•Negotiating with international customers, partners, and regulator NEGOTIATIONS ARE FORMAL DISCUSSIONS B/W PEOPLE WHO HAVE DIFFERENT AIMS OR INTENTIONS , ESPECIALLLY IN BUSINESS ,DURING WHICH THEY TRY TO REACH AN AGREEMENT. Negotiating with international customers , partners and regulators often requires a lot of meticulous preparations and skill. Successful negotiation demands threadbare analysis and evaluation of the commercial and their impressive presentation and proper understanding and appreciation of the cultural nuances of the negotiating party and skilfully navigating the negotiation process accordingly.
In order to successfully negotiate with international customers one needs impressive presentation skills, proper understanding of cultural nuances of the party with whom one plans to negotiate. Negotiations in the international scenario are governed by 4Cs they are common interests, conflicting interests, compromise and criteria. Government authorities can be viewed in two different view-points namely hierarchial view and bargaining view.
Negotiation is a process in which at least one individual tries to persuade another individual to change his or her ideas or behavior. Business negotiations often involve one party attempting to influence another to make a particular decision of sign a contract. Thus negotiating is a process in which at-least parties with different view points and needs try to reach an agreement on matters of mutual interest. There are 4Cs of negotiation:
1. Common interests
2. Conflicting interests
4. Criteria for agreement to hold
The outcome of any negotiated agreement depends on the relative bargaining power of both parties.
Negotiating effectively across cultures is one of the most important global business skills. Global negotiations contain all the complexity of domestic negotiations, with the added dimension of cultural diversity. Top managers spend more than 50% of their time in formal or informal negotiations. Two tables below highlight the differences in negotiating styles across cultures.
When to negotiate?
According to experts, negotiating is not always the best approach to do business. Sometimes the best strategy is “take it or leave it”, other times its bargaining. Negotiating demands more time and resources. Therefore managers must negotiate only when the value of the exchange is important. Negotiating is often seen as strategy to create a win-win solutions in business. Consider the following conditions while negotiating:
1. Your power position w.r.t that of the counterpart
2. The level of trust
3. Sufficient time available
4. True commitment to carryout the agreement.
5. The value of exchange
6. Importance to relationship
The success of negotiations depends on:
1. Individual characteristics
2. Situational contingencies
3. Strategic & tactical processes.
Stages of negotiation:
2. Relationship building
3. information exchange
Prerequisites for effective negotiation”
1. Selection of appropriate negotiation team.
2. Management of preliminaries,including training,preparations,and manipulation of negotiation setting.
3. Management of the process of
negotiations , that is , what happens at the negotiation table.
4. Appropriate follow-up procedures and practices.
Cultural problems in international negotiations:
1. Language and non-verbal behaviors
3. Thinking and decision making processes.
Negotiating with regulators: in many instances government is a party in international business negotiations. there are two view points of the governmental authorith: 1. Hierarchical view
2. Bargaining view
Deteminants of bargaining power:
1. Relative importance of the project.
. negotiation with international customers,partners and regulators requires impressive presentation and proper understanding and appreciation of the cultural nuances of the negotiating party. . common interests, conflicting interests,compromise and criteria are the 4 Cs of the negotiation. . there are two views of government authority: hierarchical and bargaining view