Successful International Negotiations - A Practical Guide for Managing Transactions and Deals

Preface

Reference

Contents

Editors and Contributors

Abbreviations

List of Figures

List of Tables

1 Best-in-Class Negotiations in the International Context

1.1 Definition and Elements of Negotiations

1.2 Principles for Successful International Negotiations

1.3 Negotiations in the Value Chain: Input–Transformation–Output

1.4 Job Interviews as Negotiations

1.4.1 Right Preparation, Strategy and Plan in Job Interviews

1.4.2 Seven Important Steps in Job Interviews

1.5 Negotiations in Governmental Organizations

1.6 Importance of International Trade and Trends

1.6.1 Global Trade of Goods and Services

1.6.2 Germany and International Trade Relationships

1.6.3 International Operations and Global Sourcing

References

2 Prisoners’ Dilemma and Negotiation Types

2.1 Prisoners’ Dilemma

2.2 Negotiation Personalities

2.2.1 Soft Negotiator Personality

2.2.2 Hard Negotiator Personality

2.2.3 Principled Negotiator Personality

2.2.4 Situational Negotiator Personality: “Schlagfertig”

References

3 Competencies and Criteria for Successful Negotiations

3.1 Key Competencies for Successful Negotiators

3.2 The Win-Win-Illusion in Negotiations

3.3 Elements and Successful Criteria for Negotiations

3.3.1 10 Commandments for Successful Negotiations

3.3.2 Attributes and Characteristics

3.4 Reasons for Unsuccessful Negotiations

3.4.1 Definition of Failure in Negotiations

3.4.2 Escalation Levels (Lose-Lose)

3.4.3 Reasons for Failures in Negotiations

References

4 Negotiations as Integral Part of the Corporate Strategy

4.1 Definition of Strategic Management

4.2 Strategic Triangle

4.3 Strategic Analysis

4.4 Strategic Choice

4.5 Strategic Implementation

4.5.1 Assessment of Suitability, Acceptability and Feasibility

4.5.2 Suitability

4.5.3 Acceptability

4.5.4 Feasibility

4.6 Strategic Pyramid

4.6.1 Mission and Vision

4.6.2 Goals and Objectives

4.6.3 Core Competencies

4.6.4 Strategies for Negotiations

4.6.5 Strategic Architecture

4.6.6 Control and Execution

References

5 Negotiation Execution—Value Add and the ZomA

5.1 Are There Mutual Benefits?

5.2 Zone of Mutual Agreement (ZomA)

5.3 Successful Recommendations for a Positive ZomA

References

6 Negotiation Concepts

6.1 Aspects in International Negotiations

6.2 Harvard Concept

6.2.1 Introduction to the Harvard Concept

6.2.2 Key Elements of the Harvard Concept

6.2.3 Summary of the Harvard Concept

6.3 Schranner Negotiation Concept

6.3.1 Difficult Negotiations

6.3.2 Negotiation Types by Schranner

6.3.3 Important Steps in the Schranner Concept

6.3.4 Focus of the Schranner Concept

6.4 Dr. Helmold A-6 Concept for Negotiations

6.4.1 Six Steps for Successful International Negotiations

6.4.2 Success Factors of the A-6 Concept

6.4.3 Focus of the A-6 Concept

6.5 Comparison of the Three Concepts

References

7 Negotiations in Different Cultures and Internationalization

7.1 Negotiations in Different Cultures

7.2 Hofstede’s Cultural Dimensions Theory

7.2.1 Power Distance

7.2.2 Individualism Versus Collectivism

7.2.3 Masculinity Versus Femininity

7.2.4 Uncertainty Avoidance

7.2.5 Long-Term Orientation

7.2.6 Indulgence Versus Restraint

7.3 Edward Hall’s Culture Model

7.3.1 Proxemics

7.3.2 Monochronic Time Versus Polychronic Time

7.3.3 High-Context Cultures Versus Low-Context Cultures

7.4 Internationalization Strategies

7.4.1 Possibilities of Internationalization

7.4.2 Direct Exports or Imports

7.4.3 Licensing

7.4.4 Franchising

7.4.5 Third-Party Sourcing

7.4.6 Investments and Partnering

7.4.7 Joint Ventures

7.4.8 International Procurement Office (IPO)

7.4.9 Own Company with Sales and Production Subsidiary

References

8 Business Negotiations in Industry

8.1 Customer (Buyer) and Supplier (Seller) Relationships

8.2 Negotiation Objectives (Q-C-D-T Plus Alpha)

8.2.1 Quality Objectives

8.2.2 Cost Objectives

8.2.3 Delivery Objectives

8.2.4 Technology Objectives

8.2.5 Alpha Objectives

8.2.6 Cost Estimation as Fundamental Part of Negotiations

References

9 A-6 Concept for Successful International Negotiations

9.1 Six Steps for the Negotiation Breakthrough

9.2 Step 1 (A-1): Analysis in Negotiations

9.2.1 Preparation as Key Success Factor in Negotiations

9.2.2 Negotiation Scope: Q-C-D-T Plus Alpha Methodology

9.2.3 Negotiation Objectives

9.2.4 Motives and Interests

9.2.5 Roles and Responsibilities

9.2.6 Cultural Issues

9.3 Step 2 (A-2): Alignment of Strategies and Tactics

9.3.1 Determinants to Develop a Suitable Strategy

9.3.2 Strategies in Negotiations

9.3.3 Tactics in Negotiations

9.4 Step 3 (A-3): Aggregation and Affirmation of Arguments

9.4.1 Argumentation Strategy

9.4.2 Concentration on Motives and Arguments

9.5 Step 4 (A-4): Accomplishment and Amplification of Negotiations (Execution)

9.5.1 Executing Negotiations

9.5.2 Guidelines

9.5.3 Layout and Location

9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques9.5.4 Question Techniques

9.6 Step 5 (A-5): Ascertaining Resistance

9.6.1 Open and Hidden Resistance

9.6.2 Open Resistance

9.6.3 Hidden Resistance

9.6.4 Handling Resistance

9.6.5 Defending Counterarguments

9.6.6 Positive and Negative Defence of Resistance

9.7 Step 6 (A-6): Administration of Contracts and Agreements

9.7.1 Protocol and Meeting Minutes

9.7.2 Significant Elements for International Agreements

9.7.3 The United Nations (UN) Law

9.7.4 Incoterms 2010

9.7.5 Warranties

9.7.6 Late Payment and Fees for Delays

9.7.7 Currency and Payment Terms

9.7.8 Place of Jurisdiction

9.7.9 Trade Arbitration

References

10 Nonverbal Communication

10.1 Elements of Nonverbal Communication

10.2 Understanding and Decoding Nonverbal Communication

10.3 Body Language and Face Language (Kinesics)

10.3.1 Body Postures

10.3.2 Gestures

10.3.3 Facial Expressions

10.3.4 Eye Movement (Oculescis)

10.3.5 Touch (Haptics)

10.3.6 Human Space (Proxemics)

10.4 Paralanguage (Vocalics)

10.5 Time Elements (Chronemics)

10.6 Physical Environment

10.7 Personal Appearance

References

11 Tools for Negotiations

11.1 PESTEL Analysis (Environmental Forces)

11.1.1 Categories of the Model

11.1.2 Benefits of the Model

11.2 Industry Analysis (Porter’s Five Forces)

11.2.1 Benefits of the Model

11.2.2 Competitive Rivalry

11.2.3 Bargaining Power of Suppliers

11.2.4 Bargaining Power of Buyers

11.2.5 Threat of Substitutes

11.2.6 Threat of New Entrants

11.3 SWOT Analysis

11.4 Risk and Opportunity (ROP) Analysis

11.5 Margin Enhancement Plan (MEP)

11.6 5F Concept

11.7 Critical Success Factors

11.8 The 7S Model by McKinsey

References

12 Outsourcing Negotiations

12.1 Key Drivers for Outsourcing Shared Services

12.2 Objectives for Outsourcing Shared Services

12.3 Trends in Outsourcing Shared Services

12.3.1 Integrative Services

12.3.2 Digitization and Automated Processes

12.3.3 Globalization and Global Networks

References

13 Negotiations in the Global Economy

13.1 The Mainstream Globalization Narrative

13.2 Toward a More Realistic View of Globalization

13.2.1 A Look at the Data

13.2.2 Reasons for Misconceptions About Globalization

13.3 Where to Compete in a Global Economy

13.3.1 The CAGE Distance Framework

13.3.2 Cultural Distance

13.3.3 Administrative Distance

13.3.4 Geographical Distance

13.3.5 Economic Distance

13.3.6 Empirical Evidence

13.4 How to Compete in a Global Economy

13.4.1 Applying Adaptation Strategies

13.4.2 Applying Aggregation Strategies

13.4.3 Applying Arbitrage Strategies

13.5 The Need for Nonmarket Strategies in a Global Economy

13.6 Conclusion

References

14 Negotiations in Companies with Financial Difficulties

14.1 Phases of a Financial Crisis and Symptoms

14.1.1 Definition of Restructuring

14.1.2 Strategic Restructuring

14.1.3 Structural Restructuring

14.2 Balance Sheet, Profit and Loss, and Cash Situation

14.2.1 Negotiations Affecting the Balance Sheet

14.2.2 Negotiations Affecting the Profitability: P & L Account

14.2.3 Negotiations Affecting the Cash Situation

14.3 Recommendations for the Turnaround

14.3.1 Strategic Turnaround and Restructuring

14.3.2 Involve a Specialist

14.3.3 Taking All Financing Options Available

14.3.4 Liquidation of Unnecessary Assets

14.3.5 End Non-essential Relationships

References

15 Negotiations in the Service Industry

15.1 Characteristics of Services

15.2 Special Features of Service Marketing

15.3 The 7Ps

15.4 The 3Rs

15.5 Negotiation of Services

15.6 Negotiations in Purchasing

15.7 Negotiations at Events

15.8 Negotiations Within the Scope of Customer Feedback

15.9 Salary Negotiations in the Service Sector

15.10 The Importance of Feedback When Negotiating Services

References

16 Negotiations in Project Management

16.1 Definition and Characteristics of Projects

16.2 Critical Success Criteria for Projects

16.2.1 Key Criteria in Projects

16.2.2 Integration Management

16.2.3 Performance Management

16.2.4 Time Management

16.2.5 Cost Management

16.2.6 Quality Management

16.2.7 People Management

16.2.8 Communication Management

16.2.9 Risk Management

16.2.10 Procurement Management

16.3 Recommendations for Project Negotiations

References

17 Negotiations in Different Countries

17.1 Structure and Examples

17.2 Country Examples

References

18 Negotiations in Europe

18.1 Negotiations in Germany

18.1.1 General Guidelines

18.1.2 Successful and Unsuccessful Strategies

18.2 Negotiations in France

18.2.1 General Guidelines

18.2.2 Successful and Unsuccessful Strategies

18.3 Negotiations in Great Britain

18.3.1 General Guidelines

18.3.2 Successful and Unsuccessful Strategies

18.4 Negotiations in Italy

18.4.1 General Guidelines

18.4.2 Successful and Unsuccessful Strategies

18.5 Negotiations in Spain

18.5.1 General Guidelines

18.5.2 Successful and Unsuccessful Strategies

18.6 Negotiations in the Netherlands

18.6.1 General Guidelines

18.6.2 Successful and Unsuccessful Strategies

18.7 Negotiations in Denmark

18.7.1 General Guidelines

18.7.2 Successful and Unsuccessful Strategies

18.8 Negotiations in Switzerland

18.8.1 General Guidelines

18.8.2 Successful and Unsuccessful Strategies

18.9 Negotiations in Russia

18.9.1 General Guidelines

18.9.2 Successful and Unsuccessful Strategies

18.10 Negotiations in the Ukraine

18.10.1 General Guidelines

18.10.2 Successful and Unsuccessful Strategies

18.11 Negotiations in Latvia

18.11.1 General Guidelines

18.11.2 Successful and Unsuccessful Strategies

18.12 Negotiations in Armenia

18.12.1 General Guidelines

18.12.2 Successful and Unsuccessful Strategies

18.13 Negotiations in Poland

18.13.1 General Guidelines

18.13.2 Successful and Unsuccessful Strategies

18.14 Negotiations in Lithuania

18.14.1 General Guidelines

18.14.2 Successful and Unsuccessful Strategies

References

19 Negotiations in the Americas

19.1 Negotiations in the USA

19.1.1 General Guidelines

19.1.2 Successful and Unsuccessful Strategies

19.2 Negotiations in the Canada

19.2.1 General Guidelines

19.2.2 Successful and Unsuccessful Strategies

19.3 Negotiations in Mexico

19.3.1 General Guidelines

19.3.2 Successful and Unsuccessful Strategies

19.4 Negotiations in Brazil

19.4.1 General Guidelines

19.4.2 Successful and Unsuccessful Strategies

19.5 Negotiations in Peru

19.5.1 General Guidelines

19.5.2 Successful and Unsuccessful Strategies

References

20 Negotiations in Japan, China and Asia-Pacific

20.1 Negotiations in Japan

20.1.1 General Rules

20.1.2 Successful and Failing Strategies

20.2 Negotiations in the PR China

20.2.1 General Guidelines

20.2.2 Successful and Unsuccessful Strategies

20.3 Negotiations in India

20.3.1 General Guidelines

20.3.2 Successful and Unsuccessful Strategies

20.4 Negotiations in Indonesia

20.4.1 General Guidelines

20.4.2 Successful and Unsuccessful Strategies

20.5 Negotiations in South Korea

20.5.1 General Guidelines

20.5.2 Successful and Unsuccessful Strategies

20.6 Negotiations in Vietnam

20.6.1 General Guidelines

20.6.2 Successful and Unsuccessful Strategies

20.7 Negotiations in Australia

20.7.1 General Guidelines

20.7.2 Successful and Unsuccessful Strategies

References

21 Negotiations in Arabic Countries and the Middle East

21.1 Negotiations in Saudi Arabia

21.1.1 General Guidelines

21.1.2 Successful and Unsuccessful Strategies

21.1.3 Main Features of Islam

21.2 Negotiations in Palestine

21.2.1 General Guidelines

21.2.2 Successful and Unsuccessful Strategies

21.3 Negotiations in Israel

21.3.1 General Guidelines

21.3.2 Successful and Unsuccessful Strategies

21.4 Negotiations in the Jordan

21.4.1 General Guidelines

21.4.2 Successful and Unsuccessful Strategies

21.5 Negotiations in Iran

21.5.1 General Guidelines

21.5.2 Successful and Unsuccessful Strategies

21.6 Negotiations in UAE

21.6.1 General Guidelines

21.6.2 Successful and Unsuccessful Strategies

21.7 Negotiations in Turkey

21.7.1 General Guidelines

21.7.2 Successful and Unsuccessful Strategies

References

22 Negotiations in Africa

22.1 Negotiations in Morocco

22.1.1 General Guidelines

22.1.2 Successful and Unsuccessful Strategies

22.2 Negotiations in Egypt

22.2.1 General Guidelines

22.2.2 Successful and Unsuccessful Strategies

22.3 Negotiations in South Africa

22.3.1 General Guidelines

22.3.2 Successful and Unsuccessful Strategies

22.4 Negotiations in Cameroon

22.4.1 General Guidelines

22.4.2 Successful and Unsuccessful Strategies

References