S5 - Cross Culture Negotiation

Managing in Global
Environment
Cross Culture Negotiation
Dr. Khanh Ngo

khanh.ngo@isb.edu.vn
www.isb.edu.vn
www.isb.edu.vn
What do you remember from previous session?
www.menti.com
Code:
22/02/2024 Dr. Khanh Ngo www.isb.edu.vn

Learning Objective
• Practice negotiation with play role using Consultative Negotiation

Framework from Richardson
• Develop approaches to international negotiations that respond to
differences in culture
• Review different negotiating and bargaining behaviors that may
improve negotiations and outcomes
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Managing Cross-Cultural Negotiations
Negotiation is the process of bargaining with one or more parties for the
purpose of arriving at a solution acceptable to all
• Distributive negotiations — two parties with opposing goals compete
over a set value.
Both sides are trying to get the best deal, but a gain for one side is a
loss for the other.
• Integrative negotiations involves cooperation to integrate interests,
create value, and invest in the agreement.
This is the most useful tactic when dealing with business negotiation
22/02/2024 www.isb.edu.vn
Negotiation process
Negotiation process
Negotiation process – Role play
Negotiation process – Role play
Negotiation process – Role play feed back
Cultural Differences Affecting Negotiations
• Avoid identifying the other’s home culture too quickly. Common cues (name,
physical appearance, language, accent,…) may be unreliable, they probably
belongs to more than one culture.
• Beware of the Western bias toward “doing”. In Arab, Asian and Latin groups,
feeling, thinking and talking can shape relationships more powerful than doing
• Resist formulating simple, consistent, stable images.
• Do not assume all aspects of the culture are equally significant.
• Norms for interactions involving outsiders may differ from those for between
compatriots.
• Do not overestimate familiarity with your counterpart’s culture.

Negotiations Tactics
Location
• If the matter is very important, most businesses will choose a neutral site,
which has benefits.
Time limits
• Time limits can be use tactically even when meeting at a neutral site.
Buyer-seller relations
• Americans believe in being objective and trading favors.
• This is not the way negotiators in many other countries think.
Negotiating for Mutual Benefit
Generate a
Separate the Focus on variety of options
people from the interests rather before settling
problem. than positions. on an
agreement.
Insist the
agreement be Stand your
based on ground.
objective criteria.
Bargaining Behaviours
Use of extreme behaviors

• Research shows that extreme positions tend to produce better results.
Promises, threats, and other behaviors.
• These behaviors are often influenced by culture.
Nonverbal behaviors
• Common during negotiations—silent periods, facial gazing, touching, and
conversational overlaps
In international negotiations, people use a wide variety of tactics
• The other side must be prepared to counter or find a way of dealing with
them
Homework (group) – Business Communication,
Negotiation and Bargaining
Prepare a presentation (5 slides max.) to reflect about business

communication, negotiation and bargaining in your project’s country.
What should you do as a Vietnamese manager to deal with it?
Homework for Session 8 Week 7(Group)
The International Cola Alliances (page 577-579)
Objective:
• To introduce some of complexities involved in doing business across
international borders
• To examine what happens when countries seek to do business with
one another without the benefit of a common language and customs
Read carefully the case and prepare Step 1 and Step 2 at home.
Perform Step 3 in the class
• Note: The country can be your group project’s country or another one.
Assessment Overview
Assessment Weight Type of Task Due date

In-class attendance &
1 20% Individual Weekly
participation with the lecturer
2 In-class experiential exercises (5) 20% Individual Week 2,3,4,5, and 6
3 Case Analysis Presentation 20% Group Week 67 and 8

Final Project (20%) & Submit the project 3 days
4 40% Group
Presentation (20%) before the last session

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Managing in Global

Dr. Khanh Ngo

22/02/2024 Dr. Khanh Ngo www.isb.edu.vn

• Practice negotiation with play role using Consultative Negotiation

• Resist formulating simple, consistent, stable images.

• Do not assume all aspects of the culture are equally significant.

• Do not overestimate familiarity with your counterpart’s culture.

Use of extreme behaviors

Prepare a presentation (5 slides max.) to reflect about business

Assessment Weight Type of Task Due date

3 Case Analysis Presentation 20% Group Week 67 and 8

22/02/2024 Dr. Khanh Ngo www.isb.edu.vn

22/02/2024 Dr. Khanh Ngo www.isb.edu.vn

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