Power Distance

This dimension expresses the degree to which the less powerful members of a society accept and expect that power is distributed unequally: beliefs about the
appropriate distribution of power in society. The fundamental issue here is how a society handles inequalities among people. People in societies exhibiting a large
degree of Power Distance accept a hierarchical order in which everybody has a place and which needs no further justification. In societies with low Power Distance,
people strive to equalise the distribution of power and demand justification for inequalities of power. China and Saudi Arabia are countries with a high Power
Distance index.
Individualism
The Individualism/Collectivism dimension is about the relative importance of individual versus group interests. The high side of this dimension, called individualism,
can be defined as a preference for a loosely-knit social framework in which individuals are expected to take care of only themselves and their immediate families. Its
opposite, collectivism, represents a preference for a tightly-knit framework in society in which individuals can expect their relatives or members of a particular in-
group to look after them in exchange for unquestioning loyalty. A society’s position on this dimension is reflected in whether people’s self-image is defined in terms
of “I” or “we.” The USA is considered as one of the most individualistic countries in the world.
Masculinity
The Masculinity/Femininity dimension is about what values are considered more important in a society. The Masculine side of this dimension represents a preference
in society for achievement, heroism, assertiveness and material rewards for success. Society at large is more competitive. Its opposite, femininity, stands for a
preference for cooperation, modesty, caring for the weak and quality of life. Society at large is more consensus-oriented. In the business context Masculinity versus
Femininity is sometimes also related to as “tough versus tender” cultures. Japan is considered to be a very masculine country, whereas Scandinavian countries such as
Norway and Sweden are considered highly feminine.
Uncertainty Avoidance
The Uncertainty Avoidance dimension expresses the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity. In addition its
impact on rule making is taken into account. The fundamental issue here is how a society deals with the fact that the future can never be known: should we try to
control the future or just let it happen? Countries exhibiting a high Uncertainty Avoidance maintain rigid codes of belief and behaviour and are intolerant of
unorthodox behaviour and ideas. These countries often need many rules to constrain uncertainty. Countries with a low Uncertainty Avoidance index maintain a more
relaxed attitude in which practice counts more than principles, tolerance for ambiguity is accepted and the need for rules to constrain uncertainty is minimal. South
American countries such as Chile, Peru and Argentina are highly uncertainty avoiding countries.
Time Orientation
Every society has to maintain some links with its own past while dealing with the challenges of the present and the future. Societies prioritize these two existential
goals differently. Countries that score low on this dimension, for example, prefer to maintain time-honoured traditions and norms while viewing societal change with
suspicion. They are past and present oriented and value traditions and social obligations. Countries with cultures that scores high on this dimension on the other hand
take a more pragmatic approach: they are future oriented and encourage thrift and efforts in modern education as a way to prepare for the future. Asian countries such
as China and Japan are known for their long term orientation. Morocco is a short term oriented country.
Indulgence
The Indulgence dimension is a relatively new dimension to the model. This dimension is defined as the extent to which people try to control their desires and
impulses, based on the way they were raised. Relatively weak control is called Indulgence and relatively strong control is called Restraint. Cultures can, therefore, be
described as Indulgent or Restrained. Indulgence stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life
and having fun. Restraint stands for a society that suppresses gratification of needs and regulates it by means of strict social norms.
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1)What is negotiation
-Negotiation is a basic means of getting what you want It is back-and-forth communication designed to reach an agreement when you and the other side have some
interests that are shared and others that are opposed.
2) Negotiation in business. Các yếu tố liên quan?
Negotiation is a process where two parties with differences which they need to resolve are trying to reach agreement through exploring for options and exchanging
offers – and an agreement .
Ex: The 2 companies are negotiating a cooperation contract. Company A has a technological advantage, while company B has a market advantage. To achieve mutual
benefits, 2 companies can agree to share technology and markets, helping both companies grow.
International business negotiation is affected by
- Economics principles
- Politic and diplomatic relations
- Fluctuation in the world market and economy
- Legal framework
- Culture
Features ( International business negotiation) trong kinh tế
+Language barrier
+Cultural differences
+International laws and domestic laws are both in force
+International political factors must be taken into account
+The difficulty and the cost are greater than that of domestic business negotiations

3) Types of negotiation:
+Based on form
-Negotiation via email:.
- Negotiation via phone.
-Negotiation via face to face.
-Based on strategy:
+Negotiation strategy
+Principled strategy
+Positioning strategy
4) Principles of negotiation
-Separate the People from the Problem
Ex: In a dispute negotiation, instead of just trying to prove that we are right, we can focus on finding a solution that is fair to both sides. This will help us resolve
disputes quickly and effectively
-Focus on Interests, not Positions
Ex: In a sales negotiation, instead of just focusing on lowering the price, we can focus on discussing the needs of both parties. If the seller needs to sell quickly, we
may offer cash or early payment. If buyers need to save costs, we can offer to buy in bulk or bundle other products.
+Invent Options for Mutual Gain:
Ex: In a sales negotiation, instead of just focusing on lowering the price, we can focus on discussing the needs of both parties. If the seller needs to sell quickly, we
may offer cash or early payment. If buyers need to save costs, we can offer to buy in bulk or bundle other products
+Insist on Using Objective Criteria
Ex: In a sale negotiation, we can use market price as an objective criterion to evaluate deals. If the price we agree on is within the market price range, then the
agreement can be considered fair.
5) Characteristics of negotiation
+Maximize Common benefits and minimize conflicting private ones
Ex: The 2 companies are negotiating a cooperation contract. Company A has a technological advantage, while company B has a market advantage. To achieve mutual
benefits, 2companies can agree to share technology and markets, helping both companies grow.
+Negotiation aims at Agreement, not Winning position.
+Negotiation is affected by status and power of both parties.
+ Negotiation: an art and science
6) What is win-win negotiation?
-The idea of an integrative or win-win strategy in negotiation is that both parties cooperate to find a mutually beneficial end for each of their goals. If both parties walk
away from negotiations feeling as if they have gained something and that they achieved their goals, you’ve successfully completed a win win negotiation.
What is win-lose negotiation?
-Win-Lose negotiation means that Individuals decide what they want, then each side takes up an extreme position, such as asking the other side for much more than
they expect to get.
Ex: A salesperson pressures a customer into purchasing unnecessary add-ons or upgrades, maximizing their own commission but leaving the customer with an
unfavorable result, demonstrating a win-lose dynamic
What is lose-lose negotiation?
-A lose-lose outcome is when both parties feel they have lost something in the negotiation. If a party feels like they did not negotiate well, it typically means they will
suffer some loss, such as when both parties lose money.
Ex: A merger between two companies fails to align their organizational cultures and strategic goals, resulting in internal conflicts, decreased productivity, and loss of
market position for both entities.
The meaning of Negotiation
- Negotiate to try to reach an agreement by formal discussion.
- Negotiation is a basic means of getting what you want from others when you and the other have some interests that are shared and opposed.
Factors affecting Negotiation
- Language barrier
- Cultural differences
- International laws and domestic laws
- International political
- The difficulty and cost are greater than domestic business negotiations
7 Elements of Negotiation
- Interests - basic needs, wants, and motivations
- Fairness/ legitimacy - basic human need to be treated fairly
- Relationship - important to maintain for future business (or
- reputation)
- Alternatives (to this deal) - BATNA's best alternative to a negotiated
- agreement
- Options – choices that may create value
- Commitments – agreement or promise
- Communication – claims, questions, offers, demands, etc
5 styles of Negotiation
- Collaborative/win-win: Resolve it while maintaining personal relations and ensuring both parties achieve their goals. Requires both sides to hold a "win-win"
perspective
- Competitive/win-lose: Pursue goals at all costs decisively (win at all costs). Negotiators use whatever force they deem appropriate to defend a position they believe
is correct or try to win.
- Compromising style means that both sides accept and implement a "win less-lose less" perspective when it is perceived that a solution to achieve a "win-win"
outcome is impossible. The goal is to find some acceptable ways that somewhat satisfy both parties.
- Avoiding/lose-lose: Is one that must be avoided at all costs. Not being decisive and cooperative, not expressing desires, and willing to problem-solve. The goals of
the parties are not met, nor is the relationship maintained, postponing an issue until a more favorable time, or simply withdrawing from a situation at stake.
- Accommodating/lose-win: The negotiator's approach to conflict is the need to maintain a personal relationship at any cost, involving little or nothing to do with the
parties' goals.
Principled negotiation
- Separate the People from the Problem
- Focus on Interests, not Positions
- Invent Options for Mutual Gain
- Insist on Using Objective Criteria
General principles when using negotiation styles
- Principle 1: All negotiation styles cannot be used in all cases. That does not mean using only one style in negotiation, but depending on the issue, using one style or
the other.
- Principle 2: Negotiations should generally begin in a collaborative style. It makes a good impression at the beginning of negotiations. A friendly attitude,
constructive spirit, and legitimate aspirations are the prerequisites for fruitful and successful negotiations.
- Principle 3: Flexibly use styles in translating our needs and those of our partners into final decisions
Features
- Maximize Common benefits and minimize conflicting private ones.
- Negotiation aims at Agreement, not Winning position.
- Negotiation is affected by the status and power of both parties.
- Negotiation: an art and science!
- Ex: For example: In 2011, Apple sued Samsung for copying, and Samsung protested against Apple for not paying royalties. Both companies are accused of imitating
each other in function and form. Since Samsung is one of Apple's largest suppliers, it wants to avoid a legal battle, move past the dispute, and move forward with a
business relationship. This is an example of business negotiation with a win-win strategy.
Hofstede’s cultural dimensions
- Power distance
- Individualism vs Collectivism
- Masculinity vs Femininity
- Uncertainty avoidance
- Long vs Short term orientation
- Indulgence vs Restraint
Why do we say negotiation is debate?
Negotiation is a debate because both involve defending a position for their viewpoints and attempting to convince the other side of validity. Also, both require critical thinking to reach their outcome.
Don't bargain through negotiating positions.
Because it can increase tension when you and other parties are locked in a power struggle and it does not follow the principles of negotiation “focus on Interest, not Position” and “Invest option for Mutual gain”.
Ex: Imagine you and the parties negotiate a common price of $2000, however, you want to increase the price to $2500 but the other party still maintains the agreed price. This will increase tensions and the risk of losing this common
cooperation.
Why is it said that negotiation is both a science and an art?
Negotiation is the science of systematically analyzing and solving problems and finding optimal solutions for all parties involved. Negotiation is an art because it is the process of skillfully manipulating transactional skills, the ability
to persuade and accept persuasion, and using and choosing appropriate negotiation strategies.