ASSIGNMENT
Submitted to,
Dr. H. Gayathri
Deputy Director &
Professor - Marketing
SDMIMD
Submitted by,
Derrick Keith Monis
PGDM No. 14044
2014-16 Batch
SDMIMD
CONTENTS
1. Introduction
2. Negotiation
3. Formal stages
4. Styles
5. Tactics
6. Gift giving
7. Legal
8. Ethics
10
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Business Negotiations
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INTRODUCTION
Business Negotiations
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NEGOTIATIONS
Negotiation styles and steps differ from country to country. For example in Middle Eastern
countries it is considered very impolite to get straight to the point.
Instead there are certain social ceremonies such as drinking tea and exchanging noncontroversial topics. The key is to be patient. You have to know when a Yes really means Yes and
when a Maybe means No. For some it is just a Deal and from some it is more of a relationship.
For Example;
The formal stages in the US include:
1.
2.
3.
4.
5.
6.
7.
Apart from any cultural differences, the question that have to answered are1.
2.
3.
4.
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5.
6.
7.
8.
Competing
Collaborating
Compromising
Accommodating
Avoiding
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TACTICS
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Take it or leave it
Most commonly used in USA with those who are not skilled in negotiations? That is why it is
required to bring in a trained negotiator. It is often offset by the increase in revenue they are able
to generate.
Pretending Disinterested
It is very hard to detect whether the disinterest show is genuine or not, thus you too show the
same level of disinterest and see what happens.
Use time to get what you want.
Here you can ask more time to diffuse the interest in deal in the hope that this will enable you to
get in with a lower offer.
GIFT GIVING
This a very pivotal and sensitive part of negotiations. The rules governing the same changes
from time to time, so the best strategy is to ask someone local, or in the international office, or a
colleague who has been there recently. Should you bring a gift of not? And if a gift is appreciated
or not? How much to spend on it? And other gift giving customs like kiss, bow or shake hands.
For example
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Conversely gifts are opened in Middle East to show that it is not a bribe.
Avoid roses(only for romantic partners)
In China do not give white flowers
In brazil do not give purple flowers
Avoid carnations in France and Germany.
In china red is a symbol of luck and white is associated with death.
LEGAL
FCPA Foreign corrupt practices act
The US law prohibits the practice of pain bribes. It is unlawful to pay anything more than a
worth of $25 sometimes.
It would be also good to have a look at CPI corruption perception list where Afghanistan
comes last and US stands at 6th, NZ comes as the least corrupt.
It is important to look into the;
Intellectual property
Embassy rules
Anti-boycott regulations
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ETHICS
Here are some business related issues that could be considered a breach of ethics as well as
etiquette:
BE DISCREET
BE ON TIME
BE COURTEOUS, PLEASANT AND POSITIVE
BE CONCERNED WITH OTHERS NOT JUST YOURSELF
DRESS APPROPRIATELY
USE PROPER WRITTEN AND SPOKEN LANGUAGE
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Being invited to someones home for barbeque is a very big deal in Australia.
They dont like to compare to NewZelanders.
Dont use slangs like- Aussie, bloke, and mate.
Dont do thumbs up.
More informal than Americans
Dont like aggressiveness, but they can be so.
2. Brazil
3. Canada
4. China
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5. France
6. Germany
No small talk
Personal & business lives separate
Its a tribute if your invited home
Formal always
Proud of beers & vines
No gifts initially
Avoid world war topics , Hitler , Nazi topics
Punctuality is very important
Dont waste food.
7. Italy
Two kisses
Business mostly in bars/restaurants.
Everyone pays for themselves
Fashion conscious , judgmental
8. Japan
Speak calmly
No jokes
It is difficult for contract if you cant drink
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9. Netherland
11. Portugal
12. Russia
OK is vulgar
Hands in pocket means disrespect
Men- handshake
Lavish dinner
Vodka is very important
Customary to sit round the table and take turns.
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14. Spain
Handshake + kiss
Take their food seriously
Late dinner after 9-10
Barcelona and Madrid are key areas
15. UK
16. US
Other Considerations
Phone
Website
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Trips
Research on language
greetings
First impression is very important
Choose the hotel closest to the company
Register in the embassy
Keep business contacts informed
Always have extra business cards
Ship things in advance , travel in one bag
Entertainment
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