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BNS

ASSIGNMENT

Submitted to,
Dr. H. Gayathri
Deputy Director &
Professor - Marketing
SDMIMD
Submitted by,
Derrick Keith Monis
PGDM No. 14044
2014-16 Batch
SDMIMD

CONTENTS

1. Introduction

2. Negotiation

3. Formal stages

4. Styles

5. Tactics

6. Gift giving

7. Legal

8. Ethics

9. Principles and Guidelines

10. Country wise Etiquettes

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11. Other considerations

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Business Negotiations

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INTRODUCTION

This book generally speaks about negotiating in an international context.


It teaches us how to act Glocal i.e. think globally but act locally.
The key is to know local customs and behaviors but still be yourself
This book talks about cultural intelligence and to put it in a simple way;
1. Know yourself
2. Know the other person
3. Find a middle ground
Understanding Business Protocol has always been important. The internet has made it more so.
Theres a saying that goes something like this- if someone is pleased with a product or service,
they tell one person; if they are displeased, they tell a dozen
It is more likely that is someone has a choice between multiple companies and all other factors
such as price, quality, brand etc. is equal then the respectful use of proper business protocol
could determine who gets that business.

Business Negotiations

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NEGOTIATIONS
Negotiation styles and steps differ from country to country. For example in Middle Eastern
countries it is considered very impolite to get straight to the point.
Instead there are certain social ceremonies such as drinking tea and exchanging noncontroversial topics. The key is to be patient. You have to know when a Yes really means Yes and
when a Maybe means No. For some it is just a Deal and from some it is more of a relationship.
For Example;
The formal stages in the US include:
1.
2.
3.
4.
5.
6.
7.

Formal meetings with draft documents and information


Exchange of positions, offers , counteroffers
Caucuses (separate meetings) to discuss various issues
Subcommittees for specific topics
New proposals with explanations
Agreement , signing implementation
If impasse go for a mediator

The formal stages in China include;


1.
2.
3.
4.
5.

General opening phase- pleasantries are exchanged


Technical discussions- a long drawn out but penetrating period
Challenges are discussed
A contract signing proceeded by demands for a new concessions.
The ongoing, post contract negotiation.

Apart from any cultural differences, the question that have to answered are1.
2.
3.
4.

Do the people at the table have authority? If not who has?


Deadlines of both the parties? And how long does this leverage this negotiation?
Pressures on both sides- w.r.t time, money etc..
What would a good settlement look like?

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5.
6.
7.
8.

What is the best alternate?


What is the worst alternate?
What mechanisms are necessary for implementation and enforcement of this agreement?
How will this agreement be communicated? By Board of Directors or union membership
or trustees or press or the community?

TKI (Thomas Kilmann Conflict Mode Instrument)


TKI requires you to make 30 behavior choices that stem from each of 5 negotiation styles
categories;

Competing
Collaborating
Compromising
Accommodating
Avoiding

The Competing negotiator


With the competing negotiator, the deal is the first and the relationship is secondary. For the
competing negotiator it is a chance to win and the competitor looks for deadlines , tactics such as
opening moves, bargaining power and leverage, and may not be as concerned about the
relationship at all. This may have disastrous results if the other party feels coerced, abused, taken
advantage of or vanquished and looks for a form of economic revenge or retribution. A potential
limitation of this style is looking at only what can be qualified by the deal and missing intangible
variables such as goodwill. Donald Trump personifies the competitor negotiator

The Collaborative negotiator


The collaborative negotiator tries to go underneath any stated positions by the other side to
understand what the interests and needs are of both parties, and look show they can be
achieved. The skills required here are patience, tactic, questioning and large exchanges of
information. While competitors may call negotiation a game but collaborators call it a dance
whereby both parties solve it together and build trust.
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The Accommodative negotiator


If you are an accommodator then you negotiate with an aim towards building relationships and
make sure problem solving methods are used to solve them. You may not have your goals
realized and the competitor might take your stance as one of weakness.

The Compromising negotiator


If you are a compromiser then you look to reduce the gap between two offers and for standards
to achieve this closure quickly. We find more sacrificing here.

The Avoiding negotiator


The negotiators who follow this style do not like confrontation and are very reluctant bargainers.
While this approach may help if one side requires more information or the timing is wrong for
the discussions, it may also result in no deal being made. While negotiators portray a great deal
of tact with competitive negotiators, they may also not be explicit enough about what their goals
are for the negotiations and thus lose out.

TACTICS

Good Cop, Bad Cop


Here two people are involved in the negotiations with one person pointing out all the positives
and the other pointing out all the negatives
Lying and deceptive techniques
Sometimes the other party leaves vital information or exaggerate the success of any product or
service or might display false nonverbal messages to throw off the other side. Its impotant to be
very careful while confronting here.
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Enjoying the bargaining game


Most cultures expect to bargain in deal negotiations and in fact some cultures such as Spains,
enjoy the bargaining game upto 20-30% difference from the initial offer

Take it or leave it
Most commonly used in USA with those who are not skilled in negotiations? That is why it is
required to bring in a trained negotiator. It is often offset by the increase in revenue they are able
to generate.

Pretending Disinterested
It is very hard to detect whether the disinterest show is genuine or not, thus you too show the
same level of disinterest and see what happens.
Use time to get what you want.
Here you can ask more time to diffuse the interest in deal in the hope that this will enable you to
get in with a lower offer.

GIFT GIVING
This a very pivotal and sensitive part of negotiations. The rules governing the same changes
from time to time, so the best strategy is to ask someone local, or in the international office, or a
colleague who has been there recently. Should you bring a gift of not? And if a gift is appreciated
or not? How much to spend on it? And other gift giving customs like kiss, bow or shake hands.
For example

A piece of jewelry costing more than $100 could cause problems


Giving a eagle item to Saudi or Chinese signifies bad luck
You do not open a gift in Japan, Hong Kong

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Conversely gifts are opened in Middle East to show that it is not a bribe.
Avoid roses(only for romantic partners)
In China do not give white flowers
In brazil do not give purple flowers
Avoid carnations in France and Germany.
In china red is a symbol of luck and white is associated with death.

LEGAL
FCPA Foreign corrupt practices act
The US law prohibits the practice of pain bribes. It is unlawful to pay anything more than a
worth of $25 sometimes.
It would be also good to have a look at CPI corruption perception list where Afghanistan
comes last and US stands at 6th, NZ comes as the least corrupt.
It is important to look into the;

Intellectual property
Embassy rules
Anti-boycott regulations

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ETHICS
Here are some business related issues that could be considered a breach of ethics as well as
etiquette:

Exaggerating or lying about sales figures or profits.


Posing as a potential customer to see what the competition is offering.
Keep your promises in business especially about the delivery of goods and services
Criticizing employees or products openly in public

SIX BASIC PRINCIPLES OF BUSINESS PROTOCOL;


1.
2.
3.
4.
5.
6.

BE DISCREET
BE ON TIME
BE COURTEOUS, PLEASANT AND POSITIVE
BE CONCERNED WITH OTHERS NOT JUST YOURSELF
DRESS APPROPRIATELY
USE PROPER WRITTEN AND SPOKEN LANGUAGE

FIFTEEN INTERNATIONAL PROTOCOL CONSIDERATIONS;


1. CORRECT PRONUNCIATION AND WRITING OF SOMEONES NAME
2. PROPER GREETINGS AND INTRODUCTIONS
3. EXCHANGE OF BUSINESS CARDS
4. DINING AND EATING CUSTOMS
5. PUNCTUALITY
6. MEETING LOCATION
7. WHO WILL ATTEND THE MEETING
8. PROPER DRESS
9. ACCEPTABLE WRITTEN OR SPOKEN LANGUAGE
10. GESTURES AND BODY LANGUAGE
11. NEGOTIATING STYLES
12. TOPICS OR POLITICALLY INCORRECT ISSUES TO AVOID
13. GIFT GIVING AND RECEIVING
14. HOLIDAYS OR VACATION TIME
15. RELIGIOUS PRACTICES AND RELATED CONCERNS

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RULES OF THE ROAD: COUNTRY BY COUNTRY ETIQUETTE


1. Australia

Being invited to someones home for barbeque is a very big deal in Australia.
They dont like to compare to NewZelanders.
Dont use slangs like- Aussie, bloke, and mate.
Dont do thumbs up.
More informal than Americans
Dont like aggressiveness, but they can be so.

2. Brazil

Begin with handshake, may end with hand over shoulder.


Kiss on two cheeks. (right then left)
Speak Portuguese

3. Canada

More formal and conservative than Americans.


Business entertainment is more likely to occur in a night club

4. China

Strong relation with a government official is very important.


Nodding in not agreeing, it is just I hear you
Dont criticize government
Dont finish food, unless you want more.
Red is auspicious
Avoid black & white.

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5. France

Very proud of language


If you do not know French, you must apologize.
Start meeting with BONJOUR
End meeting with AU REVOIR
Very expressive
Take vacations very seriously.

6. Germany

No small talk
Personal & business lives separate
Its a tribute if your invited home
Formal always
Proud of beers & vines
No gifts initially
Avoid world war topics , Hitler , Nazi topics
Punctuality is very important
Dont waste food.

7. Italy

Two kisses
Business mostly in bars/restaurants.
Everyone pays for themselves
Fashion conscious , judgmental

8. Japan

Speak calmly
No jokes
It is difficult for contract if you cant drink

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Gift giving is important.


They take time for discussions
Work first, money last (very strong work ethic)

9. Netherland

If invited home bring flowers/liquors


Very direct
Referral is important for trust.

10. New Zealand

Slightly more relaxed approach


Sensitive
Punctual
Blunt do not apologize for their views

11. Portugal

Greet with kisses


Gifts is common
Passionate
Promise a lot but do not do so.

12. Russia

OK is vulgar
Hands in pocket means disrespect
Men- handshake
Lavish dinner
Vodka is very important
Customary to sit round the table and take turns.

13. South Korea


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Handshake & a slight bow


Business card is important
Expert negotiators

14. Spain

Handshake + kiss
Take their food seriously
Late dinner after 9-10
Barcelona and Madrid are key areas

15. UK

It is best to limit hand or arm gestures


Only handshake
If noble- then use my lord, my lady or your grace.
Do not use first name unless invited to do so.

16. US

Safe to just shake hands


Discuss business over drinks
Hosts pays
Golf club

Other Considerations

Phone

Consider time zone


Holiday
Follow up email (minutes of meeting)
First ask if it is a good time to talk
Ask for a non-disclosure agreement (for confidentiality)
Cross check for scams

Website
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Have website translated


Search box
Currency calculator
International section
Culture sensitive
Decrease graphics

Email

Subject line is very important


Reply within 24hrs
Avoid confidential or negative comment

Trips

Research on language

greetings
First impression is very important
Choose the hotel closest to the company
Register in the embassy
Keep business contacts informed
Always have extra business cards
Ship things in advance , travel in one bag

, value system, religious views, unique business practices ,

Entertainment

Snack, hand written card delivered to their room in advance.


Research their culture
Take them around the city (ask twice)
Dress successfully

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Ask what they would like to do.


Always give a thank you note.

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