Business negotiation process: a case of Indian firm and Chinese hosts

 1.0. Introduction

When businesses negotiate with Chinese firms, they normally face a number of challenges that range from the initiation process to smoothing communication in order to create long-term relationships and mutual trust; from bargaining and drafting agreements to securing the overall implementation of the business (Perkowski, 2011). Negotiation with Chinese businesses can sometimes be an experience with a warm host and friend, while in some cases, it can be an experience with tough bargainers. There are certain unique Chinese cultural elements like complicated local etiquette, decision-making processes that are obscure, and a high level of reliance on interpersonal relationships as opposed to legal instruments that are featured in many other business negotiation processes (such as those of the western world) (Perkowski, 2011). In view of the above understanding, this paper aims to analyze the business negotiation process with an Indian firm and Chinese hosts.

2.0. The Influence of Cultural Profile on Negotiation

By definition, culture is a person’s way of life. It is the way a given set of individuals residing within a given locale undertake their daily activities. Just like the people themselves, culture can be different from one locality to another. Therefore, what is acceptable within a given culture might be taboo to another. For instance, while the Chinese enjoy pork as part of their daily delicacies, pork is a prohibited delicacy in the Arab world due to Islamic teachings against it. On the same note, while Indians appear to be more vegetarians and avoid eating cows (as they are considered gods), the Chinese appear to be more carnivorous, and cows are a common meat source there (Sebenius, Assess, Don't Assume, Part I: Etiquette and National Culture in Negotiation, 2009).

From the above analysis, it is evidentially clear that businesses will also feature a varied cultural set, which the individual companies will need to understand and meet in order to be successful in both the negotiation process and business operations in another culture. When it comes to the Chinese business culture, more Confucianism is exercised. According to Confucianism, business partners are more of a family than outsiders, and relationships are long-term oriented (Sebenius, Assess, Don’t Assume, Part I: Etiquette and National Culture in Negotiation, 2009). That is to say, if the Indians are negotiating for short-term huge gains as opposed to long-term sustainable performance, or applying formal approaches as opposed to informal business etiquettes, then issues are bound to arise in the negotiation process. Therefore, understanding the cultural profile of any given country is important because it will allow the negotiators to better define their negotiation process and methodology, ensuring that the whole process is made smooth (from the initiation to full implementation). This is key for maintaining quality communication with the Chinese hosts, as highlighted in this case.

30. How to Navigate Intercultural Roadblocks for Business Success

In the face of cultural impasses, the best approach will be to retreat and re-strategize. For instance, the halt in communication between the Chinese hosts and the Indian company can be addressed by the Indian company retreating and re-strategizing. By retreat, they will need to go back and study the reasons for such issues (which in this case are due to cultural differences) and by re-strategizing, they will need to develop better ways to eliminate these issues (negotiating in line with the Chinese business culture) (Sebenius & Qian, Cultural Notes on Chinese Negotiating Behavior, 2008).

3.0 In conclusion

In conclusion, culture is an important aspect of business success in any given environment. This is because culture defines the way businesses are undertaken, and companies desiring to internationalize must ensure that they understand the culture of their host country.

References

Perkowski, J. (2011, 3–28). Negotiating in China: 10 Rules for Success https://www.forbes.com/sites/jackperkowski/2011/03/28/negotiating-in-china-10-rules-for-success/# 5d1bbb857b35

Sebenius, J. K. (2009, 121). Assess, Don’t Assume, Part I: Etiquette and National Culture in Negotiation. http://www.hbs.edu/faculty/Publication%20Files/10-048.pdf retrieved from Harvard Business School

Sebenius, J. K., & Qian, C. J. (2008, 12 24). Cultural Notes on Chinese Negotiating Behavior. Retrieved from Harvard Business School: http://www.hbs.edu/faculty/Publication%20Files/09-076.pdf