Pemberton dilemma

CONTENTS

Introduction 1 Negotiation Defined Negotiating Across Cultures Chapter One: The Impact of Culture on Negotiating Behavior Case Scenario The Ten Dimensions of Culture Cultural Analysis of the Case Scenario Generalizations and Stereotypes in Negotiations 5

Chapter Two: The Seven Phases of International Negotiation 29 An Overview of the Seven Phases Showing a Commitment to NegotiatingInternationally Chapter Three: Negotiating Effectively Across Cultures 35 Phase 1: Strategic Planning and Analysis Phase 2: Network Approach and Entry Phase 3: Building Personal and Business Relationships Phase 4: Orientation and Presentation Phase 5: Bargaining and Persuading Others Phase 6: Reaching Agreement Phase 7: Follow-Up and Maintaining Relationships Conclusion Appendix A: CulturalOrientations Model™ Quick Reference Resources Index 77 75 73

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NEGOTIATING ACROSS CULTURES
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PREFACE

PREFACE
It is no secret that we are in an era of global business, one in which the world is moving toward a completely transnational market. The rapid growth ofincreasingly interconnected markets, processes and operations is affecting virtually every industry, company and worker today. Between the increase in strategic business alliances and the proliferation of global organizations, the share of the market run by companies that span two or more business cultures is growing constantly. These trends have changed the criteria for competitive advantage. Pastsuccesses in the old marketplace do not guarantee future success in the new. Speed, responsiveness, flexibility, effectiveness and an ever-increasing rate of innovation have become the cornerstones of success in today’s market. Organizations everywhere have been transforming themselves to adapt to these new requirements. Most organizations now understand that competitive advantage no longer rests onformal structures but on a dynamic organizational culture that effectively encompasses the mindsets, competencies and practices of the individuals who create, support and sustain the organization––individuals who often do not share the same cultural background. This new type of organization also calls for a different type of manager––one who can create a dynamic, flexible environment and drawupon his employees’ varied mindsets and skills. Given the varied cultural backgrounds of the employees in global organizations and strategic business alliances, culture has become one of the key areas of managerial competence and one of the most challenging aspects of working in the global marketplace. It was once assumed that business and commerce were culturally neutral zones in which businessprofessionals from various nations came together to participate in transactions according to universally recognized norms. But, this is simply not true. The ways in which we manage and conduct business are extensions of our social and cultural environments. Thus, how we conduct business is deeply influenced by the cultural values and associated behavior patterns that operate in that environment.Working in the multicultural environment of the global marketplace, today’s managers are confronted with this every day. The individuals with whom they conduct business and whom they manage often represent a collection of different cultures with different, sometimes conflicting, practices. The main challenge for today’s global manager is to combine a repertoire of managerial and leadership skills witha thorough understanding of and sensitivity to culture. The “hard skills”

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of business tasks and the “soft skills” of the ways we interact and communicate have thus become intertwined and can no longer be easily distinguished. Today’s manager must be able to successfully integrate cultural knowledge into her...