Creative Solutions to Global Business Negotiations, Second Edition

277 Pages·2016·3.059 MB·English

by  Cellich, Claude

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Making deals globally is a fact of life in modern business. To suc-
Curriculum-oriented, born- cessfully conduct deals abroad, executives like you need skills to
digital books for advanced negotiate with counterparts who have different backgrounds and Creative
experiences.
business students, written
This book gives you and other international executives the
by academic thought
savvy you need to negotiate with fi nesse and ease. It offers valu-
leaders who translate real-
able insights into the fi ne points of negotiating and guidelines on Solutions
world business experience delicate issues that can infl uence a promising deal. The book is di-
into course readings and vided into fi ve parts: Global business negotiations framework; the
reference materials for role of culture in negotiations and on choosing an appropriate ne-
students expecting to tackle gotiation style; the negotiation process; negotiation tools, such as to Global
communication skills and the role of power in negotiations; and
management and leadership C
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and printing ternational University in Geneva, Switzerland, and visiting pro- S
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one-time fee Economics in Prague and a professor of cross-cultural business G
negotiations. Prior to joining academia, he held diplomatic po- L
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sitions with the International Trade Centre (ITC), a joint agency B
maintenance fees A
of the United Nations and the World Trade Organization (WTO),
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• No license to execute projects. He holds graduate degrees in economics and business U Claude Cellich
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comprehensive, cost-eff ective eSncht ooof lt hoef E7c5othn oAmnnicisv.ersary Medal of Excellence from the Helsinki ESS Subhash C. Jain
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UNCTAD) in Geneva, and served as a visiting faculty at the Gradu- S
ate School of Business Administration Zurich in their executive
For further information, a MBA program and the International University in Geneva.
free trial, or to order, contact:
International Business Collection
[email protected]
www.businessexpertpress.com/librarians S. Tamer Cavusgil • Michael R. Czinkota • Gary Knight
Editors
Creative Solutions to Global
Business Negotiations

Creative Solutions to Global
Business Negotiations
Second Edition
Claude Cellich
Subhash C. Jain
Creative Solutions to Global Business Negotiations, Second Edition
Copyright © Business Expert Press, LLC, 2016.
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 2016 by
Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com
ISBN-13: 978-1-63157-309-5 (paperback)
ISBN-13: 978-1-63157-310-1 (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: 2016
10 9 8 7 6 5 4 3 2 1
Printed in the United States of America.
Abstract
Making deals globally is a fact of life in modern business. To successfully
conduct deals abroad, executives need skills to negotiate with counter-
parts who have different backgrounds and experiences. Creative Solutions
to Global Business Negotiations provides international executives with the
savvy they need to negotiate with finesse and ease, no matter where they
are. It offers valuable insights into the fine points of negotiating, and
guidelines on delicate issues 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 Creative Solutions to Global Business
Negotiations are relevant in conducting business negotiations anywhere
in the world in any type of business. 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 crucial cross-cultural differences in negotiating styles; deal with
unfamiliar aspects of punctuality, manners, and gift giving; and emerge
victorious as a successful international negotiator.
The book is divided into five parts. Part 1 deals with the global busi-
ness negotiations framework. Part 2 focuses on the role of culture in
negotiations and on choosing an appropriate negotiation style. The nego-
tiation process is examined in Part 3 comprising prenegotiation planning,
making the first move, concession trading, price negotiating, closing the
deal, and understanding renegotiations. Part 4 is devoted to negotiation
tools, such as communication skills, role of power in negotiations, man-
aging negotiating teams and developing organizational capability. Part 5
covers miscellaneous topics such as negotiating intangibles, negotiating
on the internet, gender issues in global negotiations, how small firms can
effectively negotiate with large firms and negotiating via interpreters.
Drawing on their own experiences, the authors explain how to over-
come problems such as the instability of the international marketplace
and differences in culture, economy, ideology, law, politics, and currencies
vi ABSTRACT
that may arise when negotiating with businesses abroad. Clear and com-
prehensive, the authors outline the hallmarks of strengthening and main-
taining a strong bargaining position for negotiating deals even under
adverse conditions.
Keywords
Culture and negotiations, global negotiations, negotiation styles, negotia-
tion process, negotiation on the Internet, renegotiations
Contents
Preface ............................................................................................................ix
Part 1 Introduction ...................................................................1
Chapter 1 Overview of Global Business Negotiations ........................3
Part 2 Negotiation Environment and Setting ..........................23
Chapter 2 Role of Culture in Cross-Border Negotiations .................25
Chapter 3 Selecting Your Negotiating Style ......................................45
Part 3 Negotiation Process ......................................................55
Chapter 4 Prenegotiations Planning .................................................57
Chapter 5 Initiating Global Business Negotiations: Making the
First Move .......................................................................77
Chapter 6 Trading Concessions .......................................................91
Chapter 7 Price Negotiations .........................................................103
Chapter 8 Closing Business Negotiations .............................................121
Chapter 9 Undertaking Renegotiations ..........................................131
Part 4 Negotiation Tools .......................................................145
Chapter 10 Communication Skills for Effective Negotiations ..........147
Chapter 11 Demystifying the Secrets of Power Negotiations ............163
Chapter 12 Managing Negotiating Teams ........................................171
Chapter 13 Developing an Organizational Negotiation Capability ..181
Part 5 Miscellaneous Topics ..................................................191
Chapter 14 Negotiating Intangibles .................................................193
Chapter 15 Negotiating on the Internet ...........................................203
Chapter 16 Overcoming the Gender Divide in Global Negotiation .215
Chapter 17 Strategies for Small Enterprises Negotiating with
Large Firms ...................................................................221
Chapter 18 Negotiating via Interpreters ...........................................229
Notes..................................................................................................241
References ...........................................................................................247
Index .................................................................................................257

Preface
Today’s globalization requires professionals to deal with their counter-
parts in countries with different economic, cultural, legal, and political
environments. You may need to resolve a dispute with a supplier, final-
ize a counterproposal for a state-owned enterprise, or lead a multicul-
tural team. Thus in a globalized market, few subjects are as critical as
negotiating across cultural boundaries. When negotiators are from di-
verse cultures, they often rely on quite different assumptions about so-
cial interactions, economic interests, and political realities. Consequently,
culturally sensitive negotiating skills are necessary for managing in an in-
ternational setting.
Creative Solutions to Global Business Negotiations has been prepared
for all those who negotiate globally: managers, lawyers, government of-
ficials, and diplomats. The book provides an insightful, readable, highly
organized tour de force of both the conceptual and practical essentials of
international business negotiation.
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 quickly forming partnerships. At the same
time, you must know how to navigate across national, organizational, and
professional cultures at the negotiating table.
The book provides a clear framework to guide global negotiators
around diverse cultural boundaries to close deals, to create value, to re-
solve disputes, and to reach lasting agreements in a constantly chang-
ing competitive context. In other words, this book will help managers
and professionals acquire knowledge and develop indispensable skills in
today’s global business environment.