The Art of Negotiations (by K Zybina) (for NBS MC42 module, February 2014)
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Transcript of The Art of Negotiations (by K Zybina) (for NBS MC42 module, February 2014)
NBS MC42MANAGING ACROSS THE GLOBE
The Art of Negotiations:Be a Fox
By Kristina Zybina
HE WHO HAS KNOWN BEST
HOW TO EMPLOY THE
FOX HAS SUCCEEDED
BEST
(Machiavelli 1532)
NEGOTIATING IS A WAY OF LIFE FOR A MANAGER…
YOU HAVE TO BE NEUTRAL ALL THE TIME
• RESOLVE CONFLICTS• FIND COMMON INTERESTS
• REACH AGREEMENTS
…AND SOMETIMES NOT ONLY WITHIN A COMPANY
WE CREATE VALUE BY CREATING A WIN-WIN
SITUATION
MAKING SOMEONE LOSE IN A NEGOTIATION WILL NOT CREATE
ANY VALUE AT ALL
MYTHS ABOUT NEGOTIATIONS Negotiations are fixed-sum You need to be either soft or tough Good negotiators are born Life experience is a good teacher Good negotiators take risks Good negotiators rely on intuition
(Adapted from Thompson 2012)
STRATEGIES THAT….DO NOT REALLY
WORKARE EFFECTIVE
Commitment to reaching a win-win deal
Focusing on a long-term relationship
Adopting a cooperative orientation
Taking extra time to negotiate
Perspective-talking Asking questions about
interests and priorities Providing information
about your interests and priorities
Unbundling issues Making ‘package-deals’
(Adapted from Thompson 2012)
PREPARATIONS ARE THE KEY TO ANY
NEGOTIATION!!
….DO YOUR HOMEWORK(AKA RESEARCH)
INTERNATIONAL NEGOTIATIONS ARE AN ENTIRELY DIFFERENT
BEAST!!
MULTICULTURAL NEGOTIATIONS TAKE MORE TIME AND EFFORT, BUT IT IS WORTH IT
…it took 14 years of negotiations for the 1st McDonalds in Russia to be opened
RESULTS? More than 30 000 people served on first day
....compared to previous record of 9 100 people Big Mac cost 3,75 roubles
….which equals roughly price of 1 month bus pass(Adapted from Business Today 2014)
BARRIERS TO GLOBAL DEAL:
The Negotiating Environment Culture Ideology Foreign Organizations and
Bureaucracies Foreign Governments and Laws Moving Money Instability and Sudden Change
(Adapted from Salacuse 2003)
Culture
PREPARATIONS ARE THE KEY TO ANY
NEGOTIATION!!DO YOUR HOMEWORK
(AKA RESEARCH)
….BUT NO AMOUNT OF RESEARCH WILL HELP IF
YOU DON’T UNDERSTAND THE OTHER CULTURE
WHY DO WE STUDY CULTURE?
…needs, values, interests may differ dramatically.
Culture directs opinion and judgment!
It also affects our strategy of negotiation.
CULTURE KNOWLEDGE =
TRUST AND RESPECT
SOME DIMENSIONS OF CULTURAL DIFFERENCE
Individualism Power distance Uncertainty avoidance Masculinity Temporal perspective
(Adapted from Fells 2010)
CASE STUDY:AMBIENTE 2014: THE SHOW
(adapted from Ambiente YouTube channel)
If you want to know what Ambiente is: https://www.youtube.com/watch?v=Fc7zZHpQLWw
NEGOTIATIONS WITH ROMANIAN PARTNERS
BE A FOX! Feeling like a victim
of stereotypes? Use the stereotypes
as your weapon!
…no one expected a student to show deep understanding of economics and knowledge of culture.
…A NICE SURPRISE, ISN’T IT?
(Adapted from Petre 2012)
SOME DIMENSIONS OF CULTURAL DIFFERENCE
ROMANIAN CULTURE
relationship driven culture
…at the same time very private
maintain a relatively formal approach in communication
do not ask personal questions unless a Romanian starts
be straightforward, but deliver information in a sensitive way
ROMANIAN CULTURE (CONT.)
avoid confrontational behaviour or high-pressure sales tactics
decisions are only made by the most senior member
remain flexible
…NOTHING IS CONCRETE WHEN DOING BUSINESS WITH
ROMANIANS
…LAST TIPS React quickly Create an impression of progress Make an impression Verify deadlines Take notes Make sure you can express yourself
clearly Don’t take things personally
THANK YOU FOR YOUR ATTENTION
REFERENCES Ambiente (2014). Ambiente: The Show. [Online]
Available at: https://www.youtube.com/watch?v=Fc7zZHpQLWw Accessed on: 23 Feb 2014
Business Today (2014) McDonald’s in Russia – Defeated Communism with a “Happy” Meal. [Online] Available at:
http://www.businesstoday-eg.com/case-studies/case-studies/mcdonalds-in-russia-defeated-communism-with-a-happy-meal.html
Accessed on: 23 Feb 2014
Docstock.com (2011). The Culture Iceberg. [Online] Available at: http://www.docstoc.com/docs/85990913/The-Cultural-Iceberg Accessed on: 23 Feb 2014
Fells R.E. (2010) Effective negotiation: from research to results. Cambridge ; New York, NY : Cambridge University Press.
Frankfurt Messe (2014). Ambiente. [Online] Available at: http://www.ambiente.messefrankfurt.com Accessed on: 23 Feb 2014
Gelfand M. J. and Brett J. M. (2004) The handbook of negotiation and culture. Stanford, Calif: Stanford Business Books.
Kwitessential Ltd (2013) Doing Business in Romania. [Online] Available at:
http://www.kwintessential.co.uk/etiquette/doing-business-romania.html Accessed on: 23 Feb 2014
Lewicki R.J. et al. (2003) Negotiation: readings, exercises, and cases. London : McGraw-Hill/Irwin.
REFERENCES
Machivelli N. (1532) Il Principe (The Prince). Oxford: Oxford University Press (2005)
Petre L. and Constantinescu-Stefănel R. (2012) Business negotiations between the Romanians and the Japanese - a cross-cultural perspective. SYNERGY, 8 - 2/2012.
Salacuse J.S. (2003) The global negotiator: making, managing, and mending deals around the world in the twenty-first century / 1st ed.. New York, N.Y; Basingstoke: Palgrave Macmillan.
Thompson L.L. (2012) The mind and heart of the negotiator / 5th ed., International ed.. Boston, [Mass.]; London: Pearson.
REFERENCES