grow global review

8/20/2019 Grow Global Review

1/15

Submitted to,Dr. H. GayathriDeputy – Director &

Professor - MarketingSDMMD

Submitted by,Derrick !eith MonisPGDM "o. #$%$$%#$-#' (atchSDMMD

("S)SSG"M*"+


2/15

CONTENTS

1. Introduction 2

2. Negotiation 3

3. Formal stages 3

4. Styles 4

5. Tactics 6

6. i!t gi"ing 7

#. $egal 8

%. Et&ics 8

'. (rinci)les and uidelines 9

1*. Country +ise Eti,uettes 10

11. Ot&er considerations 14

Business Negotiations 1 | P a g e


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INT-O/CTION

This book generally speaks about negotiating in an international context.

It teaches us how to act ‘Glocal’ i.e. think globally but act locally.

The key is to know local customs and behaviors but still ‘be yourself’

This book talks about cultural intelligence and to put it in a simple way;

. !now yourself ". !now the other person#. $ind a middle ground

%nderstanding &usiness 'rotocol has always been important. The internet has made it more so.

There’s a saying that goes something like this( ‘if someone is pleased with a product or service)

they tell one person; if they are displeased) they tell a do*en’

It is more likely that is someone has a choice between multiple companies and all other factors

such as + price) ,uality) brand etc. is e,ual then the respectful use of proper business protocol

could determine who gets that business.



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NEOTI0TIONS

-egotiation styles and steps differ from country to country. $or example in iddle /astern

countries it is considered very impolite to get straight to the point.

Instead there are certain social ceremonies such as drinking tea and exchanging non(

controversial topics. The key is to be patient. 0ou have to know when a 0es really means 0es and

when a aybe means -o. $or some it is 1ust a 2eal and from some it is more of a relationship.

$or /xample;

T&e !ormal stages in t&e /S include

. $ormal meetings with draft documents and information". /xchange of positions) offers ) counteroffers#. 3aucuses 4separate meetings5 to discuss various issues6. 7ubcommittees for specific topics8. -ew proposals with explanations9. :greement ) signing implementation. If impasse go for a mediator

T&e !ormal stages in C&ina include

. General opening phase( pleasantries are exchanged". Technical discussions( a long drawn out but penetrating period#. 3hallenges are discussed6. : contract signing proceeded by demands for a new concessions.8. The ongoing) post contract negotiation.

0)art !rom any cultural di!!erences t&e ,uestion t&at &a"e to ans+ered are

. 2o the people at the table have authority< If not who has<". 2eadlines of both the parties< :nd how long does this leverage this negotiation<#. 'ressures on both sides( w.r.t + time) money etc.=.6. >hat would a good settlement look like<



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8. >hat is the best alternate<9. >hat is the worst alternate<. >hat mechanisms are necessary for implementation and enforcement of this agreement<?. @ow will this agreement be communicated< &y &oard of 2irectors or union membership

or trustees or press or the community<

TI T&omas ilmann Con!lict 7ode Instrument8

T!I re,uires you to make #A behavior choices that stem from each of 8 negotiation styles

categories;

• 3ompeting

• 3ollaborating• 3ompromising

• :ccommodating

• :voiding

T&e Com)eting negotiator

>ith the competing negotiator) the deal is the first and the relationship is secondary. $or the

competing negotiator it is a chance to win and the competitor looks for deadlines ) tactics such as

opening moves) bargaining power and leverage) and may not be as concerned about the

relationship at all. This may have disastrous results if the other party feels coerced) abused) taken

advantage of or van,uished and looks for a form of economic revenge or retribution. : potential

limitation of this style is looking at only what can be ,ualified by the deal and missing intangible

variables such as goodwill. 2onald Trump personifies the competitor negotiator

T&e Colla9orati"e negotiator

The collaborative negotiator tries to go underneath any stated ‘positions’ by the other side to

understand what the ‘interests’ and ‘needs’ are of both parties) and look show they can be

achieved. The skills re,uired here are + patience) tactic) ,uestioning and large exchanges of

information. >hile competitors may call negotiation a ‘game’ but collaborators call it a ‘dance’

whereby both parties solve it together and build trust.



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T&e 0ccommodati"e negotiator

If you are an accommodator then you negotiate with an aim towards building relationships and

make sure problem solving methods are used to solve them. 0ou may not have your goals

reali*ed and the competitor might take your stance as one of weakness.

T&e Com)romising negotiator

If you are a compromiser then you look to reduce the gap between two offers and for standards

to achieve this closure ,uickly. >e find more sacrificing here.

T&e 0"oiding negotiator

The negotiators who follow this style do not like confrontation and are very reluctant bargainers.

>hile this approach may help if one side re,uires more information or the timing is wrong for

the discussions) it may also result in no deal being made. >hile negotiators portray a great deal

of tact with competitive negotiators) they may also not be explicit enough about what their goals

are for the negotiations and thus lose out.

T0CTICS

ood Co) :ad Co)

@ere two people are involved in the negotiations with one person pointing out all the positives

and the other pointing out all the negatives

$ying and dece)ti"e tec&ni,ues

7ometimes the other party leaves vital information or exaggerate the success of any product or

service or might display false nonverbal messages to throw off the other side. Its impotant to be

very careful while confronting here.



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En;oying t&e 9argaining game

ost cultures expect to bargain in deal negotiations and in fact some cultures such as 7pain’s)

en1oy the bargaining game upto "A(#AB difference from the initial offer

Ta


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• 3onversely gifts are opened in iddle /ast to show that it is not a bribe.

• :void roses4only for romantic partners5

• In 3hina do not give white flowers

• In bra*il do not give purple flowers

• :void carnations in $rance and Germany.• In china red is a symbol of luck and white is associated with death.

$E0$

$3': + $oreign corrupt practices act

The %7 law prohibits the practice of pain bribes. It is unlawful to pay anything more than a

worth of C"8 sometimes.

It would be also good to have a look at 3'I + corruption perception list where :fghanistan

comes last and %7 stands at 9 th) -E comes as the least corrupt.

It is important to look into the;

• Intellectual property• /mbassy rules

• :nti(boycott regulations



9/15

ET>ICS

@ere are some business related issues that could be considered a breach of ethics as well as

eti,uetteF

• /xaggerating or lying about sales figures or profits.

• 'osing as a potential customer to see what the competition is offering.

• !eep your promises in business especially about the delivery of goods and services

• 3ritici*ing employees or products openly in public

SI? :0SIC (-INCI($ES OF :/SINESS (-OTOCO$

. &/ 2I73//T". &/ H- TI/#. &/ 3H%T/H%7) '/:7:-T :-2 'H7ITIJ/6. &/ 3H-3/-/2 >IT@ HT@/7 -HT D%7T 0H%7/$8. 2/77 :''H'I:T/09. %7/ 'H'/ >ITT/- :-2 7'H!/- :-G%:G/

FIFTEEN INTE-N0TION0$ (-OTOCO$ CONSIE-0TIONS

. 3H/3T 'H-%-3I:TIH- :-2 >ITI-G H$ 7H/H-/’7 -:/". 'H'/ G//TI-G7 :-2 I-TH2%3TIH-7#. /K3@:-G/ H$ &%7I-/77 3:276. 2I-I-G :-2 /:TI-G 3%7TH78. '%-3T%:IT09. //TI-G H3:TIH-. >@H >I :TT/-2 T@/ //TI-G?. 'H'/ 2/77L. :33/'T:&/ >ITT/- H 7'H!/- :-G%:G/A. G/7T%/7 :-2 &H20 :-G%:G/. -/GHTI:TI-G 7T0/7". TH'I37 H 'HITI3:0 I-3H/3T I77%/7 TH :JHI2#. GI$T GIJI-G :-2 /3/IJI-G6. @HI2:07 H J:3:TIH- TI/8. /IGIH%7 ':3TI3/7 :-2 /:T/2 3H-3/-7



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-/$ES OF T>E -O0 CO/NT-@ :@ CO/NT-@ ETIA/ETTE

1. 0ustralia

• &eing invited to someone’s home for barbe,ue is a very big deal in :ustralia.

• They don’t like to compare to -ewEelanders.

• 2on’t use slangs like( :ussie) bloke) and mate.

• 2on’t do thumbs up.

•

ore informal than :mericans• 2on’t like aggressiveness) but they can be so.

2. :raBil

• &egin with handshake) may end with hand over shoulder.

• !iss on two cheeks. 4right then left5

• 7peak 'ortuguese

3. Canada

• ore formal and conservative than :mericans.

• &usiness entertainment is more likely to occur in a night club

4. C&ina

• 7trong relation with a government official is very important.

• -odding in not agreeing) it is 1ust + ‘I hear you’

• 2on’t critici*e government

• 2on’t finish food) unless you want more.

• ed is auspicious

• :void black M white.



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5. France

• Jery proud of language

• If you do not know $rench) you must apologi*e.

• 7tart meeting with + &H-DH% • /nd meeting with + :% /JHI

• Jery expressive

• Take vacations very seriously.

6. ermany

• -o small talk

• 'ersonal M business lives separate

•

It’s a tribute if your invited home• $ormal always

• 'roud of beers M vines

• -o gifts initially

• :void world war topics ) @itler ) -a*i topics

• 'unctuality is very important

• 2on’t waste food.

#. Italy

• Two kisses

• &usiness mostly in barsNrestaurants.

• /veryone pays for themselves

• $ashion conscious ) 1udgmental

%. a)an

• 7peak calmly

• -o 1okes

• It is difficult for contract if you can’t drink

Business Negotiations 10 |P a g e


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• Gift giving is important.

• They take time for discussions

• >ork first) money last 4very strong work ethic5

'. Net&erland

• If invited home + bring flowersNli,uors

• Jery direct

• eferral is important for trust.

1*. Ne+ Dealand

• 7lightly more relaxed approach

• 7ensitive

• 'unctual

• &lunt + do not apologi*e for their views

11. (ortugal

• Greet with kisses

• Gifts is common

• 'assionate

• 'romise a lot + but do not do so.

12. -ussia

• H! is vulgar

• @ands in pocket means disrespect

• en( handshake

• avish dinner

• Jodka is very important

• 3ustomary to sit round the table and take turns.

13. Sout& orea



13/15

• @andshake M a slight bow

• &usiness card is important

• /xpert negotiators

14. S)ain

• @andshake O kiss

• Take their food seriously

• ate dinner + after L(A

• &arcelona and adrid are key areas

15. /

• It is best to limit hand or arm gestures

• Hnly handshake• If noble( then use + my lord) my lady or your grace.

• 2o not use first name unless invited to do so.

16. /S

• 7afe to 1ust shake hands

• 2iscuss business over drinks

• @osts pays

• Golf club

Ot&er Considerations

(&one

• 3onsider time *one

• @oliday

• $ollow up email 4minutes of meeting5

• $irst ask if it is a good time to talk

• :sk for a non(disclosure agreement 4for confidentiality5

• 3ross check for scams

e9site



14/15

@ave website translated

7earch box

3urrency calculator

International section

3ulture sensitive2ecrease graphics

Email

7ub1ect line is very important

eply within "6hrs

:void confidential or negative comment

Tri)s

• esearch on language ) value system) religious views) uni,ue business practices )

greetings

• $irst impression is very important

• 3hoose the hotel closest to the company

• egister in the embassy

• !eep business contacts informed

• :lways have extra business cards

• 7hip things in advance ) travel in one bag

Entertainment

7nack) hand written card delivered to their room in advance.

esearch their culture

Take them around the city 4ask twice5

2ress successfully



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:sk what they would like to do.

• :lways give a thank you note.


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