Acknowledgment, 152
Active listening, 152–153
Ad hoc negotiation approach, 184–185
Agenda, setting, 167
Agreement
bottom-up, 42
form of, 42
nature of, culture and, 29–30
top-down, 42
Alternative method, for closing business negotiations, 121
Amway, 9
Artifacts, 160
Asking questions, in international business negotiations, 153–156
Assertiveness, 37–38
Assumption, and closing business negotiations, 122
AT&T, 8
Attitude, negotiating, 41
Authority, 85
Avon, 9
Bank of America
country Risk Monitor, 7
Bargaining zone, 67–68
BATNA (best alternative to a negotiated agreement) approach, 19–20, 66–68, 76, 88, 100, 185
BERI S.A.
Business Risk Service, 7
Body language, 157–158
Bottom line, knowing, 169–170
Bureaucracy, 7–8
Business, as power, 164
Buyer point of view, 88–89
CIF (cost, insurance, and freight) price quotation, 112
Cisco, 8
Clarification, 17
Clear understanding in negotiations, ensuring, 156
Closing business negotiations, 121–129
choosing, 124
do’s and don’ts, 128
methods of, 121–124
time of, 124–129
Clues, and closing business negotiations, 125–126
Coercive power, 68
Collectivism, 37
Commitment power, 170
Communication, role of culture in, 27–28, 34–35
direct, 41
improving, 151–156
indirect, 41
nonverbal, 157–160
-related problems, cross-cultural, 149–151
skills, for effective negotiations, 147–161
Competition
and price negotiations, 106–107
Competitive strategies, 69
Competitors
Comprehension, 17
Concessions
for closing business negotiations, 122
trading. See Trading concessions
Conditional questions, 154–155
Consistency principle, 83–84
Contract, 40
Cooperative strategies, 70
Coping with culture, traits for, 40–43
analysis, 104–105
approach to pricing orientation, 109
of renegotiation, 136–137
Creating value, 17
Creative problem solvers
Credibility, 17
Cross-border negotiations, role of culture in, 25–43
behavior knowledge, 34–38
communication, 27–28
coping with culture, traits for, 40–43
deportment, 32–33
groups versus individuals, 29
nature of agreement, 29–30
players and process, 38–40
risk propensity, 29
time, 29
Cross-cultural etiquette, 34
Cultural differences, 10–11, 33
between nations, 132–133
Cultural divide, 217–218
Cultural knowledge, 30–31
Culture
characteristics of, 25–26, 34–38
definition of, 25
professional, 31
role in cross-border negotiations, 25–43
understanding, 30–32
Currency fluctuations, 7
Current status assessment, 18–19
Customer demand, 107
Customer perspective, of price negotiations, 107–108
Deadlines, and closing business negotiations, 127
Deal, balancing, 135
Decision-making, 170
Decision process, 39
Defective performance, 139
Delivered duty-paid, 112
Demand analysis, 107
Deportment, 32–33
Distribution of power, 36
Dodgers
Dreamers
Economist Intelligence Unit (EIU), 7
80/20 principle, 94
Either-or technique. See Alternative method, for closing business negotiations
Elasticity of demand, 107
Emotions, 42
Employment stability, 36
E-negotiations. See Internet negotiations
E-negotiators, tips for, 212–213
Errors in processing information, 150–151
European Commission, 230
Evaluation system, designing, 187–189
Ex-factory price quotation, 111
Experience effect, 105
Expert power, 68
Export pricing, 110–112
escalation of, 111
factors affecting, 110
quotation of, 111–112
External stakeholders, 12
Extradeal renegotiation, 141–142
Facilitators/mediators, interpreters as, 234–235
Fair game, playing, 88
Federal Trade Commission, 39
Feminine culture, 37
Final offer, making, 88
Firm’s attributes to price negotiations, emphasizing, 114–115
First offer, making, 77–78
Flexibility
in negotiating, 96–97
and price negotiations, 115–116
Foreign exchange, 7
Foreign government controls, 7–8
Free alongside ship (FAS) price quotation, 112
Free on board (FOB) price quotation, 112
Gender divide, 215–217
managing, 219
negotiation, 219–220
Global business negotiations, 3–22
buyer and seller’s point of view, 88–89
choosing between tough and soft negotiation stance, 87–88
fair game, playing, 88
final offer, making, 88
first offer, making, 77–78
influencing, 82–86
initiating, 77–90
liar, catching, 87
lying about reservation point, 86–87
objections, overcoming, 82
opening high/low, 78–81
other party’s reservation point, determining, 87
rejection of first offer, reasons for, 83
sharing information about reservation price, 86
Global-minded negotiators, 198
Goals
negotiating, 40
one’s negotiating position, 59–60
other side’s negotiating position, 62
Government
involvement in renegotiation, 132
negotiations by, 108–109
Group-oriented culture, 29
Hagglers
Hall’s framework, 34–36
Halo effect, 149–150
Harmony, 37–38
Hewlett Packard, 8
Hofstede’s cultural dimensions, 36–38
Huthwaite International, 182
Ideological differences, 11–12
Incremental approach, for closing business negotiations, 122
Individual firm’s demand, 108
Individualism, 37
Individual-oriented culture, 29
Industry demand, 107
Inexperienced negotiators, 197
Informal influences
impact on culture, 39–40
Information exchange, 94–96
Infrastructure of negotiations, 18–20
In-house database, designing, 187–189
In-house negotiation capability
responsibilities of, 186
structuring, 186
Initial position, setting, 70–71
Institutional negotiation approach, 184–185, 186
Intangibles
future outlook, 200
impact of, 196
nature of, 194–196
negotiating, 193–201
negotiator background and, 196–198
short list of, 194
trading, 198–199
Integrative bargaining, 13
International Association for Contract and Commercial Management (IACCM), 182
International business environment, dimensions of, 132
International Trade Administration, 9
Internet negotiations, 203–213
gender biases, erasing, 205–206
one’s audience through new technologies, expanding, 206
pitfalls of, 206–207
proper planning for, 209–211
pros and cons of, 211
role of status, reducing, 204–205
simultaneous multinegotiations, allowing, 206
situations suitable for, 208
strategies for, 207–208
time zones and distances, elimination of, 204
effective, 236
requirements for, 230–231
types of, 230
Interpreters
as facilitators/mediators, 234–235
involving, 233–234
language knowledge, 236–237
negotiating via, 229–239
qualifications of, 231–233
as team members, 235
Intradeal renegotiation, 139–140
Justice Department, 39
Key individuals, 38–39
Language
body, 157–158
knowledge, 236–237
Late performance, 139
Legal pluralism, 5–6
Legitimate power, 68
Leverage, bargaining, 223–224
Liaison interpreting, 230
Liar, catching, 87
Liking principle, 84–85
Linkage approach, 135
for closing business negotiations, 122
Listening, 151–153
active, 152–153
passive, 152
as power, 169
Long-term orientation societies, 38
Market approach to pricing orientation, 110
Mary Kay Inc., 9
Masculinity, 37–38
Multiculturalism, 31
Nature of agreement, culture and, 29–30
Negotiating teams, managing, 171–179
negotiation site, 177–178
security issues, 176–177
team makeup, 174–176
team preparation, 172–174
time of negotiations, 178–179
Negotiation
architecture, 4–18
common errors, 58
communication skills for, 147–161
environment, 5–12
global business, 3–22
infrastructure, 18–20
Internet, 203–213
levels of conflict, 13
negotiators before and during, relationship between, 13–14
outcome of, 14
power, 163–170
prenegotiations planning, 57–76
price, 103–119
process, 16–18
renegotiation, 131–143
setting, 12–16
strategy, 68–72
Negotiation meeting, planning, 72–75
agenda, 72–73
introductions, 75
meeting site, 73–74
schedule, 74–75
Negotiators
background, and intangibles, 196–198
before and during negotiations, relationship between, 13–14
chief, attributes of, 175
e-negotiators, tips for, 212–213
gender divide, 216
global-minded, 198
inexperienced, 197
relationship-oriented, 198
relative bargaining power of, 12–13
selection of, 26–27
style differences among, 45–49
task-oriented, 197
Noncompliance, penalties for, 137
Nonperformance, 139
Nonverbal communication, 157–160
Nonzero-sum game, 13
One’s negotiating position, knowing, 59–61
goals, 59–60
strengths and weaknesses, 60–61
One’s negotiation limits, knowing, 65–66
One’s own environment, negotiating, 168
Open-ended questions, 153–154
Opening high/low, in negotiations, 78–81
Options and alternatives, developing, 166
“Or else” method, for closing business negotiations, 124
Organizational negotiating capability, developing, 181–190
evaluation system, designing, 187–189
implementation phase, 189–190
in-house database, designing, 187–189
in-house negotiation capability, responsibilities of, 186
in-house negotiation capability, structuring, 186
negotiation processes, comparison of, 183–186
Other party
knowing, as power, 164–165
reservation point, determining, 87
Other side’s negotiating position, knowing, 61–64
alternatives, 63
authority, 63–64
current resources, interests, and needs, 61–62
goals, 62
reputation and style, 62–63
strategy and tactics, 64
Outcome
of negotiations, 14
relationship-oriented, 45
substantive -or task-oriented, 45
Passive listening, 152
Perceptual bias, 149–150
Performance bond, 135
Personal assessment inventory, 52
Personal style, 41
Physical appearance, 159–160
Pluralism
legal, 5–6
political, 6–7
Policy change, 9–10
Political pluralism, 6–7
Postdeal renegotiation, 140–141
Power, 68
distance, 36
negotiations, 163–170
sources of, 163–170
Preemptive negotiation, 138–139
Prenegotiations planning, 57–76
BATNA approach, 66–68
competition, knowing, 64–65
issues, defining, 58–59
key factors, 57–58
negotiation meeting, planning, 72–75
one’s negotiating position, knowing, 59–61
one’s negotiation limits, knowing, 65–66
other side’s negotiating position, knowing, 61–64
reservation point, 66
strategy and tactics, developing, 68–72
target point, 66
Price negotiations, 103–119
competition and, 106–107
cost analysis, 104–105
customer perspective of, 107–108
export pricing, 110–112
by government, 108–109
guidelines for, 117–118
handling, 114
into negotiations, 113–116
objectives of, 104
planning for, 112–113
pricing orientation, 109–110
Price package, 116
Price-sensitive industry, 105
Producer’s attributes to price negotiations, emphasizing, 115
Product differentiation, 116
Professional culture, 31
Projection, 150
Prompting, and closing business negotiations, 122–123
Rate of return, 109
Reciprocity, 82–83
in trading concessions, 91, 96–97
Referent power, 68
Reframing, 156
Rejection of first offer, reasons for, 83
Relationship, 40
Relationship-oriented negotiators, 198
Renegotiation, 131–143
approaches to, 142
controlling, 135
cost of, 136–137
fear to reopen negotiations, overcoming, 137–138
need to, reducing, 133–137
preventing, 134–135
reasons for, 131–133
types of, 138–142
Rephrasing, 156
Reputation, 62–63
Reservation point, 66
lying about, 86–87
other party’s, determining, 87
Reservation price, sharing information about, 86
Restating, 156
Reward power, 68
Risk propensity, role of culture in, 29
Risk taking, 43
Rituals, 36
Rules orientation, 36
Sara Lee Corporation, 9
Scarcity, 85–86
Securities and Exchange Commission, 39
Security issues, in managing negotiating teams, 176–177
Selective perception, 150
Seller’s point of view, 88–89
Sensitivity of price, 107
Settling disputes, mechanisms for, 132
Short-term orientation societies, 38
Site of negotiation, 177–178
Small enterprises
negotiation with larger firms, 221–228
success strategies for, 222–226
Social proof principle, 84
Space, 158–159
“Splitting the difference” method, 123
Stakeholders
external, 12
immediate, impact of, 15
Stereotyping, 149
Strategy(ies)
choice of, 70
competitive, 69
cooperative, 70
developing, 68–72
initial position, setting, 70–71
other side’s negotiating position, knowing, 64
supporting arguments, developing, 72
trading concessions, 71–72
Style of negotiations, 15–16, 41
creative problem solvers, 48–49, 50
other side’s negotiating position, 62–63
selection of, 45–54
Summarizing, 156
and closing business negotiations, 123
Supporting arguments, developing, 72
SWOT (strengths, weaknesses, opportunities, and threats) analysis, 18–19
Tactics, developing, 64, 68–72
Target point, 66
Task-oriented negotiators, 197
makeup, 174–176
members, interpreters as, 235
negotiating, managing, 171–179
organization, 42
preparation, 172–174
Time
attitude, 159
to close business negotiations, 124–129
to negotiate and setting deadlines, 168
of negotiations, 178–179
sensitivity to, 41–42
Touching, 158
Tough and soft negotiation stance, choosing between, 87–88
Trading concessions, 71–72, 91–102
best practices in making, 101–102
developing, 92–94
flexibility in negotiating, 96–97
identification of, 92–94
information exchange, 94–96
patterns of, 97–101
size, 97
Trading intangibles, 198–199
Trial, and closing business negotiations, 123–124
Trust, 196
Tupperware Corporation, 9
Ultimatum. See “Or else” method, for closing business negotiations
Uncertainty avoidance, 36–37
U.S. Department of Commerce, 9
Vocalics, 158
Volume-sensitive industry, 105
Zone of possible agreement (ZOPA), 66, 67, 198
Zone of potential agreement, 86