Chapter 10 Different negotiating styles of different cultures 世界各地商人的谈判风格 People from different countries have different values, different attitudes and different experience. They have different strengths and different weaknesses from one another. A competent negotiator should develop a style appropriate for his own_____ including the _____ of his particular culture. He should not seek to _____ the style of a different culture. He should not follow a style in which other people have _____, but he does not, as that would lead to displaying his natural _____ rather than his natural _____. He needs to become aware of what those strengths of his are and to practice the skills of exploiting them. He needs also to be conscious that other people operate in different ways. It is important to _____ their different ways without being subservient to them. American The American style is very _____ and they try to demand the _____ from counterparts. Generally, Americans openly disagree and use aggressive persuasive tactics such as _____ and warnings. Americans tend to make _____ throughout the negotiations, settling one issue, then proceeding to the next. Thus the final agreement is a sequence of several smaller _____. Within the American culture, great respect is attached to _____success. There is concern to acquire the symbols of _____ success. The American style of negotiating is possibly the most influential in the world. And many other people seek to emulate. It is characterized first by personalities which are usually _____, and quickly convey sincerity and warmth. The negotiator enters the negotiating room confidently, talking _____. The American negotiator, enthusiastically starting negotiations from a _____ position, appreciates this attitude of the search for _____ gain. His strengths are particularly high in the bargaining phases of negotiation. He naturally moves quickly towards those phases. He is himself adept at using tactics to gain advantage, and _____ others to have the same professionalism. Americans do prefer _____ negotiations and get annoyed with too much extraneous, socializing or postponement. They are used to cutting deals short just to save _____. Americans make decisions based upon the bottom line and on cold, hard _____. They do not play favorites. Economics and performance count, not _____. Business is _____. German German negotiators are known for very thorough _____. In other words, in particular the German preparation for negotiations is superb. They are also well known for _____ steadfastly to their negotiating positions in the face of pressure tactics. The Germans tend toward a just-the-facts approach when conducting _____. Instructions and preliminaries are _____, so be prepared to get right to the point. The German negotiator will identify the deal he hopes to make. He will then prepare a reasonable bid, carefully covering each issue in the deal. When selling, make straightforward presentations. The Germans will be interested in the _____ for purchasing goods or services, rather than the image that surrounds the purchase. Germany is a land of _____. Time schedules are strictly _____ to by the Germans. Punctual delivery means on the day precisely. _____ goes for meetings, payments and social gatherings as well. During the negotiation, he will put the issues and the bids clearly, firmly and assertively. He will not be significantly open to compromise. The pattern of negotiating is surprisingly akin to some interpretations of the German character: thorough, systematic, highly prepared, _____ in flexibility and compromise. It is a very powerful style when practiced by skilled negotiators. Its strength _____particularly in the bidding phase of negotiations. Once stated, the bids seem to take on some degree of being sacred so that the _____ for bargaining is diminished. Germans take their time to deliberate and to confer with responsible colleagues before making an important decision. Decisions are made after careful, thorough and precise analysis, so that _____ are minimized. Expect them to take _____ time than Americans but perhaps _____ than the Japanese and most other Asians. The Germans frown on workaholics. Business is seen as a means to _____ the finer things of life. Personal lives are kept separate from _____. _____ personal inquiries or the volunteering of information about one’s home life. French French negotiators are reputed to have three main characteristics in international dealings: a great deal of firmness, an insistence on using _____ as the language for negotiation, and a decidedly lateral style in negotiating. That is, in contrast to the American piece-by-piece approach, they prefer to make an _____ agreement, then an agreement in principle, then headings of agreement, repeatedly covering the whole breadth of a deal. And, like de Gaulle, they have a high capacity to gain by saying firmly “_____”. The French are verbally and nonverbally expressive. They love to _____, often engaging in spirited debate during business meetings. Negotiators from less confrontational cultures such as East Asia should not mistake this love of debate for _____. Proper use of the language is a sensitive cultural issue. Unless one speaks fluent French, use an _____. All contracts must be completely in _____, and commonly used foreign words cannot be _____. The French will discuss every point at length and will have a position on every topic. Avoid direct confrontation. The French love debate but not intense criticism. It will be taken as a _____ attack. No matter how intense negotiations becomes, avoid raising one’s _____. Doing so is a sign of poor breeding. Although the senior member of the French team is likely to make most of the decisions, it does not mean those decisions will be made _____. There is a certain ceremonial aspect to dining in France. Many Western ideas of proper table manners _____ in France, so visitors are advised to observe some key rules of etiquette. Drinking wine will be part of the negotiation _____. This is a very social culture, and negotiators may find themselves at two-hour lunches. France is the land where bureaucracy was invented. _____ can be a big part of negotiating, especially when dealing with government-run companies. British British business moves at a more deliberate pace than American business. Presentations should be detailed, as the British have seen everything “under the sun” and there’s nothing _____ there, so get to the point. Britain is an orderly society and punctuality is mandatory. Arrange appointments in _____ and present an agenda as early in the process as possible. Start the bargaining at a point only slightly _____ from the projected goal. Leave yourself some negotiating room but don’t be excessive. The British counterpart will have already researched the true value range of the deal. The English are _____ rather than expressive or demonstrative in the way they communicate. This is evident in their use of understatement, large space bubble, low-contact body language and restrained gestures. Americans may find the British process to time-consuming, but for the_____of the world’s business cultures it is quite _____. The business lunch has been institutionalized in Britain. Much negotiation will be done with _____ and _____ in hand. Italian Italian people are self-centered and very _____ due to historical reasons. They do not like to _____ outside world. Italian leaders are dogmatic, stiff and dictatorial. In negotiations, they appear to be emotional, _____ and arguable, especially over _____. Spanish Spanish people appear to be arrogant and _____. They respect reputation and contracts. In Spain, business is often done at dinner table and _____ usually go late into midnight. Russian Russians may be new to international commercial negotiations but they’re old hands at negotiation with foreign _____. They have clear agendas and no strategy or tactic is off-limits. Russia is no place for negotiation amateurs. Arrive at the table with _____ objectives and make _____ concessions early in the discussions. The Russian people are extremely warm and gregarious. It’s very difficult to _____ them on a personal level. Parties, dinners and introductions to friends and family can lull the foreigner into a belief that they’ll be treated as _____ at the negotiating table. One could enjoy the process but _____ business from pleasure. Be ready for hardball tactics--- a tough, sometimes confrontational approach, possibly punctuated with table-pounding, emotional outbursts, brinkmanship, loud threats and walkouts. Counter these tactics by staying _____. Counter this with patience, _____ and more _____. The Russian decision-making is rather bureaucratic. Even the simplest deals will take a great deal of _____ when compared to other industrialized powers. Numerous _____ will be required for medium to large ventures. Just as the geography lies between Europe and Asia, so does Russia’s _____ toward contracts. It’s best to get as many details written into the document as possible. Important points must be stressed continually as the Russians tend to look at the totality rather than the _____ of a contract. Australian The Australians are tough breed and they enjoy competition. They encourage long-term relationships and prefer to work with people they count as_____. Australians shun formality and are recognized as some of the friendliest business people in the world. Since formalities are minimal, negotiations move at a quick pace. Show up on_____ and come _____. Be _____while negotiating, as the Australians are keen to spot deception and they feel no hesitation to walk away from the table if they feel one is holding _____ information. The Australians will haggle, but only to a small degree. Waiting for the price to _____ is an Australian pastime. Since Australians tend to dislike bazaar haggling, visiting negotiators will get better results by opening discussions with a_____ bid. The negotiating process may take _____ time than it would in some other deal-focused business cultures, though _____ than in strongly relationship-focused markets such as Japan. Be assured that they’ll know all about the prospective company and culture before the_____ meeting. Chinese There are at least two differences in the way of business between Chinese and American business men. First, Chinese tend to have business negotiations in a rather _____ manner, as opposed to the _____ manner of American businessmen. Chinese take time to see whether their prospective business contacts are really _____ as human beings, for example, by inviting them to a party and socializing with them. In contrast, Americans act with "_____" mentality. Second, the decision-making process of Chinese companies is considered to be very _____ and time-consuming. This is because most Chinese companies have the bottom-up decision-making system which involves many people in the decision-making, as opposed to the American companies which usually operate with _____decisions made by the _____ management. The “face” issue is most important. The negotiator must be seen to be negotiating with someone of key status and _____. He must not be forced to lose face by having to withdraw from a stance firmly stated during negotiations. The final agreement must be one that enables him to sustain or preferably _____ his face as perceived by his acquaintances. The Chinese welcome genuine interest in their _____. A present for the child (a small present that has had some thought put into it, not something ostentatious) is precious in contrast to a big business lunch. Japanese Letters of Introduction are essential for doing business here. As in much of Asia, having connections in Japan is the only way to get through the _____door, _____ one represents an internationally recognized brand name. Individualism is _____ a characteristic of Japanese negotiators; they rarely come to the table in groups smaller than three. The person doing the _____ talking for the Japanese side will most probably not be the person in charge of the negotiations. The Japanese will not discuss points that are not part of the prearranged agenda. Small_____ will be kept to a minimum and inquires into personal lives will rarely be made or accepted. Japanese negotiators are famous for their _____ responses to proposals. They view vagueness as a form of protection from “_____ of face” in case things go sour. To maintain surface harmony and prevent loss of face, Japanese rely on codes of behavior such as the ritual of the meishi or business cards. Japanese negotiators dress and behave formally and are more comfortable with visitors who do_____. Many Japanese companies still make decisions by consensus. This is a time-consuming process, so _____ answers to any questions or problems are almost impossible. The Japanese maintain harmony at all costs and will smile the _____ when they’re the _____ comfortable at the negotiating table, if the proposal is unacceptable, “no” is not told in a _____ manner. Postponements and requests for further research should be understood as a _____ to failure. South Korean Koreans often make emotional pleas part of their negotiating style. They are also not beyond painting themselves as poor, humble peasants, _____ they have one of the higher GDPs per capita in Asia. In reality, the Koreans only respect hard-line, strong opponents. Avoid opening the negotiating with a _____or humorous anecdote. This would show_____ of respect for the topic and for the audience. Speak clearly and simply. Koreans always negotiate in teams and they’ll always attempt to be _____ superior. Exploiting dissent or contradictions in foreign counterparts is a common ploy. So don’t let anyone of the team get separated from the group _____ the weakest members will be picked out first. Wearing down an opponent through constant repetition and lengthy negotiation sessions is a time-honored_____. It’s also a way of making sure that every detail has been_____. Being direct is incompatible with Korean business practices. Even if the counterpart is telling a bold-faced lie, diplomacy must be the_____. Women play a very subservient, role in Korean business. Female negotiators, regardless of rank, will not be _____ along for the after-hours carousing. Indian Once one has built a comfortable relationship with the local counterpart, the formal negotiation process can _____. Be prepared for tough, drawn-out bargaining sessions. The Indian _____the bargaining, the market-type haggling. He feels deprived if negotiations do not include a suitable bargaining ritual. So remember to build a safety margin into the opening position. Indians are a warm and welcoming people who enjoy harmonious relationships. Confrontation isn’t considered a respectable form of discussion. Like many Asian cultures, directly saying “no” is thought to be_____. Many large companies are_____ owned and operated. Don’t assume that good relations with one family member could constitute access to the source of commercial power. Internal rivalries can be bitter, personal, and long-standing. India has numerous dialects, and contracts must be written in the vernacular. English is widely spoken and will most likely be the _____ of negotiation. Be aware that much traditional Indian food is eaten with one’s _____ rather than with utensils. Avoid the use of the _____ hand for passing items, especially _____. The left hand is considered unclean because as it is used by Indians for personal _____ . India is very diverse and regionalized. Strategies that were successful in one city will not necessarily work in another. Northern Europeans Northern Europe includes Norway, Denmark, Sweden and Iceland. People in these countries are generally independent, polite, peaceful, frank, active but stubborn and obstinate. They will not easily _____ their decisions once they have decided. They are very creative in suggestion options in negotiations but their defense on their suggestions is very firm. During talks, if invitation is given to take sauna, it is an _____ indication. Latin Americans People in Latin America consider _____ a very important element in doing business. If a good relationship is established between the two sides, they will not _____ to help their counterparts. It is conceived that business people there have a _____ record of credibility and commitment, because it is not unusual that they postpone payment without any_____ or make use of the delaying to _____ prices. East and Southeast Asians Chinese culture has cast strong influence in the area, such as Singapore, Korea, Japan, Indonesia, particularly in Singapore, where _____ of the population are Chinese. Affected by thought of Confucius and Mencius, they value relation and _____, and commercial moralities. Arabians People of Arabian countries are conservative, obstinate, stubborn and hospitable. They won’t trust others easily and _____ reputation and relationship. In doing business, _____ is an important part, without bargaining the negotiation is not considered as _____ one. They frequently say Inshala (God’s will) to defend themselves or as an _____to free themselves of responsibilities. Summary Cultural diversity, whether based on profession or tribe, is simply one of the elements that need to be taken into account to keep things operating on a civilized level. It is quite risky to assume that because a person is from a particular background they necessarily think or act in only one way. It makes more sense to look to the interests of parties and try to get beyond presumed cultural barriers by focusing on the end results desired by the parties. It is fundamentally important to find out whether there are things that are done or said which they find offensive and to let them know what one finds offensive. The world is divided into an incredible number of groups; East and West, North & South, Male & Female. Within what may be referred to as the West, there are thousands of ways to define cultural differences. Even if one takes a single country such as France or Germany there are differences of language, religion, and even corporate culture. Generalizing about people is a challenging task. If one treats people as individuals, one is far more likely to find ways to convince them through negotiation. Using interest-based negotiation is an excellent means for overcoming cultural barriers. It focuses on the fundamental reasons people pursue particular objectives, rather than getting lost in style. Communication Skills 1. What would you say if you wanted to: leave because you have a train to catch? invite your friend to contact you when he/she visits your city? give someone your contact telephone number (you have no visiting card)? wish someone a safe trip home? express sadness that someone is leaving? excuse yourself because you want to go home for the weekend? thank somebody for the help they’ve given you? 2. Polite, positive people make a good impression. But every country has a different idea of what is polite. Complete these statements about the U.S. 1) When I give a negative response, I make a ______ (good/bad) impression. 2) When I don’t make eye contact, I am ______ (interested/not interested) in the other person. 3) When I don’t smile, I make a ______ (good/bad) impression. 4) When I smile, make eye contact, and offer my hand, the other person is ______(interested/not interested) in me. 3. Answer the following questions. 1) What is typical about the American negotiating style? 2) What are German negotiators known for? 3) What are the three characteristics of the French negotiators in international dealings? 4) How to counteract the Russian negotiator’s hardball tactics? 5) What will the Australians do when they feel their counterparts are holding back information? 6) What are the main differences in the way of business negotiating between Chinese and American businessmen? 7) What are Japanese negotiators famous for as responses to proposals are concerned? 8) What should be avoided when opening negotiating with the Koreans? 9) What language will most likely be the language of negotiation in India? And what about contracts? 10) How is much of the traditional Indian food eaten?