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International Business Negotiation

Kyat and Syseca

Alejandra Vélez

on 23 November 2012

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Transcript of International Business Negotiation

Acquisition of Kyat (Spanish) by Syseca (French) Case summary Analysis of this case General cultural profile of the french High Power Distance
Highly individualistic
It is a relatively feminine culture
High uncertainty avoidance
Short-term society
Polychronic Impact of culture on French negotiation style General cultural profile of the Spanish French negotiator profile Power distance in a middle-high point
Collectivists in comparison with other european countries, individualists in comparison with other world regions
Nor a masculine or a feminine society - Consensus
High uncertainty avoidance
Polychronic Impact of culture on Spanish negotiation style Spanish negotiator profile Why was this acquisition a success? Good understanding of cultural differences Relationship Different cultural backgrounds create different negotiating styles Culture
can influence people by Conditioning one's perception of reality Projecting meaning to other people's words and actions Blocking out information inconsistent with cognition formed from their cultural background Cross-cultural negotiators bring together: Why do we need "culturally aware" managers? Unfamiliar and potentially conflicting sets of categories, rules, plans and behaviors
Different expectations regarding the social setting of the negotiation
Extend to styles of decision making and logical reasoning. Time Individual vs. collective behavior Pattern of communication Emphasis on personal relations Trust What can international negotiation students learn concretely from this case? Differences between French and Spanish negotiation styles Sees the negotiation process as an intellectual challenge
Rational and logical
Nationalistic. Prefers to negotiate in French
Distrustful, wary - Trust emerges slowly
Considers change as stressful
Task focused
Very direct when communicating their ideas
Dialogue to resolve conflicts
Expect some status and intellectual capacities from their counterparts Social
Does not like giving negative feedback
Likes working in teams
Avoid confrontation
Takes its time in the negotiation process
Considers long relationships with partners important
Enjoys bargaining By: Kevin Cross
Eun Hye Shim
Felipe Rumié
Alejandra Vélez Thank you Attitude towards the counterpart is very formal
The information flow is hierarchical. Information = Power
Relationship with work is contract based
The communication is direct, they voice out their opinions even more if they do not agree
Prefers small negotiating groups
Do not have a backup plan Meals are for socializing and not for closing deals
Prefer to socialize before negotiating
Take their time in negotiations
Consider rush as inappropriate
Holistic approach: They may jump back and forth between topics rather than addressing them in sequential order
Information is not easily shared Negotiating strategies, tactics and styles are hardly shaped by culture.
It is important to take into account the counterpart's culture if a successful negotiation is desired, thus understanding and respecting values, beliefs and attitudes is of high importance.
It is fundamental to see cultural differences as a positive element that can bring good and unique results for all the parties.
Today's world business dynamics demand international negotiators capable of taking advantage of the cultural differences and creating a successful output from any negotiation.
Overall, it is possible to believe that the merging of two companies from different cultures can be successful if patience, an open mind and a proper understanding of cultural differences is achieved. French company: Syseca - Information systems and services company. $220 M. annual sales and 2300 employees.
Spanish company: Kyat - Information services company, 250 employees and $11 M. in annual sales.
Syseca acquires Kyat, but the process evidenced cultural differences that had to be properly managed in order to have a successful result.
There are some rules that are necessary to take into account if success is to be achieved in a multi-cultural negotiation. Take time to learn about the other party's culture
Be open minded
Form good communication lines
Use good strategy
Choose a business partner who's management style compliments the current style
Do not assume cultural stereotypes to be real French Spanish "A meeting of minds"
Rhetorical, Cartesian, intellectual
Carefully prepared, logical presentation of the position
Contract = Well reasoned transaction
Trust emerges slowly
"A meeting of people"
Personal, relationship orientation
Importance of social competence
Contract = Long-lasting relationship
Trust develops on the base of warm interpersonal contact
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