International Business Negotiation Essay: Role Of Culture

Question

Task:
Making deals globally is a fact of life in modern business. To successfully conduct deals abroad, leaders need skills to negotiate with counterparts who have different backgrounds and experiences. ‘Critically explore the role of culture in a negotiation process and select an appropriate negotiation model / theory and discuss how it would be implemented to establish a win-win outcome.’

The task:Answer the assignment question through Level 7 academic discussion by addressing the aspects of the Learning Outcomes. You need to demonstrate achievement of the assessment criteria. You must ensure that your work contains reference to appropriate literature and produces evidence of critical thinking (inline with MBA Level 7 study/academic referencing).

Answer

Introduction
According to the research on international business negotiation essay, with the rapid growth in globalization, contemporary business world consists of variety of cultures and people that influence the international organizations and their business deals (Peleckis, 2016, p.882). In order to achieve global development, these companies have to undertake various business negotiations where representatives from different organizations participate in the deals. This makes it important to understand the role that culture plays in these negotiations due to different backgrounds of the negotiators. The research study developed in the international business negotiation essay aims in analysing the growing importance of negotiation skills in this competitive business world and the impact of different cultures on such business deals between multinational companies.

Negotiation As A Multi-Disciplinary Practice
Importance of Negotiation
A business negotiation in a multi-disciplinary international context refers to the intentional interaction taking place between two or more business entities representing different nations for reflecting their interdependence in a business matter (Maude, 2014, p.25). It is stated in the international business negotiation essay that negotiation is essential in international businesses for it helps in the daily interactions and formal transactions for purposes such as conditions of sales, service delivery, customer requirements, lease, legal contracts and others. Negotiation skills help in contributing to the success and development of the organizations. They enable strengthening of relationships between the two business entities, which fosters goodwill of both the parties despite their differences in opinions or interests (Wang, Wang and Ma, 2016, p.167). Furthermore, the study provided in the international business negotiation essay also mentions that it enables the companies in delivering quality solutions, which in turn, satisfies both the parties involved in the business deal. Besides, it reduces any potential or existing barriers of communication through long-lasting relationships and helps in avoiding any future conflicts or problems (Wang, Wang and Ma, 2016, p.168). This makes both the parties in the business deal overly satisfied. In addition, negotiation skills have become increasingly essential in this rapidly growing competitive global business environment to gain competitive advantage in the market.

Role of Culture
It is essential to possess a clear understanding about the cultural differences of the negotiators influencing their priorities, interests and strategies in an intercultural business negotiation (Brett, 2017, p.2). Understanding the cultural norms or features would help in analysing how they affect the negotiating decisions of the parties involved in the business deal as they are bound to affect the personality, behaviour, communication and others aspects of the individuals.

It has been explored in previous literature provided within the international business negotiation essay that culture plays a significant role in affecting the negotiating tendencies in an international business deal (Imaiand Gelfand, 2010, p.84). These negotiating styles are widely shaped by the different cultural factors of the two entities involved. The differences occur in a variety of aspect that in turn provides the negotiation styles. Culture extensively influences the communication and conceptualization process, objectives of the negotiators, methods of using their skills and their perceptions about the behaviour of the other entity. Furthermore, it also influences their decision-making processes, strategies undertaken and other tactics because of their values, beliefs and principles existing in the culture (Danciu, 2010, p.96). These factors noted in the international business negotiation essayaffect their ways of interpretation, analytical skills, and judgement, presentation and communication patterns in the negotiation table. Besides, culture also has prolonged impact on the enactment, course, naming and comprehension in resolving conflicts during negotiation. The response to a conflict of a person might be different from that of the other negotiator of the business deal because of their different cultural backgrounds.

This makes it important for the negotiators in the business deal to develop cultural intelligence that would help them in successfully adapting to the cultural differences of the other parties (Lam and Liaw, 2017, p.24). Cultural intelligence would enhance the ability of the negotiators to function and work effectively in a culturally diverse environment by developing empathy, respect and trust towards the other cultures.

Analysis of Negotiation Skills
Required Skills
Negotiation is often viewed as a combined decision-making process involving two or more parties, which requires high performing and skilful negotiators. It has been observed in the international business negotiation essaythat without essential skills, negotiators often do not possess rationality, which results in impulsive and biased decisions (ElShenawy, 2010, p.195). Thus, it is clear in this context of international business negotiation essay that the most essential skills required in an efficient negotiator are the ability to reduce irrationality, prevent any biases in the decision-making process and avoid doing any judgemental mistakes. Other skills include achieving desired goals, being adaptable to situations, ability to change, understand customers and the other party’s needs. Furthermore, throughout the negotiation process, the negotiators must possess five traits or skills, namely, judgement or concession, motivation, attributions, communication and confrontation (Khakhar and Rammal, 2013, p.579). Judgment or concession making determines the ability of the negotiator to convince through rationality or emotionality, motivation indicates the aim of achieving economic or social capital and attributions refer to their traits like dispositional and situational attribution. Besides, communication indicates using direct or indirection sharing or information and confrontation is the ability to use direct voice without avoidance or indirectness. In addition, they must possess the skills of addressing cultural differences and resolving conflicts during the negotiation process (Lam and Liaw, 2017, p.24). This indicates that the negotiator must have cultural intelligence. Moreover, self-efficacy is required for applying all the skills in the negotiation process. This indicates that the negotiator must be confident enough to perform tasks in the process.

Negotiation Model- Integrative Approach
As presented in this international business negotiation essay, an integrative approach towards negotiation focuses mainly on a win-win situation where both the parties involved in the deal would win and the gain of one is not at the cost or expense of another (Petrescu, Gavriletea and Petrescu-Mag, 2011, p.15). These negotiators focus extensively on meeting their needs, understand the needs of the other parties to satisfy them and consequently, put extra efforts for the best solutions for them. This is because of the perception that fulfilling both parties’ needs would add more value to the business deal.

With regards to the case scenario of international business negotiation essay, integrative negotiation consists of four different elements, namely, sorting out, abstracting, complementing and predicting (Sarbo, 2014, p.3). At first, the interests and needs of both the parties involved in the business deal or negotiation process are identified and sorted out. These needs are then analysed to understand the reasons for wanting such needs and consequently, transformed into demands with the help of abstraction (Sarbo, 2014, p.3). The next step involves looking at the perceptions of the other side’s about these needs or demands, the possible effects on them and what could be an obstacle in fulfilling the needs of the other parties (Sarbo, 2014, p.3). This involves seeking out complementary information that would help in arranging an agreement between the parties where both their interests and demands would be fulfilled without sacrificing the others’. This integrative negotiation defined in the international business negotiation essay is successfully carried out when both the parties commit to the agreement, which reflects a proposition of the solution (Sarbo, 2014, p.3).

An integrative agreement takes place in four different ways. The first way is referred to as common cost-cutting tactic that involves saving the image of another party when the concession is feared to be reducing the status, lead to rejection or diminish the sense of freedom in the negotiation process (Kirk, Oettingen and Gollwitzer, 2011, p.325). The second way involves compensating the concession costs for another party either in the same or different category. These include homologous and substitute compensations. Thus, it is evident in the international business negotiation essay that in these two ways of compensation and cost cutting, the fundamental intention is to develop an attractive agreement for both the parties so that they do not back out from the proposed positions of the negotiation. Furthermore, the other two ways of integrative agreement are bridging and rolling that involves both the parties to retreat from their respective positions for reaching a consensus agreement (Kirk, Oettingen and Gollwitzer, 2011, p.325). Bridging forms a new option that helps in meeting the primary needs and interests of both the involved parties. On the other hand, the success of logrolling depends mainly on the capability and eagerness of both the parities to mitigate the issues that they are facing with each other due to the negotiation deal. It ensures that the joint-benefits from the agreement are higher than their individual interests if they are willing to make trade-offs on their pertaining issues important for each side. Logrolling can be distinguished from bridging in the sense that the former deals with the already existing issues or interests of both the parties while the latter focuses on the use of any new element that have not previously been discussed on the negotiation table (Kirk, Oettingen and Gollwitzer, 2011, p.325). Nevertheless, both the ways emphasize on compromising some issues for arriving at the mutual concessions.

Integrative approach has also helped in conflict management that is essential for gaining a win-win situation. A conflict strategy is dependent on two basic concerns, namely, concern for own interests or outcomes and that for the others. Integrative approach provides high concern for both the parties involved in the conflict and aims at protecting both of their interests (Rognes and Schei, 2010, p.86). As stated in the international business negotiation essay, this is undertaken with the help of exchange of valuable information, understanding the concerns of other parties and enhancing cooperation for arriving at mutually beneficial solutions. Besides, competing, inaction or yielding can also be used in this approach for managing the conflicts.

The primary objective of an integrative approach mentioned in the international business negotiation essay is to arrive at the best possible solutions for all the parties involved in the negotiation process. Thus, it aims at solving problems that is acceptable to both the parties by addressing their mutual interest and undertaking effective strategies for creating joint benefits. The two fundamental requirements for achieving this objective are formulating a clear strategy for achieving the win-win situation and exchanging valuable information essential for both the parties (Lopez-Fresno, Savolainen and Miranda, 2018, p.16). This information exchange helps in building a level of trust and respect between the parties, thereby, creating a positive climate for arriving at mutually beneficial solutions. International negotiations take place across different cultures, which make it essential to establish the concept of trust and honesty between the negotiating parties.

Implementation
The integrative approach of negotiation to create a win-win situation can be implemented with the help of two strategies, namely, expanding the agenda and problem solving (McCracken, Salterioand Schmidt, 2011, p.135). The first strategy of expanding the agenda focuses on adding various new issues or concerns to the negotiation table for the purpose of arriving at such a resolution that can lead to benefits for both the parties involved in the process. Thus, in this strategy outlined herein international business negotiation essay,the negotiator emphasizes on the larger or crucial issues that the parties have by discarding the negligent ones for obtaining an effective solution for them (McCracken, Salterioand Schmidt, 2011, p.135). This helps in resolving the larger concerns of the parties that were putting an obstacle to the closure of the negotiation by addressing both of their issues or interests. Another strategy undertaken under this approach is the problem solving technique. This negotiation strategy emphasizes on identifying and analyzing the underlying issues, interests and needs of both the parties involved in the process so that they can be effectively met or satisfied (Das and Kumar, 2011, pp.1242). Thus, the readings used to prepare this international business negotiation essay focus on finding new solutions that would be helpful in meeting the needs of one party without sacrificing or compromising the interests of another party. The problem solving strategy mentioned in the international business negotiation essay is generally undertaken in firms which are flexible, long-term oriented and flexible in the global context. Furthermore, it helps in establishing mutual trust and respect between the two parties or strengthens their existing relationship by preventing any potential conflicts (Das and Kumar, 2011, pp.1242). Besides, the win-win situation with the help of problem-solving strategy can be implemented without hampering the mutual relationship by dealing with any negative issues in a calm and unemotional manner.

What is Self-Awareness in Negotiationdiscussed within the international business negotiation essay?
When an individual has conscious knowledge about his or her own character it is known as self-awareness. In a corporate environment, the concept of negotiation is often heard. Thus, professionals who are responsible for negotiating with other entities or individuals should build prominent self-awareness skills. The negotiator should know the strength and weakness of his/her personality and should analyse his/her position. For example, business colleges can teach students negotiation skills required in the marketing department of an organization with the technique of self-awareness (Lee, 2016, p. 22). There are several styles of negotiation which include collaborative, accommodating, competitive negotiation and many more. Self-awareness can help a negotiator understand his/her own strengths and they can further develop their style of negotiation aligning with their strength. Managing uncertainty during the process of negotiation is considered as one of the effective art or strategy of conducting negotiation. Ambiguity and change are considered to be some features of negotiation (Wheeler, M, Wheeler, M.A., 2013, p. 13). A negotiator, who has developed self-awareness skills, also has the ability to protect him/her. Thus, self-protection can help a negotiator to develop effective negotiation strategy so that ambiguity and any sudden changes can be avoided by the negotiator.

Negotiation in Globalized Environment
If internal business is taken in to consideration it can be seen that negotiation has become complex. This is due to the rapid growth of the concept of globalization and rapid change in technology. There are several aspects which have to be taken in to consideration for negotiating in the globalized environment. The aspects include social, ethical, legal, cultural and many more. Establishing contact socially, communicating, understanding and persuading are considered to be few important aspects of negotiation in the globalized environment (Rojot, 2016, p. 197). Negotiation among six geographic regions which include Europe, Asia, North America, South America, Africa and countries in the UAE region is done by following several aspects. Negotiators should focus on punctuality and the rhythms of negotiations are very important. Negotiator should focus on maintaining a professional manner while the process of negotiation is going on. From the above discussion on international business negotiation essay it is clear that considering cultural background is of utmost importance. Negotiator should focus on respecting each and every culture while performing negotiation (Langovi?-Mili?evi?, Cvetkovski, Langovi?, 2011, p. 135). For example, When McDonald which is an America based organization started its operation in countries like India and Thailand, the organization focused on following the culture of these countries to increase the reach of customers. The negotiator should focus on researching the language, culture and ethics of the other party before starting the process of negotiation. If the negotiator is successful in addressing the culture of the other party, then it can make the process of negotiation smooth. If the negotiator focuses on negotiating with an entity of another country, then it is the responsibility of the negotiator to understand the legal aspects of that country. Researches on legal aspects are done by all the negotiators whose main objective is to finalize the negotiation.

Conclusion
It can be concluded from the international business negotiation essay that International business negotiation is becoming increasingly important for all the companies engaging in global business operations with different culturres to sustain in the competitive business environment for long run. The research study done on the international business negotiation essay reflects how culture affects the international negotiations or business deals and points out the required skills that must be present in these negotiators. It has also represented the fact that how undertaking a suitable integrative model to negotiation can lead to a win-win situation for both parties.?

Reference List
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