1. Introduction
The development of a society and its culture of negotiation is defined among others by: geographical aspects, the history of political institutions, economic development and social structure. But five primary conditioning factors can also be observed: race, language, family, religion, and homeland. (Camillero 1989) says “culture is the set of persistent and shared meanings, acquired through affiliation to a specific social group, which leads to interpreting the stimuli of the environment according to attitudes, representations and behaviors valued by that community; meanings that tend to be projected in productions and behaviors consistent with them ".We all live in the same world and make models of it (maps) The most important points on our maps are the beliefs and values that give meaning to our lives and can make us "collide" with others. Values define what is important to us; the "shock" occurs when we believe that what is important to us must be important to others. Still, we can agree, reach consensus on different points on our maps. These consensuses are those that are shaping the different cultures and that allow greater or lesser ease to resolve the disagreements that inevitably arise in the life of companies.
2. General aspects negotiation
Negotiation is a need of the human being because by not having total control of events, nor is it always in his power to achieve what is wanted or needed, he looks for a means to achieve what he wants from others, it occurs because there is conflicts to be resolved. (Morley and Stephenson 1977) describe it, negotiation is a process of communicative interaction in which two or more parties try to resolve a conflict of interest, using dialogue and discussion, discarding violence as a method of action and moving towards a gradual approach through mutual concessions. Talking about negotiation is usually synonymous with solving problems in a dialogue and peaceful way, it implies a two-way communication to reach an agreement, when people share some common interests,but they also have some opposing interests. (Ávila 2008) considers negotiation as: A process in which two or more people exchange ideas with the intention of modifying their relationships and reaching an agreement aimed at satisfying mutual needs. (Maddux 1991) So puts itNegotiation is the process used to satisfy needs when someone else controls what is desired. Negotiation between companies, groups or individuals, normally occurs because one has something that the other requires and is willing to negotiate to obtain it. (Olivier 2001) states the following: Negotiation is a transaction in which both parties have veto power over the final result. Requires voluntary consent from both sides. It is a take and give process in which the actual terms of the transaction are accepted. It is the act or process of bargaining with each other in order to reach an acceptable goal or agreement. It requires movement on both sides, real or perceived.
Every day we witness the continuous and incessant growth of negotiating activity in all areas and at all levels.All people negotiate throughout their lives, governments, states, unions, employers, spouses, parents with their children, neighborhood associations, friends. In the world of work, negotiations are increasingly used. Currently, most of the actions that a worker takes, from the purchase of material to the interview with a client or the distribution of appointments, require negotiation skills. Using basic principles in terms of preparing your strategies and this is where the various cultures come into play.
Each person has their own characteristics that are reflected in the different actions of their life. These traits correspond to a certain way of perceiving, feeling and reacting to events. Beliefs, ideologies, prejudices, motivation, scale of values, etc. they constitute differences that are manifested in the way of reacting to events. These personal variables guide the type of strategy used, the climate of dialogue and the level of demand in achieving the initial objectives. Learning to negotiate helps us to live with less conflict and in greater harmony with our peers, improves interpersonal relationships and makes it easier to achieve personal and professional goals, in all areas of life. Usually,negotiation helps to face and resolve conflicts and fosters more harmonious relationships between people, organizations and peoples.
The negotiations can be of different types, depending on the variables that are taken into account. Depending on the level at which they are established, they would be interpersonal, intraorganizational, interorganizational, international negotiations, etc. Depending on the topic that is addressed, they can be commercial, labor, social, political, national or diplomatic if they deal with international politics. Commercial negotiations are those in which monetary values dominate, occur between buyer and seller, manufacturer and a merchant. Labor negotiation is normally carried out between company representatives and workers' representatives to reach agreements on working conditions, wages, templates, schedules, among others.
Depending on the approach or strategy adopted in the negotiation, there are two almost opposite types, although they do not have to occur in a pure state: distributive negotiation and integrative negotiation. Distributive negotiation is one in which one party gains advantages at the expense of losses on the other. There is a fixed amount of resources that are distributed favoring one of the parties. The inclusive negotiation aims to reach agreements so that both parties win.
No two negotiations are the same; they are as diverse as the range of products, services, activities and actions that the different institutions and companies involved in this type of function provide and develop. The preparation of the negotiation is an internal activity of the negotiating group that is developed through work sessions aimed at clarifying the task, mastering the negotiation topic, seeking the necessary information and defining the roles, so that each of the team members know the general aspects of the negotiation and the particularities of their participation, in order to achieve greater coherence and integration of the group.
Cooperative Negotiation. This is what he mentions (Valls 2008). The one in which the negotiators express a desire to reach a mutually beneficial agreement and high cooperation. The highest priority is respect for mutual benefit. His goal is that everyone wins and is characterized by the pursuit of shared goals. It implies that the parties involved invest all their skills and means in order to collectively obtain benefits that they would not achieve by themselves. Examples of cooperative negotiations: occur between suppliers and customers in which the relationship over time is more important than short-term profit. According to Palacios (2008) the main characteristics of Cooperative Negotiation are the following:
• Generally the participants are friends or acquaintances.
• The goal is to reach an agreement.
• Make compromises to cultivate the relationship.
• Is gentle on people and the problem.
• Give in to pressure.
• Trust others.
• Change your position easily.
• Makes offers.
• Make your last position known.
• Accept unilateral losses to reach an agreement.
• Look for the only answer they will accept.
• Insists on reaching an agreement.
• Try to avoid a clash of wills.
Competitive Negotiation is another type of negotiation (Valls2008), it tells us: Competitive Negotiation. It is one in which the negotiators show weak cooperation and do not even cooperate. The important thing in this type of negotiation is the final victory and achieving the intended objective regardless of the other party. It is in this type of negotiation when the powers of both parties come into play and the information that is had about the other party is used. Examples of competitive negotiations are between buyers and sellers in which the relationship between both parties does not imply an extensive relationship over time. Its characteristics as suggested by Palacios (2008) are the following:
• The objectives of each party are in conflict.
• The resources and values that are exchanged are fixed and limited.
• The parties cannot do anything to add value to what is being exchanged.
• Each party demands and presses to obtain a greater part of what is negotiated.
• Relationships are not important.
• Participants are adversaries
• The goal is victory.
• Demand concessions as a condition of the relationship.
• He is tough on problems and on people.
• Be suspicious of others.
• Maintains your position.
• Threat.
• Cheats about your last position.
• It demands unilateral advantages as the price of the agreement.
• Look for the only answer that you will accept.
• Insist on your position.
• Try to win a showdown of wills.
• Apply pressure.
The Harvard Negotiation Model (Tobón1997), this principle was based on the fact that the negotiators express desires for mutual gains and high cooperation between them; this is the world-wide-spread method through Roger Fisher and William Ury's "How to Get It Yes"; The process emphasizes the communicational aspect of the negotiation, trying to arrange a beneficial result for all the people involved in the conflict, in a win-win scheme. It does not imply that all parties will get everything they want, but rather that they will get more than they could get through any other way they could choose to resolve their dispute. The characteristics of this Model are the following Tobón (1997):
• Suggests that mutual benefits be sought whenever possible.
• When there is a conflict of interest, it must be insisted that the result be based on some fair criterion, regardless of the will of the parties.
• Tough on arguments, soft on people.
• Separate the people and the problem
• Does not use tricks or poses.
• Principle bargaining shows how to get your rights and be decent.
• If the other party discovers your strategy, it is easier to use it.
• Focuses on interests, not positions.
Fisher and Ury (1985), have characteristics that make it very attractive. We can summarize it like this:
• Separate people from the problem. It is important to put yourself in the place of the other, see how they perceive the problem, understand their position. On many occasions, emotions are superimposed on the real problem of the negotiation. You need to analyze your emotions and a good technique for this is to make your feelings explicit and let the other party out to your emotions and feelings.
• Focus on interests and not positions. It should not be assumed that the interests do not coincide between the two parties, so the most appropriate technique is to ask the other party and at the same time make our interests explicit.
• Generate as many options as possible before deciding on a course of action. For this it is necessary:
Separate the act of creating options from judging them.
Enrich the pointed options instead of looking for a single answer.
Seek joint earnings.
Find procedures that facilitate the decisions of the other.
• The solution or result of the negotiation must be sought in some objective criterion. The opposite would imply the imposition of the will of one of the parties and therefore the feeling of manipulation. Objectivity reinforces the argument.
In any type of negotiation, one negotiator tries to persuade the other negotiator. But it is better that there is a certain balance of forces and that the pressures are exchanged, finally the parties will reach an agreement when the forces are equal. This is so, because if one party usually wins at the expense of the other losing, it ends up causing the breakdown of relationships, be it commercial, friendship, or another type of relationship. Generally, in the negotiation the total relationship between the participants is not affected, however the knowledge and mastery of the negotiation phases will largely depend on the success or failure of the negotiation. In table 1 we see the different characteristics of each of the types of negotiation.
The hard way supposes the exhausting confrontation between winners and losers, there is, on the contrary, the possibility of negotiating seeking mutual benefits and achieving acceptable solutions for both parties, depending on the attitudes and intentions before the resolution of the conflict we can summarize and differentiate the negotiator models like this:
Soft Negotiator
The participants are friends
The goal is to reach an agreement
Make compromises to cultivate the relationship
Be gentle on people and the problem
Trust the others
Change your position easily
Make offers
Give in to pressure
Hard Negotiator
Participants are adversaries
The goal is victory
Demand concessions as a condition
Be tough on people and the problem
Be suspicious of others
Hold your position
Threatens
Apply pressure
Some win - Others lose
• Achieve victories. Only our interests matter.
• Threaten, pressure and demand concessions.
• Holding onto a posture. Solving the problem is a matter of strength and power
• Attack the people who depend on them to solve the conflict.
• Finding culprits and fostering division
• Aggressive communication. Encourage verbal struggles.
• Reach agreements to obtain mutual benefits.
• Make offers and concessions. Accept unilateral losses to reach agreements.
• Be flexible. What matters is what the objectives are desired for. By knowing its value, you can enter variables that contain the desired benefits.
Characteristics of a good negotiator
Have a winner / winner attitude.
Show genuine concern for the other party's needs.
Be flexible in approach.
Be tough on the bottom and soft on the way.
Tolerate conflict well.
Search and thoroughly analyze the proposals.
Be patient.
Don't take personal attacks to heart.
Quickly identify the interests of the other party.
Practice active listening
What should not happen in a negotiation
Having inadequate preparation.
Forgetting the WIN-WIN principle.
Use bullying behavior.
Be impatient.
Act cold-blooded.
Talking too much and listening too little.
Dispute instead of influence. It is because of the explanation that
Disregard the conflict.
Table 1 Comparison of the Types of Negotiation.
3. Cultures in the world
Culture is the way people react to situations due to habits that they have created from their family environments since childhood and this changes from person to person. The development of a society and its culture is defined by: geographical aspects, the history of political institutions, economic development and social structure. But you can also observe five primary conditioning factors: race, language, family, religion, and homeland. Knowing the culture of each one, where they come from and how they would react in given circumstances is important to negotiate.
We consider culture as a system of symbols that are translated into behaviors that can function as a bridge for communication or, on the contrary, can become an obstacle in interpersonal interactions. On the other hand, the influence of culture differs from person to person, so much so that two individuals from the same country, religion, socioeconomic class, gender, and generation do not share the same constellation of behaviors and cultural skills.
The cultural option is the interpretation of the set of customs according to the thought or ideologies of the people in accordance with the establishment, coupling, or adopting clear and well-defined positions on the customary ways of expressing themselves within which the circumstances depend on them. that involve the ideologies and utopias of individuals in order to fulfill the primary tasks, creating a beneficial environment that yield optimal benefits.
The cultural imperative is the set of business customs that the executive must comply with if he wants the negotiation to culminate successfully.
Cultural exclusivity is the set of customs or behaviors reserved solely and exclusively for locals and from which the foreigner is excluded or practically proscribed and relegated. In this, interference may occur on the one hand and other xenophobic actions that threaten the proboscity and integrity of the express subject
The globalization of the economy has meant a growing approach not only between the governments of the countries to eliminate obstacles to international trade and investment, but also between companies and economic agents that manage business relations. Today, and despite the fact that globalization has caused a greater transfer among peoples, the following can be pointed out as the main cultures of the planet:
1. Oriental culture, distinguishing among them especially Chinese, Hindu and Japanese culture
2. Arab or Islamic culture
3. Western culture and within it can be distinguished:
3.1 European culture, 3.2 The North American and
3.3 The Latin American.
Each one with its particularities and specific details. Is there a protocol that can be understood as global or also cultural? Or will this be a redundancy considering the very nature of the protocol.
When you don't talk business it can be just as important as when you talk, for example as soon as the day ends in England, business ends too and nothing will bother your hosts more than you go on and on about business over drinks at lunch.
On the other hand, you cannot discuss business with the Japanese in the first meeting. There is a ritual. First the business cards are exchanged, then the tea is poured and more and more tea is poured and they will want to locate you and know what your hierarchy is in the company and how your status corresponds with theirs. All of this is important to the people who are in the room with you as well as those who are not.
So it is in Arabia, the same slow and analytical beginning. Don't be surprised when a meeting that you thought was going to take an hour takes three, and don't insist on one person because you think there is a faster way to make a decision. This will have the opposite effect.
In the cultural behavior of the world, the only true generalization is not to "generalize" let's see some examples:
"All Americans are loud and funny."
"The English are cold and reserved."
"The French are romantic and often tough."
However, there are some general rules in each region and in each nation. In order to create favorable scenarios for the development of successful negotiations, we must advise ourselves on the cultural aspects of the other party's actors. It will help you answer questions such as:
Who greets first?
How do you greet in the East?
How to use the different treatments according to the range?
Should the negotiator blend in with the other party so as not to be perceived as a threat but as an ally?
Should he disguise himself as what he is not?
Should he be himself?
Some negotiators are surprised to find that their cultural background is considered strange, irrational, and even offensive in other countries.
Edward Hall, for example, defines two types of cultures, depending on the context:
High context cultures (CCA). They are those where the context is more important than the words. In this type of culture, the word is not decisive and legal documents are used less; this influences the slower negotiations. Social position is decisive and knowledge about it as well. Many countries in Asia, including Japan, Africa, Arab countries and Latin countries, correspond to this cultural type, where business is slower, since they require establishing a personal relationship that establishes trust between the parties.
Low context culture (CCB). In these cultures the messages are explicit and the words convey most of the information. Legal documents are considered indispensable. Europe (Anglo-Saxon countries) and the USA are examples of these cultures. Business is faster because details are analyzed quickly.
Mauricio Alice points out that from other points of view, the relations between culture and negotiation are analyzed from the perspective of the predominant values of individualism and collectivism and egalitarianism versus hierarchy in the intercultural parts. Thus, individualistic cultures emphasize self-interest, while collectivist cultures emphasize the interests of the whole. These polarities are added for the analyzes to the previously mentioned one of low and high contexts. (Culture in Negotiation. In La Trama. Interdisciplinary journal of mediation and conflict resolution.
Individualism vs. Collectivism distinguishes cultures that put individual needs above collective ones from those cultures that prioritize the needs of the group over those of individuals. In individualistic cultures, norms promote the interdependence of individuals by emphasizing social obligations. Table 2 shows some countries and their type of culture.
In his "Negotiation and Mediation Manual" (Maleret. 2000) he affirms that every negotiator will find differences between one country and another, but that these same differences are also manifested at the national level, of course on a smaller scale and in a more subtle way. He points out in this regard saying that most countries present significant regional and ethnic variations, which affect trust, important elements of negotiation, including communication, understanding and therefore, when we negotiate with another culture we must bear in mind the following:
• Understand differences in negotiation behaviors and attitudes
• Clearly explain cultural differences
• Show respect and tolerance
• Understand the interest behind the posture
• See what are the interests that motivate the other party
• Do not assume that they think the same as us or that they have the same scale of values
• Do not take attitudes or words as personal attacks
• Evaluate the alternatives to the non-agreement of the parties.
Table 2 Individualist and Collectivist Cultures
4. «Monochronic» cultures (Time m) «Polychronic» cultures (Time p)
Monochrome cultures
• One thing is done at a time.
• Concentration on work in progress.
• Commitment to dates and deadlines are priority.
• Commitment to the task at hand.
• It is requested and valued to have a lot of information.
• You work methodically and at a regular pace.
• Arguments based on numbers, causes and consequences.
• Respect for established appointments and punctuality.
Polychrome cultures
• Several things are done at the same time.
• You go from one task to another.
• Dates and deadlines are a reviewable target.
• Commitment to the people who commission the task.
• It is interesting to have information up to a certain point.
• You work in an intense way but at a non-sustained pace.
• Arguments based on reasoning.
• Flexibility in appointments and punctuality.
5. Hand gestures and body language, be careful with gestures
Actions speak louder than words and they often say all the wrong things. Eye contact, hand gestures, touching, bows, the wrong sign, all this if you do not have control over what to do according to the country you visit can cause big problems.
Next we will see a brief guide to the gestures and their meaning according to the country.
Raise eyebrows: In African countries it means if I agree, while in Peru, it is synonymous with money or pay me what you owe me.
Blink and wink: In Taiwan it is rude and in Australia, even showing friendship is improper.
Throw the eye: In Europe and Latin America, it means being alert.
Touching the ear: Be very careful with this gesture in Italy, because it means that the person close to you is effeminate, while in India it is considered a gesture of sincerity or repentance and in Brazil it is a sign of appreciation.
Circle on the nose: It is the classic OK AMERICAN. In Colombia its meaning varies according to the cities it is related to homosexuals.
Move your nose: In Puerto Rico it means What's up?
Touching the nose: While in European countries it means mockery, in Japan, it translates, looks for me, needs me, it is with me.
Screw the cheek: It is a very Italian gesture and whose meaning is praise. But if instead of screwing it is caressed, in Greece and Spain it means attractive, while in Yugoslavia it is a sign of Success. In France I am sick or thin.
Touching the chin: In Italy it is a warning gesture that I am not interested, while in Paraguay and Brazil, I don't know, don't ask me.
Kissing the fingertips: In Europe and Latin America it is synonymous with Divine, Beautiful. This gesture originates from Greece and Rome where statues and altars were venerated with this gesture.
Circles in the head: In almost all countries it is synonymous with crazy, while in the Netherlands it is called on the phone.
Head tilt: In Bulgaria and Greece, it means no. If you shake your head, it means Yes. And in Japan it is a sign of respect and greeting.
Screwing your head: In Germany, it means crazy, but it is a very strong gesture and you can be arrested for using it. It is usual for drivers to offend another by not knowing how to drive. This gesture in Argentina means the same thing, but it has no consequences.
Head taps: In Peru and Argentina, I'm thinking. In European countries He is crazy.
Head back: In Paraguay, tilting the head back means I forgot.
Shaking your head: In southern Italy, Greece and Tunisia it is a denial, in India it is Yes and in Germany it is like calling with signs.
Horizontal horns: In most European countries it is a gesture of personal protection against evil spirits. In African countries, if the index finger and the third finger are used, it is interpreted as putting the eye to the devil to that person. Care must be taken with this gesture.
Vertical horns: In Italy and in some Latin American countries it means that they have put the horns on it. While in Brazil and Venezuela it can mean good luck.
V sign: It is a symbol of victory in most European countries, as long as you put the palm of your hand out, because the opposite means stick it. In other countries it is a sign of No.2.
Push the third finger: It is known as the shameless finger. In most countries it is an obscene gesture. The Arabs do it the other way around, that is to say downwards.
I circle with my fingers: It is a sign of OK, but not in Brazil, where it is considered vulgar and obscene. It is also bad education in Greece and the Soviet Union. While in Japan it means Yes or money in the South of France is Zero or not worth it.
Crossing your fingers: It is known as the gesture of protection or good luck less in Paraguay where it is offensive.
Finger snapping: In France and Belgium doing it with both hands has a vulgar meaning. In Brazil it is used when talking about something that happened a long time ago.
Point the finger: It is considered rude in almost everyone. In Europe the open hand is used for pointing and the thumb in Indonesia.
Tap two fingers: In Egypt it is a rude way of saying that two people sleep together, whether it is true or false. It can also be interpreted in the form of a question, would you like us to sleep together.
Sawing the hand: It is a typical gesture of how we are doing in business. Half and half, especially in Latin America.
Slap on the fist: It is an obscene gesture in Italy and Chile.
Throw the forearm: In some European countries it is considered vulgar for its sexual connotation, but in England this connotation is positive as if it were a compliment from a man to a woman.
Thumbs up: It's an OK gesture less in Australia, where it's considered very rude.
Squeeze the fingers: It is a national gesture in Italy as something good or inspiring fear. In Argentina it means jerk, bad, especially when you're driving.
Touch the elbow: In Holland its meaning is that of a person who cannot be trusted, while in Colombia, it means tough or stingy.
Stroking hands: In Holland it means that he is gay or she is a lesbian
Thai greeting: It is a gesture of respect and welcome to the people that is made.
Making a gun: In European countries it is a gesture of contempt. In Brazil and Venezuela it is good luck.
Here are two tables with misused words in different countries and a favorite gift guide around the world. Very useful when negotiating with foreigners.
6. Words of incorrect use in other countries
In international negotiation, the main differences are of a cultural nature, expectations and values that are not shared by the parties, it involves a greater complexity in the processes and decision-making bodies and a greater division of own interests and those of the counterpart, greater incidence of public and political factors, greater difficulty in finding instances of control, conciliation or arbitration. Greater delay in the solution and implementation of solutions and agreements, structural and almost permanent asymmetries between the power of the countries.
Speaking of culture shock, shock implies friction, a disagreement, discomfort, damage, loss, ultimately as a problem that must be resolved. It is a legitimate and important way of looking at the subject. We can also see cultural "shock" as an encounter, an opportunity for growth through empowerment or revaluation of oneself and the recognition of others, as others different from oneself. To think of cultural differences only as a problem to be solved, they are doors that are closed, to see them as an encounter, they are doors that open to the development of a human potential that multiplies.
Cultural differences (ideas and procedures about the company, business, staff, family, leisure, etc.), whether within the same company or between different companies, can result in a negative aspect, a loss, if abandon the spirit of curiosity to meet the other. If, on the other hand, there is an openness towards the recognition of the other (it does not necessarily oblige us to agree, but to respect them as someone else), multiple possibilities of benefits are opened.
This, if it is within the same company, allows an internal congruence that gives strength and power to people. All parts are in harmony and energy is generated. In an orchestra, each instrument plays different melodies, and the resulting melody is a different one, richer than any single instrument can play on its own.
International negotiation refers to the processes and methods used by international actors (State and Private) to obtain their objectives through strategies of persuasion and interaction with each other. International negotiation is a strategic skill that incorporates analytical, organizational, interpersonal, cultural and diplomatic elements, among others. It is one of the fundamental tools to maintain stability in the global political system and to achieve the resolution of conflicts in the world. Next we will see the sale of a product, the distribution contract and the Joint venture.
Buying and selling a product
It is one of the most used modalities in international trade. Under the international merchandise sale contract, one of the contracting parties - called the seller - is obliged to deliver a certain thing, and the other - called the buyer - to pay for it a certain price in money or a sign that represents it. It is about carrying out a commercial transaction, a commercial operation, which requires: a) profit motive; b) professionalism; c) habitual; and, d) permanence. In this sense, according to the Vienna Convention (or Convention) of 1980 on contracts for the international sale of goods (hereinafter, the Vienna Convention), the contract is formed by: a) receipt of acceptance of an offer; b) the performance of an act related to the dispatch of the merchandise; and, finally, c) payment of the price.The following aspects must be included in this contract:
• Type and range of product.
• Merchandise description
• Quality.
• Quantity.
• Packaging
• Price.
• Delivery conditions.
• Conditions and means of payment.
• Delivery term.
• Place of delivery
• Insurance contracting
• Customs formalities
• Documents delivery
• Applicable legislation and jurisdiction
• Complementary services.
Distribution contract
It is the contract by virtue of which one of the parties, called a distributor, undertakes to acquire from the other party, called distributed, goods generally for mass consumption (low-value or low-technology goods), for their subsequent placement in the market, at their own risk, stipulating a profit or resale margin as consideration for the intermediation. In the distribution contract, the goods or services offered by the manufacturer (exporter) are made available to the customers of the distributor (importer). This contract allows the exporter to focus all its efforts on manufacturing, delegating the financial risks of marketing to the distributor.
Distribution contracts can be exclusive distribution contracts that grant the right to a single distributor or merchant within a territory, requiring minimum sales volumes. Selective distribution; A small number of distributors (merchants or points of sale) are selected to distribute the product, although the intermediary may sell competitive products. Authorized modality distribution; It is one that is granted simultaneously to several distributors (points of sale) in the same territory, the same conditions of sale and prices, although without a sales objective. Discounts are often awarded based on sales volumes.
This type of contract includes aspects such as the following:
• Business objectives.
• Range of products.
• Geographic area.
• Exclusivity.
• Supply to other customers.
• Terms of delivery and payment.
• Prices and discounts.
• Trademarks and industrial property rights.
• Exchange of information.
• Non-competition agreements.
• Duration and causes of termination of the contract.
Joint-venture
"Joint" means union and "venture" company. Business collaboration. It is a type of contract between two or more companies to achieve the same objective, develop a business or enter a new market, for a certain period of time and in order to obtain benefits. They share both the final objectives, such as control over the common project, knowledge, whether technological, on the product, on the market.
• Delimitation of products, sectors, markets and clients.
• Capital contributions from each partner.
• Valuation of assets, machinery, facilities, patents, trademarks, technical assistance, etc., contributed by each partner.
• Purchases of raw materials, components, machinery, etc.
• Marketing plans
• Composition of the administrative bodies.
• Systems for decision-making (quorums).
• Policy of amortization and new investments.
• Profit sharing policy.
• Design of the management structure.
• Personnel selection.
• Conflict resolution
Stages of the negotiation process
In an international negotiation, starting from the beginning, that is, from a situation in which it is not known with whom to negotiate, six stages can be distinguished. The knowledge of these stages helps to have a complete vision of the process and provides a scheme to which the techniques to be used in each of them are incorporated. Each stage and the main objective pursued are briefly described below:
• Contact: it is about identifying who is going to be the company or entity with which you are going to negotiate and, to access it, that is to say to get an interview.
• Preparation: includes the steps to be taken before sitting down at the negotiating table. It consists of obtaining information that allows us to fix positions.
• Meeting: it is the time that passes, in the first meeting or in successive meetings, that the parties use to get to know each other before starting to negotiate. The purpose is to create a climate of trust and arouse interest in the other party.
• The proposal: marks the beginning of the negotiation itself. One of the parties (usually the seller) establishes the terms on which it intends for the business to be conducted.
• Discussion: consists of approaching positions to reach an agreement. It is the most intense phase and one in which negotiators use most of the negotiation techniques, especially concessions.
• Closure: it is the phase of greatest uncertainty and tension. It consists in reaching an agreement or, well, in abandoning the negotiation.
Certain principles of international negotiation must apply wherever in the world you negotiate. It is important to know them since they constitute the framework on which each negotiator will pour the knowledge and concrete experiences acquired in his professional life. These principles consist of:
• Take a winner-winner approach.
• Know and apply the concept of room for maneuver according to each country.
• Understand the differences between national and international negotiation.
• Take into account the cultural elements of the country in which it is negotiated.
• Know how to plan the negotiation, distinguishing between each of the stages. Know the techniques used to move a negotiation forward and close the deal.
9. The Colombians What is the process they follow during the negotiations?
A study on cultural values in 63 countries of the world highlighted Latin American homogeneity, and concluded that Colombia lives a culture accustomed to uncertainty, with individualism towards society but high family collectivism, preference for greater equality but awareness of great elitism, preference for the softness of interpersonal treatment, orientation towards the present, and not many humanitarian considerations and generosity towards the weak (Ogliastri et al., 1999). Our negotiating behavior is permeated with all this.
In Colombia there are attitudes about the conflict similar to those of the Arab and Andalusian world: that it is dangerous and negative, that it must be avoided through a friendly approach so as not to have to fight. We do not believe that anything positive will come out of the conflict, and we have adrenaline ready if we have to fight. For this reason, the difference between negotiation and war is not defined, everything is flexible, there are intermediate terrains, but ultimately it is believed in winning or losing.
Not all Colombians negotiate in the same way, there are variations and differences, but there is a more common way than the others, which is a process exclusively focused on distributing through haggling. You could predict that most Colombian negotiators follow the following process:
1- They prepare little for the problem and leave it to the last minute. They think that negotiation is a personalized field where everything will depend on personal relationships, cleverness before the other, and even chance. Before going to the negotiation they trust their intuition and have a purely subjective definition of what to expect or ask for. A process with many variants is expected from negotiation, in which interpersonal skills are exercised; Everything will depend on the person with whom it is negotiated, the situation, the circumstances.
2- They make a social preamble to get to know each other in a friendly tone, try to break the ice with jokes, offer a coffee or a drink, and ask their counterpart personal questions in an informal atmosphere of genuine curiosity to meet the other. The entire negotiation process will be personalized in the boss.
3- They try to evaluate the capacity of the other, their needs, they use all the information they are given, they negotiate SM ("according to the pig"), a personalized contingent reality, according to the situation, the opportunity, or the counterpart. At that moment they decide on the proposal, relying on their intuition about what they can expect from the other rather than on objective criteria about what it would be reasonable to obtain.
4- They make a high request (double or half of their external alternative), as a probe of the reaction of the counterpart, to leave enough room for later haggling. They prefer to be above the expectations of the other, as a process of "push and pull" is always expected as the essence of negotiation. They feel terribly bad if the other accepts their original proposal, and there is a tendency not to accept the other's first proposal (even if it is above their expectations).
5- The negotiation game follows a fairly traditional ritual. They show little interest at first, or they become disinterested, to develop a strong position in the negotiation, it considers it very serious to hide the information and even deceive the other about other options or alternatives, this is part of the negotiation ritual, as well as it is to approach the other in a friendly way.
His handling of information is quite biased and accommodative. It is not considered necessary to say the limitations or problems of what they have (in this regard there are two legal instances: "diligence" is the process of studying in detail if what was sold or bought is real; "huge injury" is the option to lie down behind an excessively wrong business)
6- The time is flexible. You wait until time is up, because that's when reality appears, the true limits of the parts. They try to convince the other and they haggle until the last minute. Splitting differences based on the starting situation, the opening, is the customary procedure to reach an agreement.
7- When reaching an agreement, celebrations and social events are held in which friendship will be emphasized. The commitments respond to the good feelings of the moment, but it is understood to change them by force majeure, which is not always very "greater". The agreed terms will not necessarily be met exactly, there is a situation of high uncertainty. In those cases it will be renegotiated.
8- When later problems or breaches arise, ambiguity, friendship are appealed, and individual responsibility is not assumed for the fault, which induces (not only foreigners) indignation.
Although the above is the most common behavior, not all Colombians negotiate like this. Some are ashamed to haggle or customize processes; some prefer to get out of the traditional ritual.
10. General recommendations
Negotiating is a responsibility of all leaders in the day-to-day of companies, regardless of their size or activity. The success of the agreements that are reached and their satisfactory development determine the decisions and projects that influence the growth of a company. Alfonso Rodríguez, a professor at the Universidad de los Andes and a private consultant who advised the process of building the Competitiveness Agenda, considers that negotiation as a business management tool allows the production and commercial objectives to be translated into actions and actions. Hence, managing some aspects of the negotiation process facilitates the achievement of good agreements and the construction of good commercial relationships.
When preparing the negotiating scenario, it is convenient to formalize a visit and avoid unexpected encounters with the counterpart, which are generally poorly received. It is recommended to make the formal presentation of the company in a personal way. "Unsolicited emails and faxes are frowned upon and generally do not have any kind of response," says Emilio Velasco, executive director of the Colombian Ecuadorian Chamber of Industry and Commerce.
When negotiating, you should always choose the right personnel, who have the task of achieving the best result for the interests of the company. As personal traits, the negotiator must be a good observer and have listening skills; be a perceptive person with the ability to speak when necessary and be silent when it is necessary to do so, and above all very patient.
Prior to the moment of raising the proposals and the terms of the negotiation, it is important to carry out an analysis of aspects such as:
• Who is the counterpart
• What are your interests in the negotiation
• The values of the company
• What do they need, • What's your objective, • Your strengths and weaknesses.
Guidelines to keep in mind when trading:
• Gather information to establish common ground. It is very difficult to negotiate without knowing at least some fundamental aspects of the counterparty.
• Obtain as much information as possible to avoid false starts
• Establish issues, positions and interests.
• Look for differences and convergences. This has to do with reciprocity, so be prepared to give the other party some added value with the goal of receiving something in return.
• Achieve proposal, agreement and reaffirmation of the deal. That is, to achieve a specific consensus that has to do with who, what, where and when.
For a successful negotiation preparation, the following elements should be taken into account:
1. Location of the group in the negotiation task:
• What is to be achieved
• Why it is intended to be achieved.
• Interests in conflict. Matching interests.
2. Objectives of the negotiation:
• What has to be achieved.
• What you would like to achieve.
3. Information about the counterparty:
• Members: positions, cultural level, style and background.
• Power of the negotiators.
• Strengths and weaknesses.
• Attitudes in sustained communication with the negotiating group.
• Forecast of your trading objectives: order of priority.
• Forecast of the results to be achieved: order of importance.
• Definition of the information to be provided
• Estimate when misinformation will work.
4. Planning: Preparation of the action plan (strategy) to achieve the objectives. As well as the concrete measures (tactics).
• Decision of the general approach to the negotiation: attack, wait, rely on power, etc.
• Decision of the position to keep and initial offer. Flexibility level.
• Setting the scene: an environment that favors the desired tone of the negotiation; place, attentions, services, etc., that help create an environment according to the selected strategy, the level of negotiation and the image that is intended to be projected.
5. Definition of the Work Agenda:
• Place and time of the meeting, conditions, context.
• Agenda: matters to be discussed in order of importance.
• Desired results in order of priority.
6. Roles: Definition of the roles of the team members for the beginning of the negotiations. Review at the end of each work session. At the time of the negotiation, the proposals and conditions should be presented as broadly and clearly as possible, ask pertinent questions and offer exchanges of information, which will allow determining the points in which the counterpart agrees as well as those in which that is not agreed. Some experts consider it prudent to wait for the other party to make the first offer. For them this is a fact that will show the degree of interest of the opponent and their hiring range, which puts the negotiator in a position of power. However, various analyzes suggest that,conversely, the negotiators who make the first offer may be in the advantageous position. "In highly ambiguous and uncertain situations, early offers have a great 'anchoring effect' because they exert a strong pull on the rest of the deal," says Adam D. Galinsky, professor at Northwestern's Kellogg School of Management. University. According to the author, making the first offer puts the negotiator in a great position as it shows self-confidence and a sense of control at the table. For him, the initial offers usually set the conditions and guidelines on which the negotiation terms that will lead to the final agreement will be defined.early offers have a great 'anchoring effect' because they pull heavily on the rest of the deal, ”says Adam D. Galinsky, a professor at Northwestern University's Kellogg School of Management. According to the author, making the first offer puts the negotiator in a great position as it shows self-confidence and a sense of control at the table. For him, the initial offers usually set the conditions and guidelines on which the negotiation terms that will lead to the final agreement will be defined.early offers have a great 'anchoring effect' because they pull heavily on the rest of the deal, ”says Adam D. Galinsky, a professor at Northwestern University's Kellogg School of Management. According to the author, making the first offer puts the negotiator in a great position as it shows self-confidence and a sense of control at the table. For him, the initial offers usually set the conditions and guidelines on which the negotiation terms that will lead to the final agreement will be defined.Initial offers usually set the conditions and guidelines on which the negotiation terms that will lead to the final agreement will be defined.Initial offers usually set the conditions and guidelines on which the negotiation terms that will lead to the final agreement will be defined.
In the relationship with the client, it is essential to think about the results that the negotiation will have in the long term. Remember that making offers and promises without analyzing ability to deliver are critical to future approaches. It is essential to be very prudent in terms of prices and rates, since contrary to what you may think, this cannot be one of the items that most worries the counterpart. Concentrate on what you want to offer and how to fulfill the agreement. With this, the items on which the relationships are to be established are set.
11. Concluding
When negotiating with another culture we must bear in mind the following:
Adapt yourself and understand how the other person is and what he wants, without overruling his values and cultural aspects, understand that we see the world differently. Understand differences in negotiating behaviors and attitudes.
By clearly making cultural differences explicit. Understand the peculiarities of the other, do not despair.
Show respect and tolerance. Maintain objective criteria, act according to the cultural aspects and beliefs of the other.
Understand the interest behind the position, See what are the interests that motivates the other party.
Do not assume that they think the same as us or that they have the same scale of values.
Do not take attitudes or words as personal attacks.
Evaluate the alternatives by not being of the parties.
Satisfy the other's need without questioning and criticizing their values. Control your counterattack reactions to culture shock. Be tolerant, respectful, and kind within the cultural setting. You have to learn to say "NO".
12. Bibliography
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CAHIER de Recherche «The negotiating style of Latin Americans. A qualitative investigation », in Management International, ESC Toulouse, 1998.
COLCIENCIAS and CORPORACIÓN QUALITY. «Intercultural negotiations», in Management Dialogues, Bogotá, 1999.
DANNY ERTEL Negotiation 2000. Mc Graw Hill Editions, Bogotá 2002.
GERALD Niuremberg. The negotiator Eficaz Ediciones Grijalbo. Mexico 2000.
Hall Edward. The silent language. Alianza Ed. Madrid. 1989.
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OGLIASTRI Enrique. The Japanese system of negotiation. The experience of Latin America, Bogotá: Mc Graw Hill and Ediciones Uniandes, 1992 Revised edition: Tercer Mundo, 1996
OLIVIER, D. 101 ways to negotiate effectively. Mexico: Editorial Panorama. 2001.
PALACIOS PJ Advanced negotiation techniques. Spain: Editorial Netbiblo, 2008.
Valls, A. Negotiate, Enjoy and Earn. 2nd. Edition, Barcelona, Spain: Editorial AMAT 2008.
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www.epconsultores.com Clash of cultures. By: Eduardo Press www.gestiopolis.com Globalization, emigrations and interculturability. By Matew Martinez, IQS
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