Successful International Negotiations

Frontmatter

Chapter 1. Best-in-Class Negotiations in the International Context

Abstract

The business world of today is dynamic and changing constantly. Increasing international trade, the ongoing direction towards globalization, the movement towards digitalization and other trends lead to interactions between countries, companies across borders and increased negotiations in the international context. People negotiate with each other every day even when they do not realize it. They negotiate with family members, friends, colleagues, buyers, sales executives, superiors and businesses. Negotiations are a form of verbal or non-verbal communication, mostly verbal communication, about a certain and controversial aspect or element, which is characterized so that the negotiation parties aim to find an agreement.

Marc Helmold

Chapter 2. Prisoners’ Dilemma and Negotiation Types

Abstract

The prisoner’s dilemma is a standard example of a game analysed in game theory that shows why two completely rational individuals might not cooperate, even if it appears that it is in their best interests to do so. It was originally framed by Merrill Flood and Melvin Dresher in the 1950s (Flood et al., 2010). The prisoner’s dilemma is a paradox in decision analysis and negotiations in which two individuals acting in their own self-interests do not result in the optimal outcome.

Marc Helmold

Chapter 3. Competencies and Criteria for Successful Negotiations

Abstract

Negotiators need to adopt certain skills and competencies, which are crucial for the negotiation breakthrough and success as stated by several authors (Helmold, Dathe, & Büsch, 2017; O’Brien, 2016; Schranner, 2009). A new report from the McKinsey Global Institute has highlighted what skills will become more important by 2030. The report predicts that there will be a dramatic increase in demand for employees including skills sets, which are of cognitive, social and intercultural nature (Buhgin, 2018).

Marc Helmold

Chapter 4. Negotiations as Integral Part of the Corporate Strategy

Abstract

Negotiations are an integral part of corporate strategy (Helmold, Dathe, & Hummel, 2019). Strategic management has been defined in many different ways based on the organisation’s mission, policies, sector, structure, objectives, strengths, weaknesses, opportunities, threats, key success factors or decisions, capabilities, planning, implementation and sustainable competitive advantage. Research on strategic management has a long history.

Marc Helmold

Chapter 5. Negotiation Execution—Value Add and the ZomA

Abstract

The profound preparation of negotiations in business, in politics or other conflicts is important to the successful outcome of a negotiation and is the foundation of any transaction. The time required for this process and activity can play a significant role and extend the time duration for the actual negotiation execution. In usual cases, the preparation phase may take more than 50–70% of the actual debate and discussion. Negotiations will only succeed if there is adequate information about the negotiation opponent, his/her motives, the scope and other important elements such as personalities, objectives and intercultural issues.

Marc Helmold

Chapter 6. Negotiation Concepts

Abstract

Increasing globalization and international transactions have put emphasis on the question how to conduct successful international negotiations as has been outlined by many authors. There are many training courses and workshops available on the market; however, many companies see a gap between the theoretical and the practical side in international negotiations. In negotiations, there are many methods which can lead to success.

Marc Helmold

Chapter 7. Negotiations in Different Cultures and Internationalization

Abstract

Foreign trade has a long history. Yet, the cross-border exchange of goods and services has significantly intensified in the last decades (Dathe & Helmold, 2018). The cultural differences add another facet to the complication of negotiations. The commercial negotiations are complex enough in the same cultural group.

Tracy Dathe, Marc Helmold

Chapter 8. Business Negotiations in Industry

Abstract

Many industries are nowadays faced by fierce competition inside and outside Europe. Globalization and other elements of international trade are influencing the viewpoint of companies in terms of performance management. This is forcing manufacturing companies to concentrate on core competencies and to transfer the production of components, goods, and services to external suppliers.

Marc Helmold

Chapter 9. A-6 Concept for Successful International Negotiations

Abstract

Successful negotiations require an analytical, systematic structure and a result-oriented process, which enables negotiators to achieve the optimum outcome in business transactions. The book describes how international negotiations can be pursued with the industry-proven A-6 negotiation concept. The A-6 concept by Dr. Marc Helmold has its own characteristics combined with existing and elements from industrial practice or negotiation research. The framework uses standardized tools, which enable negotiators to ideally prepare for and to execute negotiations in the best possible way.

Marc Helmold

Chapter 10. Nonverbal Communication

Abstract

Negotiations are primarily characterized by verbal communication in which the negotiating partners communicate with each other through language and exchange their views. However, in addition to the spoken word, there are still fundamental signals defined as nonverbal communication or body language (Mühlisch, 2006).

Marc Helmold

Chapter 11. Tools for Negotiations

Abstract

A PESTEL analysis or PESTLE analysis (formerly known as PEST analysis) is a framework or tool for strategic analysis and negotiations used to analyse and monitor the macro-environmental factors that may have a profound impact on an organization’s performance (Helmold, Dathe, & Hummel, 2019).

Marc Helmold, Brian Terry, Florian Hummel

Chapter 12. Outsourcing Negotiations

Abstract

Shared services and outsourcing of services are increasing and help the companies to increase efficiency, to concentrate on core competencies, and to reduce cost (Nair, 2017). Shared services organizations (SSOs) can deliver and demonstrate the value to their internal customers in many ways, and managers can take advantage of outsourced shared services to improve the areas’ services, people management, processes, and technology (Helmold, Dathe, & Büsch, 2017). Most companies try the shared services model in their home country first and then export the concept to other parts of the world.

Brian Terry, Marc Helmold

Chapter 13. Negotiations in the Global Economy

Abstract

For decades, the mainstream narrative, told by politicians, business people, globalization theorists, and the business media, has been that we live in an increasingly “global” economy. The key players in this story about the global economy are multinational companies, such as Walmart, Procter & Gamble, Tata, or Nestlé, who offer their products and services in almost all parts of the world.

Jan Pieper

Chapter 14. Negotiations in Companies with Financial Difficulties

Abstract

Financial distress or financial crisis is a term in corporate finance which is a situation in which a company faces severe financial problems and struggles in satisfying financial obligations, e.g. debts, loan payments, etc. (Gabler-Wirtschaftslexikon, 2018). The term is used to indicate a condition when promises to creditors of a company are broken or honoured with difficulty. If financial distress cannot be relieved, it will ultimately lead to insolvency.

Marc Helmold, Tracy Dathe

Chapter 15. Negotiations in the Service Industry

Abstract

Conventional marketing theory is replete with the 4Ps (Product, Price, Place and Promotion), underscoring much of business and management literature (Heskett, Sasser, & Schlesinger, 1997). In its most commonly recognizable avatars, Product is about product and programme policy decisions, Price equates towards price policy decisions, Place associates itself with distribution policy decisions and Promotion lends itself towards communication policy decisions.

Florian Hummel

Chapter 16. Negotiations in Project Management

Abstract

A project is a purposeful and mostly unique project, which is subject to constraints on time, resources, costs and other elements, e.g. the use of personnel, financial means or operating resources (PM, 2018). Within projects, there are customer-specified start and finish dates within which the project must be processed (Helmold, Dathe, & Hummel, 2019).

Marc Helmold

Chapter 17. Negotiations in Different Countries

Abstract

Overcoming cultural barriers in negotiations and the importance of communication in international business transactions are becoming increasingly important. Communication in negotiation is the means by which negotiators can achieve objectives, build relationships and resolve disputes with international partners.

Marc Helmold

Chapter 18. Negotiations in Europe

Abstract

Germany is the largest economy in the European Union and the fourth largest in the world. Negotiations in Germany are usually structured and take place in a systematic way (Schulz, 2017). German negotiations therefore tend to follow a clear agenda, which will often be distributed in advance to all negotiation stakeholders, who are involved in the negotiations.

Marc Helmold, Catherine Lee, Agne Aleksandraviciute, Mari Zakaryan, Damiano Filingeri, Daria Vlasova

Chapter 19. Negotiations in the Americas

Abstract

The USA is the largest economy in the world, followed by China, Japan and Germany (OECD, 2018). American bargaining often seems loose in tone, but hard in the very essence (Helmold, Dathe, & Hummel, 2019). Americans conduct negotiations differently than Europeans or Asians, often very directly and extremely competitively, but with a lot of humour (Frank, 2016).

Marc Helmold, Nisha Becker, Juanira Gonzalez, Maria del Pillar Herrera

Chapter 20. Negotiations in Japan, China and Asia-Pacific

Abstract

Business dealings in Japan are much stricter and more formal than in Germany. Western business travellers are not expected to behave like Japanese, but there are some basic rules to follow. Some Western behaviours, such as direct criticism, may offend the Japanese counterpart.

Marc Helmold, Tracy Dathe, Anton Chan

Chapter 21. Negotiations in Arabic Countries and the Middle East

Abstract

Visitors to Islamic countries sometimes move in modern and cosmopolitan societies, but also encounter rigid moral concepts and systems closed to strangers (Krachtowil, 2018). Successful business women and women politicians can face women wrapped in full-body veils who cannot leave their homes without male protectors (Krachtowil, 2018).

Marc Helmold, Warda Samara, Ayat Abusini, Roshan Nelson

Chapter 22. Negotiations in Africa

Abstract

Morocco opens interesting economic prospects for companies looking for growth. The country guarantees a high level of quality of services and skills of its human resources. Geographical proximity and cultural exchange with Europe are two other assets that make the kingdom the preferred destination of outsource and nearshoring activities. It is almost crucial to at least know, or be familiar, with the basics when traveling to a new country.

Marc Helmold, Youssef Hammadi, Vishal Panwar