International Dimensions Of Organizational Behavior.
I need a two page summarize report of all the documents attached.
there are 5 documents attached. please go through the documents pots slides and project report and PowerPoint and write a two-page summary report of all the topics included.
General guidelines to conducting business Negotiations in China
Banruo Xia
Maneel Reddy
Shashank Venugopal
Why is china in the spotlight?
China has a thriving economy
The country has outperformed the S&P 500 over the last 20 years
It has an economic growth rate much higher than some developed countries (6% vs 1.9% in US and 1% in UK)
Many Chinese companies are reasonably priced as compared to their counterparts in developed countries
Hofstede’s culture value dimension
Chinese view of negotiations
Literal translation : Tan-pan = discuss and to judge
A mechanism for building trust
Hinges on creating a framework for long term cooperation and problem solving
Viewed as an ongoing and dynamic process
It’s a process that does not end unless the relationship is severed
Take into account practical matters and context
Are slow paced, and involve seemingly abstract building of interpersonal relationships
Negotiation Strategy
Negotiations are a marathon not a sprint
Meetings require to be face to face
Time is necessary to get to know your potential partner
Keep accurate records of the results of each rounds of negotiations
Good idea to sign off meeting notes
Will likely face a team of negotiators
Key challenge will be to identify real decision maker or makers!
Communication Guidelines
Chinese value “not losing face”
So be careful with what you say!
Look beyond the compliments
See them for what they are!
Put effort to understand the meaning behind the words
Try to understand what they’re really trying to say!
Personal projections
Be more understated and modest
Show your counterparts respect and make an effort to get to know them on a more personal level
Be patient and practice the “cold shower” approach to decision making
Just when you think you know enough: stop, think, listen some more, sleep on it and then make your decision.
Don’t set artificial deadlines, or give displays of emotion
Be fair, reasonable and diplomatic
If you disagree with your counterpart, don’t simply reject their position out of hand, but carefully explain your reasoning
Networking
This is the MOST important aspect of the negotiation
Use local staff, local contacts and external advisors to receive pre-negotiation guidance
Hire a capable Chinese team who can
help you understand the nuances of what your counterparts are saying
develop back channels that can help smooth the negotiations
GUANXI! GUANXI! GUANXI!
Choosing your partner
Become familiar on interpersonal and organizational levels
Verify credibility
Use a strategic screening process
Choose a reputable local partner who is closely aligned on mutual goals
Take time to confirm whether there is a basis for sustainable business before investing in discussions
Maintaining due diligence
Invest resources in broad ranging due diligence
Foreign companies are expected to know of and work well within the local context
Have clarity on Chinese industrial policy, government regulations, and relevant stakeholders at the national, provincial, and local levels
Commit adequate time and resources to understanding and tending local China relationships for the long run
Operational guidelines
Assemble a disciplined and cohesive negotiation team that follows a unified communication plan
Have a designated speaker
Assign individual roles
because it is common to receive questions like “During his visit on that time, he assured this…”
Choosing a translator
Must be able to read the room better
Should be able to speak informally with the Chinese team
Concluding…
Remember that Negotiations are never over
Due diligence is to be maintained during the whole course of the business engagement
The team has to be cohesive and have individual roles so as to be prepared for minute questions
Always stay up to date with the Government regulations and Guanxi! Guanxi! Guanxi!
If all these guidelines are followed, your business in China will be a success!
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