XII. Think about how you negotiated in the role-play. Complete the following worksheet. Then compare your answers with your partner's.

 

REFLECTION ON ROLE-PLAY Styles of Persuasion How did you try to persuade your partner? Each line below represents a continuum contrasting two different styles of persuasion. Indicate where you fit in, on each line.   cooperative ---------------------------------------------- competitive spoke indirectly to no one ---------------------------------------------- spoke directly was embarrassed ----------------------------------------- or humiliated used emotion ---------------------------------------------- used logic reacted carefully --------------------------------------------- reacted quickly   Concessions Did you bargain issue by issue or talk about the whole deal before bargaining? _________________________________________________________ Did you make many concessions? Did you make them early or late in the negotiation? _________________________________________________________ Did you reciprocate your partner's concessions? _________________________________________________________   The Deal Did you get a good deal? _________________________________________________________ How about your partner? _________________________________________________________ Was it a successful negotiation? How?

The following information will be useful to you:

 

Group A: Seller's Information

Price per unit	$3.50 per widget
Conditions of assembly	Can ship in parts or ready assembled. Preferable to ship in parts and then send a supervisor to assist with assembly
Terms of payment	With prepayment get 10 percent discount. A letter of credit payment limited to sixty days
Delivery date	Can only provide 5,000 widgets by May. Other 5,000 widgets available in August
Future discounts	10% discount on repeat order
Other conditions	A minimum order of 2,500 widgets

Group B: Buyer's Information

Price per unit	$3.00 per widget
Conditions of assembly	Prefer ready assembled, not in parts
Terms of payment	Want to pay over six months with a letter of credit
Delivery date	Need 1,500 widgets by May. If satisfied with the product, will repeat order of 5,000 for July
Future discounts	Want a 15 percent discount on the repeat order
Other conditions	Want only 1,500 widgets in first order

 

Group A: U.S. Cultural information

Telecommunications

In the United States phone communication is very common and accepted. Business meetings are frequently conducted on phones. Sometimes people work together for months or even years before ever meeting.

Introductions

In the United States one can use social connections to get introduced, but a social introduction is not as effective as it is in other countries. Doing a special favor for a friend is not a respected business practice. Introductions through trade associations are a fairly common practice. For salespeople it is even more common to directly introduce oneself without the help of a third party.

Representation

The character of a company is more important than the character of the person representing the company in the United States. The question one asks in the first contact is, "Can we do business with this company?" Businessmen change jobs frequently. These frequent changes encourage U.S. business relationships to focus more on the companies than on the individuals representing the companies.

Personal Connections

Succeeding without the help of special personal connections shows independence and an ability to work hard. These qualities are highly respected. Working on your own does not hurt your reputation. As a matter of fact, the more powerful a person is, the more isolated the person can become.

Time

"Time is money" is a common saying in the United States. In making initial contacts, very little time is spent on building social relationships. Conversation is quickly focused on business. If there are any dinners or social events they are mainly used to discuss business, not other interests. The home office usually pressures the salesman to get the account as quickly as possible.

Group B: Japanese Cultural Information

Phases of Negotiation

The negotiation process can be divided into four phases:

1) building a good relationship;

2) talking about the business deal;

3) persuading, bargaining, and making concessions;

4) making a final agreement.

In Japan the first two phases take the longest, especially since personal trust and mutual understanding are important to good business relationships. Thus the last two phases, bargaining and final agreements, come at the end of a long process of building a relationship and talking about the proposed deal.

Concessions

In Japan concessions are made only at the end of the negotiation process. After all the possible details of the business deal have been carefully discussed, the two parties begin to bargain and make concessions. They quickly come to a final agreement.

Contracts

Contracts do not play a central role in negotiations in Japan. In fact, a contract is usually a small detail at the end of a long process of negotiation. After all aspects of the deal have been discussed and all decisions have been made verbally, a contract is written up reflecting the decisions. A contract is presented at a meeting only after both parties have carefully discussed the final agreement.