1、Chapter 8 Cross-Cultural Business NegotiationCultural difference in international business negotiation is a land mine.-Liu baiyu,Chinese ProfessorQuotation目录 Contents02021.Lead-in2.Reading:Section A&Section B 3.Background Information4.Words nad Expressions5.Situational Dialogue in Negotiation6.Roe-p
2、lay Task7.Chinese Case8.Chinese CultureLead-inQuestions:1.List two cultural conflicts in the above case.2.What role do you think cultural factors played in this case?Reference answers:1.List two cultural conflicts in the above case.The Malaysian team thought being late was okay but the Chinese team
3、regarded being late as impolite.Chinese team offered Maotai,one of the most expensive liquors,to treat guests.However,the Muslims are not allowed to drink at all,and so the Malaysian team was offended.Reference answers:2.What role do you think cultural factors played in this case?Cultural values and
4、 customs represent the peoples backgrounds and rules of life.In order to smooth the negotiation process,both sides need to make cultural preparations ahead of time,including understanding the culture of the opposite side,asking questions and sufficient communications.Culture understanding can make n
5、egotiations more effective,efficient and productive.Cultural misunderstandings will lead to negative communications,or even failure in negotiations.ReadingSection A Forewarned Is ForearmedSection B Building Trust Before Heading to the Table with JapaneseReading Section A Element1Deal with the laws,p
6、olicies and political authorities of more than one nation.Element2)Two problemsderived fromdifferentcurrenciesElement4Internationalsituation and different ideologies.Element6Language differences.Element2Presence of different currencies.Element3Participation of governmental authorities.Element5Multic
7、ulturalDifferences.Distinctive elements of international business negotiationsThe Iceberg Model of CultureDifferent layers of cultureFour ways impacting negotiationsCultural influences on international negotiations01National culture gives the overall framework of cultural concepts and legislation fo
8、r business activities.National culture02Business/industry culture is the certain competitive framework within a specific industry where the players know the rules of the game.Business/Industry culture03Company/organizational culture consists of the shared values,beliefs,meanings and behaviors of the
9、 members of a function within an organization.Company/organizational cultureIn the interaction environment,the individual becomes the core person who interacts with other actors.Individual behavior/decision maker04Different layers of culturePower/Distance(PD)Individualism(IDV)vs.CollectivismMasculin
10、ity(MAS)vs.FemininityUncertainty/Avoidance index(UAI)Long-term orientation(LTO)Indulgence(IND)vs.RestraintHofstedes model of Cultural dimensionsSection A Discussion Questions1.Choose two distinctive elements of international business negotiations from the text and illustrate them.2.What is your opin
11、ion on Iceberg Model of Culture?Please give an example.Key to the Questions1)Choose two distinctive elements of international business negotiations from the text and illustrate.There are quite a few distinctive elements of international business negotiations.The first to discuss is the laws,policies
12、 and political authorities that both parties need to handle.It is normal that people all take first consideration of their own life and work experience,as well as the related laws and politics of their own countries.However,since international negotiations aim at connecting the two sides though coor
13、dinating both backgrounds,then both parties need to learn sufficient politics before,throughout and after the negotiation process.Otherwise,misunderstanding,disrespect and conflicts will occur frequently,in some cases even leading to failure of negotiations.The second element to discuss is the fifth
14、 one very different ideologies.Even when two parties are doing negotiations around the same target products,they must have very different ways of looking at money,investment,profits,rights and so on.In this case,both sides also need to learn about the ideologies of the opposite side ahead of time an
15、d respect,or even compromise when necessary.2）What is your opinion on Iceberg Model of Culture?Please give an example.The Iceberg Model of Culture shows us that only some superficial phenomena are presented to the public,while more in-depth values are buried under,which is harder for people to notic
16、e and pay enough attention to.An example is that during an international business negotiation,an American company representatives found that the Chinese company representatives were always nodding no matter what the American team said.They believed that the Chinese team were impolite because they se
17、emed to pretend that they agreed with the American team at all points,while later they threw out some sharp challenges to the American team.In fact,Chinese team nodded with smile to show their traditional Chinese values of respect,kindness and patience in the situation of other people speaking.But b
18、usiness is business,challenges with sharp words then followed still.Building Trust Before Heading to the Table with Japanese01020304Case analysis Trust in Japaneses mindThe US sellers sensitivity to Japanese cultureCultural sensitivity and trust buildingReading Section B Questions for Consideration(
19、1)What are the real problems that impede the negotiations between the American company and the Japanese one?(2)What are the concepts of Phil Johnson and the Japanese for their first meeting?Is there any difference in their expectation from that?Key to the Questions1.What are the real problems that i
20、mpede the negotiations between the American company and the Japanese one?Japanese negotiators,typical of“Trust Cultures”,seek to establish a trust-based relationship.In the Japanese cultural context,trust involves both a foreign firms benevolence and credibility.Driven by collectivism,Japanese firms
21、 prefer culturally sensitive partners who are willing to adapt to cultural differences and exhibiting great concern for the other party,leading to intentionality-based trust.American negotiators,who fall under“Fact Cultures”,tend to neglect the importance of trust-building through socializing or sho
22、wing concern for their counterpartys best interests and welfares.When they resort to hard selling by bombarding their Japanese counterparty with short-term benefits of the deal,they are perceived to be socially inappropriate and thus,untrustworthy.Key to the Questions2.What are the concepts of Phil
23、Johnson and the Japanese for their first meeting?Is there any difference in their expectation from that?Phil Johnson had high expectations for their first meeting with Japanese negotiators.To display his enthusiasm and goodwill,he insisted on the first-name basis and greeted Japanese with open arms.
24、To achieve a friendly,relaxed and constructive atmosphere,he tried to have closer contact with his counterpart of his similar age and position.To convince the other party,he demonstrated a huge quantity of objective facts certifying the maximum benefits of this deal.On the other hand,Japanese negoti
25、ators expect the first meeting to be an occasion where both parties can socialize in a culturally appropriate manner.They want to spend more time getting to know their prospective partners with the hope of establishing a long-term trust-based relationship.American negotiators expect to impress their
26、 counterparty with their eagerness to strike a deal which they believe can bring forth great interests,benefits and welfares to their prospective partners.Being objective-oriented,they hope to progress the negotiation by getting down to business at the first meeting and sticking to a fixed agenda in
27、 the following stages of negotiation.On the other hand,Japanese negotiators expect their counterpart to be benevolent and trustworthy in terms of intentionality and capability.Trust emerges only when American firms display cultural sensitivity and possess an ability to satisfy their transactional ob
28、ligations.Background informationCulture shock “Culture shock”is used to describe the emotional rollercoaster that someone experiences when living in a new country.Anyone that has worked and lived in a foreign country will experience culture shock of some sort.Culture shock affects anyone from busine
29、ss personnel and their families,to EFL teachers,to sports stars.Recognizing culture shock is an important way of being able to deal with it.Dealing with it helps minimize the risk of becoming disillusioned with a new country and the possibility of deciding that a quick“return home”is the only soluti
30、on.Stage1 ExcitementStage2 WithdrawalStage3 AdjustmentStage4 EnthusiasmBackground informationCoping Coping with with cultureculture010203Learn the other sides cultureIt is very important to know the commonest basic components of our counterpartys culture.Dont stereotypeCultural stereotypes occur whe
31、n we assume that all people of a group share the same cultural characteristics without viewing them at an individual level.Find ways to bridge the culture gapApart from adopting the other sides culture to adjust to the situation and environment,we can also try to persuade the other side to use eleme
32、nts of our own culture.Relationships and communication in different nationsRelationship in Saudi ArabiaSaudi sponsorKnow and trustPatient Relationship in JapanPersonal relationshipGreeting/seasonal cardsRelationship in Canada/Brazil/the UK/Australia/South Africa etc.Relationship in the USADirect Low
33、 power distanceDetailed contractsRelationship in ChinaBe familiar/patient/polite etc.Interwine with the meals and social events.Role-play Task Work in pairs with the following situation.Mr.Green,an importer from the USA,has discussed with Ms.Liu,a sales representative from an import and export corpo
34、ration of China,all the details of a transaction,now they come to the conclusion.Please make up a dialogue going over all the details and sign a contract.Chinese CaseIn the 1990sFrom 1999To 2005In 2009 On January 13,2016,the joint shareholders of Shanghai Disney Resort,Walt Disney Company,and Shangh
35、ai Shendi Group declared that Shanghai Disneyland Park would officially start receiving visitors on June 16,2016.The Negotiation on the Launch of Disneys Shanghai Theme Park Questions1.Why was the negotiation a long and hard one?2.What contributed to the successful outcome of the negotiation?Key to
36、the Questions1.Why was the negotiation a long and hard one?As early as 1999,the negotiation was set in motion.However,due to disputes and conflicts on collaboration terms,the multi-round negotiation endured until 2005.Not until 2009 was Chinese central governments endorsement announced,specifying th
37、e investment amount of this multi-phased project and share distribution of the park.Potential hurdles remained for the negotiation because Disney had to finalize its contract terms and their detailed discussion entailed multiple government agencies.Key to the Questions2.What contributed to the succe
38、ssful outcome of the negotiation?There are three drives for the successful outcome of this negotiation.Firstly,Disney was determined to speed up its expansion to Chinese market in order to extend its brand in China,the worlds most populous nation and the most dynamic market.Secondly,despite numerous
39、 hurdles in the process of gaining government endorsement and finalizing collaboration terms in the contract,both parties relentlessly progressed the negotiation.Thirdly,both parties aimed at a win-win negotiation and agreed upon a new park that would be“authentically Disney,distinctly Chinese”.Chin
40、ese CultureC o n f u c i u s a n d C o n f u c i a n i s m Confucius was a great thinker,political figure,and educator in the late Spring and Autumn Period.He was also the founder of Confucianism.The sayings and behaviors of Confucius were compiled in The Analects of Confucius by his disciples.Confu
41、ciuss ideology has been absorbed and carried forward by later generations.Confucius legacy lies in mainly three aspects:Firstly,he compiled and preserved the literary works,The Six Classics,including Shi,Shu,Li,Yue,Yi,and Chun Qiu.Secondly,Confucius built up a system of philosophical thoughts with Ren as its basic virtue,which includes benevolence,filial piety,forbearance,etiquette,reverence,honesty,and so on.Thirdly,Confucius established private schools,creating a scientific-educational system.He held the idea that everyone should be educated regardless of his social status.THANKS!
