CHAPTER 5

MANAGING CROSS-CULTURAL NEGOTIATION AND DECISION

MAKING PROCESS
Managers not only have to deal with the complexity of crosscultural , but also required to be able to negotiate with government
agencies.

Failure to negotiate can have a

major impact on companies.

Managers need to know the cultural background and motivation

underlying the negotiation implementing both in terms of tactics
and procedures applied.

So as to maximize the achievement of

the objectives led organization with
the manager.

Negotiations have meaning a process of discussion between two or more parties to reach an agreement
acceptable to all parties (mutually acceptable)
Negotiation Process:
a. Preparation.

Profiling of the negotiating party.

Designing actual negotiation

meeting.

Managing Negotiation
Negotiation approach by Gudykunst and Tomwy:
1. Instrumental orientation, commonly found in low
context culture
2. Expressive orientation, commonly found in high context
culture

And profile of the research was made

possible initial anticipation.

b. Build a good relationship.

For contact and build mutual trust.

Posturing, the general discussion that

leads to the next meeting formalities

Decision making process

Decisions also include the steps undertaken during the
negotiation process in the context of action - reaction ,
when to concede, and when to agree or disagree. A series
of explicit or implicit decision and decision making
interdependent.

c. Exchange information on work

relations.

Make presentations to state its

position, question and answer
session, discussion of alternative
deal

d. Persuasion.

Actual offer, starting with persuade

Negotiation tactic less savory, to

mislead negotiation partner with
deliberately

e. Concessions and agreements.

Strategies to reach the concessions.

Cultural effects in decision making process

Cultural effects on decision making in rational path
(Deresky, 2006) :
1.
2.
3.
4.
5.

Defining trouble
Collecting and analyzing data
Testing decision alternative
Determining the best solution
Applicating decision

CHAPTER 6
STRATEGIC FORMULATION
MNC requires strategic planning to improve their global competitiveness , as well as to coordinate their
operations in various parts of the world (far flung)
Some of the factors
driving the Going
International : Reactive
Causes reactive to carry
out international business
Deresky (1988):
1. The globalization of
competition
2. Trade barriers
3. Regulation and
restrictions
4. Consumer demand

Some of the factors

driving the Going
International : Proactive
Causes proactive to carry
out international business
Deresky (2006):
1. Economies of scale
2. Growth opportunities
3. Access to resources
4. Cost savings
5. Market incentives

Strategic Formulation
Process
Formulation process at the
global level is part of the
strategic management of
corporate , be hand in hand
with the process applied to
domestic firms (but more
complex)

Step-by-Step Development
Strategy
Mission and Goals
Environmental Assessment
Internal Analysis
Sources of Information
Competition Analysis
Strategic Alternatives
Analysis