Negotiation approaches and strategies

Negotiation Approaches

Suppose that a Japanese company would like to sell supplies to an American company and to negotiate the deal, the Japanese company sends over a representative. How should the Japanese representative conduct himself in negotiating the deal while in United States? And suppose through the course of the deal, the American company sends a representative to Japan for further negotiations, how should the American negotiate with the Japanese?

According to Suplico (2002), American's negotiation style is very informal. This style of negotiation is reflected in their manner of speaking. Suplico (2002) said that Americans "exude a relaxed and carefree attitude" compared to the negotiators from other cultures. It is therefore necessary for the typically formal Japanese negotiator to adapt to the American way of negotiating by trying to be "energetic, confident, and persistent" (LeBaron, 2003). Americans are also known for being straight to the point and for conducting deals that are fast-paced. The Japanese negotiator should prepare himself to adjust to this negotiation model. He should remember to be straight to the point, direct, expressive, and to not worry about establishing a relationship first before closing a deal, as Japanese usually do in their country (Suplico, 2002). The Americans are also known for their open-mindedness and their openness to criticisms, which the Japanese aren't used to. Hence, the Japanese negotiator should also prepare himself for this. He should be open to criticisms and to some disagreements while negotiating. The Japanese should also be aggressive in negotiating with the Americans since American negotiators are known to be aggressive. LeBaron (2003) also said that "American negotiators tend to concentrate on one problem at a time," which might be something new to the Japanese negotiator who is used to package negotiation (Suplico, 2002). Thus, the Japanese negotiator should also prepare himself to negotiate the deal item by item. Finally, negotiated deals in United States are closed and certain, whereas in Japan, negotiated deals are usually open-ended and flexible (D'Herbais, et al., n.d.) so the Japanese representative should know that the flexibility in Japanese deals are not to be expected in the United States.

Meanwhile, the Japanese negotiation model is known to be quite different from the way Americans negotiate. Japanese companies values establishing relationships in the process of making a deal (Suplico, 2002) and this is the primary reason why negotiations between Japanese companies tend to have long preliminaries. The first impression is said to be important for the Japanese. According to a case study on Japanese negotiations that D'Herbais, et al. wrote, "a good impression from the start is everything. If you mess it up in the beginning, you can forget your deal." The American representative should know that Japanese negotiators think that it is rude to take a seat before a Japanese negotiator does. Therefore, the American should only take a seat only after the Japanese have taken a seat (D'Herbais, et al.). The Japanese are known for being frequently silent during deals (Graham, 1993), and the American should get used to this. If he has nothing important to say, it is best to keep silent. Japanese are known to be reserved and indirect so it is necessary for the American to restrain himself from his usual aggressive manner in negotiating and to avoid being direct and expressive. The American negotiator should remember that deals in Japan take a long time to negotiate so it is important the American learn to be patient.