CROSS-CULTURAL ISSUES

IN NEGOTIATIONS
JAPAN
 Agenda

 Introduction

 The Culture

 Implications for Negotiation

 Post Negotiation
 Agenda

 Introduction
 The Culture

 Implications for Negotiation

 Post Negotiation

R
 Introduction

Not sufficient to only know language; critical

to understand crucial differences in cultural
values
 Agenda

 Introduction

 The Culture
 Implications for Negotiation

 Post Negotiation
 Business organization
 Hierarchical and Bureaucratic

 High degree of harmony and cooperation

 Key focus on quality

 Information oriented

Focus on building long term relationships and

emphasize on long term benefits
 Seniority system
 Based on factors like age, sex, family name, occupation,
physical features and birthplace

 Titles are extremely important - signifies prestige and

respect

 Hierarchy legitimates the use of power

Japanese will always examine relative

positioning in negotiation
 Decision making
 Centralized

 ‘Ringi’ system – all members involved in the process

 Often slow – unwillingness to take risk and avoids on the

spot decision making

 Long term perspective

Try to deal with higher ranks and in groups,

factor in delays
 Other aspects
 Punctuality- always be on time

 Indirectness critical in communication and avoid

conflicts

 Private people and uncomfortable with physical contact

 Japanese less pressured by deadlines, slowdown as

complications develop – threatened by stressful
situations
Avoid excessive assertiveness, may be viewed
as aggressive
 Agenda

 Introduction

 The Culture

 Implications for negotiations

 Post Negotiation
 Pre-negotiation
 Meet socially before beginning formal negotiation –
avoiding social conversation may lead to bad impression

 Establish and maintain harmony (Wa) – important

aspect of Japanese social life

 Exchange of business cards (Meishi) - use both hands,

spend 20-30 seconds on examining their card R
P

Emphasize on building trust and long term

relationship
 Information exchange
 Wait for counterpart’s signal before starting negotiation

 Japanese are information oriented - offer detailed

explanations before making actual proposal

 Ensure to discuss long term generalized goals

 Use informal channel of communication to get the true

feeling of the Japanese

Be patient and persistent and ready with

information!!
 Persuasion
 Patience and intelligence in collecting information
without giving anything away is their style of
negotiation

 Avoidance strategies like non verbal expressions and

silence used often – negotiator should not appear
desperate
RP
 Avoid using aggressive tactics and threats. Negotiator
asking for high price may destroy the trust built

Maintain “Wa” at all time

 Concession and agreement
 Make the first proposal and receive counter proposal –
focus on reciprocity

 Japanese examine all issues simultaneously in a more

holistic approach

 Concessions are made only near the end of the talks

and usually all at once – basic goal of long term mutual
benefit

 Customary to give the buyer a discount (called sabitsu)

when agreement is reached - to demonstrate friendship
Settle
and overall agreement first and then
sincerity
details
 Agenda

 Introduction

 The Culture

 Implications for negotiations

 Post Negotiation
 Post-negotiation
 Fundamental approach is to emphasize the relationship
being created

 Specific items of a contract always open to

renegotiation if the circumstances change

 Signing manifested by ceremonial meetings and

exchange of gifts

Emphasize win-win situation and help

increase the size of the pie
 Munches!!
 Over 90% of the Japanese population buys a comic-
magazine daily

 Frogs are the symbol of good luck in Japan

 Japanese drink tea with almost every meal

 Heavy traffic – In Tokyo, a bicycle is usually faster than

a car for most trips up to 50 minutes

Emphasize win-win situation and help increase the size

of the pie