Prof Karl Josef - ASE - FABIZ - 2020

Negotiation practices in IB and IR:
a practical approach
(Module I)
Master Class International Business
and Sustainable Development
ASE Bucharest
April 2020
1
[What it is all about:
Adi Holzer: Lebenslauf

(1997). Adi Holzer
compares life with
balancing on a rope.
Diplomacy does mean
exactly this.
John Tenniel,
The Navigator disembarks,
(1890)
2
[What it is all about:
https://globecartoon.wordpress.com/tag/diplomacy/ 3
[Contents:
A) Basics
B) Theory
C) Practice
D) Concluding Remarks
4
[Basics:
Quotes:
“Not every messenger is also a skilled one.”

(Bismarck)
"A good diplomat must see with his ears and be

silent with his eyes." (Lawrence Durrell)
"Diplomacy is a chess game in which the nations

are put down." (Karl Kraus) 5
[Basics:
"Diplomacy is the art of sending someone to hell so kindly

that they look forward to the trip."
“Diplomacy is the art of pulling someone over the table in

such a way that they feel the frictional heat it creates as nest
warmth.”
(Both quotes from professional experience)
6
[Theory:
What is really important in diplomacy:

1. Very fine sensorium for people and
developments
2. Be a "receiver", not a "sender"
3. Psychological empathy
4. Empathy
5. High level of pragmatism
6. Flexibility and willingness to change
7
[Theory:
7. Identify opportunities
8. Freedom from ideology and pre-made opinions
9. Individualism
10. Curiosity towards other languages and cultures
11. Access to people and cultures
12. Constant learning and willingness to learn
What is only secondary: Formal degrees and grades.

This is, unfortunately though, what you pay attention to in
some rather formalistic countries, e.g. in Germany
8
[Practice:
Case study:
On March 19, you will learn that you are

reallocated from Paris to Skopje to your national
embassy.
What do you do?
What preparations do you have to be prevised?
Please prepare a solution in 10 minutes and then
briefly present it in 3 minutes each.
9
[Practice:
Typical process of a day at an embassy
9:00 am: Morning panel of the heads of units with the

ambassador
10.00 a.m .: Meeting in your own division
11:00 a.m .: office work
12.30 p.m .: Outside appointment for maintaining contacts
2 p.m .: office work
4:00 p.m .: Participation in EU-Embassies coordination
6:00 p.m .: evening appointment / invitation
9:00 p.m .: Free
10
[Practice:
Role play “morning panel”
Location: Embassy at Athens of XY State

Preparation time: 10 minutes for research
Attendees:
Ambassador (A)
Permanent Representative (Deputy Ambassador) / Head of Policy Department (V)
Head of Business Unit (Econ)
Head of Culture, Education, Minority Issues (Cul)
Head of Legal and Consular Section (Con)
Head of the Press Unit (Pr)
Chancellor (Head of Embassy Administration) (Ad)
Defence attaché (Mil)
Bureau of Investigations/Police Liaison Officer (Pol)
-> Request for 8 volunteers for the roles.
11
[Practice:
Role-playing tasks:
Ambassador: Heads the discussions, decides

V: Reports to the pol. situation in the country
Econ: Preparing a business delegation visit.
Cul: Prepares government negotiations on the return of cultural assets with GRC Ministry of
Culture
Con: There are many stranded tourists due to airline bankruptcy. Embassy must provide
help.
Pr: There are many negative press releases regarding reparation claims against XY State
Ad: There has been an ad hoc review of your Foreign Office in two weeks time. All units are
affected.
Mil: A plane of XY State has crashed, there are dead soldiers. Mil must coordinate.
Pol: An internet fraudster from XY State is suspected in GRC. GRC demands XY upport.
12
[Practice:
Negotiation situation:
The ambassador has instructed you to formally notify the Romanian government
and explain why XY State is against Romanian Schengen accession.
The piquant thing is though, that ROU's advance funds invested to secure its
external borders (into technology from XY State) are not negligible. The embassy
also had this advertised.
The "technical ability to join the Schengen" was therefore recognized by XY State
and the EU. However, accession as such was not supported.
The Ambassador asks you as his deputy to explain this to the ROU deputy minister
responsible for this (Ministry of the Interior).
How do you explain this XY State position to your ROU interlocutor (played by me)?
Task:
1. 10 minutes of research
2. A volunteer plays the demarche with me. 13
[Concluding Remarks:
Résumé:
How can you successfully "score"?
1. Pressure vs. charm

2. Etiquette vs. effect
3. Diplomacy vs. frankness
4. Empathy vs. Push through
14
END of PART I.]
Thank you very much for your attention!

Mulțumesc mult pentru atenția acordatǎ!
15
Diplomacy as tool for the
internationalization of a firm
(Module II)
ASE Bucharest
April 2020
16
[Contents:
A) Basics
B) Theory
C) Practice
17
[Basics:
- The basic goals of any negotiation strategy are the achievement of the
set goals and establishing a consensual spirit regarding the results
achieved.
- Purely unilaterally "enforced success" rarely leads to success due to a
lack of ownership on the other side.
- An essential prerequisite for success is confidentiality towards third
parties after the conversation in order to avoid losing face on the other
side.
- Public statements should, if at all, take place jointly or in concert (e.g.
joint press release or conference).
18
[Theory:
Basic methods of negotiation

(theory according to the author):
1. Defensive negotiation:
The other side clearly wants to achieve something, we only observe.
2. Offensive negotiation:
We want to achieve something recognizably and also act recognizably
in this respect.
3. Reactive negotiation:
The other side wants to achieve something (not recognizably), we
merely react to it.
4. Situational negotiation: We enforce (unrecognizably) our points
depending on the situation.
19
[Theory:
5. Destructive Negotiation:
We would like to delay or prevent an agreement (which
would be currently presumably to our disadvantage) and
we do this in a recognizable way.
6. Negotiating constructively and conspicuously:
We meet the recognizable wishes of the other side in
our sense and use it ostentatiously.
7. Delayed negotiation:
We incorporate elements of time saving in our plan of
action.
8. Conciliar negotiation:
We accept many demands from the opposite side in the
name of “guaranteeing overall success” (similarities to
10, but positive result)
20
[Theory:
9. Disruptive negotiation:
We maneuver the negotiation in the direction of a
predetermined breaking point that we previously identified
internally, which makes further negotiations obsolete.
10. Victimizing negotiations:
We offer a lot, but not enough, for the other side and break
off the negotiations with reference to the red lines that have
been crossed by the opposite side and our own profound
willingness to make sacrifices that we have to make
-> Good negotiation-skills use SITUATIVELY and altering

almost all elements, depending on the situation
21
[Practice:
Requirements for successful negotiation (model by the author):
1. Ability to create a climate of trust

2. Ability to poker face and “flash left and turn right"
3. Ability to conduct appropriate and empathetic conversations
4. Ability to offer "quid pro quo“, always situationally
5. Ability to change perspectives
6. Ability to psychologically analyze the other person (What drives
him/her, what does he/she want to achieve? How can I help him/her?)
7. Ability to think and look at things from the end backwards
8. Credible communication that one is "only committed to the cause" and
"Without own interests"
9. Modesty and commitment in appearance
-> TOTAL of these properties creates successful negotiations

22
[Practice:
https://upload.wikimedia.org/wikipedia/commons/thumb/6/65/Gm_makro.jpg/300px-Gm_makro.jpg
Maximum gain, if: Marginal revenue = marginal costs 23

[Practice:
Goods offered by companies depend on:

- Price of the good
- Prices of other related goods
- Prices of production factors
- technology
- Number of providers
-> Profit-oriented company only offers up to the point:

marginal revenue> / = marginal costs
-> ANALOGY TO DIPLOMACY 24

[Practice:
https://upload.wikimedia.org/wikipedia/commons/thumb/6/65/Gm_makro.jpg/300px-Gm_makro.jpg 25
[Practice:
[Practice:
If capital or labor becomes cheaper:
-> increase in production productivity
-> Expansion of the product range
When increasing productivity:

-> Increase in the range of products
-> This can also be done by substituting labor by capital
(investments)
The supply curve shows the potential supplier behavior

depending on alternative prices. However, the price that
actually sets in on the market depends on the demand for the
27
corresponding good.
[Practice:
The ideal case
[Practice:
Incentive for a
fair solution
29
https://www.teialehrbuch.de/Kostenlose-Kurse/VWL/images/131.jpg
[Practice:
Consequences
of maximal
charges
30
https://www.teialehrbuch.de/Kostenlose-Kurse/VWL/images/131.jpg
[Practice:
Negotiation Case
You are desk officer at an embassy in charge of development cooperation

(in a third world country).
For the period of two years, the country was provided with 60 million euros
with a precise definition of the use of funds (including infrastructure,
democratization and energy).
After an undemocratic change of power in the country, the new rulers no
longer feel bound to the agreements made a year earlier. The money has
already flowed largely through budget support.
Your Embassy has given you the task of negotiating with the country's
finance minister, who considers it appropriate to use the funds to equip the
army and strengthen prison security.
How do you proceed? 31

Résumé:
What counts the most?

Pressure vs. charm

Etiquette vs. effect
Diplomacy vs. frankness
Empathy vs. Push through 32
END of PART II.]

33
Decision making and strategy
development (part 1)
(Module III)
ASE Bucharest
April 2020
34
[Contents:
A) Basics
B) Theory
C) Practice
35
[Basics:
In view of the significantly stronger link between the public

and politics, decisions have to be communicated and
explained much more than in former times.
Important decision-making processes must be well

prepared and coordinated very well with the public.
Means for this:

Dialogue events, public articles, live broadcasts, press
releases, social media, parliamentary evenings
-> “Less back room, more public relations” 36

[Theory:
The interested public is much more

to be taken on board than in the past.
IT tools are becoming increasingly important.
Time pressures and "punch rates" are becoming

more and more important to explain
political action in the public.
37
[Practice:
Case study:
You are Head of Office of a State Secretary in the Ministry

for Health receive an interview request from a newspaper
on your country's anti-Corona strategy.
How do you assess to decide whether your State

Secretary will accept the request or not?
Which questions do you ask the newspaper in advance?

Preparation: 10 minutes
38
[Practice:
Case study:
The professional representation of a freelance profession (chamber organization) is

not very pleased with a report by the World Bank, which critically examines the work
of the profession in XY State compared to other countries.
Therefore, the chamber would like to take action against this.

To do so, consider the following procedure, from which you want to choose:
39
[Practice:
1. “Correction" of the report by means of a letter of support by the official XY

State World Bank representative and, if possible, augmented by other
official European country representatives. (hardly any costs involved)
2. Media "counteroffensive" against the report. (Costs are incurred)
3. Informal discussions with key World Bank representatives and
intensification of exchange at working level in order to increase
understanding of the work of the profession and to support it with active
lobbying (high costs incurred)
What solution do you advise to be pursued?

Which solution was chosen in reality?
40
[Practice:
Case study:
You are Head of Office of a Minister and have received

the task to organize the official travel with a large
delegation through three Asian countries.
How do you proceed?

Whom do you involve?
How do you plan?
41
Résumé:
What counts the most in decision making?

1. Accumulating information
2. Thoroughly analyzing the situation
3. Assessment of action
4. Developing of scheme of action
5. Assessing plan of action
6. Implementation
7. Evaluation
8. Process of further action
42
END of PART III.]

43
Decision making and strategy
development (part 2)
(Module IV)
ASE Bucharest
April 2020
44
[Contents:
A) Basics
B) Theory
C) Practice
45
[Basics:
Strategy (from Greek στρατηγία stratēgia, "art of troop leader; office of general,
command, generalship"[1]) is a high level plan to achieve one or more goals under
conditions of uncertainty.
In the sense of the "art of the general", which included several subsets of skills
including tactics, siegecraft, logistics etc., the term came into use in the 6th
century C.E. in East Roman terminology, and was translated into Western
vernacular languages only in the 18th century.
From then until the 20th century, the word "strategy" came to denote "a
comprehensive way to try to pursue political ends, including the threat or actual
use of force, in a dialectic of wills" in a military conflict, in which both adversaries
interact.[2]
1) στρατηγία, Henry George Liddell, Robert Scott, A Greek-English Lexicon, on Perseus

2) Freedman, Lawrence (2013). Strategy. Oxford University Press. ISBN 978-0-19-932515-3.
46
[Theory:
Strategies depend on:
1. Resources (own and of other side)

2. Means (financial, human, time)
3. Know-How
4. Environmental circumstances
5. Legal framework
6. Goals
7. Partners and alliances
8. Tactical observations
47
[Practice:
Start any possibilities-oriented conversation with the

question:
“What are we trying to achieve?”
It’s the granddaddy of ALL strategic questions.

Explore it fully and settle on an answer before generating
possibilities.
Source: https://brainzooming.com/strategic-thinking-exercises-more-than-200-strategic-planning-questions/17443/
48
[Practice:
Strategic Questions:
1. What are great questions to best identify what’s strategic,

i.e., what really matters in a particular business situation?
2. This is a starting list of strategic thinking questions:
3. What does our brand stand for?
4. What do we most want to accomplish in the organization?
5. How would we describe our best, most valuable
customers?
6. Who don’t we do business with?
Source: https://brainzooming.com/strategic-thinking-exercises-more-than-200-strategic-planning-questions/17443/ 49
[Practice:
7. Who do we win the most business from and why?

8. Who do we lose the most business to and why?
9. What are the biggest cost drivers in the organization?
10. What things would be most devastating (or most
embarrassing) if our customers knew about them?
11. What’s the biggest unknown in our market?
12. What are the best opportunities available to us?
50
[Practice:
Here is a partial list for considering what is strategic for a brand.

Obviously the list would look different at a department or project level, but here is
an overall picture.
1. Is it central to the brand, its representation, or delivery of the brand promise?

2. Does it broadly and/or directly affect key audiences for your brand?
3. Could it significantly attract or disaffect customers and prospects?
4. Does it significantly affect organizational structure or alignment?
5. Could it materially affect the brand’s financial prospects?
6. Does it touch the heart of the core purpose, values, and/or vision of the
organization?
7. Will the organization’s supply of resources or raw materials be dramatically
affected?
51
[Practice:
Here’s a quick check for generating a simple, solid strategy.
Is your strategy?
Understandable – Will employees be able to read it and comprehend your

direction, even if someone isn’t there to explain it?
Implementable – Will something be able to be done with the strategy to create
positive business results?
Aligning – Will following the strategy create a natural inclination for employees to
work in a cooperative fashion toward a common goal?
Solid (and simple) strategies should generate three “Yes” answers to these
questions. So how does your strategy stack up? Ideally it displays the appropriate
level of simplicity.
Source: https://brainzooming.com/strategic-thinking-exercises-more-than-200-strategic-planning-questions/17443/ 52
[Practice:
How can you begin to assess and project the nature of future
competitive threats. Beyond cursory exploratory market research
techniques, here are several questions to consider:
1. What benefits does your company deliver? If you didn’t deliver

them, who else currently would / could deliver them?
2. What if your company never existed – how would customers
satisfy their needs?
3. What if your industry never existed – what alternatives might
develop to satisfy needs?
4. Who are the niche players in your markets today that could grow
in prominence? How might they be defining your business for you
right now?
53
[Practice:
How can you begin to assess and project the nature of future
competitive threats. Beyond cursory exploratory market research
techniques, here are several questions to consider:
1. What benefits does your company deliver? If you didn’t deliver

them, who else currently would / could deliver them?
2. What if your company never existed – how would customers
satisfy their needs?
3. What if your industry never existed – what alternatives might
develop to satisfy needs?
4. Who are the niche players in your markets today that could grow
in prominence? How might they be defining your business for you
right now?
54
[Practice:
For each question, choose whether the most appropriate answer to each question
is: YES, NOT SURE, or NO.
If there is one NOT SURE or NO answer, the basic elements of a marketing plan
aren’t in place. Ensure all the questions are answered satisfactorily and
understood by the organization before deciding to launch the effort.
Is there a clear business objective for this effort?

Do we know the market’s size and growth rate?
Do we know our current revenue, profits, and share?
Do we know the competitors and their strategies?
Do we know who the customer / prospect is?
Do we know customers’ current and future needs?
Do we have an estimate of our expected revenue, profit, share, etc.?
55
[Practice:
Do we know and can explain the service features?

Do the features match customer needs?
Do we know what the pricing levels and structure should
be?
Do we know what we want customers to think about it?
Do we know how a customer will find out about it?
Do we know what the necessary sales effort should be?
Do we know who and how it will be implemented?
Do we have all potential metrics in place?
56
[Practice:
Distinctive talents are skills closely associated with you where you continually
improve as you do them, you benefit others, and you create a spark that attracts
people to be a part of the energy you’re radiating.
Building your list of distinctive talents begins with answering these questions
openly & honestly:
1. What things motivate you to get up every morning?

2. How are you of the greatest service to others?
3. What activities bring you the most happiness and contentment?
4. What functions, talents, and skills do you (or have you) used that give you the
most fulfillment in your professional life, family relationships / duties, spiritual
life, and personal interests / hobbies?
5. How would you spend your time, talents, and attention if you didn’t have to
work?
57
[Concluding remarks:
What counts the most in developing a strategy?
1. Cutting through too much data to arrive at focused insights.

2. Identifying the best branding moves or account targets to drive growth and
profits in your business.
3. Shortening the thinking time needed to prioritize ideas so you can begin
implementing immediately.
4. Determining the best strategic options when your market is moving away from
your business model.
5. Quickly creating the plan to get a stalled initiative moving.
6. Jumpstarting your strategic or creative thinking with loads of new possibilities
in a 60-minute phone call.
7. Providing additional marketing horsepower when you have too many
deliverables to deliver.
8. Unlocking how social media can really deliver on your business objectives.
https://brainzooming.com/delivering-results-that-are-quick-and-on-strategy-thats-brainzooming/11769/ 58
END of PART IV.]

59
Corporate Social Responsibility and
sustainable development
(Module V)
ASE Bucharest
April 2020
60
[Contents:
A) Basics
B) Theory
C) Practice
61
[Basics:
Sustainability is the ability to exist constantly.
In the 21st century, it refers generally to the capacity for the biosphere and human
civilization to coexist.
It is also defined as the process of people maintaining change in a balanced

environment, in which the exploitation of resources, the direction of investments, the
orientation of technological development and institutional change are all in harmony
and enhance both current and future potential to meet human needs and
aspirations.
For many in the field, sustainability is defined through the following interconnected
domains or pillars:
environment, economic and social, which according to Fritjof Capra is based on the
principles of Systems Thinking.
62
[Theory:
https://en.wikipedia.org/wiki/Sustainability 63
[Practice:
The 2005 World Summit on Social Development identified

sustainable development goals, such as economic
development, social development, and environmental
protection.
This view has been expressed as an illustration using three

overlapping ellipses indicating that the three pillars of
sustainability are not mutually exclusive and can be mutually
reinforcing.
In fact, the three pillars are interdependent, and in the long

run, none can exist without the others.
64
[Practice:
The three pillars have served as a common ground for

numerous sustainability standards and certification systems
in recent years, in particular in the food industry.
Standards which today explicitly refer to the triple bottom line

include Rainforest Alliance, Fairtrade and UTZ Certified.
Some sustainability experts and practitioners have illustrated
four pillars of sustainability or a quadruple bottom line.
One such pillar is future generations, which emphasizes the

long-term thinking associated with sustainability.
There is also an opinion that considers resource use and
financial sustainability as two additional pillars of
65
sustainability.
[Practice:
7. Who do we win the most business from and why?

8. Who do we lose the most business to and why?
9. What are the biggest cost drivers in the organization?
10. What things would be most devastating (or most
embarrassing) if our customers knew about them?
11. What’s the biggest unknown in our market?
12. What are the best opportunities available to us?
66
Agenda 2030
bmz.d 67
e
[Practice:
Strategies for reaching sustainability can generally be divided into three

categories.
Most governments and international organizations that aim to achieve
sustainability employ all three approaches, though they may disagree on which
deserves priority. The three approaches, embodied in the I = PAT formula, can be
summarized as follows:
Affluence: Many believe that the best path to sustainability is reducing

consumption. This theory is represented most clearly in the idea of a steady-state
economy, meaning an economy without growth. M
68
[Practice:
Population: Others think that the most effective means of achieving sustainability
is population control, for example by improving access to birth control and
education
Technology: Others hold that the most promising path to sustainability is new
technology. This theory may be seen as a form of technological optimism. One
popular tactic in this category is transitioning to renewable energy.
Other methods to achieve sustainability, associated with this theory are climate
engineering (geo – engineering), genetic engineering (GMO, Genetically modified
organism), decoupling.
69
[Practice:
Corporate social responsibility (CSR) is a type of international private
business self-regulation that aims to contribute to society-goals:
philanthropic, activist, or charitable
Once it was possible to describe CSR as an internal organizational policy

or a corporate ethic strategy.
Now, as various international laws have been developed and various

organizations have used their authority to push it beyond individual or
even industry-wide initiatives.
70
What counts the most?
1. Developing „doable“ and implementable strategies and schemes

2. Keep it clear and simple
3. Integrate sustainability and CSR in your processes, not pursuing them
separately from your overall operations
4. Give „topics a face“
5. Use key words and symbols
6. Explain the benefits to all stakeholders
71
END of PART V.]

72
Intercultural Psychology and
international business
(Module VI)
ASE Bucharest
April 2020
73
[Contents:
A) Basics
B) Theory
C) Practice
74
[Basics:
When individuals who are members of different cultural groups get
into contact, the domain of intercultural psychology becomes central
to understanding human behavior amongst and between all groups.
Included in this general category of phenomena are processes

involving:
1. Acculturation Psychology
2. Acculturation and Adaptation
3. Intercultural Relations
4. Cultural Identity
5. Multiculturalism
6. Applications in order to improve intercultural relations
75
https://www.oxfordbibliographies.com/view/document/obo-9780199828340/obo-9780199828340-0042.xml
[Theory:
Acculturation is the process of cultural and psychological

change in both cultural groups as well as individuals
following their contact.
Topics in acculturation include:

- how acculturation takes place
- how well individuals and groups adapt to each other
- and the links between how and how well acculturation
proceeds.
76
https://www.oxfordbibliographies.com/view/document/obo-9780199828340/obo-9780199828340-0042.xml
[Practice:
Practical Case:
You are preparing the participation of A, B and C State at „Bookfest Bookfair

in D Town“.
You are negotiating with your partners who is going to fund the overall
expenses of 150.000 Euros and how they should be divided.
Moreover, you are negotiating with the Romanian organizers of the Bookfair.
Please take the following goals into account:
A State: Funds available of 50.000 Euros, no Cent more

B State: 5.000 Euros and rest by in-kind sponsoring (Specialities, Wine etc.)
C State: Sponsors‘ Fonds which seeks marketing options (which A State is
not allowed to have for compliance regulations)
Bookfair: Steadily increasing cost expectations
-> Interact, taking goals into account as well as cultural approaches 77

[Practice:
Topics in the domain of Intercultural Relations include ethnic attitudes and
stereotypes, as well as ethnic prejudice and discrimination.
These studies have a long history in social psychology, as well as in

sociology and political science. Issues here are the nature of the
relationships (colonization, slavery, and dominance) and the
consequences of these relationships for groups and their individual
members.
Topics in the domain of Cultural Identity include understanding both ethnic

and national identities of individuals. Ethnic identity is the sense of
attachments (the value placed on being a member) and the sense of
belonging that a person has with their particular cultural group. National
identity is the sense of attachment within the larger society in which they
live.
https://www.oxfordbibliographies.com/view/document/obo-9780199828340/obo-9780199828340-0042.xml 78
[Practice:
Practical Case (Finnish perspective on French culture):
My intercultural experience which I chose to discuss is my experience as an

exchange student abroad. During my previous studies, I spend 6 months
studying business and communications at a university in France, Lyon.
Before this experience, I had no idea how big the change would be moving
from Scandinavia, Finland to France. Of course, I had travelled a lot and
studied in an intercultural environment and class, but moving to a new
country and trying to adapt to a different culture was a huge change. It was
a bug intercultural experience for me.
Main reasons why I experienced difficulties were found from the normal
daily life. I was born and raised in Finland, in a country of democracy, peace,
harmony, and space everywhere.
79
[Practice:
It was a slight shock to start living inside French culture with high respect
to their own French culture and country, the social system working
complexes ways completely, the rhythm of life being speed and all in all the
whole French way of life was something I never experienced before.
The most topics which I want to share about this intercultural experience
are the ways of studying and working, different values of life and equality.
During the exchange time in France I realised how different cultures could
vary a lot, but at the same time, many objects of life are the same, only in
different form.
https://www.mic.usi.ch/adapting-french-culture-cs-en
80
[Practice:
https://www.dw.com/en/typically-german-a-cartoonists-perspective/a-46179528
81
[Practice:
Practical Assignment:
1) Please discuss stereotypes of „the Germans“ from a Romanian perspective.

2) Please discuss stereotypes of „the Romanians“ from a foreign perspective.
3) Please compare and differentiate.
10 minutes preparation
20 minutes discussion
82
83
[Practice:
84
[Practice:
85
Résumé:
Development and Culture
The interplay between cultures and traditions plays a major

role in the development of nations, groups and the interaction
between cultures and nations. It is quintessential to carefully
analyze the cultural bases and differences to successfully
operate in an intercultural environment.
86
[Practice:
Intercultural Business Psychology
Business psychology has a special consideration of the intercultural aspects of

work and organizational psychology.
Cross-Cultural Social Psychology
The universality and culture-specific components of social psychological theories

and findings (e.g. attribution, emotion, self-concept, group processes, dealing with
conflicts) play a major role.
87
END of PART VI.]

88
Compliance and international business
(Module VII)

ASE Bucharest
April 2020
89
[Contents:
A) Basics
B) Theory
C) Practice
90
[Basics:
Definition of compliance:
- the act of conforming, acquiescing, or yielding.

- a tendency to yield readily to others, especially in a weak and
subservient way.
- conformity; accordance: in compliance with orders.
- cooperation or obedience: Compliance with the law is expected of
all.
Physics:
- the strain of an elastic body expressed as a function of the force
producing the strain.
- a coefficient expressing the responsiveness of a mechanical
system to a periodic force.
https://www.dictionary.com/browse/compliance 91
[Theory:
„If you think compliance is expensive, try non-compliance.“
US-Attorney Paul McNulty
https://www.sfsk-law.de/experten/dr-iur-michael-franz-schmitt/artikeldetail-dr-iur-michael-franz-schmitt/if-you-think-compliance-
is-expensive-try-non-compliance
92
[Practice:
General risk assessment
Please give your general corruption risk assessment for your company by entering “1,2 or
3” into the tableau hereunder. We are hereby aware that your assessment is highly
subjective and may be based on assumptions or general publicly shared assessments
rather than on own experience or caused by circumstances which are beyond your
professional control.
 “1” means that corruption risks are not considered as relevant for your company
 “2” shall be used to describe the normal standard risk situation: Corruption might be
an issue for your company. However the standard procedures rolled out in your
company are sufficient to reduce and handle such risk in a sufficient manner. The
probability of corruption events and the potential risks resulting thereof are not so
eminent, that additionally preventive measures are considered necessary.
 “3“ shall describes circumstances in your company that imply a particularly increased
corruption risk that may necessitate particular risk preventive measures.
93
[Practice:
In case of a “3” assessment, the Compliance Office will contact you for further
information and in order to consider with you appropriate measures for risk reduction. In
case that you have been already confronted with a corruption event in your company or
heard thereof, please contact the Compliance Office personally.
Business process Corruption risk Comments, especially Ankreuzfeld

in case of “3” (Optional):
“To Compliance:
Please give additional
information”
Sales Auswahl 1, 2 oder 3
Procurement Auswahl 1, 2 oder 3
Indirect through third parties (sales channel Auswahl 1, 2 oder 3
partners, commercial agents, consultants)
© by CompCor GmbH, 2019

94
[Practice:
A Compliance Management System, or CMS for short, is a

comprehensive compliance program.
A CMS is an integrated system comprised of written

documents, functions, processes, controls, and tools that
help an organization comply with legal requirements and
minimize harm to consumers due to violations of law.
A CMS is woven into every functional area in your
organization, from sales to advertising to operations and
administration.
https://www.compli.com/blog/what-is-a-compliance-management-system-2/
95
[Practice:
What does a CMS do?
- Establishes oversight for your compliance responsibilities.

- Develops the execution plan for rolling out, monitoring, and communicating
the program.
- Ensures that feedback gets efficiently tracked and acted upon.
- Reviews the operations to ensure responsibilities are carried out and legal
requirements are met.
96
[Practice:
Under its guidelines, a CMS contains 4 areas of focus:
1. Board of Director Oversight

2. Compliance Program
3. Consumer Complaint Response
4. Audit
A good Compliance Management System can proactively address the risks

relevant to your organization while meeting multiple regulatory requirements.
It can shine a light on problems that may be a symptom of deeper issues within
your organization. Properly administered, it can fix those issues before they blow
up into something costlier.
https://www.compli.com/blog/what-is-a-compliance-management-system-2/ 97
[Practice:
Meanwhile, management will be better prepared when regulators

come knocking on the door, allowing them to minimize the typical “fire
drills” that distract your organization from its core business.
Finally, and most critically, a CMS prevents harm to consumers by

minimizing violations of the law and helping the workforce meet its
compliance obligations.
98
[Practice:
https://www.compli.com/resources/resources-for-consumer-finance-compliance/consumer-complaint-topic-center/ 99
[Practice:
100
[Practice:
Practical Assignment:
Please choose groups of four students each and design a CMS for an
internationally operating Romanian IT company with 1,000 employees in 10
countries.
What main aims and principles have to be addressed?
Preparation time: 20 minutes

Presentation time: 20 minutes
101
102
103
104
Résumé:
Main principle of a successful

Compliance Management System:
Set out goals have to be achievable, otherwise

they are a potential risk!
105
END of PART VII.]

106

Prof Karl Josef - ASE - FABIZ - 2020

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Negotiation practices in IB and IR:

Adi Holzer: Lebenslauf

“Not every messenger is also a skilled one.”

"A good diplomat must see with his ears and be

"Diplomacy is a chess game in which the nations

"Diplomacy is the art of sending someone to hell so kindly

“Diplomacy is the art of pulling someone over the table in

(Both quotes from professional experience)

What is really important in diplomacy:

What is only secondary: Formal degrees and grades.

On March 19, you will learn that you are

Typical process of a day at an embassy

9:00 am: Morning panel of the heads of units with the

Location: Embassy at Athens of XY State

Ambassador: Heads the discussions, decides

How can you successfully "score"?

1. Pressure vs. charm

Thank you very much for your attention!

Basic methods of negotiation

-> Good negotiation-skills use SITUATIVELY and altering

Requirements for successful negotiation (model by the author):

1. Ability to create a climate of trust

-> TOTAL of these properties creates successful negotiations

Maximum gain, if: Marginal revenue = marginal costs 23

Goods offered by companies depend on:

-> Profit-oriented company only offers up to the point:

-> ANALOGY TO DIPLOMACY 24

When increasing productivity:

The supply curve shows the potential supplier behavior

The ideal case

You are desk officer at an embassy in charge of development cooperation

How do you proceed? 31

What counts the most?

Pressure vs. charm

Thank you very much for your attention!

In view of the significantly stronger link between the public

Important decision-making processes must be well

Means for this:

-> “Less back room, more public relations” 36

The interested public is much more

IT tools are becoming increasingly important.

Time pressures and "punch rates" are becoming

You are Head of Office of a State Secretary in the Ministry

How do you assess to decide whether your State

Which questions do you ask the newspaper in advance?

The professional representation of a freelance profession (chamber organization) is

Therefore, the chamber would like to take action against this.

1. “Correction" of the report by means of a letter of support by the official XY

What solution do you advise to be pursued?

You are Head of Office of a Minister and have received

How do you proceed?

What counts the most in decision making?

Thank you very much for your attention!

1) στρατηγία, Henry George Liddell, Robert Scott, A Greek-English Lexicon, on Perseus

Strategies depend on:

1. Resources (own and of other side)

Start any possibilities-oriented conversation with the

“What are we trying to achieve?”

It’s the granddaddy of ALL strategic questions.

1. What are great questions to best identify what’s strategic,

7. Who do we win the most business from and why?

Here is a partial list for considering what is strategic for a brand.

1. Is it central to the brand, its representation, or delivery of the brand promise?