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1、Impacts of Cultural Differences on Business Negotiations. IntroductionThe business negotiations under different business cultural conditions come to multi-cultural negotiations. With the economic globalization and the frequent business contacts, cultural differences seem to be very important, otherw
2、ise they could cause unnecessary misunderstanding, even affect the result of the business negotiations. This means it is very important to know the different culture in different countries and the ways to avoid the culture conflicts in the international business negotiations. The article commences f
3、rom the definition of the culture in the area of business. Then from the three aspects of communication process, negotiation styles, it explains the influence of cultural differences on international business negotiations, and at the same time it analyzes how to deal with the problems of the busines
4、s cultural differences correctly in negotiation process . Such a standpoint is emphasized: In the business negotiations between different countries , negotiators should accept the other partys culture, and try to make him be accepted ; then make a correct evaluation with the help of valid communicat
5、ion and discover their real benefits between them . Besides, we should know clearly and try to accept the cultural differences as possible as we can. It is very important for the success of culture negotiations. Different Business Cultures Different countries, different races have different culture
6、which affect each aspect of society. So in the area of business let us firstly give different culture definition their feathures as the following six. A. Task-centered vs People-centered People who are purely task-oriented are concerned entirely with achieving a business goal. They are not at all co
7、ncerned about the effect which their determination will have on the people with whom they come into contact. They will pursue their business objectives relentlessly; they will go to the limits of morality; as negotiators, they will be very tough , very fighting, very aware of tactical ploys and anxi
8、ous to make maximum use of them. American business culture is a very example of task-centered. People dont want to waste time with the social niceties; they want to get down to business. Another way of classifying this type of approach is to say that it is very specific. People who adopt this approa
9、ch tend to focus hard on specific issuesthis should mean that time is saved and objectives reached most effectively. However, there is always a danger that personal issues can be ignored. These personal issues may be the ones which make or break the deal!People-oriented managers, on the other hand,
10、are highly concerned about the well-being of those who work for them, or alongside them or above them. This can lead to an almost total neglect of the business goals. In this respect, they give time to some small talk before the meeting starts because they believe this will improve communication and
11、 lay the basis for possible future relationships. Another way of looking at this is to call it diffuse. A diffuse approach to business will place great importance on all the events which surround the actual discussion on the deal, for example, lunch together, social conversation on the way to the ai
12、rport, or a chance to meet your partners famil .There are intermediate points between total task-orientation and total people-orientation. It splits this central area into three parts.low-orientation both to task and to people But of course such low achievers would hardly be expected to reach the st
13、atus of negotiators. medium-orientation both to task and to people This center group is characterized by the continual search for compromise.high-orientation both to task and to people This style is characterized by tremendous openness, trust in forms of relationship, great forethought, sound creati
14、ve decisions.From the three parts, we recognize also three styles of negotiators we are likely to meet in practice: the fighter, the collaborator , the compromiser. How should these three distinctive styles of negotiation influence the way we conduct our negotiations?First, we must recognize that th
15、e different patterns of behavior are deeply ingrained in the people we are likely to meet. They will tend naturally to follow their set ways of doing things . They will not easily adapt to our approach .Therefore if we want to adopt an approach different from theirs. We must become the more skilled
16、negotiators, more skilled in doing it our way than they are in doing it their way. Second, we must take account of the other partys style in our preparations. The most difficult situation is when we want to negotiate to our advantage but we anticipate skilled fighters and fear being beaten. Then we
17、must prepare our defenses including bids and tactics. Having prepared in this way, we will have a high degree of readiness to put forward our bids, and subsequently to defend them and to use the tactics we have thought about. More positively, if we anticipate meeting skilled fighters but have confid
18、ence in our own skills, if we are not afraid of being beaten, then our preparation and conduct of the negotiation will not need to be based on preparing our defenses. Our preparations now can be restricted to obtaining a clear definition of purpose and aims, without yet going hard on our opening bid
19、s. B. Pioneer vs Bureaucrat The “pioneer” is the strong individual. He is prominent in his own organization. The sort of man is good at seizing an opportunity, spotting a market, making a profit. He tends to be very dominating, good at improvising, intuitive in his thinking, charismatic in his perso
20、nality.A negotiator of this type will be pushful, forceful, ready to take decisions and to come to agreements. He will be distinguishable particularly in the way in which he acts as a team leader: focal point of the team, the one who speaks for the team on all issues, the one who uses his team membe
21、rs to obtain information for himself which he then transmits to other party.Such a team leader, though usually bubbles with energy, is even able to handle only the content of a negotiation. He cannot at the same time have conscious concern for the procedures of the meeting. Bureaucracy is the patter
22、n most often found in large organizations. The style of working is systematized. There are books of rules, standardizations, planning, numerous, lots of checking, double-checking and cross-checking. The organization is governed with a clear hierarchy. It is compartmentalized and co-ordinated by the
23、system, the rules, the procedures and the objectives.Advantage within a bureaucratic organization comes to the people who are most competent at playing the game according to the rules . This means that their negotiators may be expected to have both objectives and styles of working which are bureaucr
24、atic negotiator to fit into the budgetary provisions than the total sum of money involved . For stylized bureaucrats, precise statements are to be agreed at each step . Elegance and conformity are maintained as they go along the negotiating process. In anticipation of meeting with bureaucratic negot
25、iators, the other party does well to select a team which has both the personality and experience to handle this manner of operating.The team will readily accept the system of approach we have advocated to negotiations; for example, they will follow the procedural discipline of agreeing purpose, plan
26、 and pace, their behavior will be impeccable. But the attitude of looking together for joint advantage does not come easily to the systems-minded. They see two sides to represented by the negotiating parties, not one group of parties working towards agreement. Bureaucratic organizations thus tend to
27、 have distinctive objectives and to negotiate in the pattern “to our advantage”.C. Relationship-focused vs Deal-focused Cultures Deal-focused people are fundamentally task-oriented while relationship-focused folks are more people-oriented.Conflicts arise when deal-focused export marketers try to do
28、business with prospects from relationship-focused markets. Many relationship-focused people find deal-focused types pushy, aggressive and offensively blunt. In return, deal-focused types often consider their relationship-focused counterparts dilatory Many relationship vague and inscrutable. The vast
29、 majority of the worlds markets are relationship-oriented; the Arab world and most of Africa, Latin America and the Asia/Pacific region where business people get things done through intricate networks of personal contacts. They prefer to deal with friends and persons or groups who are well known to
30、them and can be trusted. They are uncomfortable doing business with strangers, especially strangers who also happen to be foreigners. Likewise, relationship-oriented firms typically want to know their prospective business partners very well before talking business with them.In contrast, the deal-foc
31、used approach is common in only a small part of the world. Strongly deal-focused cultures are found in northern Europe, North America, Australia and New Zealand, where people are relatively open to doing business with strangers.Moderately deal-focused cultured could be found in Great Britain, South
32、Africa, Latin Europe, Central and Eastern Europe, Chile, southern Brazil, northern Mexico, and Singapore.This “Great Divide ” between the worlds cultures affects the way of business conducted from the beginning to the end of any commercial relationship. For starters, the way the first approach is ma
33、de to potential buyers or partners depends upon whether they are in deal-focused or relationship-focused cultures.In deal-focused cultures, people are relatively open to dealing with strangers. The marketer can make initial contact with the prospective buyer without any previous relationship or conn
34、ection. Having an introduction or referral is helpful but not essential. Lets take the united states as an example. Perhaps because they are raised in a highly mobile immigrant society, most Americans are open to discussing business possibilities with people they dont know. Each year Americans buy o
35、ver $300 billion dollars worth of goods and services from total strangers, and half of it is business-to-business selling.In relationship-focused cultures, firms do not do business with strangers. The proper way to approach someone who isnt yet known is to arrange for the right person or organizatio
36、n to make an introduction. A third party introduction bridges the relationship gap between one and the person or company one wants to talk to. The ideal introducer is a high-status person or organization known to both parties. Embassy officials tend to be accorded high status in relationship-oriente
37、d cultured, and of course it is part of their job to promote exports. Chambers of commerce and trade associations are other potential customer or partner, whether via a trade show, a trade mission or a third-party introduction. D. Formal vs Informal Business Cultures Formal cultures tend to be organ
38、ized with hierarchies which reflect major differences in status and power. In contrast, informal cultures value more egalitarian organizations with smaller differences in status and power. Many promising international deals have fallen through when a negotiator from an informal culture confronts cou
39、nterparts from more formal cultures because these contrasting values conflict at the conference table. Business people from formal, hierarchical cultures may be offended by the breezy familiarity of counterparts from informal, relatively egalitarian societies. On the other hand those from informal c
40、ulture may see their formal counterparts as stuffy, distant, pompous or arrogant. Informal cultures are supposed to value status equality, formal cultures value hierarchies and status differences. Ignorance of this distinction can cause serious problems across the bargaining table.Such misunderstand
41、ings can be avoided if both sides are aware that differing business behaviors are the result of differing cultural values rather than individual idiosyncracies Informal culture: Australia, USA, Canada, New Zealand, Denmark, Norway, Iceland. Formal culture: Most of Europe and Asia, the Mediterranean
42、Region and the Arab World, Latin America.E. Rigid time vs Fluid-time Cultures People look at time and scheduling differently in different parts of the world. In rigid-time societies, punctuality is critical, schedules are set in stone, agendas are fixed and business meetings are rarely interrupted.
43、In direct contrast are fluid-time culture. People has less emphasis on strict punctuality and are not obsessed with deadlines.Conflict arises because some rigid-time visitors regard their fluid-time partners as lazy, undisciplined while the latter often regard the former as arrogant martinets enslav
44、ed by arbitrary deadlines.Rigid-time business culture: Nordic and Germanic Europe, North America, Japan.Fluid-time culture: Australia/New Zealand, Russia and most of East-Central Europe, Southeast Asia.F. Expressive vs Reserved Cultures Expressive people communicate in radically different ways from
45、their more reserved counterparts. Expressive people tend to be uncomfortable with more than a second or two of silence during a conversation. In contrast , people from reserved cultures feel at ease with much longer silences. Japanese negotiators, for example, often sit without speaking for what see
46、ms like an eternity voluble Mexicans. After three or four seconds the latter feel compelled to say something, anything to fill the awful silence.Unfortunately the loquacity of expressive people tends to irritate the reticent Japanese, who seem to value the space between the spoken words just as much
47、 as the words themselves. Negotiators from reserved cultured do not feel the need to engage in constant blabbing the way many of their expressive counterparts do.Very expressive cultures: The Mediterranean Region, Latin Europe, Latin America. Reserved cultures: East and Southeast Asia, Nordic and Ge
48、rmanic.III. Influences of Different Bussiness Culture on Different Stages of NegotiationA. Pre-negotiationIt is from this stage on that both sides begin to understand one anothers needs and evaluate the benefits of entering into the process of negotiation. Both sides now gather as much information a
49、s possible on each other, like the operating environment, involvement of other parties, influencers, competitors and the infrastructure. The main issue here is to define the problem to be jointly solved, for it will both reflect each others expectations and is necessary to get commitment from each other, which will then help to achieve a problem-solving situation. To be environmental factors incl