NEGOTIATION STRATEGIES IN BUSINESS : A COMPARATIVE ANALYSIS

Abstract
The purpose of this research is to discover how a country conducts business negotiations. The
goal of this research is to uncover how business procedures differ in three distinct countries in
terms of negotiators' goals, achievements, and intentions. This study makes use of qualitative
research. Numerous literature references, such as books and articles about a country's
commercial negotiating procedures, were used to perform the research. The three countries of
the United States, China, and South Korea approach negotiations differently, with China
conducting negotiations by considering parties as rivals or friends, the United States conducting
negotiations directly to the point and professionally, and South Korea conducting negotiations
professionally, separating personal and business matters.The research proposal is to look at
more papers about business discussions from more than three nations.
Keywords: Negotiation Strategy, Business.
INTRODUCTION
International commerce is described as the global exchange of commodities, services,
technology, capital, or knowledge. Although trade must be conducted between countries all
around the world, the cultures are vastly diverse. Before trading with a specific country, it is a
good idea to learn about their cultures.The negotiation process comprises the parties concerned
cooperating in the sharing of information and offers. Giving and taking are both involved in the
process. The negotiators start by making their initial offers, but they constantly revise and make
concessions to get closer to each other.
Most people think of negotiation as taking place between two disputing parties. Sometimes, in
online conflict resolution, technology acts as a 'Fourth Party,' assisting in some way with
communication management. Strategic Negotiation: Building Organisational Excellence
effectively takes us in a new and helpful direction by highlighting the organization's significant
influence on the participants.Their ultimate purpose is to reach a negotiated agreement (Maude,
2020). The process of negotiation is dynamic, and its results develop from patterned exchanges
between constituencies and their chosen negotiators. Negotiation is a process for managing
disagreements with a view to achieving the contractual satisfaction of needs (Chmielecki, 2010).
Negotiation is a human interaction tool used to reach an agreement between two or more parties
who each have their own extremely important individual agenda or interests (Chmielecki, 2017).
Negotiations involving diverse cultures are more challenging, owing to their distinct cultural
communities, communication patterns, ideological situations, philosophies, and traditions or
customs (Chmielecki, 2012). Cross-cultural negotiating is becoming increasingly important in
international business.

LITERATURE REVIEW
1. The Defenition of Negotiation
The negotiation process entails the cooperative exchange of information and offers
between the parties involved. The process involves both giving and taking. The
negotiators begin by presenting their initial offers, but they continuously revise and
make concessions to move closer to each other. Their goal is to ultimately achieve a
negotiated agreement. (Maude, 2020). The process of negotiation is dynamic, and its
results develop from patterned exchanges between constituencies and their chosen
negotiators. Negotiation is a process for managing disagreements with a view to
achieving the contractual satisfaction of needs (Chmielecki, 2010). Negotiation is an
instruments for human interaction used in arriving at an agreement across two or
more parties that have their own very important individual agenda or interests
(Chmielecki, 2017). With negotiations that the involve different cultures, the
circumstance is a bit more complicated, and this is due mainly to their distinct
cultural communities, communication patterns, ideological circumstances,
philosophies, and traditions or customs (Chmielecki, 2012). In international business,
studying cross-cultural negotiation has become very fundamental.
2. What Do You Want To Get From Negotiations?
What is it that you are attempting to obtain? Before embarking on the planning and
discussion process, it is crucial to address this fundamental question. The probable
response is expected to be either "to maximise the outcome" or "to achieve the optimal
result for everyone" or a blend of both approaches. To grasp the essence of negotiation
and the thought process of negotiators, it is crucial to comprehend the following two
fundamental concepts. (Baber & Fletcher-Chen, 2015 p.2)
3. Process of Negotiation
1. Give and take process
The process of negotiations involves parties exchanging offers and information. In
essence, international business negotiation is a give-and-take process where parties
continually adjusting their proposals in an effort to get closer to one another and
increase the likelihood of an agreement. (Mautner-markhof, 2019).
2. Draft agreements
Theoretically, the negotiating process entails exchanging information, identifying
several choices, and gradually coming to an agreement. In actuality, though, these
kinds of methodical, sluggish processes can be expedited.(Mautner-markhof, 2019).
3. Creating value and capturing value
Value creation is a process that is intrinsically comparative. Furthermore, the process
of capturing value is fundamentally competitive. The notion is predicated on the idea
that in order for negotiators to generate value, they must acknowledge their
interdependence and act cooperatively as this process takes place. (Mautner-markhof,
2019).
4. Stages of negotiation
 Grahams (1986) model of negotiation for instance, is based on five district stages:
- Relationship building
Spending time developing relationships between teams increases mutual trust and
lowers the likelihood of disagreement upsetting the process.
- Information exchange
Preliminary information exchange may last months or even a years.
- Persuation
Western business negotiators often throw hard facts on the table and use them to
persuade the other side to take desired actions.
- Concession
In international business negotiations a common tactic is so start high then make
concessions so as to encourage reciptocal concessions fro the other side.
- Agreement
Foreign negotiation teams frequently underestimate the amount of time needed to
teach negotiated agreements because they frequently have to work with
committees and authorities who have mines.
METHOLODGY
This study employs qualitative research. The research was conducted by researching numerous
literature references such as books and articles on a country's commercial negotiating procedure.
A review article, also known as a literature review, is "a study that analyses and synthesises an
existing body of literature by identifying, challenging, and advancing the building blocks of a
theory through an examination of a body (or bodies) of prior work" (Post et al. 2020, p. 352).
The goal of this study is to learn how a country conducts business negotiations. The purpose of
this study is to discover how business procedures differ in three different nations in terms of the
aims, achievements, and intentions of negotiators.
RESULT AND DISCUSSION
- Negotiation in China Business
According to Udayanga (2022)“Tan pan” is the Chinese word for negotiation, and it
means that “to discuss” and “to judge”. Before negotiating, they create relationships and
trust between the two parties. When negotiating, the Chinese use cultural aspects such as
Confucianism, Taoism, collectivism, face, patience, and guanxi. Confucianism considers
face and guanxi to be the most important factors used by Chinese negotiators. China is
regarded as the most difficult country to negotiate with. In China, relationships are valued
more than transactions, and formal contracts are given less consideration. They regard
friendship and trust as the foundation for conducting business (Buttery and Leung, 1996).
McColl, Descubes, and Elahee (2017) found four bargaining techniques and 10 tactics
used by Chinese negotiators to resolve disputes. Among these are two Chinese strategies:
 avoidance and accommodation, as well as a Western approach.Competing and making
concessions.
- Negotiation in South Korean
South Koreans seek long-term connections and win-win situations when negotiating.
They anticipate that the other side will keep the relationship going throughout the
bargaining process. Whatever concerns arise during the negotiation, they must not be
taken personally. South Koreans take longer to obtain information from the opposite
party. As a result, the bargaining process takes a long time because they have time
outside of business hours.
According to Udayanga (2022) The opposing party to the negotiation want to give
information such as titles, roles, and responsibilities of the participants, as well as an
agenda proposal for the South Korean negotiators. Paper contracts are unnecessary if the
opposite party establishes trust with South Koreans. They employ pressure tactics such as
time pressure and nibbing. They occasionally request a last-minute compromise. They
employ defensive techniques such as often changing the subject, asking direct questions,
and rewriting previously agreed issues based on their mood or mental state throughout
the negotiation.
- Negotiation in USA
Americans prioritise negotiation with the goal of "getting things done" as soon and
efficiently as feasible. Because of their results-oriented approach, they prioritise targets
over relationships. Making relationships is considered unprofessional by some
Americans. Because the United States is a low context society, they prefer to speak
straight and to the point. They express their thoughts and aspirations plainly. Americans
do not anticipate their counterparts expressing themselves by gestures, expressions, or
other aspects of body language. According to Udayanga (2022) They often fail to pay
attention for the body languages of Chinese and South Koreans counterparts and may
miss meaningful signals (Quinney, 2002). USA has a business oriented and an
industrialized society. Therefore, they obey the demands of the clock and measure the
productivity by achieving targets. U.S negotiators use self-defined deadlines as
pressuring tactics to reach agreement. As well as they believe that the aim of business
negotiation is to achieve at a signed business agreement
Discussion
The three countries' negotiation processes can be seen in how they completed the negotiations.
Because the culture in the United States is more to the point and professional, they focus on
completing the procedure as swiftly and fast as feasible. The United States is a business and
industrial society. As a result, they adhere to time constraints and measure productivity by
meeting goals. To get a settlement, US negotiators utilised self-imposed deadlines as a pressure
tactic. Furthermore, they believe that the goal of business talks is to arrive at a signed corporate
deal. This differs from the commercial negotiation approach in Korea, which focuses on the
future. The negotiations must flow smoothly and continuously. The opposing side to the
negotiations wishes to offer information such as details of the roles, positions and responsibilities
of the participants, and the South Korean negotiators' suggested agenda. Paper contracts are not
required if the opposite party establishes trust among South Korean individuals. They apply
pressure techniques such as time constraints and biting. They occasionally want last-minute
concessions. They employ defensive strategies such as changing the subject repeatedly, asking
direct questions, and rewriting previously agreed points based on their mood or mental state at
the time of the negotiation. Then, for China, using friendship and trust as the foundation for
doing business, identify four negotiating methods and ten conflict-management approaches used
by Chinese negotiators. Among these are two Chinese techniques, avoidance and
accommodation, as well as the Western approach, Compete and Compromise.
CONCLUSION AND SUGGESTION
Negotiation is a bargaining process by negotiating to reach a mutual agreement between one
party (group or organization) and another party (group or organization). The three countries
USA, China and South Korea have different perspectives on negotiations, such as China which
conducts negotiations by considering parties as rivals or friends, the US which conducts
negotiations directly to the point and professionally and South Korea which conducts
negotiations professionally, separating personal matters. and business matters. The suggestion
for this research is to examine more articles from more than three countries related to
negotiations in business.
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