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CHAPTER 5

MANAGING CROSS-CULTURAL NEGOTIATION AND DECISION
MAKING PROCESS
Managers not only have to deal with the complexity of crosscultural , but also required to be able to negotiate with government
agencies.

Failure to negotiate can have a
major impact on companies.

Managers need to know the cultural background and motivation
underlying the negotiation implementing both in terms of tactics
and procedures applied.

So as to maximize the achievement of
the objectives led organization with
the manager.

Negotiations have meaning a process of discussion between two or more parties to reach an agreement
acceptable to all parties (mutually acceptable)
Negotiation Process:
a. Preparation.

Profiling of the negotiating party.

Designing actual negotiation
meeting.

Managing Negotiation
Negotiation approach by Gudykunst and Tomwy:
1. Instrumental orientation, commonly found in low
context culture
2. Expressive orientation, commonly found in high context
culture

And profile of the research was made
possible initial anticipation.

b. Build a good relationship.

For contact and build mutual trust.

Posturing, the general discussion that
leads to the next meeting formalities

Decision making process
Decisions also include the steps undertaken during the
negotiation process in the context of action - reaction ,
when to concede, and when to agree or disagree. A series
of explicit or implicit decision and decision making
interdependent.

c. Exchange information on work
relations.

Make presentations to state its
position, question and answer
session, discussion of alternative
deal

d. Persuasion.

Actual offer, starting with persuade

Negotiation tactic less savory, to
mislead negotiation partner with
deliberately

e. Concessions and agreements.

Strategies to reach the concessions.

Cultural effects in decision making process
Cultural effects on decision making in rational path
(Deresky, 2006) :
1.
2.
3.
4.
5.

Defining trouble
Collecting and analyzing data
Testing decision alternative
Determining the best solution
Applicating decision

Regulation and restrictions 4. as well as to coordinate their operations in various parts of the world (far flung) Some of the factors driving the Going International : Reactive Causes reactive to carry out international business Deresky (1988): 1. Growth opportunities 3. Cost savings 5. Consumer demand Some of the factors driving the Going International : Proactive Causes proactive to carry out international business Deresky (2006): 1. Economies of scale 2.CHAPTER 6 STRATEGIC FORMULATION MNC requires strategic planning to improve their global competitiveness . Access to resources 4. Market incentives Strategic Formulation Process Formulation process at the global level is part of the strategic management of corporate . be hand in hand with the process applied to domestic firms (but more complex) Step-by-Step Development Strategy Mission and Goals Environmental Assessment Internal Analysis Sources of Information Competition Analysis Strategic Alternatives Analysis . Trade barriers 3. The globalization of competition 2.