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Final Research Paper

Cultural Factors in Negotiation Table of ContentsIntroduction

1. Short-term or Long-term

2. The Attitude

3. Formal or Informal

4. Direct or Indirect

5. Punctuality

6. Know who you are talking to

7. Conclusion

8. Stages of negotiation

References

factors play a significant role in businesses across the world. Sometimes the lack of appreciation of such factors can lead to downturns of various kinds. In fact, the consideration of such factors implies a deeper knowledge of business activities. order to illustrate this point of view I would like to look into Wal-Mart. Wal-Mart is one of the largest retailers, which tries to provide its customers with the lowest possible prices. It has been indescribably successful in the USA. Analysts link this success to the fact that the US culture coincides with price strategies that manage to offer products on the lowest possible prices. Mart started operating in 1962 and experienced a huge success at the time. However, every company has a life span and each life span involves different stages. Normally after growing to the necessary extends, companies have to go through a stage of maturity. The maturity stage is of great importance, as it can define the company’s future in numerous ways. Usually, many choices are made during that stage and most of them are aiming at increasing the life span of a given organization. These choices and actions may involve: differentiation, expansion, innovation, etc. Wal-Mart had chosen to expand during the 90s. It entered Mexico and had to learn the lessons of doing business globally the hard way - through personal failure. to Mexico was the first time Wal-Mart had to learn about cultural differences and the ways in which they could influence the consumers’ buying patterns. This required very swift actions towards adaptation of the product line, the stores’ size and location, etc. It is interesting to note that Mexico currently is the most successful destination that Wal-Mart pursued. After Wal-Mart stabilized its position in Mexico it decided to make a move to other places: mostly developed nations such as Germany, the UK, and South Korea. Unfortunately, in some occasions it takes more than one failure to learn. Wal-Mart did not consider the fact that established competitors were far stronger than they could outplay with a “low-cost” strategy. Soon Wal-Mart was forced to move out of these countries. Regardless of its failures Wal-Mart determined that it had to look for a culture that would have similar to the American buying patterns. They found their answer in China. Now the retail giant holds strong hopes for China and considers it “the center of its growth strategy”.is a proof that it is possible for Wal-Mart to expand. However, when doing so Wal-Mart should be very cautious of numerous aspects that are closely related to the prospect country’s key influencers. researching for this work I determined interesting changes in Wal-Mart’s expansion strategy that have been introduced recently. I would like to start with the name of the strategy. Wal-Mart refers to its expansions strategy, as “Wal-Mart’s Globalization strategy”. I am strongly convinced that this speaks for itself. Globalization is a term that implies certain world-homogeneity and multinationals bring it closer to reality. one hand, we see the world becoming smaller, due to the expansion of multinationals and the growing similarity of products offered throughout the world. However, on the other hand we can clearly see that the change is not as drastic, as we claim it is. This is very well depicted in Wal-Mart’s strategic outline.the fact that the world is becoming a smaller does not necessarily mean that the cultural peculiarities are becoming less relevant. On the contrary, when doing business with other countries we should always consider all possible differences in order to avoid making the wrong impression. Knowing these differences is likely to help us during important negotiations. cultural differences in negotiations are one of the key elements. There are numerous studies that were conducted on the basis of cross-cultural business issues that do involve negotiations with different nationalities.

the case when culture influences negotiations, one should always consider the pace. A good example of failing to meet that requirement is Enron. The company was in the middle of the negotiations of a huge contract, when things went wrong. The representatives of Enron, had missed out a very important point: during negotiations the Indians like to take their time, in fact the longer the negotiations, the more they are to trust the other party, whereas, for Enron time was just money. the whole, the value of the cultural distinction affects the conduct of business at the international level. Values that are additive in a different cultural environment is determined that it is a preferred within a particular culture. negotiating keep in mind that in Switzerland and Germany the communication process is purposefully and dry. Austrians do not like to say "no." The rapid denial, in their opinion, is unacceptable.purpose of negotiations can be viewed differently depending on the country. For some it is just a contract, for others it is the contract and the relationship. Therefore, it is of key importance to determine the goal of the other party prior to engaging into negotiations that may lead to unfavourable sequence of events. Determining this factor will help you play your game right and consequently help you seal the deal.. The Attitude

business cultural negotiation punctuality

There are different attitudes that one can obtain while negotiating. Sometimes these attitudes may even change during the negotiations. There are four types of negotiation

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