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1、,Chapter 8 Cross-Cultural Business Negotiation,Chapter 8 Cross-Cultural Busin,Cultural difference in international business negotiation is a land mine. -Liu baiyu, Chinese Professor,Quotation,Cultural difference in interna,目录 Contents,02,1. Lead-in2. Reading: Section A & Section B 3. Background Info
2、rmation4. Words nad Expressions5. Situational Dialogue in Negotiation6. Roe-play Task7. Chinese Case8. Chinese Culture,目录 021. Lead-in,Lead-in,Questions: 1. List two cultural conflicts in the above case.2. What role do you think cultural factors played in this case?,Lead-inQuestions:,Reference answe
3、rs: 1. List two cultural conflicts in the above case.,The Malaysian team thought being late was okay but the Chinese team regarded being late as impolite.,Chinese team offered Maotai, one of the most expensive liquors, to treat guests. However, the Muslims are not allowed to drink at all, and so the
4、 Malaysian team was offended.,Reference answers: The Malaysi,Reference answers: 2. What role do you think cultural factors played in this case?,Cultural values and customs represent the peoples backgrounds and rules of life. In order to smooth the negotiation process, both sides need to make cultura
5、l preparations ahead of time, including understanding the culture of the opposite side, asking questions and sufficient communications. Culture understanding can make negotiations more effective, efficient and productive. Cultural misunderstandings will lead to negative communications, or even failu
6、re in negotiations.,Reference answers: Cu,Reading,Section A Forewarned Is ForearmedSection B Building Trust Before Heading to the Table with Japanese,ReadingSection A Forewarned Is,Reading Section A,Distinctive elements of international business negotiations,Reading Section A ElementDea,Different la
7、yers of culture,Four ways impacting negotiations,Cultural influences on international negotiations,The Iceberg Model of CultureDi,01,National culture gives the overall framework of cultural concepts and legislation for business activities.,National culture,02,Business/industry culture is the certain
8、 competitive framework within a specific industry where the players know the rules of the game.,Business/Industry culture,03,Company/organizational culture consists of the shared values, beliefs, meanings and behaviors of the members of a function within an organization.,Company/organizational cultu
9、re,In the interaction environment, the individual becomes the core person who interacts with other actors.,Individual behavior/decision maker,04,Different layers of culture,01National culture gives the o,Power/Distance (PD),Individualism (IDV) vs. Collectivism,Masculinity (MAS) vs. Femininity,Uncert
10、ainty/Avoidance index (UAI),Long-term orientation (LTO),Indulgence (IND) vs. Restraint,Hofstedes model of Cultural dimensions,Power/Distance (PD) Indivi,Section A Discussion Questions,1. Choose two distinctive elements of international business negotiations from the text and illustrate them.,2. What
11、 is your opinion on Iceberg Model of Culture? Please give an example.,Section A Disc,Key to the Questions,1) Choose two distinctive elements of international business negotiations from the text and illustrate.,There are quite a few distinctive elements of international business negotiations. The fir
12、st to discuss is the laws, policies and political authorities that both parties need to handle. It is normal that people all take first consideration of their own life and work experience, as well as the related laws and politics of their own countries. However, since international negotiations aim
13、at connecting the two sides though coordinating both backgrounds, then both parties need to learn sufficient politics before, throughout and after the negotiation process. Otherwise, misunderstanding, disrespect and conflicts will occur frequently, in some cases even leading to failure of negotiatio
14、ns. The second element to discuss is the fifth one very different ideologies. Even when two parties are doing negotiations around the same target products, they must have very different ways of looking at money, investment, profits, rights and so on. In this case, both sides also need to learn about
15、 the ideologies of the opposite side ahead of time and respect, or even compromise when necessary.,Key to the Questions1) Choose,2）What is your opinion on Iceberg Model of Culture? Please give an example.,The Iceberg Model of Culture shows us that only some superficial phenomena are presented to the
16、 public, while more in-depth values are buried under, which is harder for people to notice and pay enough attention to. An example is that during an international business negotiation, an American company representatives found that the Chinese company representatives were always nodding no matter wh
17、at the American team said. They believed that the Chinese team were impolite because they seemed to pretend that they agreed with the American team at all points, while later they threw out some sharp challenges to the American team. In fact, Chinese team nodded with smile to show their traditional
18、Chinese values of respect, kindness and patience in the situation of other people speaking. But business is business, challenges with sharp words then followed still.,2）What is your opinion on Iceb,Building Trust Before Heading to the Table with Japanese,01,02,03,04,Case analysis,Trust in Japaneses
19、mind,The US sellers sensitivity to Japanese culture,Cultural sensitivity and trust building,Reading Section B,Building Trust Before Heading,Questions for Consideration,(1) What are the real problems that impede the negotiations between the American company and the Japanese one?,(2) What are the conc
20、epts of Phil Johnson and the Japanese for their first meeting? Is there any difference in their expectation from that?,Questions for Consideration(1),Key to the Questions,1. What are the real problems that impede the negotiations between the American company and the Japanese one?,Japanese negotiator
21、s, typical of “Trust Cultures”, seek to establish a trust-based relationship. In the Japanese cultural context, trust involves both a foreign firms benevolence and credibility. Driven by collectivism, Japanese firms prefer culturally sensitive partners who are willing to adapt to cultural difference
22、s and exhibiting great concern for the other party, leading to intentionality-based trust. American negotiators, who fall under “Fact Cultures”, tend to neglect the importance of trust-building through socializing or showing concern for their counterpartys best interests and welfares. When they reso
23、rt to hard selling by bombarding their Japanese counterparty with short-term benefits of the deal, they are perceived to be socially inappropriate and thus, untrustworthy.,Key to the Questions1. What ar,Key to the Questions,2.What are the concepts of Phil Johnson and the Japanese for their first mee
24、ting? Is there any difference in their expectation from that?,Phil Johnson had high expectations for their first meeting with Japanese negotiators. To display his enthusiasm and goodwill, he insisted on the first-name basis and greeted Japanese with open arms. To achieve a friendly, relaxed and cons
25、tructive atmosphere, he tried to have closer contact with his counterpart of his similar age and position. To convince the other party, he demonstrated a huge quantity of objective facts certifying the maximum benefits of this deal. On the other hand, Japanese negotiators expect the first meeting to
26、 be an occasion where both parties can socialize in a culturally appropriate manner. They want to spend more time getting to know their prospective partners with the hope of establishing a long-term trust-based relationship. American negotiators expect to impress their counterparty with their eagern
27、ess to strike a deal which they believe can bring forth great interests, benefits and welfares to their prospective partners. Being objective-oriented, they hope to progress the negotiation by getting down to business at the first meeting and sticking to a fixed agenda in the following stages of neg
28、otiation. On the other hand, Japanese negotiators expect their counterpart to be benevolent and trustworthy in terms of intentionality and capability. Trust emerges only when American firms display cultural sensitivity and possess an ability to satisfy their transactional obligations.,Key to the Que
29、stions2.What are,Background information,Culture shock,“Culture shock” is used to describe the emotional rollercoaster that someone experiences when living in a new country. Anyone that has worked and lived in a foreign country will experience culture shock of some sort. Culture shock affects anyone
30、from business personnel and their families, to EFL teachers, to sports stars. Recognizing culture shock is an important way of being able to deal with it. Dealing with it helps minimize the risk of becoming disillusioned with a new country and the possibility of deciding that a quick “return home” i
31、s the only solution.,Stage1 Excitement,Stage2 Withdrawal,Stage3 Adjustment,Stage4 Enthusiasm,Background informationCulture,Background information,01,02,03,Learn the other sides cultureIt is very important to know the commonest basic components of our counterpartys culture.,Dont stereotypeCultural st
32、ereotypes occur when we assume that all people of a group share the same cultural characteristics without viewing them at an individual level.,Find ways to bridge the culture gapApart from adopting the other sides culture to adjust to the situation and environment, we can also try to persuade the ot
33、her side to use elements of our own culture.,Background informationCoping 0,Relationships and communication in different nations,Relationship in Saudi ArabiaSaudi sponsorKnow and trustPatient ,Relationship in JapanPersonal relationshipGreeting/seasonal cards,Relationship in Canada/Brazil/the UK/Aust
34、ralia/South Africa etc.,Relationship in the USADirect Low power distanceDetailed contracts,Relationship in ChinaBe familiar/patient/polite etc.Interwine with the meals and social events.,Relationships and communicatio,Role-play Task,Work in pairs with the following situation. Mr. Green, an importer
35、from the USA, has discussed with Ms. Liu, a sales representative from an import and export corporation of China, all the details of a transaction, now they come to the conclusion. Please make up a dialogue going over all the details and sign a contract.,Role-play Task Work in,Chinese Case,On January
36、 13, 2016, the joint shareholders of Shanghai Disney Resort, Walt Disney Company, and Shanghai Shendi Group declared that Shanghai Disneyland Park would officially start receiving visitors on June 16, 2016. ,The Negotiation on the Launch of Disneys Shanghai Theme Park,Chinese CaseIn the 1990sFrom,Qu
37、estions,1. Why was the negotiation a long and hard one?,2.What contributed to the successful outcome of the negotiation?,Questions1. Why was the negot,Key to the Questions,1. Why was the negotiation a long and hard one?,As early as 1999, the negotiation was set in motion. However, due to disputes an
38、d conflicts on collaboration terms, the multi-round negotiation endured until 2005. Not until 2009 was Chinese central governments endorsement announced, specifying the investment amount of this multi-phased project and share distribution of the park. Potential hurdles remained for the negotiation b
39、ecause Disney had to finalize its contract terms and their detailed discussion entailed multiple government agencies.,Key to the Questions1. Why was,Key to the Questions,2. What contributed to the successful outcome of the negotiation?,There are three drives for the successful outcome of this negoti
40、ation. Firstly, Disney was determined to speed up its expansion to Chinese market in order to extend its brand in China, the worlds most populous nation and the most dynamic market. Secondly, despite numerous hurdles in the process of gaining government endorsement and finalizing collaboration terms
41、 in the contract, both parties relentlessly progressed the negotiation. Thirdly, both parties aimed at a win-win negotiation and agreed upon a new park that would be “authentically Disney, distinctly Chinese”.,Key to the Questions2. What co,Chinese Culture,Confucius and Confucianism,Confucius was a
42、great thinker, political figure, and educator in the late Spring and Autumn Period. He was also the founder of Confucianism. The sayings and behaviors of Confucius were compiled in The Analects of Confucius by his disciples. Confuciuss ideology has been absorbed and carried forward by later generati
43、ons. Confucius legacy lies in mainly three aspects: Firstly, he compiled and preserved the literary works, The Six Classics, including Shi, Shu, Li, Yue, Yi, and Chun Qiu. Secondly, Confucius built up a system of philosophical thoughts with Ren as its basic virtue, which includes benevolence, filial piety, forbearance, etiquette, reverence, honesty, and so on. Thirdly, Confucius established private schools, creating a scientific-educational system. He held the idea that everyone should be educated regardless of his social status.,Chinese CultureConfucius,THANKS!,THANKS!,
