International Business Negotiation

1. International Business Negotiation Negotiating Collaborative Alliances Chapter 2 and 13 • International Strategic Alliances and the importance of the Negotiation Process • Multilateral Negotiations and Networks • Negotiating M&A’s Cesar Petrus Hasibuan Elsa Mayasari Freda Sitorus

2. Chapter 2 Vis-a-vis: International Business Negotiations

3. Chapter 2 Vis-a-vis: International Business Negotiations • The Russian Kiss (Moscow) • Manners of greetings vary from country to country • Marlin Fishing in Brazil (Rio de Janeiro) • Forget about technical business talk at the first meeting with Brazillian • Glimpses in an Aisatsu (Tokyo) • Aisatsu: a meeting or formal greeting for high-level executives typical • in Japan • Bilingual – Can formulate responses during the translation process • The importance of Culture (New Jersey)

4. Chapter 2 Vis-a-vis: International Business Negotiations Primary purpose of this chapter To make people aware of the multiple ways cultural differencesin values and communication styles can cause serious misunderstandings between otherwise positively disposed business partners.

5. Chapter 2 Vis-a-vis: International Business Negotiations Negotiation Styles in Other Countries There are differences between behaviors typical in all countries  Interview, laboratory observations, etc

6. Chapter 2 Vis-a-vis: International Business Negotiations • A Hierarchy of Problems • Language • Nonverbal behaviors • Values • Thinking and decision-making processes • The problem is obvious for language. Cultural differences in nonverbal • behaviours are almost always hidden below our awareness. Differences in • values and thinking processes are hidden even deeper and therefore are • even harder to cure

7. Chapter 2 Vis-a-vis: International Business Negotiations A Hierarchy of Problems Problems at the Level of Language Again, bilingual is very helpful. Bargaining Behaviors: Attribute something to the content of the foreign talk. Promise, Threat, Recommendation, Warning, Reward, Punishment, Positive normative appeal, Negative normative appeal, Commitment, Self-disclosure, Question, Command.

8. Chapter 2 Vis-a-vis: International Business Negotiations A Hierarchy of Problems 2) Nonverbal Behaviors Bargaining Behaviors: Structural aspects (“No”, “You”), Facial gazing, Touching, Silent periods, Conversational Overlaps

9. Chapter 2 Vis-a-vis: International Business Negotiations A Hierarchy of Problems Summary Descriptions based Upon the Videotapes Japan – Consistent. Most polite. Korea – More punishments and commands. More interruption. No silent periods. China – Information exchange tactics. Similar to Japanese. Taiwan – Quite different from China and Japan, similar to Korea. Self disclosures. Russia – Quite different from any other European group. Similar to Japanese. ...and so on

10. Chapter 2 Vis-a-vis: International Business Negotiations A Hierarchy of Problems 3) Differences in values Objectivity Business is business. Separating the people from the problem. But in most places in the world, personalities and substance are not separate issues and can’t be made so. Competitiveness and Equity Economic outcomes. Competitive and cooperative aspects. Punctuality Time pressure

11. Chapter 2 Vis-a-vis: International Business Negotiations A Hierarchy of Problems 4) Thinking and Decision—Making Processes America: Half done when half of the issues are settled. A business negotiation is a problemsolving activity, the best deal for both parties being the solution. Japan: Nothing seems to get settled. Then, surprise, you’re done. Relationship is very important. A business negotiation is a time to develop a business relationship with the goal of long-term mutual benefit. The economic issues are the contect, not the content, of the talks.

12. Chapter 2 Vis-a-vis: International Business Negotiations A Hierarchy of Problems Implication for Managers It is not just business deals but highly profitable business relationships that are the goal here. The large number of skillful international negotiators Negotiators need information specific to the cultures in which they work.

13. Chapter 2 Vis-a-vis: International Business Negotiations Conclusion Experience levels are going up worldwide, and individual personalities are important. But culture still does, and always will, count.

14. Chapter 13 Negotiating Mergers & Acquisitions in the European Union

15. Chapter 13 Negotiating Mergers & Acquisitions in the European Union • Examples : • French vs Belgian • French needs an independent consultants to review the whole company • while the Belgium not. • b. UK and Netherlands vs Germans • Both UK and Netherlands make a listed of Germans company that qualified • for M& A • c. Anglo-American : acquirer's viewpoint, promoting quick competition and • restructuring, fighting protectionism inefficiency and labor impediments • d. German- Japanese : target’s viewpoint, promoting shared cooperation, • business relationship and labor participants, fighting aggressive raiders and • social carelesness

16. Chapter 13 Negotiating Mergers & Acquisitions in the European Union friendly takeover Global Mindset Culture factors : individual & collective behavior, pattern of communication, emphasize on personal relations Pre-negotiation Negotiation Post-negotiation Strategic factors : Presentations, strategy, decision making, need for agent Accounting and financial audit, Commercial audit, Legal audit and Social audit

17. Chapter 13 Negotiating Mergers & Acquisitions in the European Union hostile takeover • The Risks : • risk before the takeover bid : approximate target evaluation • Risk during takeover : failure to realize acquisition • Risk after the takeover : facing the coalition of the defeated

18. International Business Negotiation Thank You Cesar Petrus Hasibuan Elsa Mayasari Freda Sitorus