Negotiating International Business - Japan

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Negotiating International Business - Japan by Mind Map: Negotiating International Business - Japan

1. This country, with its history as an isolated ‘Island Nation,’

1.1. is culturally very homogeneous and commonality of customs is considered highly desirable

2. Relationships and Respect

2.1. Building lasting and trusting personal relationships

2.1.1. is therefore critically important.

2.2. Individual preferences are less important than having a sense of belonging to a group,

2.2.1. Business relationships in Japan may exist both at the individual and at the company level

3. Other Important Things to Know

3.1. Formal, conservative attire is important when doing business here.

3.2. Business meals and entertainment, in particular dinners

3.2.1. Karaoke evenings, and other evening events

3.3. Refusing to participate in these activities

3.3.1. you are not seriously interested in doing business with your counterparts.

3.4. Cigarette smoking is very common in Japan.

3.5. Do not open gifts in the presence of the giver unless your host did so first.

3.6. Topics to avoid in conversation

3.6.1. Japan’s relationships with South Korea and especially with China.

4. Women in Business

4.1. Japan is still a strictly male-dominated society

4.2. Some companies retain very traditional

4.2.1. others try to be more accommodating to women.

4.3. Most Japanese men are not accustomed to working with business women.

4.4. A business woman will probably be treated better and get more information

4.5. They should exercise caution and act professionally in business and social situations.

5. Negotiation

5.1. Attitudes and Styles

5.1.1. negotiating is usually a joint problem-solving process.

5.1.2. The primary negotiation style is cooperative and people may be open to compromising

5.2. Sharing of Information

5.2.1. Japanese seek to find the other side’s weaknesses.

5.2.1.1. they will likely investigate your claims before responding

5.3. Pace of Negotiation

5.3.1. immense attention paid to details throughout all stages.

5.3.2. slowing down the process could indicate that they are not interested in doing business with you.

5.4. Bargaining

5.4.1. The Japanese negotiation style is very formal and tolerates

5.4.2. The Japanese are used to bargaining but often frown upon haggling.

5.5. Decision Making

5.5.1. companies tend to be very hierarchical

5.5.1.1. group process through which consensus is established

6. Initial Contacts and Meetings

6.1. identify a highly respected local person with whom you have or can establish a good relationship.

6.1.1. An intermediary should not be part of either one of the parties involved in the business interaction.

6.2. require a team of negotiators instead of relying on a single individual.

6.3. schedule meetings at least three weeks in advance.

6.4. At the beginning of a meeting, there is usually a little talk.

7. Communication

7.1. Most local businesspersons, even younger ones, do not speak and understand English well

7.1.1. In some cases, it is necessary to have an interpreter.

7.2. Japanese businesspeople usually speak in quiet, gentle tones.

7.3. Loud and boisterous behavior may be perceived as a lack of self-control.

8. Agreements and Contracts

8.1. They may get signed by both sides to indicate agreement.

8.2. by clearly stating all terms and conditions they agree with

8.3. Using a local attorney, rather than a western one, is viewed favorably.

8.4. Signed contracts will be honored.