Negotiation Tactics Case Study

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Negotiation Tactics Negotiation tactics are an important aspect to consider when doing business in a cross-cultural environment. Negotiation or special communication that takes place shows how to reach the agreement and how to handle both common to conflicting interests between two or more parties (Denk-Helmond et al., 1996, pp. 42-60). Competition within a global setting, it is essential to recognize some of the typical negotiating tactics when working with people from different cultures. A negotiating process is a dynamic process which two parties, each with its objectives, seek a mutually acceptable agreement on a matter of common interest (Gorg, Hanley, Hoffmann, & Seric, 2017 pp. 187-194). Countries from Asia, North America, and Europe …show more content…

125). These differences include relationship development, negotiating strategies, and contracting practices. In the U.S., negotiating is a problem-solving technique through give and take based on respective strengths. They are not aware that the opposite side may have only one position on an issue. American negotiators are more direct than Asian negotiators, and sometimes even bring final contracts to first meetings with prospective clients. American negotiators will not hesitate to say no and even walk out of a meeting in the middle part of negotiations. Asians, like taking their time during the negotiation. Compared to Americans, which would rather not discuss personal matters during business negotiations because they view them as monochromic, sequential, and absolute and prompt (Johnson et al., 2006). Time is money which should be spent being efficient, that is why Americans make up their minds so quickly and decisively. Moreover, they tend to dislike periods of silence during …show more content…

The critical concept to success within the global supply chain is by respecting and understanding the different cultures, and not forcing American or personal beliefs upon foreign countries. For example, take cross-cultural negotiations are very complicated. When dealing with cultural factors, environments, languages, ideologies, and customs even the best negotiator miss something (Mintu-Wimsatt & Gassenheimer, 2002). The German perspective has no limit to perfection and improvements. For this reason, always remember when working with Germans, that they will make critical and constructive comments. The Germans believe that the remarks are necessary for improving or optimizing products, processes, and conditions. When it comes to pricing, culture can affect the negotiation by, for example, not knowing what price is acceptable. If the country has high bargaining margins, this can be a difficult task (Gulbro et al., 1996, pp. 27). In South America, price dumping, for example, is fair, while in Europe and Chile it is not (Mintu-Wimsatt et al., 2002). In Chile, it is a bad idea to set the price too high in the beginning, because people are not so used to bargaining as they are in Brazil. The business also needs to understand the local supplier’s needs and wants so that the risk with purchasing becomes minimal and the price is the best price possible. To be able to do this, the company must understand the culture and background of the foreign

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