cultures,.. “Other external
influences such as international law, exchange rates, and economic growth also
increase the complexity of negotiations,” “International business negotiations are
typically more complicated and difficult to assess than the negotiations taking place
between negotiators from the same culture” (Swierczek, April 2006)

So we can define this negotiation process as problem solving, the main issue
here is to define the problem to be solved. “In brief, the first stage of negotiation
emphasizes getting to know each other, identifying the issues, and preparing for the
negotiation process” (Swierczek, April 2006).

2 Haruthai Putrasreni Numprasertchai & Fredric William Swierczek, Journal of Intercultural Communication,
issue 11, April 2006.

3
International Business Negotiations. P. Ghauri, Jean-Claude Usunier. Published 19 December 1996
 2.1.2. Planning
Negotiations are carried out based on various approaches developed on the
exclusive standpoints of the negotiators concerned. However, during the pre-
negotiation stage, both parties need to pay attention to do these things:

2.1.2.1. Building trust and the relationship

“Activities like building trust and relationship among the parties and “task-
related behaviors” which concentrate on the choices of different alternatives available
to arrive at a solution constitute the major interactions during the pre-negotiation
stage”4 (Graham, 1989).

Informal meetings take place when the parties consider each other's positions.
Informal social relationships developed among negotiators during this period can be
of great help.

One method for establishing such contacts is to invite individuals from the
other side to visit your office/country to try to develop trust. A typical example: there
are always meetings, creating opportunities for exchanges and incentives for
employees at the negotiating company to increase trust and intimacy.

4
Smart Bargaining: Doing Business with the Japanese [Graham, John L., Sano, Yoshihiro 1989 ]
 2.1.2.2. Form a strategy for negotiating face-to-face

Each side will begin to form a strategy for negotiating face-to-face with the
other. They will typically draw up a complete plan of available problems, solutions,
and interests, and relate them to the other party's preferences and priorities, to prepare
for contingencies and directions. be clear when negotiating.

“The negotiation stage involves a face-to-face interaction, methods of

persuasion, and the use of tactics. At this stage negotiators explore the differences in
preferences and expectations related to developing an agreement” (Swierczek, April
2006).

2.1.2.3. The goals and The limit of concessions

The parties try to build on their strengths and will compare the results achieved
in the past, refer to all the literature on the other side that has been obtained from that
will determine the goals that they will achieve. The parties must really see how they
will cooperate, check that both sides' expectations of achieving the goals are realistic,
and identify the obstacles that need to be overcome to achieve these goals.

They also decide the points of possible concessions and their extent. Where
will their limits be placed according to their own needs and based on the goals they
set out above.

The objective of any international negotiation is to arrive at an acceptable

conclusion, which reduces disagreements and enhances benefits for the parties to the
negotiation.

Import duties and taxes, and work permits are just a few examples of country-
specific rules and regulations that must be studied at this stage.

2.1.2.4. The issues and Solutions

Negotiators should list issues and problems, especially those that are in
conflict, so that they can refine their strategy and thus choose from all the possible
solutions that they or the other party can offer. can propose when problems arise or
when the interests of both parties are violated. These solutions should be ranked
according to conditions such as preferred, desired, expected, and unacceptable. If it
is not acceptable, the negotiator should be more open about mutual interests to
propose a solution that is acceptable to the other party.

2.2. Stage 2: Face-to-Face Negotiation

The contact stage is the opportunity for us to get to know the partner in person.
Entrepreneurs need to: Make the other side trustworthy by showing their sincere
cooperation to them by taking into account the mutual interests of both parties and
the ways in which we can proactively implement them. appear as:
2.2.1. Create exposed air
“Creating an atmosphere of friendship and trust will make the negotiations go
smoothly and easily”5. (Wheeler, 1985). Depending on each partner, before entering
the negotiation, we should take some time to research and consider the selection of
methods of opening the negotiation to create an atmosphere of contact between the
partners. the partners are comfortable, natural and cause a lot of sympathy with each
other. There are four common methods of opening negotiations as follows:
Method of de-stressing: Allows for a close setting with the subject just saying
a few sincere, warm words you can achieve it. Ask yourself questions. How does the

5
Wheeler, Michael (1985), Protocols for Debriefing Practitioners, Program of Negotiation,
Working
desired object feel when it comes in contact with us? Of course they want us to
personally welcome, greet, encourage and praise them. Then they are no longer cold.
Fun, humorous stories help a lot to ease the initial tension, create a friendly and close
atmosphere for the negotiation.
Method of making excuses: This method allows to briefly state issues and
events as an excuse to relate to the negotiation content. From this key point,
negotiations are carried out according to the set plan. We can talk about anything
related to negotiation that interests both parties: hobbies, weather, sports, movies,
news of the day, etc.
Method of stimulating the imagination: The requirement of this method is
to ask a series of questions about the problems that need to be discussed and solved.
That method of questioning allows one to get good results in case the subject has a
clear and optimistic view of the problem.
Direct opening method. The schematic diagram of this method is as follows:
+ Briefly announce the reason for holding the negotiation.
+ Quickly move from general to specific problems.

Rules for opening negotiations:

At the beginning of the negotiation, there are a few minor issues that can
easily create a favorable atmosphere for negotiation such as:
o Opening remarks must be clear, concise and concise;
o Must call the subject's full name when talking to them;
o Dress, posture, facial expression must be appropriate;
o Show respect for the interlocutor's personality, pay attention to their opinions
and needs;
o There are positive comments and evaluations about the negotiation venue,
interior decoration, production layout, prestige and reputation in business of the
agency presiding over the negotiation.
 o Recalling some of the situations that have changed since the last negotiation
until now (if any);
o Asking people to express their opinions, instructions and advice;
For contacts of a professional and professional nature, related to a certain
topic, their purpose is to create excitement for the participants. Here, it is possible
to link the content of the current negotiation with those that have taken place in
the past, discuss with the hot trends, issues and events in the professional field,
noting the audience that we have know their needs and desires.
o Every opportunity, no matter how small, must be taken to bring the technical
issue to be discussed at the opening stage of the negotiation.
o The remaining issue needs to be considered, our personal attitude and method
in the negotiation?
The basic rule: Use the introspection method to initiate the negotiation.
Immersion method is to demonstrate the ability of the negotiator to put himself in the
position of the negotiating object in order to understand them more deeply. Ask
yourself: In the position of the object, what will we be interested in? Or: How would
we react if we were in their position?
2.2.2. Create trust for partners
Careful, dedicated to the work of partners and even personal relationships
make them trust you. Sometimes it's just because a sentence is not in the right place,
an inappropriate movement, an unthoughtful arrangement that affects their belief in
themselves. That needs to be more important to the partners with whom I have a
business relationship for the first time.
2.2.3. Show our goodwill
When negotiating with new partners, it is very necessary to show your
goodwill towards them. To show their goodwill, they can take advantage of certain
informal situations, telling them examples of how to treat people with sincerity in
previous transactions of the same type. It is also possible that before the negotiation
begins, it is necessary to arrange some activities that are conducive to building a
feeling of trust between the two parties, making the other party feel that they have
goodwill.
It is important to pay attention to being a trusted partner in actions, not words.
Should do the promised things, come on time as the covenant because sometimes just
once broken promise, the trust between the two parties also reduced and difficult to
regain.
When a partner asks a question, it must be answered promptly, regardless of
whether it is affirmative or negative, but it is necessary to tell them. For things that
we cannot do, we should honestly explain more so that our partners can understand
and accept.
2.2.4. Partner exploration
In which, information exploitation of partners plays an important role, (Udall,
1995) said: “In negotiation, information is power. The more information you have
from your partner, the better”6. Another comment also said that “If you do not ask
you will lose a lot”7 (Herbert, 2011) . So at this stage you have to know how to ask
the right questions to your partner. In addition, you can also use other techniques,
such as "Lubricant", comparison, silence... to extract information from different
sources about partners.
In addition, it is necessary to re-investigate whether the partner is trustworthy
or not, whether he or she keeps his promises, and to what extent they are willing to
cooperate. Must evaluate the negotiation experience, the partner's style, their
strengths and weaknesses. It is necessary to explore the principles by which the other
party must follow and on what issues concessions can be made. To conduct effective
exploration, you can observe their behavior, gestures, and words on a cautious and
sensitive basis.

6
Jean - M.Hiltrop and Sheila Udall, 1995, The best way to get information is to ask
questions, Pearson P T R; 1st edition
7
George Herbert, 2011, The Temple, Quintus Curtius, and Their Context, University of Pennsylvania
Press
 2.2.5. Change plans if necessary
Conduct a thorough analysis of that information, correcting initial statements
to verify certain issues that were previously unclear.
The plan must be changed in accordance with the new situation in order to take
advantage of the initiative in negotiation, ensuring their own interests, but also the
interests of both parties. Continue to research and analyze carefully to timely adjust
the negotiation strategy.
Thus, it is clear that mutual understanding is the basis for successful
negotiation. If we hide our information, the other party is also afraid to give their
information. Roundabout, indirect questions also make partners wary. Therefore, the
sharing must be done to create trust between the parties. Listening to and
acknowledging our partners' needs demonstrates our collaborative spirit. Do not
criticize or criticize the partner and regularly summarize the information gathered.

2.3. Stage 3: Post-Negotiation

At this stage, all terms have been agreed. The contract is being drafted and is
ready to be signed.

This phase can lead to renewed face-to-face negotiations if there is negative

feedback from the fundamentals and the atmosphere. As issues related to the language
used in the negotiation process have been agreed before, because the meaning and
value can be different between the two parties.

To limit the trouble that leads to further negotiations at this stage, it is

necessary to confirm that both sides clearly understand what they agreed to when they
left the table. By some measures such as:

Discussion should be summarized after negotiation to avoid unnecessary delay

in the process.
 Agreed terms should be read by both parties after exchanging concessions and
holding discussions, for example by keeping minutes of the meeting.

2.3.1. Cultural factors

Culture has an effect on negotiation outcomes, although it may not be direct,

and it may have an effect through differences in the negotiation process in different
cultures. In which cultural factors play a most important role in international business
negotiations include:

2.3.1.1. Time

Time has different meaning and importance in different cultures. This affects
the speed of discussion and punctuality in the meeting. For negotiators, it is important
to have advance information on the opposite party's behavior regarding time. This
will help them to plan their time as well as to have patience and not to get irritated
during the process.

For example, being late for an appointment, or taking a long time to get down
to business, is the accepted norm in most Mediterranean and Arab countries, as well
as in much of less-developed Asia. Such habits, though, would be anathema in
punctuality-conscious USA, Japan, England, Switzerland, etc.

In the Japanese, for example, “on time” refers to expected delays of less than
one minute, while in many other countries, up to fifteen minutes leeway is still
considered “on-time”.

According to Levine, the number one determinant of a country’s tempo is

economics: the economic health of the country as a whole, the average income earned
by the average citizen, and how well-fed they are. Places with active economies put
greater value on time, and places that value time are more likely to have active
economies, in a mutually reinforcing cycle. Consequently, in almost all cases, the
wealthier the society, the faster it tends to move.
 Negotiators from polychronic cultures tend to:

Start and end meetings at flexible times

Take breaks when it seems appropriate

Be comfortable with a high flow of information

Expect to read each others' thoughts and minds, sometimes overlap talk

View start times as flexible and not take lateness personally.

Negotiators from monochronic cultures tend to8 (LeBaron, Culture-Based

Negotiation Styles, 2003):

Prefer prompt beginnings and endings

Schedule breaks, deal with one agenda item at a time

Rely on specific, detailed, and explicit communication

Prefer to talk in sequence

-View lateness as devaluing or evidence of lack of respect.

2.3.1.2. Individual vs collective behavior

These are rather clear behavioral aspects in different cultures. In cases of

negotiation, it is important to have knowledge of this cultural attribute, as it will help
us to understand the behavior of the other party and to formulate an effective strategy.
Knowing whether the opposite party is looking for a collective solution or an
individual benefit will help in formulation of arguments and presentations.

8
LeBaron, Michelle., 2003, “Culture-Based Negotiation Styles”, Information Consortium,
University of Colorado, Boulder
 Research shows that U.S. negotiators tend to rely on individualist values,
imagining self and other as autonomous, independent, and self-reliant. This does not
mean that they don't consult, but the tendency to see self as separate rather than as a
member of a web or network means that more independent initiative may be taken.
“In contrast, the following values tend to influence Japanese communication: focus
on group goals, interdependence and hierarchical orientation. In negotiations, these
values manifest in the awareness of the group's needs and goals, as well as respect
for the higher-status values”9. (LeBaron, Culture-Based Negotiation Styles, 2003).

2.3.1.3. Pattern of communication

Communication has always been an essential skill for successful negotiation.

Good communication skills strengthen relationships between people, especially
between people in different cultures, the more attention is paid to communication
skills because the world is not only one culture. Currently, communication
applications are gradually becoming global, but the characteristics of communication
styles in each country are still very different. This is even more important in non-
verbal communication, the personal space, handshakes, ways of greeting each other,
communication between males and females, signs of irritation etc., are important
aspects of communication patterns, and knowledge of these can improve the
negotiation process and effectiveness.

Ex1: Some gestures in your culture have different meanings to foreigners. For
example, a subtle nod does not always mean "yes", because to Greeks and Bulgarians
it means "no".

Ex2: Eye contact has different meanings across cultures, so it's best to keep
things moving quickly if you don't want to be misunderstood. In some Asian, Latin

9
Michelle LeBaron, 2003, Culture-Based Negotiation Styles
American and African communities, prolonged eye contact is seen as rude and
defiant.

2.3.1.4. Emphasis on personal relations

A relationship in negotiation is a perceived connection that can be

psychological, economic, political, or personal; whatever its basis, wise leaders, like
skilled negotiators, work to foster a strong connection because effective leadership
truly depends on it.

Different cultures give different importance to personal relations in

negotiations. In many countries in the West, the negotiators are more concerned with
the issue at hand and the future relationship between the organizations, irrespective
of who is representing these firms, while in some cultures, the personality of the
negotiator is more important than the organization he is representing or the
importance of an issue. So the emphasis on personal relations can be different in
different negotiations

For example : If a negotiation in Mexico gets stuck in a dispute over some

detail, you may be able to resolve it quickly by appealing to the personal relationship
you have with your counterpart.' This is true. The strenght of personal relationships
is key when negotiating in Mexico, and it will be very important should conflicts
arise.

“As research in the social sciences has found, people tend to respond to others’
actions with similar actions. If others cooperate with us and treat us with respect, we
tend to respond in kind. If they seem guarded and competitive, we are likely to behave
that way ourselves. What’s more, is that such exchanges can spiral into vicious cycles
(those characterized by contention and suspicion) or virtuous cycles (those in which
cooperation and goodwill prevail)”10 (Allred, 2009)

In order to create a durable relationship in negotiation, there are four basic

building blocks that can help you create effective partnerships with the people you
lead:

Two-way communication

A strong commitment from the leader to the interests of those he leads

Reliability Respect for the contributions followers make to the organization

2.3.2. Strategic Factors

In an international negotiation environment, the parties involved must

carefully prepare how to present the facts, which strategies should be used, and which
methods of decision-making. And whether or not a third party should be used is an
issue when formulating a negotiating strategy. That makes up the elements when it
comes to coming up with a well-rounded strategy. If not prepared, it's easy to make
silly mistakes at the very first stage of the negotiation

2.3.2.1. Presentations

Negotiators need to know the method of submission in order to approach

negotiations most accurately. There are two basic methods: presentations are made
in formal or informal setting.

The two styles of presentation is very distinct in many countries.

The most important thing is to determine whether the issue is presented to The
parties to negotiate or just deal with individual issues.

10
Keith Allred, 2009, “The Importance of a Relationship in Negotiation”
 And the presentation to be considered should be argumentative, informative,
factual and focused.

a/ The presentations in a formal

The most classic way of negotiating is to conduct face-to-face negotiations.

Advantages: this form helps two parties meet face-to-face, easier to exchange
and understand information and wishes of both parties.

Cons: because traveling to meet face-to-face, travel and consumption costs

will be expensive and time consuming

b/ The presentations informal setting

One of the easiest ways to conduct negotiations is through correspondence.

Advantages: with informal presentation style, negotiation by mail will bring

the cheapest cost for both sides, have time to consider the issue and discuss
collectively to produce clear results. At the same time, it is possible to ensure
confidential negotiation and exchange with many customers at the same time

Cons: It is the time to make a decision is prolonged and it is possible that both
sides will not fully understand each other's intentions

The other method is negotiation over the phone, which is an effective means
of exchanging business.

Advantages: For cases that need urgent discussion, this is a priority means to
seize the fastest opportunity

Cons: However, this form also brings some risks such as not having authentic
evidence for the agreement.
 Therefore, it is necessary to be very careful when choosing the option of
negotiating by phone or combining with other forms to ensure benefits.

2.3.2.2. Strategy

Negotiation strategies have 3 most important and familiar strategies. That is

the hard, soft and the middle strategy.

a/ Tough strategy

Hard-style negotiation is also called positional negotiation, in which the

negotiator takes a very hard stance, then tries to defend his position, taking care to
crush the other party. In this type of negotiation, the negotiator tries to defend his
position, resolutely refusing to give in

Advantages

Get the benefits you want

Always have a stable stance, showing a resolute attitude that is not easily
shaken by the opponent
Easy to overwhelm and make opponents give in with a steadfast attitude
Enterprises will be proactive and can put pressure on partners

Cons

Negotiations are prone to friction, disagreement and tension

Agreements are easily failed due to the inability to find a common voice
It is easy to lose important relationships
Always be careful, consider your partner
It will take a lot of time and effort to negotiate

b/ Soft strategy
 Soft negotiation is also called friendly negotiation, in which negotiators try to
avoid conflict, easily yield to concessions, in order to reach an agreement and
preserve the relationship between the two parties.

Advantages

Negotiations rarely occur conflicts and contradictions between the two sides
Easy to come to an agreement in a short time
Always focus on preserving and building long-term good relationships with
partners
Always trust and trust your partner

Cons

There will be one party who has to make concessions and suffer losses to keep
the relationship
Accept some of your company's financial losses
Easy to back down under pressure
Always have to change goals, stance often

c/ Intermediate strategy

Use an agency to do the negotiation when the negotiating member cannot do

it on their own. Assists in making expectations and requirements during the
negotiation as the agency is familiar with the culture and way of thinking of the
opposing side, thereby helping the negotiation to succeed and limit damage.

Principle-style negotiation, also known as "Harvard negotiation technique",

has four characteristics:

- Separation of people from the problem, the policy: For people, be moderate,
for work, be firm.
 - Need to focus in the interests of both parties, rather than trying to take a
personal stance, the policy is: to be honest, open, not to use tricks, not to try to stick
to one's position.

- It is necessary to offer different options to selection, substitution.

- The results of the agreement should be based on objective scientific standards

Advantages

Together with partners to solve problems, bring out mutual benefits for mutual
benefit
Negotiations take place in friendliness and understanding
Be soft in handling problems but still be tough with the human factor
Emotions are always separate from work
Find many alternatives to choose from
Maintain a friendly relationship between the two sides

Cons

Sometimes the rigidity of the principle will make the other side feel inflexible
Must train or hire talented and experienced negotiators

2.3.2.3. Decision-making

From the above factors such as presentation and strategy helps decision making
to be formed as a whole before the negotiation begins.

Three question elements to help make decisions for the party:

The above three questions help the negotiating parties identify information.
From there, a decision will be made by the party.

2.3.2.4. Need for an Agent

 Using intermediaries is also a strategy. Especially when the negotiator cannot
handle it on his own because the environment is too harsh or the market is too foreign,
that is when the negotiator needs a third-part intermediary or a consultant. Because
it's their expertise, the negotiation will take greater strides thanks to that expert
support.

3. Conclusion
In conclusion, there are an enormous number of negotiations in reality but
typically, those would follow the 3 stages we have mentioned above. To answer the
question of which step is the most important, I think every step has its own
significance to contribute to the negotiation. If I have to choose one, I strongly believe
that “ By failing to prepare, you are preparing to fail” so the first stage to research
and prepare is the most key step because lack of understanding who you gonna
negotiate with, you can not define what you should do and leads to the wrong
strategies.
According to Herb Cohen, the publisher of the book “You can negotiate
anything” have mentioned that: Before negotiating with anyone please anwer 3
questions: do you feel comfortable when negotiating? Does the negotiation satisfy
your meet?, Do you feel worth with the effort you have made in comparison with the
benefits you have received? If the answers are total “yes”, you will continue to
negotiate but if “not”, the result of the proposal may not meet your expectations. The
key here is to control the situation, you know what they need and you can give them
and of course, they have to do the same thing. (Cohen, 20/06/2022).

4. Case study of apple's apology in China

On International Consumers’Day in China, the nation’s largest state-run
television network criticized Apple for giving iPhone customers in China a one-year
warranty, less than the two years required under Chinese law, and for charging
consumers about $90 to replace faulty back covers on iPhones. Other state media
outlets joined in the Apple bashing, and the public outcry grew. China’s Industry and
Commerce agency called for “strengthened supervision” of Apple’s activities in
China. Chinese celebrities seemed to engage in a coordinated effort to pan the
American company.
Apple’s apology in China for its maligned warranty policies as it provides an
excellent example of how to overcome cultural barriers in communication. “In April
2013, Apple CEO Timothy D. Cook made the unusual move of apologizing to
Chinese customers for his company’s warranty policy and promised to make amends”
(SHONK, 15/02/2022) . Apple initially failed to respond to the accusations against
its warranty policies. Then, in an open letter released in Chinese, Cook admitted that
his company’s lack of communication had led to the perception that “Apple is
arrogant and doesn’t care or value consumers’ feedback.” The letter continued, “We
sincerely apologize for any concern or misunderstanding this has brought to the
customers.”
In asian’s culture which there is no sign of the apology, especially in China,
Chinese were egotistical so it very hard for them to truly say the apology to anyone.
Furthermore, Chines were very united, you can easily see that whenever there was
any dispute with another regions, all of the citizens just follow and believe in their
governments from the celebrities to the rich or the poor. They do trust that where
there is unity there is always victory. The socail boycott or the socail ban can widely
be seen in China with the examples of DsG a fashion brand was totally get away from
because of there advertisement. Carefully delivered apologies appear to restore
dignity and trust in a way that financial compensation cannot. This may be especially
true in Asian countries where apologies are a time-honored tradition.
With the action from Apple, they criticized themselves and admit that all the
faults were because of them, which appease the anger of Chinese customers.
Speaking to the Times, Santa Clara law professor Anna Han called the public
apology a “very Chinese thing to do” and predicted that Apple’s apology and
promises to do better would “take the wind out of the Chinese government’s sails.”
In a 2009 negotiation research article, Professor Elizabeth A. Nowicki of Tulane
University Law School suggested that, contrary to the conventional wisdom that your
opponents in a dispute will use your apology against you, sincere, well-timed apology
can actually be the key to keeping you out of court.
Nowicki found in a review of research on legal disputes that apologies can
improve the odds of a settlement, reduce costs, save time, and decrease the fallout
from damaged reputations and relationships. (Why Your Lawyer Could Be Wrong
About Apologies in the June 2010 issue of the Negotiation newsletter) (Nowicki,
6/2010). In more recent experiments, Professor William W. Maddux of INSEAD and
his colleagues studied reactions to cultural barriers and apologies in the United States
and Japan. The results suggest that in a collectivist culture like JapanJapan’s, an
apology can be an especially effective means of alleviating cultural barriers and
conflict regardless of whether the apologizer is to blame.

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