win lose agreement benefits one party but hurts the other zero sum game Cross

Win lose agreement benefits one party but hurts the

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‘win-lose’ agreement: benefits one party but hurts the other, ‘zero-sum’ game - Cross-cultural theory: o Hofstede’s five cultural dimensions Is Hofstede right? Culture can be viewed as: - A learned behaviour - System of shared values - Dialectic (opposite values towards establishing truth) - Contextual Characteristics of the Japanese negotiation style - Highly contextual culture - Build long term relationships - Preparation o Full preparation o First meeting: gather information o Build consensus ‘behind-the-scene’ o Managing the status o Using intermediaries o A focus on fairness in distributing gains Typical Japanese tactics - Taking up as much time as possible - Poker-face, not unfriendly but not friendly either - Defer to buyers – maintain long-term interests
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IBUS20001: BUSINESS IN ASIA - Very little informational disclosure - Never use the word ‘no’ /and no threats or aggressive behaviour Characteristics of the Korean negotiation style - Highly contextual, collectivist culture - Preparation - Managing the status o Highly centralised decision making o Informal ‘relationship-building’ is essential - Encourage effective negotiation, tactics to be used - Forego short-term interests to focus more on long-term cooperation - Informal role of third parties Korean Style: - Dominate subordinations, compromise with peers, and oblige with superiors o Other factors: status, age, sex - Very large power distances … people of status are unequal to each other Less relationship based – more status based Indian negotiating style: - More analytical than holistic - Use of logical answers rather than ‘finding a middle ground’ - Distributive justice not important - Highly moralistic – values are very important - Trust is built on logic not emotion - Individualistic AND collectivistic (only with family) - Evasive refusals - Take their time Debate over risk-taking nature Hotbed for cultural differences: Singapore - Singapore is home to 3 dominant groups: Chinese (76%), Malays (15%), Indians (7%) - Also home to multinational companies from: USA, Japan, Germany, UK, France and Scandinavia Characteristics of the Chinese negotiation style: - The emphasis on interpersonal trust rather than legal contract - Hospitality - General principles first - Government behind the scenes - Having a large but indecisive negotiation team - Sudden change from being stubborn to being flexible - Sensitivity to price - The use of tactics, tricks and ploys Chinese Tactics/Ideas:
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IBUS20001: BUSINESS IN ASIA Zhongjian Ren (Middle man) - Good at interpreting body languages/signs and can settle differences Jiejian (Thrift) - Bargain over price, expect both sides to make concessions Mianzi (Face) - Broken promise or display of anger is a loss of face, end of the negotiation Tips for negotiating with Chinese partners: - Identify the meaning of a particular negotiating behaviour - Adopt a people-oriented approach - Set up an appropriate negotiating team - Talk to top Party and government leaders whenever possible - Employ tactics when necessary and appropriate - Know the Chinese negotiation style but be yourself
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  • '19
  • Business, Asian Financial Crisis

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