Creative Solutions to Global Business Negotiations

267 Pages·2020·2.936 MB·English

by  Claude Cellich

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Creative Solutions to Global Business Negotiations E
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Third Edition IC
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Claude Cellich
Based on decades of teaching and consultancies around the world, the author provides
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a useful guide for business executives operating in today’s digitalized global economy. R
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This latest edition will help readers enhance their preparation, anticipate objections, A
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create value for tangibles/intangibles, and avoid cultural blunders to reach mutually I
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beneficial outcomes.
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By sharpening negotiation skills, business executives will be able to interact more O CREATIVE SOLUTIONS TO
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effectively with their counterparts in the fast changing global business environment U
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and the rising influence of third parties. Practical and user friendly, the author IO G L O B A L
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describes all the key elements needed to negotiate deals that are doable, profitable, S

and sustainable. T
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Claude Cellich is currently vice president for external relations L
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at the International University in Geneva. Over the years, he
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BUSINESS NEGOTIATIONS
has lectured at the Institut International d’Administratiom L

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Publique, Ecole,Nationale d’Administration (ENA), Paris School U
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of Management, the University of Economics in Prague and IN
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Anahuac University in Mexico and carried out consultancies to S
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trade promotion organizations. N
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Prior to joining academia, he held diplomatic positions in Geneva and India with G
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extensive field experience in Africa, the Middle East and Asia with the International
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Trade Centre, the joint agency of the World Trade Organization and the United A
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Nations. He has coauthored textbooks on business negotiations, global trade, and IO
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trade promotion strategies. He holds graduate degrees in economics and business
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administration from the University of Detroit, recipient of honorary degrees and the T
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75th Medal of Excellence from the Helsinki School of Economics. I
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International Business Collection
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S. Tamer Cavusgil, Michael Czinkota, and Gary Knight, Editors N
C L A U D E C E L L I C H
Creative Solutions to Global
Business Negotiations

Creative Solutions to Global
Business Negotiations
Third Edition
Claude Cellich
Creative Solutions to Global Business Negotiations, Third Edition
Copyright © Business Expert Press, LLC, 2021.
All rights reserved. No part of this publication may be reproduced, stored
in a retrieval system, or transmitted in any form or by any means—
electronic, mechanical, photocopy, recording, or any other except for
brief quotations, not to exceed 250 words, without the prior permission
of the publisher.
First published in 2021 by
Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com
ISBN-13: 978-1-95253-878-0 (paperback)
ISBN-13: 978-1-95253-879-7 (e-book)
Business Expert Press International Business Collection
Collection ISSN: 1948-2752 (print)
Collection ISSN: 1948-2760 (electronic)
Cover and interior design by S4Carlisle Publishing Services Private Ltd.,
Chennai, India
First edition: 2011
Second edition: 2016
Third edition: 2021
10 9 8 7 6 5 4 3 2 1
Printed in the United States of America.
Description
Making deals globally in the digital revolution is disrupting business op-
erations. To successfully conduct deals abroad, executives need skills to
negotiate with counterparts who have different backgrounds and experi-
ences. This third edition provides executives with the savvy they need to
negotiate winning solutions, no matter where they are. It offers valuable
insights into the fine points of negotiating and guidelines on delicate is-
sues that can influence a promising deal.
This book is an indispensable tool that provides know-how and expert
strategies for striking favorable deals. The book emphasizes the impor-
tance of preparation and offers basic rules and checklists for staying on
top in negotiations.
The frameworks introduced in this latest edition are relevant in con-
ducting business negotiations anywhere in the world, in any type of busi-
ness. Executives will be prepared for the real-life situations they face in
international deal making. Pinpointing the importance of developing
a global mindset, this book examines how to handle cultural diversity,
adjust to different negotiating styles, deal with unfamiliar settings, and
emerge a winner in negotiations.
The book is divided into five parts. Part 1 deals with the global business
negotiations framework. Part 2 focuses on the role of culture in negotia-
tions and on choosing an appropriate negotiation style. The negotiation
process is examined in Part 3, which comprises pre-negotiation planning,
making the first offer, exchanging concessions, price negotiations, closing
the deal, and undertaking renegotiations. Part 4 is devoted to negotiation
tools such as communication skills, role of power in negotiations, per-
suasion, managing negotiating teams, and developing an organizational
capability. Part 5 covers new issues such as negotiating intangibles, nego-
tiating on the Internet, strategies for small enterprises negotiating with
large firms, and negotiating in chaotic environments.
Drawing on his own experiences, the author explains how to over-
come problems such as the instability of the international marketplace
and differences in culture, economy, ideology, law, politics, and curren-
cies that may arise when negotiating with businesses abroad. Clearly and
vi DESCRIPTION
comprehensively, the author outlines the hallmarks of strengthening and
maintaining a strong bargaining position for negotiating deals even under
adverse conditions.
Keywords
culture and negotiations; global negotiations; negotiation styles; nego-
tiating process; negotiation on the Internet; renegotiations; intangibles;
persuasion; communications; managing negotiating teams; negotiation
capability
Contents
Preface ..................................................................................................ix
Foreword ...............................................................................................xi
Part 1 Introduction ...................................................................1
Chapter 1 Overview of Global Business Negotiations ........................3
Part 2 Negotiation Environment and Setting ..........................21
Chapter 2 Role of Culture in Cross-Border Negotiations .................23
Chapter 3 Identifying Your Negotiating Style ..................................39
Part 3 Negotiation Process ......................................................49
Chapter 4 Pre-negotiation Planning .................................................51
Chapter 5 Making the First Offer ....................................................71
Chapter 6 Exchanging Concessions .................................................83
Chapter 7 Price Negotiations ...........................................................97
Chapter 8 Closing Business Negotiations .......................................109
Chapter 9 Undertaking Renegotiations ..........................................119
Part 4 Negotiation Tools .......................................................131
Chapter 10 Communication Skills for Effective Negotiations ..........133
Chapter 11 Demystifying the Secrets of Power Negotiations ............147
Chapter 12 Persuasion: A Negotiator’s Core Skill .............................157
Chapter 13 Managing Negotiating Teams ........................................169
Chapter 14 Developing an Organizational Negotiating Capability ......179
Part 5 New Issues..................................................................189
Chapter 15 Negotiating Intangibles .................................................191
Chapter 16 Negotiating on the Internet ...........................................199
Chapter 17 Strategies for Small Enterprises Negotiating
with Large Firms ...........................................................211
Chapter 18 Negotiating in Chaotic Environments ..........................221
Annex ................................................................................................229
Notes..................................................................................................231
Bibliography .......................................................................................237
About the Author ................................................................................243
Index .................................................................................................245

Preface
This third edition has been revised to reflect the changes taking place in
the global economy. Today digital technologies are disrupting business
models as well as traditional boundaries of competition. When negotia-
tors are from diverse cultures, they often rely on quite different assump-
tions about social interactions, economic interests, and political realities.
Being culturally sensitive, mastering skills, and having access to big data
are necessary competencies for mastering negotiations in a global setting.
Negotiation is a lifelong activity. In business, you can do much bet-
ter by negotiating successfully. Those not skilled in negotiation will get
less than they deserve, perhaps significantly less. Surprisingly, it is often
easier to sharpen your negotiating skills by simply trying. To do this, you
must acquire proven negotiation strategies and tactics as well as the latest
techniques of dealing with the challenges and opportunities of today’s
complex global alliances and of quickly forming partnerships. At the same
time, you must know how to navigate across national, organizational, and
professional cultures at the negotiating table.
This new edition provides a clear framework to guide global nego-
tiators around diverse cultural boundaries to create value and to reach
lasting agreements in a digitalized, competitive, and challenging global
context. In other words, this book will help managers and professionals
acquire knowledge and develop skills indispensable in today’s global busi-
ness environment.
Creative Solutions helps you strengthen the skills that are keys to
success in negotiating business deals in disruptive and multicultural en-
vironments. The strength of your agreements and the development of
lasting relationships can be the difference between success and failure.
Poor agreements with overseas companies result in frequent and endless
disputes, affecting the profitability of the outcome. Mutually beneficial
agreements help you reach and exceed your objectives and give the other
party greater satisfaction at the same time.