Cross Cultural Business Negotiations (United States and Japan)

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MSc. Managing Across Cultures
MAC- 712-1401
VSE

Abstract
Understanding Cultures and acquiring skills necessary to make a cross cultural business negotiation a successful and pleasant experience for both parties involved requires much more than just the overview of the culture and it becomes hard because of the complexity of the culture to grab the entire core of a foreign culture without investing enough time and effort into it, however initial understanding of the concepts can be a good start. General perception is that American business men or managers at times feel out of their comfort zone when negotiating with their Japanese counterpart because of the behaviours demonstrated by Japanese which are, just like any other culture, are simply based on their assumptions , beliefs, norms and customs which are unfamiliar to other party. Understanding the cross cultural aspects are highly beneficial for either of the parties involved and can highly facilitate communication by decreasing the chance of any possible misunderstanding. Either Americans or Japanese both have tendency to bring their own cultural background with them while negotiating which of course affects the behaviours and ultimately the end result. American and Japanese cultures hardly have any similarities so clashes caused by cultural differences are inevitable for example what may be considered acceptable by the standards of one party might not be acceptable by the standards of other. This makes understanding the cultural issues and behaviours in depth more important especially for Americans if they plan to negotiate with Japanese because Japanese might not give any direct clue about where the negotiation is heading as Americans expect from other American managers during business negotiations. In this paper many cross cultural areas based on different models are discussed which helped us to identify the similarities and differences between these cultures, understanding of these similarities and differences can help managers to formulate right strategies to achieve maximum output from the negotiation process and make cross cultural interactions and negotiations a pleasant experience for both parties involved.

Cross Cultural Business Negotiations (United States and Japan) In today’s global world, businesses are continuously expanding all over the world. For the business world, there are no boundaries or borders. Companies are always moving to new places and finding new business opportunities, new business partners. And in this search, they are often expanding their business across countries. Although, companies are adopting an international approach and partnering with other companies across borders, in this process they have to cope with the cultural differences of different countries. Talking about American and Japanese business culture, there are huge differences between the two. If an American businessman decides to do with business with any Japanese company, he will have to plan and prepare for his meeting extensively. First, let’s talk about the differences in American and Japanese culture. GLOBE Study was able to establish nine cultural dimensions which allowed capturing the differences and similarities between different societies and cultures in the basic nature of it, which consists of behaviours and artefacts, different beliefs and values a particular society have, interpreting patterns and assumptions. It allowed GLOBE to create country clusters. Now According to GLOBE’s country clusters U.S.A is in Anglo cluster whereas Japan is in Confucian cluster and differences become greater as the distance between clusters increase. Anglo and Confucian cultures are almost on the opposite sides. This means they hardly share similarities in context of dimensions given by Hofstede. Power distance is first and recent trends suggest that Japan has just now started making its place near the world average in...
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