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International Management Managing Across Borders and Cultures Text and Cases 8th Edition Helen Deresky Solutions Manual 1
International Management Managing Across Borders and Cultures Text and Cases 8th Edition Helen Deresky Solutions Manual 1
Chapter 5
CROSS-CULTURAL NEGOTIATION AND DECISION MAKING
LECTURE OUTLINE
General Outline
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Comparative Management in Focus: Negotiating with the Chinese
Context in Negotiations
Decision Making
The Influence of Culture on Decision Making
Under the Lens: Negotiations and Decisions to Save the Eurozone System
Approaches to Decision Making
Comparative Management in Focus: Decision Making in Japanese Companies
Conclusion
Summary of Key Points
Discussion Questions
Experiential Exercises
Internet Resources
Case Study: Facebook’s Continued Negotiations in China
Learning Objectives
1. To learn how to prepare for cross-cultural business negotiations.
2. To recognize the need to build trusting relationships as a prerequisite for successful
negotiations and long-term commitments.
3. To be aware of the role of culturally-based behavioral differences, values, and agendas of the
negotiating parties.
4. To learn the complexities of negotiating with the Chinese.
5. To appreciate the variables in the decision-making process and understand the influence of
culture on decision making.
6. To become familiar with the Japanese decision-making process and how it is influenced by
their cultural norms.
The case discusses how Shiseido was dealing with declining demand in Japan due to the yen
appreciating and Shiseido purchasing Bare Escentuals in 2010. Bare Escentuals makes casual,
blue jeans for formal occasions. The language barrier and general miscommunications required
executive visits on both sides. Bare Minerals skincare was launched in March of 2012.
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include: (1) the amount and type of preparation for a negotiation; (2) the relative
emphasis on tasks versus interpersonal relationships; (3) the reliance on general
principles rather than specific issues; (4) the number of people present and the extent of
their influence. (see slide 5-8)
B. Negotiation is a process of discussion between two or more parties aimed at reaching a
mutually acceptable agreement. For long-term positive relations, the goal of negotiating
should be to set up a “win-win” situation, bringing about results that are beneficial to all
parties.
C. It is critical that negotiators avoid projective cognitive similarity—assumptions that
others perceive, judge, think, and reason in the same way despite cultural differences.
Exhibit 5-1 (see slide 5-9) presents the stakeholders in the negotiation process.
4. Following the preparation and planning stage, which is usually done at the home
office, the core of the actual negotiation takes place on-site in the foreign location (or
at the manager’s home office if the other team has decided to travel there). In some
cases, a compromise on the location for negotiations can signal a cooperative
strategy, which Weiss calls “Improvise an Approach: Effect Symphony”—a strategy
available to negotiators familiar with each other’s culture and willing to put
negotiation on an equal footing. Exhibit 5-3 shows 12 variables to consider when
preparing to negotiate.
C. Stage Two: Relationship Building (see slide 5-13)
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1. The process of relationship building is regarded with much more significance in
most parts of the world than it is in America. In many countries, such as Mexico and
China, it is personal commitments to individuals that form the basis for enforcement
of contracts, rather than the legal system, as used in America.
2. It is usually recommended that those new to negotiating should use an
intermediary—someone who already has the trust and respect of the foreign
managers involved.
3. Posturing can be used as a bridge between the more formal stages of negotiating and
the stages of relationship building. This phase should result in a spirit of cooperation.
To help ensure this result, negotiators must use words like “respect” and “mutual
benefit” rather than language that would suggest arrogance, superiority, or urgency.
D. Stage Three: Exchanging Task-Related Information (see slide 5-14)
1. In the next stage, exchanging task-related information, each side typically makes a
presentation and states its position; a question-and-answer session usually ensues,
and alternatives are discussed. From an American perspective, this represents a
straightforward, objective, efficient, and understandable stage. Mexican negotiators
are usually suspicious and indirect, presenting little substantive material and more
lengthy, evasive conversation. French negotiators enjoy debate and conflict and will
often interrupt presentations to argue about an issue even if it has little relevance to
the topic being presented. The Chinese also ask many questions of their counter-
parts, and delve specifically and repeatedly into the details at hand; conversely,
Chinese presentations contain only vague and ambiguous material.
2. Adler suggests that negotiators should focus not only on presenting their situation
and needs but also on showing an understanding of their opponents’ viewpoints.
Focusing on the entire situation confronting each party encourages the negotiators to
assess a wider range of alternatives for resolution, rather than limiting themselves to
their preconceived, static positions. She suggests that to be most effective,
negotiators should prepare for meetings by practicing role reversal.
E. Stage Four: Persuasion (see slide 5-15)
1. In the next phase of negotiations, persuasion, the hard bargaining starts. Typically,
both parties try to persuade the other to accept more of their position and to give up
some of their own. Often, some persuasion has already taken place beforehand in
social settings and through mutual contacts.
2. Studies of negotiating behavior have revealed the use of certain recognizable tactics,
which skilled negotiators recognize and use. Asians tend to work out details of the
negotiation ahead of time, many times through the “back door.”
3. Dirty tricks may be used in the persuasion stage of negotiation, including rough
tactics designed to put negotiators in a stressful situation physically or
psychologically.
4. The most subtle behaviors in the negotiation process, and the most difficult to deal
with, are nonverbal messages. Nonverbal behaviors are ingrained aspects of culture
used by people in their daily lives; they are not specifically changed for the purposes
of negotiation.
F. Stage Five: Concessions and Agreements (see slide 5-16)
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1. In the last stage of negotiation, tactics vary greatly across cultures. Well-prepared
negotiators are aware of various concession strategies and have decided ahead of
time what their own concession strategy will be.
2. Research in the United States indicates starting with extreme positions attains better
end results.
3. Again, at the final stage of agreement and contract, cultural values determine how
these agreements will be honored. Whereas Americans take contracts very seriously,
Russians often renege on their contracts. The Japanese, on the other hand, consider a
formal contract to be somewhat of an insult and a waste of time and money in legal
costs, since they prefer to operate on the basis of understanding and social trust.
Teaching Resource: Two excellent books on negotiation are broadly available. They are: Fisher
and Ury, Getting to Yes: Negotiation Agreement Without Giving In; and Brislin, R.W., Cross
Cultural Encounters: Face to Face Interaction, (especially Chapter 6, “The Analysis of
Situations”), New York: Pergamon Press, 1981.
The French food conglomerate Groupe Danone formed a JV with Hangzhou Wahaha Group,
China’s largest beverage company, in March 1996 but within ten years the two companies were
battling each other in court to the extent that the French and Chinese governments asked them to
negotiate amicably. Cross-cultural misunderstandings were at the heart of this dispute.Rather
than work out the differences openly, both companies used the media and PR campaigns to
justify their positions. Communicating openly could have saved the JV.
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character exactly, and different from any known mineral compound ever yet
discovered in any part of Europe, or other parts of the American Continent. This may
be thought a broad assertion—yet it is one I have ventured to make (and one I should
have had no motive for making, except for the purpose of eliciting information, if
there be any, on a subject so curious and so exceedingly interesting). In my I
M there can always be seen a great many beautiful specimens of this mineral
selected on the spot, by myself, embracing all of its numerous varieties; and I
challenge the world to produce anything like it, except it be from the same locality. In
a following Letter will be found a further account of it, and its chemical analysis.
[26] I am aware that this interesting fact may be opposed by subsequent travellers,
who will find nobody but the Sioux upon this ground, who now claim exclusive right
to it; and for the satisfaction of those who doubt, I refer them to Lewis and Clark’s
Tour thirty-three years since, before the influence of Traders had deranged the system
and truth of things, in these regions. I have often conversed with General Clark, of St.
Louis, on this subject, and he told me explicitly, and authorized me to say it to the
world, that every tribe on the Missouri told him they had been to this place, and that
the Great Spirit kept the peace amongst his red children on that ground, where they
had smoked with their enemies.
[27] The medicine (or leaping) rock is a part of the precipice which has become
severed from the main part, standing about seven or eight feet from the wall, just equal
in height, and about seven feet in diameter.
It stands like an immense column of thirty-five feet high, and highly polished on its
top and sides. It requires a daring effort to leap on to its top from the main wall, and
back again, and many a heart has sighed for the honour of the feat without daring to
make the attempt. Some few have tried it with success, and left their arrows standing
in its crevice, several of which are seen there at this time; others have leapt the chasm
and fallen from the slippery surface on which they could not hold, and suffered instant
death upon the craggy rocks below. Every young man in the nation is ambitious to
perform this feat; and those who have successfully done it are allowed to boast of it all
their lives. In the sketch already exhibited, there will be seen, a view of the “leaping
rock;” and in the middle of the picture, a mound, of a conical form, of ten feet height,
which was erected over the body of a distinguished young man who was killed by
making this daring effort, about two years before I was there, and whose sad fate was
related to me by a Sioux chief, who was father of the young man, and was visiting the
Red Pipe Stone Quarry, with thirty others of his tribe, when we were there, and cried
over the grave, as he related the story to Mr. Wood and myself, of his son’s death.
[28] On my return from the Pipe Stone Quarry, one of the old chiefs of the Sacs, on
seeing some specimens of the stone which I brought with me from that place,
observed as follows:—
“My friend, when I was young, I used to go with our young men to the mountain of
the Red Pipe, and dig out pieces for our pipes. We do not go now; and our red pipes as
you see, are few. The Dah-co-tah’s have spilled the blood of red men on that place,
and the Great Spirit is offended. The white traders have told them to draw their bows
upon us when we go there; and they have offered us many of the pipes for sale, but we
do not want to smoke them, for we know that the Great Spirit is offended. My mark is
on the rocks in many places, but I shall never see them again. They lie where the Great
Spirit sees them, for his eye is over that place, and he sees everything that is here.”
Ke-o-kuck chief of the Sacs and Foxes, when I asked him whether he had ever been
there, replied—
“No, I have never seen it; it is in our enemies’ country,—I wish it was in ours—I
would sell it to the whites for a great many boxes of money.”
[29] Many and strong are the recollections of the Sioux and other tribes, of their
alliance with the British in the last and revolutionary wars, of which I have met many
curious instances, one of which was correctly reported in the London Globe, from my
Lectures, and I here insert it.—
THE GLOBE AND TRAVELLER.
“Indian Knowledge of English Affairs—Mr. Catlin, in one of his Lectures on the
manners and customs of the North American Indians, during the last week, related a
very curious occurrence, which excited a great deal of surprise and some considerable
mirth amongst his highly respectable and numerous audience. Whilst speaking of the
great and warlike tribe of Sioux or Dahcotas, of 40,000 or 50,000, he stated that many
of this tribe, as well as of several others, although living entirely in the territory of the
United States, and several hundred miles south of her Majesty’s possessions, were
found cherishing a lasting friendship for the English, whom they denominate
Saganosh. And in very many instances they are to be seen wearing about their necks
large silver medals, with the portrait of George III. in bold relief upon them. These
medals were given to them as badges of merit during the last war with the United
States, when these warriors were employed in the British service.
“The Lecturer said, that whenever the word Saganosh was used, it seemed to rouse
them at once; that on several occasions when Englishmen had been in his company as
fellow-travellers, they had marked attentions paid them by these Indians as
Saganoshes. And on one occasion, in one of his last rambles in that country, where he
had painted several portraits in a small village of Dahcotas, the chief of the band
positively refused to sit; alleging as his objection that the pale faces, who were not to
be trusted, might do some injury to his portrait, and his health or his life might be
affected by it. The painter, as he was about to saddle his horse for his departure, told
the Indian that he was a Saganosh, and was going across the Big Salt Lake, and was
very sorry that he could not carry the picture of so distinguished a man. At this
intelligence the Indian advanced, and after a hearty grip of the hand, very carefully
and deliberately withdrew from his bosom, and next to his naked breast, a large silver
medal, and turning his face to the painter, pronounced with great vehemence and
emphasis the word Sag-a-nosh! The artist, supposing that he had thus gained his point
with the Indian Sagamore, was making preparation to proceed with his work, when the
Indian still firmly denied him the privilege—holding up the face of his Majesty (which
had got a superlative brightness by having been worn for years against his naked
breast), he made this singular and significant speech:—‘When you cross the Big Salt
Lake, tell my Great Father that you saw his face, and it was bright!’ To this the painter
replied, ‘I can never see your Great Father, he is dead!’ The poor Indian recoiled in
silence, and returned his medal to his bosom, entered his wigwam, at a few paces
distant, where he seated himself amidst his family around his fire, and deliberately
lighting his pipe, passed it around in silence.
“When it was smoked out he told them the news he had heard, and in a few
moments returned to the traveller again, who was preparing with his party to mount
their horses, and enquired whether the Saganoshes had no chief. The artist replied in
the affirmative, saying that the present chief of the Saganoshes is a young and very
beautiful woman. The Sagamore expressed great surprise and some incredulity at this
unaccountable information; and being fully assured by the companions of the artist
that his assertion was true, the Indian returned again quite hastily to his wigwam,
called his own and the neighbouring families into his presence, lit and smoked another
pipe, and then communicated the intelligence to them, to their great surprise and
amusement; after which he walked out to the party about to start off, and advancing to
the painter (or Great Medicine as they called him), with a sarcastic smile on his face,
in due form, and with much grace and effect, he carefully withdrew again from his
bosom the polished silver medal, and turning the face to the painter, said, ‘Tell my
Great Mother, that you saw our Great Father, and that we keep his face bright!’”
[30] This gentleman, the summer previous to this, while I was in company with him at
Prairie du Chien, gave me a very graphic account of the Red Pipe Stone Quarry, and
made for me, from recollection, a chart of it, which I yet possess, and which was
drawn with great accuracy.
[31] But a few weeks before I left the mouth of Yellow Stone, the news arrived at that
place, that a party of trappers and traders had burnt two Riccarees to death, on the
prairies, and M‘Kenzie advised me not to stop at the Riccarree village, but to pass
them in the night; and after I had got some hundreds of miles below them, I learned
that they were dancing two white men’s scalps taken in revenge for that inhuman act.
[32] The greater part of the world can never, I am sure, justly appreciate the meaning
and application of the above sentence, unless they have an opportunity to encounter a
swarm of these tormenting insects, on the banks of the Missouri or Mississippi river.
LETTER—No. 55.
RED PIPE STONE QUARRY, CÔTEAU DES PRAIRIES.
STORY OF WI-JUN-JON ( ’ );
271 272
154
276
277
[33] Most unfortunately for this poor fellow, the other one of his tribe, who travelled
with him, and could have borne testimony to the truth of his statements, died of the
quinsey on his way home.
[34] From the very many excavations recently and anciently made, I could discover
that these layers varied very much, in their thickness in different parts; and that in
some places they were overlaid with four or five feet of rock, similar to, and in fact a
part of, the lower stratum of the wall.
[35] In Silliman’s American Journal of Science, Vol. xxxvii., p. 394, will be seen the
following analysis of this mineral, made by Dr. Jackson of Boston, one of our best
mineralogists and chemists; to whom I sent some specimens for the purpose, and who
pronounced it, “a new mineral compound, not steatite, is harder than gypsum, and
softer than carbonate of lime.”
Chemical Analysis of the Red Pipe Stone, brought by George Catlin, from the
Côteau des Prairies, in 1836:
Water 8.4
Silica 48.2
Alumina 28.2
Magnesia 6.0
Carbonate of lime 2.6
Peroxide of iron 5.0
Oxide of manganése 0.6
——
99.0
——
Loss (probably magnesia) 1.0
——
100.
0
——
N .—All the varieties of this beautiful mineral, may at all times be seen in the
I M ; and by the curious, specimens may be obtained for any further
experiments.
LETTER—No. 56.
ROCK ISLAND, UPPER MISSISSIPPI.