Negotiations are used when two companies seek to reach an agreement that will be considered as fair and beneficial to both parties. Negotiations are common in matters of procurement or marketing whereby a good deal is sought so that the supplying company makes a profit, and the buyer saves some money from a transaction. In a deal involving the supply of ICT services, the supplier would seek to convince the buying organization that their services are the best in the region and so are worth the price stated.
The buying organization, on the other hand, would seek to bargain so that they can get fair prices from the supplier even though the services sought are of high quality. In such negotiations, the nature of the process would depend on where they take place. This report compares and contrasts negotiations carried out in the US and Korea.
Negotiations may appear easy but are indeed complex processes. This is why the parties taken to the negotiation table have to be witty, smart, and individuals of integrity. These attributes help them understand the process, moods, and personality of the opponents.
The titles of the people present in the negotiation include the company secretary who will address legal matters, procurement personnel, and a finance representative to confirm if the cost of doing business is affordable to their organization. This personnel would enable the process to be conducted effectively so that promises and threats can be responded to by the appropriate individuals.
For instance, if a promise to make a payment within 30 days is made, it should come from the finance representative who knows if the funds will be there by then. Threats can be responded to by the company secretary who knows the legal terms of contracts. This is relevant because Americans make many promises and threats as compared to Koreans when bargaining.
Cultures affect how negotiations take place around the world. This is because culture influences how people think and behave. For instance, people in the US have differing views, opinions, and expectations as compared to people in Korea. These differences arise majorly because of the geographical distance that exists between these two countries. It is highly unlikely that businessmen from these two countries will behave the same way considering they do not even speak the same language.
For instance, the nonverbal behaviors between people from these two countries differ greatly. Koreans have no silent periods between conversations while Americans keep quiet several times while conversing. This implies that people from the US tend to listen more during negotiations as compared to Koreans.
Because of the cultural characteristics, negotiations in the US would be conducted in a board room since Americans tend to be serious when it comes to business. This is evident because fewer interruptions occur during negotiations of people from the US as compared to Koreans.
Americans also look at their opponents faces more than Koreans do, which implies that they concentrate more on the negotiation process. Negotiating in the board room would work well in the US, given that Americans tend to take negotiations very seriously, making it part of the formal functions of personnel.
On the other hand, negotiations in Korea ought to be carried out in a conference room that is located near a restaurant. This is because Koreans tend to speak a lot when bargaining, meaning that the venue ought to be conducive for such conversations since there are no silent periods. They also do not look at their opponents’ faces as much as Americans do and allow many interruptions during negotiations.