+Cross-Cultural Communication & Negotiation

Carlos Kichul (Warren)

Dong Woo

+Topics The Overall Communication Process

Communication Flows

Communication Barriers

Achieving Communication Effectiveness

Managing Cross-Cultural Negotiation

Case: Coca-Cola in India

+Objectives

Learn how explicit communication differs from implicit communication. Show examples of cultures that make wide use of explicit communication and implicit communication.

Discover why nonverbal communication is a barrier to effective communication.

Find what basic steps a company new to the international arena negotiating an agreement with a potential partner in an overseas country should prepare to implement.

Understand what elements of the negotiation process should be done with only your group and what events should take place with all sides present.

+Importance of Verbal Communication http://www.youtube.com/watch?v=3bMNvogJfOo&feature=relat

ed

+The Overall Communication Process Communication

The process of transferring meanings from sender to receiver

Verbal communication styles Context is information that surrounds a communication and

helps convey the message Messages are often highly coded and implicit in high-context

societies, such as Japan and many Arab countries The message is explicit and the speaker says precisely what

he or she means in low-context societies such as the United States and Canada

+ Explicit and Implicit Explicit and Implicit CommunicationCommunicationHigh-context/implicit

communication cultures

Low-context/explicit communication

cultures

Germans

Swiss Germans

Scandinavians

North Americans

French

English

Italians

Latin Americans

Arabs

Japanese

Adapted from Figure 7–1: Explicit/Implicit Communication: An International Comparison

+

Table 7–1Major Characteristics of Verbal Styles

Verbal Communication Styles

Indirect vs. direct

IndirectDirect

Implicit messagesExplicit messages

Collective, high contextIndividualistic, low context

Succinct vs. elaborate

Elaborate High quantity of talk

Moderate uncertainty avoidance, high context

Exacting Moderate amount of talk

Low uncertainty avoidance, low context

Succinct Low amount of talk High uncertainty avoidance, high context

Cultures in WhichMajor Interaction Focus

Characteristic It Verbal Style Variation and Content Is Found

+

Table 7–1Major Characteristics of Verbal Styles

Verbal Communication Styles

Cultures in WhichMajor Interaction Focus

Characteristic It Verbal Style Variation and Content Is Found

Adapted from Table 7–1: Major Characteristics of Verbal Styles

Contextual vs. personal

Contextual Focus is on the speaker and role relationships

High power distance, collective, high context

Personal Focus is on the speaker and personal relationships

Low power distance, individualistic, low context

Affective vs. instrumental

Affective Language is process oriented and receiver focused

Collective, high context

Instrumental Language is goal oriented and sender focused

Individualistic, low context

+Verbal Communication Styles

+Communication Flows

Downward communication Transmission of information from superior to subordinate Primary purpose of downward communication:

conveying orders and information Managers use this channel for instructions and

performance feedback The channel facilitates the flow of information to those

who need it for operational purposes

+Communication Epigrams

Adapted from Figure 7–2: Communication Epigrams

+Communication Flows

Upward communication Transmission The transfer of meaning from

subordinate to superior Primary purpose of upward communication:

Providing feedback, asking question, or obtaining assistance from higher-level management

+Discuss

How does explicit communication differ from implicit communication? What is one culture that makes wide use of explicit communication? Implicit communication? Describe how one would go about conveying the following message in each of the two cultures you identified: “You are trying very hard, but you are still making too many mistakes.”

+Communication Barriers

Language Barriers Cultural Barriers Perceptual Barriers

Advertising Messages, View of Others

The Impact of Culture Cultural Values, Misinterpretation

Nonverbal Communication Kinesics, Proxemics, Chronemics, Chromatics

http://www.youtube.com/watch?v=noUyaoGlvBg

http://www.youtube.com/watch?v=GSkoySnnAls

Language Barriers Video

Exercise

1st Game - Nonverbal Language

2nd Game - Language Barriers

Start Answer

HeadBack

Start Answer

+

Intimate distance 18”Personal distance 18” to 4’

Social distance 4’ to 8’

+Discussion

Why is nonverbal communication a barrier to effective communication?

For U.S. companies going abroad for the first time, which form of nonverbal communication barrier would be the greatest, kinesics or proxemics?

+Achieving Communication Effectiveness

Improve Feedback Systems

Provide Language Training

Provide Cultural Training

Increases Flexibility and Cooperation

+Managing Cross-Cultural Negotiations Distributive vs. Integrative negotiation

Negotiation Process: Planning Interpersonal Relationship Building Exchanging Task-Related Information Persuasion Agreement

Chinaa.‘Negotiations in China are best conducted on a one-on-one basis, since people generally prefer getting to know you well.’

oTrueoFalse

a.'Chinese banquets tend to be lengthy and tiresome, but it is ok to excuse yourself politely if you need to be well rested for the following day's interactions.’

oTrueoFalse

Quiz

Francea.'French negotiators may start debating your first agenda point even after you already covered and agreed on the first five points.’

oTrueoFalse

a.'As the French are proud of their lifestyles, don't be surprised if someone quickly invites you to his or her home. They love 'showing off' a little.’

oTrueoFalse

Germanya.'When engaging in business negotiations in Germany, it is a good idea to avoid last-minute changes.’

oTrueoFalse

a. 'Germans pay much more attention to the underlying ideas and intentions of a presentation than to the details of what is being shown.’

oTrueoFalse

Indiaa.'Indian negotiators will make it clear when they don't like your proposed terms.’

oTrueoFalse

a.'In India, it's ok for bosses to be authoritarian as long as they are competent in their work area.’

oTrueoFalse

Japana.'When presenting to a Japanese audience, expect several interruptions because they will want to discuss all the details.’

oTrueoFalse

a.'It is easy to pick out the decision maker when meeting with a group of employees of a Japanese company.’

oTrueoFalse

Spaina.'When presenting in Spain, expect people's attention to span only about 20-30 minutes.’

oTrueoFalse

a.'When meeting someone in Spain for the first time, emphasize your position and title. Spaniards pay a lot of attention to such aspects.’

oTrueoFalse

+Managing Cross-Cultural Negotiations (cont.) Negotiation Tactics:

Location Time Limits Buyer-Seller Relations

Negotiating for Mutual Benefit: Separating the People from the Problem Focusing on Interests over Positions Generating Options Using Objective Criteria Standing Ground

+Managing Cross-Cultural Negotiations (cont.) Bargaining Behaviors

Use of Extreme Behaviors Promises, Threats, and Other Behaviors Nonverbal Behaviors

+Discussion

If a company new to the international arena was negotiating an agreement with a potential partner in an overseas country, what basic steps should it be prepared to implement? Identify and describe them.

What elements of the negotiation process should be done with only your group? What events should take place with all sides present? Why?

+Case: Coca-Cola in India

Business activity undervalued in India. Values leisure.

Coke and Pepsi invested nearly $2 billion.

Villagers worried about contamination.

Health minister of Kerala, India banned Coke and Pepsi.

Coca-Cola went to court and ban was lifted, but sales still suffered.

+Discussion

What aspects of U.S. and Indian culture may have been a cause of Coke’s difficulties in India?

How might Coca-Cola have responded differently when this situation first occurred, especially in terms of reacting to negative perceptions among Indians of Coke and other MNCs?

If Coca-Cola wants to obtain more of India’s soft drink market, what changes does it need to make?

How might companies like Coca-Cola and PepsiCo demonstrate their commitment to working with different cultures and respecting the culture and natural environment of those societies?