Negotiation Simulation
Negotiation is the most frequently used means of resolving conflicts between organizations. Particularly in international industrial marketing, when “big-ticket” and/or high technology products are involved, sales are most often negotiated. The General Medical MRI Negotiation Simulation (GM/MRI) has been developed specifically to provide a context for experiential learning and practical discussion of international business negotiations.
JAPANESE NEGOTIATION STYLE INSTRUCTIONS
The simulation becomes much more interesting for everyone if a little culture is brought into the game. Please try to incorporate the following three aspects of Japanese negotiation style into your behavior at the negotiation table. 1. Emphasize asking QUESTIONS. Even when they answer, ask the same question in another way. 2. Deliberately allow SILENT PERIODS. 3. Don’t settle any issues until the end. It is OK for you to bring up issues again later in the negotiation, even if the other side thinks they were settled.
BRAZILIAN NEGOTIATION STYLE INSTRUCTIONS
The simulation becomes much more interesting for everyone if a little culture is brought into the game. Please try to incorporate the following three aspects of Brazilian negotiation style into your behavior at the negotiation table. …show more content…
1. Do not talk about business directly during the first 10 minutes of the game. Sports, the weather, the world economy are all OK. But, during the first 10 minutes if the other side brings up business, you change the subject. 2. Try to INTERRUPT your counterparts frequently. 3. Periodically reach across the table and pat your counterpart’s arm when you say something friendly.
Price Quotations | | Deep Vision 2000 MRI (basic unit) | $1,200,000 | | | Product options: | | | | * 2D and 3D Time-of-flight (TOF) angiography for capturing fast flow | 150,000 | | | * Flow analysis for quantification of cardiovascular studies | 70,000 | | | * X2001 Software Package | 20,000 | | | Service contract (2 years normal maintenance, parts, and labor) | 60,000 | | | Total price | $1,500,000 | | |
Standard Terms and Conditions
| | Delivery | 6 months | | | Penalty for late delivery | $10,000/month | | | Cancellation charges | 10% of contract price | | | Warranty (for defective machinery) | parts, one year | | | Terms of payment | COD | | |
Final Contract Deep Vision 2000 MRIPrice $ ______________Product Options (circle those selected) | | Angiography Price $ ______________ Flow analysis Price $ ______________ X2001 Software Price $ ______________ | | | Service Contract (list conditions) | _____________________________________________________________________ | Price $ ______________ | | Total Price $ ______________ | | | | Terms and conditions | ________________ | | | Delivery | ________________ | | | Penalty | ________________ | | | Cancellation Charges | ________________ | | | Terms of Payment | | ________________ | | | | ________________ | | | | Warranty | Parts _____ Labor _____ Years _____ | | | Arbitration clause | Yes _____ No ____ | | _____________________________________________________________________ | Signatures | | | _________________________________________ | _________________________________________ | Hospitals Representative | General Medical, Inc. Representative |
Japan 7
In the first segment the American Sales Manager breaks the silence. This is a mistake.
Silences or gaps in the conversation are part of everyday conversations in Japan. But, this is not the case in the US. Generally Americans are uncomfortable with breaks in the conversation. Japanese silences may have a persuasive intent, but often they do not. The key here is to give the Japanese a chance to respond, let them break the silence. During such silent periods Americans can review their notes or mentally review how things are going. But, let them talk, and let them give you information. The fundamental lesson for Americans negotiating with Japanese is, “keep your mouth shut and let them do the talking.” Focus on gathering information.
Japan 8
American negotiators get mad and they make threats. American experts on negotiation, Chester Karrass for one, tell us that emotional responses have a place in negotiations. Getting mad demonstrates the importance of the issue and demonstrates seriousness. In Japan, getting mad ends negotiations and business relationships. In Japan, such messages are greatly cushioned by the Japanese indirect conversation and negotiation styles. Here the American Sales Manager is venting her emotions. Such an approach may work in America, but this accomplishes much less than nothing in Japan.
Our advice here is to “avoid threats,” take a break, and “use informal channels” to deliver the tough messages. Informal channels of the sort depicted in the last scene work very efficiently in Japan. The information delivered through the junior person over dessert or a beer will be communicated accurately and quickly to the other Japanese team members. This is how tough messages are delivered in Japan. This indirect approach may work, and it certainly saves face and preserves personal relationships. There are two rules for its use. (1) These junior members of the negotiation teams need to be friends ahead of time. Trust and pre-established personal relationships are key. (2) The channel has to remain informal. That is, the dinner conversation cannot be referred to at the negotiation table the next day. If you say, “Suzuki-san said last night…,” you won’t see Suzuki-san again.
Negotiation Style brazil
Shake hands before and after every meeting with everybody present
Never start doing business right away unless your host does so first.
Expect to have long-term relationships with individuals, not just business. If the person changes, you will have to start all over building trust and good relations.
Japanese Styles of Negotiation
There is a great deal written about Japanese approaches to negotiation, and collisions between American and Japanese approaches are legendary.[12] The following values tend to influence Japanese communication: focus on group goals, interdependence, and a hierarchical orientation.[13] In negotiations, these values manifest themselves in awareness of group needs and goals, and deference to those of higher status. Japanese negotiators are known for their politeness, their emphasis on establishing relationships, and their indirect use of power.[14] Japanese concern with face and face-saving is one reason that politeness is so important and confrontation is avoided. They tend to use power in muted, indirect ways consistent with their preference for harmony and calm. In comparative studies, Japanese negotiators were found to disclose considerably less about themselves and their goals than French or American counterparts.[15]
Japanese negotiators tend to put less emphasis on the literal meanings of words used in negotiation and more emphasis on the relationships established before negotiating begins.[16] They are also less likely than their U.S. counterparts to make procedural suggestions.[17]
Latin American Styles of Negotiation
Role expectations influence negotiation in Latin American contexts.
Responsibility to others is generally considered more important than schedules and task accomplishment. Their negotiation approach relates to the polychronic orientation to time and patterns of high-context communication and communitarianism, described earlier. Lederach reports that a common term for conflict in Central America is enredo, meaning "entangled" or "caught in a net."[19] He explains thatenredo signifies the way conflict is part of an intimate net of relations in Guatemala and elsewhere in Central America. Thus, negotiation is done within networks, relationships are emphasized, and open ruptures are
avoided.
In Central America, people think about and respond to conflict holistically. Lederach contrasts his natural (American) inclination to "make a list, to break [a] story down into parts such as issues and concerns" with his Central American experience, where people tended to respond to requests for naming issues to be negotiated with "yet another story."[20] They preferred a storied, holistic approach to conflict and negotiation, rather than a linear, analytical one. When Central Americans needed help with negotiations, they tended to look to insider partials rather than outsider neutrals, preferring the trust and confidence of established relationships and cultural insight to other credentials or expertise. They referred to the concept of confianza to explain this preference. Confianza means "trustworthiness," that "they know us" and "we know them" and they will "keep our confidences."[21]
The Evolution of Negotiation
Even as different approaches to negotiation across national cultures are identified, change is constant. International business culture tends to privilege Western approaches to negotiation, centered in problem-solving and linear communication, as do many settings. As Western norms are balanced with Eastern and Southern values, and local traditions are balanced with regional and national approaches, negotiation practices continue their global evolution.
JAPANESE NEGOTIATION STYLE INSTRUCTIONS
The simulation becomes much more interesting for everyone if a little culture is brought into the game. Please try to incorporate the following three aspects of Japanese negotiation style into your behavior at the negotiation table. 1. Emphasize asking QUESTIONS. Even when they answer, ask the same question in another way. 2. Deliberately allow SILENT PERIODS. 3. Don’t settle any issues until the end. It is OK for you to bring up issues again later in the negotiation, even if the other side thinks they were settled.
BRAZILIAN NEGOTIATION STYLE INSTRUCTIONS
The simulation becomes much more interesting for everyone if a little culture is brought into the game. Please try to incorporate the following three aspects of Brazilian negotiation style into your behavior at the negotiation table. …show more content…
1. Do not talk about business directly during the first 10 minutes of the game. Sports, the weather, the world economy are all OK. But, during the first 10 minutes if the other side brings up business, you change the subject. 2. Try to INTERRUPT your counterparts frequently. 3. Periodically reach across the table and pat your counterpart’s arm when you say something friendly.
Price Quotations | | Deep Vision 2000 MRI (basic unit) | $1,200,000 | | | Product options: | | | | * 2D and 3D Time-of-flight (TOF) angiography for capturing fast flow | 150,000 | | | * Flow analysis for quantification of cardiovascular studies | 70,000 | | | * X2001 Software Package | 20,000 | | | Service contract (2 years normal maintenance, parts, and labor) | 60,000 | | | Total price | $1,500,000 | | |
Standard Terms and Conditions
| | Delivery | 6 months | | | Penalty for late delivery | $10,000/month | | | Cancellation charges | 10% of contract price | | | Warranty (for defective machinery) | parts, one year | | | Terms of payment | COD | | |
Final Contract Deep Vision 2000 MRIPrice $ ______________Product Options (circle those selected) | | Angiography Price $ ______________ Flow analysis Price $ ______________ X2001 Software Price $ ______________ | | | Service Contract (list conditions) | _____________________________________________________________________ | Price $ ______________ | | Total Price $ ______________ | | | | Terms and conditions | ________________ | | | Delivery | ________________ | | | Penalty | ________________ | | | Cancellation Charges | ________________ | | | Terms of Payment | | ________________ | | | | ________________ | | | | Warranty | Parts _____ Labor _____ Years _____ | | | Arbitration clause | Yes _____ No ____ | | _____________________________________________________________________ | Signatures | | | _________________________________________ | _________________________________________ | Hospitals Representative | General Medical, Inc. Representative |
Japan 7
In the first segment the American Sales Manager breaks the silence. This is a mistake.
Silences or gaps in the conversation are part of everyday conversations in Japan. But, this is not the case in the US. Generally Americans are uncomfortable with breaks in the conversation. Japanese silences may have a persuasive intent, but often they do not. The key here is to give the Japanese a chance to respond, let them break the silence. During such silent periods Americans can review their notes or mentally review how things are going. But, let them talk, and let them give you information. The fundamental lesson for Americans negotiating with Japanese is, “keep your mouth shut and let them do the talking.” Focus on gathering information.
Japan 8
American negotiators get mad and they make threats. American experts on negotiation, Chester Karrass for one, tell us that emotional responses have a place in negotiations. Getting mad demonstrates the importance of the issue and demonstrates seriousness. In Japan, getting mad ends negotiations and business relationships. In Japan, such messages are greatly cushioned by the Japanese indirect conversation and negotiation styles. Here the American Sales Manager is venting her emotions. Such an approach may work in America, but this accomplishes much less than nothing in Japan.
Our advice here is to “avoid threats,” take a break, and “use informal channels” to deliver the tough messages. Informal channels of the sort depicted in the last scene work very efficiently in Japan. The information delivered through the junior person over dessert or a beer will be communicated accurately and quickly to the other Japanese team members. This is how tough messages are delivered in Japan. This indirect approach may work, and it certainly saves face and preserves personal relationships. There are two rules for its use. (1) These junior members of the negotiation teams need to be friends ahead of time. Trust and pre-established personal relationships are key. (2) The channel has to remain informal. That is, the dinner conversation cannot be referred to at the negotiation table the next day. If you say, “Suzuki-san said last night…,” you won’t see Suzuki-san again.
Negotiation Style brazil
Shake hands before and after every meeting with everybody present
Never start doing business right away unless your host does so first.
Expect to have long-term relationships with individuals, not just business. If the person changes, you will have to start all over building trust and good relations.
Japanese Styles of Negotiation
There is a great deal written about Japanese approaches to negotiation, and collisions between American and Japanese approaches are legendary.[12] The following values tend to influence Japanese communication: focus on group goals, interdependence, and a hierarchical orientation.[13] In negotiations, these values manifest themselves in awareness of group needs and goals, and deference to those of higher status. Japanese negotiators are known for their politeness, their emphasis on establishing relationships, and their indirect use of power.[14] Japanese concern with face and face-saving is one reason that politeness is so important and confrontation is avoided. They tend to use power in muted, indirect ways consistent with their preference for harmony and calm. In comparative studies, Japanese negotiators were found to disclose considerably less about themselves and their goals than French or American counterparts.[15]
Japanese negotiators tend to put less emphasis on the literal meanings of words used in negotiation and more emphasis on the relationships established before negotiating begins.[16] They are also less likely than their U.S. counterparts to make procedural suggestions.[17]
Latin American Styles of Negotiation
Role expectations influence negotiation in Latin American contexts.
Responsibility to others is generally considered more important than schedules and task accomplishment. Their negotiation approach relates to the polychronic orientation to time and patterns of high-context communication and communitarianism, described earlier. Lederach reports that a common term for conflict in Central America is enredo, meaning "entangled" or "caught in a net."[19] He explains thatenredo signifies the way conflict is part of an intimate net of relations in Guatemala and elsewhere in Central America. Thus, negotiation is done within networks, relationships are emphasized, and open ruptures are
avoided.
In Central America, people think about and respond to conflict holistically. Lederach contrasts his natural (American) inclination to "make a list, to break [a] story down into parts such as issues and concerns" with his Central American experience, where people tended to respond to requests for naming issues to be negotiated with "yet another story."[20] They preferred a storied, holistic approach to conflict and negotiation, rather than a linear, analytical one. When Central Americans needed help with negotiations, they tended to look to insider partials rather than outsider neutrals, preferring the trust and confidence of established relationships and cultural insight to other credentials or expertise. They referred to the concept of confianza to explain this preference. Confianza means "trustworthiness," that "they know us" and "we know them" and they will "keep our confidences."[21]
The Evolution of Negotiation
Even as different approaches to negotiation across national cultures are identified, change is constant. International business culture tends to privilege Western approaches to negotiation, centered in problem-solving and linear communication, as do many settings. As Western norms are balanced with Eastern and Southern values, and local traditions are balanced with regional and national approaches, negotiation practices continue their global evolution.