Manual: Negotiating
Manual: Negotiating
Manual: Negotiating
NEGOTIATING IN
TOP GLOBAL
MARKETS
A u s t r a l i a • D e n m a r k
I r e l a n d • S i n g a p o r e
Sweden•Switzerland
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Negotiating in Top Global Markets
A Manual for Establishing International Business Connections
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Omega Cross-Cultural Connections
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TABLE OF CONTENTS
INTRODUCTION 7
CROSS-CULTURAL NEGOTIATION 9
CULTURAL CONTEXT EXPLAINED 10
1.0 AUSTRALIA 13
1.1 Background 15
1.1.1 Cultural Diversity 15
1.1.2 Australia’s Cultural Index Score 15
1.1.3 Australia is a Low Context Culture 15
1.2 The Australian Negotiator 16
1.2.1 Australians Believe in Equality 16
1.2.2 Australians are Competitive Negotiators 16
1.2.3 Communication and Conversational Norms 16
1.3 Negotiation Strategies 16
1.3.1 Build a Mutual Understanding by Discussing Interests, Not Positions 16
1.3.2 Present Facts 17
1.3.3 Be Modest 17
1.3.4 Do Not Bargain 17
1.4 Business Protocol 17
1.4.1 Initial Contact and Meeting 17
1.4.2 Presentations 17
1.4.3 Pace of Negotiation 18
1.4.4 Relationships 18
1.4.5 Agreements and Contracts 18
1.5 Conclusion 18
2.0 DENMARK 21
2.1 Background 23
2.2 The Danish Negotiator 23
2.2.1 Hofstede’s Cultural Dimensions 23
2.2.2 Cultural Context 23
2.2.3 Monochromic Time 23
2.3 Negotiation Strategies 24
2.3.1 Business Conversation 24
2.3.2 Negotiation 24
2.3.3 Bargaining 24
2.4 Business Protocol 24
2.4.1 Prior to business meeting 25
2.4.2 Meeting and Greeting 25
2.4.3 Hosting a Meeting 25
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TABLE OF CONTENTS
2.5 Conclusion 25
3.0 IRELAND 29
3.1 Background 31
3.2 The Irish Negotiator 31
3.2.1 Hofstede 31
3.2.2 Cultural Context 31
3.3 Negotiation Strategies 31
3.3.1 Gaining Trust and Credibility 32
3.3.2 Business Conversation 32
3.3.3 Negotiation 32
3.4 Business Protocol 32
3.4.1 Meeting and Greeting 32
3.4.2 Hosting a Meeting 33
3.4.3 Following a Meeting 33
3.5 Conclusion 33
4.0 SINGAPORE 37
4.1 Background 39
4.1.1 Singapore’s Cultural Index Score 39
4.2 The Singaporean Negotiator 39
4.2.1 Understanding Personal and Corporate Backgrounds 39
4.2.2 Communication Style 39
4.2.3 Negotiation Style 40
4.2.3 Cultural Influences on Negotiation Style 40
4.2.4 Kiasu Mentality40
4.3 Negotiation Strategies 40
4.3.1 Mirroring Communication style 41
4.3.2 Local Connections 41
4.3.3 Questions 41
4.3.4 Technology 41
4.4 Business Protocol 41
4.4.1 Greetings 41
4.4.2 Business Meetings 41
4.4.3 Decision Making 41
4.4.3 Agreements and Contracts 42
4.4.4 Personal Relationships 42
4.5 Conclusion 42
5.0 SWEDEN 45
5.1 Background 47
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5.1.1 Swedish Cultural Background 47
5.2 The Swedish Negotiator 47
5.2.1 Power Distance 47
5.2.2 Individualism 47
5.2.3 Masculinity 47
5.2.4 Uncertainty Avoidance 48
5.2.5 Indulgence 48
5.3 Negotiation Strategies 48
5.3.1 Face-to-Face Communication 48
5.3.2 Business Relationships 48
5.3.3 Making Contact 48
5.4 Business Protocol 49
5.4.1 Meetings and Negotiations 49
5.4.2 The Role of a Manager 49
5.4.3 Approach to Change 49
5.4.4 Approach to Time and Priorities 49
5.5 Conclusion 49
6.0 SWITZERLAND 53
6.1 Background 55
6.1.1 Swiss Cultural Background 55
6.2 The Swiss Negotiator 56
6.2.1 Hofstede’s Cultural Dimension 56
6.2.2 Cultural Context 56
6.3 Negotiation Strategies 56
6.3.1 Business Conversation 57
6.3.2 Negotiation Pace 57
6.3.3 Bargaining 57
6.4 Business Protocol 57
6.4.1 Prior to Meeting 57
6.4.2 Meeting and Greeting 57
6.4.3 Nonverbal Language 58
6.4.4 Following a Meeting 58
6.5 Conclusion 58
CONCLUSION 61
ABOUT OUR TEAM 62
APPENDIX 64
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INTRODUCTION
Tara McDermott and Demeris Morse
• Australia
• Denmark
• Ireland
• Singapore
• Sweden
• Switzerland
This manual analyzes the business communication styles of these six countries, focusing especially
on negotiation. We believe this manual will maximize the efficiency of international and professional
communication in our selected countries. By utilizing a straightforward layout, direct language, and
reliable sources, this manual offers business professionals a strategic guide to negotiating in top
global markets.
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CROSS-CULTURAL NEGOTIATION
Monica Kunz
W hat does it mean when people say they “negotiate”? Does “negotiate” mean the same thing all over
the world? Do all cultures view negotiation similarly? Generally, negotiation is a joint decision-
making process by which parties try to arrive at a mutually favorable and acceptable agreement on
matters of a shared interest. Negotiation takes place in a variety of contexts, from simple bargaining in a
marketplace to the complex process of negotiating peace between two countries.
According to Christopher Moore and Peter Woodrow,1 different cultures look at negotiations differently.
An interaction that is straightforward in the context of one culture can quickly become conflicting
because of intercultural misinterpretation. A lack of knowledge and unrealistic cultural expectation can
hinder effective cross-cultural negotiation. Even if two groups speak the same language and wear similar
clothing, one should not assume that they share similar viewpoints. In cross-cultural negotiations, groups
not only differ in physical features, language, and business protocol, but they may also differ in the way
they perceive the world.2
• Greetings
• Negotiating Styles
• Attitudes Regarding Time
• Meanings of Numbers
• Gift-Giving Customs
• Significance of Gestures
An understanding of the other party’s cultural variables will assist business professionals avoid cross-
cultural pitfalls, like shaking hands instead of bowing or scheduling a meeting on a date considered
unlucky to the other party. Preparation is the key to success. We hope this manual will provide American
business professionals with valuable information, leading to successful cross-cultural negotiations.
1
Christopher W. Moore and Peter J. Woodrow, Handbook of Global and Multicultural Negotiation, (San Francisco, CA:
Jossey-Bass, 2010), p. 8.
2
Robert Gulbro and Paul Herbig, “Negotiating Successfully in Cross-Cultural Situations,” Industrial Marketing Management,
25 (1996): 236-237.
3
Liangguang Huang, “Cross-cultural Communication in Business Negotiations,” International Journal of Economics and
Finance, www.ccsenet.org/ijef, accessed March 2015
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CULTURAL CONTEXT EXPLAINED
Demeris Morse
GERT HOFSTEDE’S CULTURAL TAXONOMY 1
United States
1
The Hofstede Center, http://geert-hofstede.com Image courtesy http://geert-hofstede.com/united-states.html
10
Demeris Morse
High-Context Cultures:1
Asian
Arab
South European
African
South American
Australian
American
Scandinavian
German
Swiss
Low-Context Cultures:
1
College of Marin, http://www.marin.edu/buscom/index_files/Page605.htm
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Demeris Morse
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AU ST R A L I A
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14
1.1 BACKGROUND • Individualism: Australia is an independent
America is currently negotiating a Trans-Pacific society. Identity is rooted in personal
Partnership to expand trade in the Asian Pacific, accomplishments and capabilities. Individuals
including Australian markets. Australia’s ideal are highly self-reliant.
location between the Indian and Pacific oceans is • Masculinity: Australia is a masculine society
central to breaking trade barriers and connecting where competition is encouraged, and a
Eastern and Western markets. The ability to “winner takes all” mentality dominates.
expand American politics and trade into Australia
• Uncertainty Avoidance: Australia is a
can improve the American economy by increasing
moderately uncertain society. The degree of
profit from exports.1 An in-depth understanding
uncertainty avoidance may depend on the
of Australian culture, negotiation, and business
targeted Australian ethnic culture.
protocol can aid in successfully negotiating a trade
partnership with Australia. • Long-Term Orientation: Australia is a
normative culture that respects traditions
1.1.1 Cultural Diversity and dislikes change. Absolute truth is the
As seen in Figure 1.1,2 Australian demography foundation for decision-making.
is composed of migrants from China, India, New
• Indulgences: Australia is an indulgent society
Zealand, and the United Kingdom.3 Australia’s
that values living a positive and optimistic
diversity contributes to its rich variety of languages,
life.5
1.1.3 Australia is a Low Context Culture
Australians rely on straightforward and direct
verbal messages to exchange ideas, information,
and opinions. Non-verbal communication such as
gestures and facial expressions are rarely used. The
written word carries more weight than the spoken
word, and documents and contracts symbolize
binding agreements. Interpersonal relationships
include large circles of friends and short-term
relationships.6
15
1.2 THE AUSTRALIAN NEGOTIATOR 1.2.3 Communication and Conversational
The preceding sections discuss qualities of Norms
Australian negotiators in terms of Hofstede’s Australia is a low context culture that regards
Cultural Index and Edwards Hall’s Theory of message content more important than message
Cultural Structure. A comprehensive understanding context. During a discussion, Australians
of Australian values and cultural norms are communicate literally and do not utilize non-verbal
imperative to understand Australian negotiation cues. During a meeting, Australian negotiators
strategies. seldom over-analyze negotiation location and
personnel to interpret implied messages. Coupled
1.2.1 Australians Believe in Equality with their direct mannerisms, Australians are
The Australian government is highly egalitarian outspoken, unreserved, and blunt. Australians
and strives to increase equality and minimize easily speak their minds and are unafraid to argue
formal rank. Australian negotiators frequently their opinions in a debate. In fact, Australian
“status level”, or take measures to decrease power negotiations frequently morph into debates, which
differences between negotiating parties. Examples Australians consider a form of entertainment.
of status leveling include the following: Typically, Australians love to banter and have
• Rejecting formal titles and positions witty, dry humor. Joking and teasing are common in
• Calling people by first or last names business settings to lighten the mood. Their humor
may seem offensive, but a business professional
• Refusing to display power differences should not take it personally.12
• Treating subordinates as equals
During negotiation, Australians will treat partners 1.3 NEGOTIATION STRATEGIES
as equals if their partners respect cultural norms. Negotiation tactics balanced with competitive and
For an Australian business professional, equity cooperative strategies can increase understanding
promotes trust and a fair negotiation.7 between parties and lead to a stronger agreement.
The following discussion specifically tailors
1.2.2 Australians are Competitive Negotiators negotiation strategies to enhance cooperation while
According to Negotiation Theory, professionals maintaining a competitive edge with Australian
can approach negotiation cooperatively or business professionals.
competitively. A cooperative approach includes
interest-based bargaining where parties find 1.3.1 Build a Mutual Understanding by Discuss-
win-win solutions to problems. Occasionally, a ing Interests, Not Positions
fixed pie, a specific amount of rewards that are Tan defines a mutual understanding as a “state that
difficult to partition equally, limits agreements. In arises from effective communication processes that
this situation, negotiators compete to attain their results in the achievement of goals.”13 A negotiator
desires and goals. Competitive negotiation takes can increase mutual understanding by establishing
a zero-sum approach where one side gains at the rapport, shifting perspective, and managing
expense of the other. As an individually oriented
8 transactions as shown in Figure 1.3.14 However,
culture, Australians are competitive negotiators according to Fisher, the best way to understand
who believe they will only profit at the expense the opposing side is to “discuss interests, not
of the other side, a phenomena known as a “fixed positions.”15 Interests represent why a negotiator
pie bias.”9 Negotiation strategies usually follow a takes a specific stance. When an Australian takes
positional approach, focusing on what they will a position, ask why. Clarify you are asking for
and will not do, what they stand to lose, and on an explanation of their well-being, security, and
what they mutually disagree.10 Overall, Australians recognition. Determining similar and differing
negotiate with a “winner takes all” attitude and interests will engage an Australian to “define
disregard understanding the opposition.11 the problem and reveal a solution.”16 Once you
demonstrate your appreciation of their interests,
16
reiterate the importance of equity would increase
the negotiator’s satisfaction with the process and
appeal to Australian collaboration.20
1.3.4 Do Not Bargain
Australians prefer fair-market pricing where both
parties equally benefit. Make your initial offer
realistic and close to what you hope to receive. A
hard exchange that makes profits and agreement
terms explicitly clear is more effective than deceit
and double-dealing. If you are unsatisfied, speak up
and be direct. Australians appreciate businessmen
who are unreserved and honest, instead of those
that save-face during negotiations.
17
stay modest and do not brag. Australian business.30
1.4.3 Pace of Negotiation
The length of negotiation is long due to Australia’s 1.5 CONCLUSION
bureaucratic corporate structure, which requires According to Hofstede’s cultural taxonomy, the
multiple steps and signatures of approval before differences between American and Australian
making a decision. Australians are monochromic,
23 cultures are small. The countries’ similar concern
meaning they do one thing at a time in detail. for individualism and equality will make it easy
The company will take ample time to ensure the for an American businessman to understand
agreement is fair and equally maximizes benefits. Australian interests. However, both negotiators
Australians take commitments seriously, which tend to take a competitive strategy to “win” rewards
guarantees your presentation is thoroughly from the other side, which can weaken American
considered. 24 and Australian negotiations. Further, the American
tendency to flaunt accomplishments makes
1.4.4 Relationships Australians cautious and guarded negotiators.
Australians spend more time accomplishing a To negotiate successfully in Australia, an
task versus building a relationship. However, a American business professional must be mindful
positive relationship is still paramount to building of Australian protocol and consider adopting
an Australian’s trust. Make sure you spend time cooperative strategies to counter Australia’s
building rapport with your partners and their competitive nature.
company during the negotiations. Corporate
Australia involves multiple decision makers, but
one high-ranking individual will make the final
decision. It is important to build a good relationship
with the executive that will have the final say.25
Australians commonly invite foreign businessmen
over for a “Barbie”, local slang for barbeque. If
you are invited, remember to bring a small gift
from your country such as wine, beer, or food.26
After the negotiation, Australians will maintain a
business relationship to uphold the contract rather
than build a stronger personal relationship.27
1.4.5 Agreements and Contracts
Low-context cultures such as Australia place more
importance on contracts than a verbal agreement.
Australians recognize interim agreements, but
signatures finalize a deal. A final lengthy contract
signed by both parties constitutes as a law-abiding
agreement.28 Different Australian provinces have
different policies with the government. Thus,
one province may not uphold a contract signed
in another. You should have an Australian lawyer
present when drafting and signing contracts to
ensure the contract is legal in other Australian
provinces.29 Australians are law-abiding citizens
and will expect your company to uphold the
contracts. Failing to uphold your part of the
agreement will be detrimental to conducting future
18
1.6 Work Cited
1
Fronman, Michael, “Unlocking Opportunity for Americans through Trade with the Asia Pacific.” https://
ustr.gov, January 2015, https://ustr.gov/about-us/biographies-key-officials, Accessed March 2015.
2
Data was excerpted from http://www.dcielts.com/Migration to Australia Figure 1.1
3
Net Overseas Migration, 2014, Annual Report, p. 3, http://www.abs.gov.au/ausstats, Accessed March
2015.
4
Data was excerpted from http://geert-hofstede.com/australia.html, accessed March 2015. Figure 1.2
5
Hofstede, Geert, “What about Australia?” http://geert-hofstede.com, December 2012, http://geert-
hofstede.com/australia.html, Accessed March 2015.
6
Olekalns, Mara, Conflict Management in the Asia Pacific (Australia; John Wiley & Sons, 2005), p. 291
7
Ibid., p. 292
8
Sprangler, Brad, “Competitive and CooperativeApproaches to Conflict.” http://www.beyondintractability.
org, July 2013, http://www.beyondintractability.org/essay/competitive-cooperative-frames, Accessed
March 2015.
9
Lothar Katz, Negotiating International Business: The Negotiator’s Guide to 50 Countries Around the
World (BookSurge Publishing, 2006), p. 3.
10
Roger Fisher and William Ury, Getting to Yes: Negotiating Agreements Without Giving In ( Penguin
Books, 1981), p. 5.
11
Lothar Katz, p. 3.
12
Olekalns, Mara, p. 291.
13
Tan, Margaret, “Establishing Mutual Understanding in Systems Design: An Empirical Study”, via
JSTOR, accessed March, 3.
14
Data excerpted Margaret Tan, “Establishing Mutual Understanding in Systems Design: An Empirical
Study”, via JSTOR, accessed March, 3, Figure 1.3.
15
Roger Fisher and William Ury, p. 55.
16
Ibid., p. 55..
17
Terri Morrison and Wayne A. Conaway, Kiss, bow, or Shake Hands, (Massachusetts: Adams Media,
2006), p. 23
18
Ibid., p. 23.
19
Olekalns, Mara, p. 292.
20
Ibid., p. 293.
21
Ibid., p. 28.
22
Lothar, Katz, p. 3.
23
Ibid., p. 25.
24
Olekalns, Mara, p. 290.
25 Terri Morrison and Wayne, A. Conaway, p. 26.
26
Ibid., p. 26.
27
Olekalns, Mara, p. 290.
28
Lothar, Katz, p. 4.
29
Camille Schuster and Michael Copeland, p. 28.
30
Ibid, p. 29.
19
Toni von Oepen
20
D EN M A R K
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2.1 BACKGROUND are not ranked as highly as they are in the United
Denmark’s modernized economy features a high- States. Danes are willing to spend on themselves
tech agricultural sector and world-leading firms and are generally known as happy, optimistic
in maritime shipping, renewable energy, and people. Some unpredictability in the workplace
pharmaceuticals. With its expanding market, low is not considered problematic, as revealed by a
corruption rate, and high dependence on foreign low uncertainty avoidance score. The only area
trade, it is an ideal country for business. Out of where the Danish significantly differ from the
146 nations, Forbes ranked Denmark as the top United States is their masculinity score. Denmark
country worldwide for business.1 However, while ranks low, meaning they are a “feminine society,”
the United States is one of Denmark’s top five in which society values the quality of life and
export countries,2 Denmark does not even rank caring for others, which is shown in Figure 2.2.
within the United State’s top 15 trading partners.3 The United States is a masculine society driven by
New business ventures in Denmark’s relatively competition, achievement, and success.5
untapped market could prove highly beneficial.
This section provides insight into Danish business
culture, negotiation strategies, and business
protocol.
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2.3 NEGOTIATION STRATEGIES 2.3.2 Negotiation
The Danes, like the Americans, are deal- Directness and honesty are key traits in
focused, meaning you do not need to establish a negotiations. It is best to open with an offer close
relationship in order to make business agreements. to what you really want and start negotiating from
Danes like to get down to business quickly with this point. Emotional negotiation techniques or
limited amount of small talk. Expect to be talking small talk should be avoided. Focus on facts, make
business in the first meeting; this is how Danes strong arguments, and provide information when
prefer to get to know their counterparts. Danes asked.14 To Danes, negotiating is a joint-problem
prefer the following values when making business solving process. They encourage and take into
negotiations: account everyone’s opinions. They believe in win-
win situations and are willing to give concessions
• Directness as long as you do as well. Do not try to negotiate
• Modesty an aggressively one-sided bargain. You should try
• Punctuality to avoid open confrontation, and instead remain
• Equality calm, friendly, patient, and persistent. If a dispute
• Efficiency does arise, focus on logical reasoning, state the
• Factuality facts, and remain open-minded.15
2.3.3 Bargaining
The Danish are modest people and you will rarely
Expect the bargaining stage of negotiations to be
hear them promote themselves or their skills.9
relatively short. Prices rarely move by more than
Simultaneously, Danes are also very direct; they
10 to 20 percent. Danes are not fond of bargaining
will not shy away from saying “no” and will
and strongly dislike haggling. Fairness is very
openly tell you if they find something inadequate.
important to them and they dislike aggressive sales
Additionally, equality in the workplace is very
techniques. Danes may use pressure techniques,
important to Danes.10 There is no hierarchical system
during which they open with their best offer and
in the workplace, and the line of command from
are then unwilling to deviate from it. Be careful
boss to employee is very short. Bosses encourage
when using similar pressure techniques, however.
employees to express opinions in the workplace
Make sure to clearly explain your offer and
and take these opinions into consideration when
avoid aggressiveness. Also, avoid using pressure
making business decisions. Strong negative input
techniques applying a time pressure, as these
from even a minor member of the company could
may backfire. Danes will also employ defensive
cause the rejection of a proposal.11
techniques while negotiating, including the
2.3.1 Business Conversation following:
Though a few minutes of small talk may be
• Asking probing, direct questions
allowed, be prepared to immediately talk business.
• Making promises
Danes prefer a straightforward, honest, but humble
• Keeping an inflexible position
approach.12 The Danish have an emotionally
reserved communication style and will understate Research your business partners extensively before
their achievements and make self-deprecating the meeting in order to field these questions and
remarks. Boastfulness or self-promotion is bring the negotiations to a logical conclusion.16
strongly discouraged as it is considered brazen and
unprofessional. You will gain trust most quickly by
remaining factual and willing to share information.
2.4 BUSINESS PROTOCOL
The business setting is generally more egalitarian
While all of your information does not need to be
and relatively informal compared to business
shared, if it becomes obvious you are withholding
behaviors in other cultures. However, you should
key facts, it will hurt your negotiation process.13
dress conservatively and remain reserved until
invited to become more informal. It is not necessary
24
to show overt signs of respect to customers and presenting the card, smile and keep eye contact.
people of higher status. The Danish have few Be sure to take a few moments to look at the card
etiquette rituals.17 you received.
2.4.1 Prior to business meeting 2.4.3 Hosting a Meeting
When making initial contact, you should always Meetings will either start with a few minutes
schedule a meeting in advance. Avoid making of small talk or get right down to business.
meetings after 4pm on weekdays and do not plan Presentations should be simple, factual, and easily
meetings for Saturdays, Sundays, or national understandable. Try to avoid overloading your
holidays. In addition, summer is a time of leisure, presentation with facts, as written protocols may
and it can be seen as inconsiderate to schedule work against you. Handout materials do not need
meetings during July and August. Many firms to be translated into Danish.
close during these two months.18
All the most important agreements and decisions
Prior to a meeting, you should send out a written should be recorded in a written summary. As
agenda. Danes will expect this agenda to be Denmark possesses a low context culture, written
followed exactly, and you should notify your and signed contracts are always preferred.20
business counterparts immediately if last minute Additionally, gift giving in normal business
changes arise. Come well prepared and be ready to settings is rare, and you do not need to bring
answer questions. 19 gifts to meetings. However, if you are invited to
a business contact’s home, bring a gift. Be sure to
2.4.2 Meeting and Greeting open gifts in front of the gift giver.21
Be sure to be punctual to every meeting as Danes
dislike wasting time. If you will be more than
five minutes late, be sure to call ahead with an 2.5 CONCLUSION
explanation. When arriving to your first meeting, Denmark exemplifies a modern, well-balanced
come well prepared as most of the discussion will economy. With large sectors in agriculture, IT,
center on business. pharmaceuticals, and renewable energy, they are at
the forefront of the worldwide market. Expanding
Greetings are casual. A firm handshake while into this market will benefit American companies,
maintaining eye contact is the norm. Danes will and awareness of Danish culture, key values,
often introduce themselves with their first name, and specific negotiation techniques will greatly
but you should refer to them by their title and facilitate the transition into this market. Danish
surname until invited to use their first name. Be business people are modest, punctual, direct, and
sure to bring ample business cards, as you will straightforward. They believe in give-and-take
exchange cards at your first meeting. There is no and are willing to make concessions if it results in
need to have the card translated. It should show your a success for both parties. Overall, the Danish are
professional title clearly, without any advanced fair and understanding business partners, and you
degrees as demonstrated in Figure 2.3. When will gain their respect and loyalty if you are direct,
honest, and factual.
25
2.6 Work Cited
1
Forbes Company, “Best Countries for Business,” http://www.forbes.com/places/denmark/, accessed
March 2015
2
Observatory of Economic Complexity, “Learn More About Trade in Denmark,” http://atlas.media.mit.
edu/profile/country/dnk/, accessed March 2015.
3
United States Census Bureau, “Top Trading Partners - December 2014,” http://www.census.gov/
foreign-trade/statistics/highlights/toppartners.html#total, accessed March 2015.
4
Lothar Katz, Negotiating International Business (Booksurge Publishing, 2007), PDF e-book, p.180-
184, http://instruction2.mtsac.edu/rjagodka/BUSM_51_Project/Negotiating/Denmark.pdf, accessed in
March 2015.
5
The Hofstede Centre, “What about Denmark,” http://geert-hofstede.com/denmark.html, accessed
March 2015.
6
Kwintessential, “Denmark - Language, Culture, Customs and Etiquette,” http://www.kwintessential.
co.uk/resources/global-etiquette/denmark-country-profile.html, accessed March 2015
7
Lothar Katz, Negotiating International Business....
8
Ibid.
9
Passport to Trade 2.0, “Business communication,” http://businessculture.org/northern-europe/denmark-
business-culture/business-communication/, accessed March 2015
10
Lothar Katz, Negotiating International Business...
11
Richard R. Gesteland, Cross-Cultural Business Behavior: Negotiating, Selling, Sourcing and Managing
Across Cultures (Copenhagen: Copenhagen Business School Press, 2005), p. 291-294.
12
Passport to Trade 2.0, “Business communication,” http://businessculture.org/northern-europe/
denmark-business-culture/business-communication/, accessed March 2015.
13
Richard R. Gesteland, Cross-Cultural Business Behavior..., p. 291-294.
14
Cross-Cultural Business Skills, “Negotiation Styles in Denmark,” http://www.minorccbs.com/skills/
negotiations/item/negotiation-styles-in-denmark, accessed March 2015.
15
Lothar Katz, Negotiating International Business....
16
Ibid.
17
Richard R. Gesteland, Cross-Cultural Business Behavior..., p. 291-294
18
Terri Morrison and Wayne A. Conaway, Kiss, Bow, or Shake Hands (Adams Media, 2006), p. 132-139
19
Lothar Katz, Negotiating International Business....
20
Passport to Trade 2.0, “Business communication,” http://businessculture.org/northern-europe/
denmark-business-culture/business-communication/, accessed March 2015
21
Passport to Trade 2.0, “Business Etiquette,” http://businessculture.org/northern-europe/denmark-
business-culture/denmarkbusiness-etiquette/, accessed March 2015
26
27
Tara McDermott
28
IRELAND
29
30
3.1 BACKGROUND reliant employees. Business life is success-oriented
The purpose of this section of the manual is and individuals are selected for promotion based
to understand Ireland as a negotiator, provide off their achievements and accomplishments.
strategies to negotiate with the Irish, and define Figure 3.1 summarizes Ireland’s ranking through
business protocol in Ireland. Ireland is one of Hofstede’s country comparisons.7
the top countries in the world for international Simultaneously, Irish business culture respects
business, ranking fourth in Forbes’ December tradition, imaginative solutions, and optimism in
2014 “Best Countries for Business” list.1 Table the workplace.8
3.12 summarizes Forbes’ analysis of Ireland and
establishes the country’s credibility for business.
Table 3.1 - Forbes Ireland statistics
GDP $221 B
GDP Growth 0.6%
GDP/Capita $41,300
Population 4.8 M
Inflation 0.6%
31
approach than the usual American business deal. and focused. Be prepared to bargain over prices,
American business meetings are usually focused and avoid pressuring your Irish business partners
on a deal or the negotiation, not the fostering into a speedy deal.22 Focus on how the deal benefits
of personal relationships. In Ireland, relaxed the Irish and frame your proposal with regard to
conversation precedes every business meeting. the Irish business environment, not the American.
You should allow plenty of time for a business If negotiations become tense or difficult, remain
transaction, and you should strive to be open calm and friendly. The Irish will not forget a slight,
and humble.12 Above all, the Irish appreciate the and you will likely not regain their trust as business
following traits in business dealings: partners.23 Instead, take a step back and re-focus
• Humility your approach on how it benefits your Irish busi-
• Directness ness partners. Approach both positive and negative
• Factuality aspects of your proposal openly and allow time for
• Warmth debate, bargaining, and discussion.24
32
3.4.2 Hosting a Meeting dealing. Business professionals should keep their
When initiating a meeting with an Irish audience, proposals brief and direct, and they should be
do not assume the audience has prior knowledge prepared to discuss dealings and bargain at length.
of the business transaction or proposal. Make Overall, the American business professional
sure your audience is aware of the details of the should remember to be humble and direct at all
meeting long before it takes place (i.e., what they times, as this will earn the respect of the Irish and
need to bring or prepare). Pubs, hotels, and offices lead to solid future business relationships.
are all appropriate venues for Irish business, and
you should call ahead to reserve space and make
sure the venue will hold the meeting attendees.28
Water and refreshments should also be provided.29
When the meeting begins, allow time for necessary
socializing, introductions, and discussion. Make
sure your audience feels welcome, and shake
hands with everyone attending the meeting.30
When speaking, keep your information brief,
factual, and direct. A secretary should record the
minutes and subjects discussed during the meeting
as well, to send out afterwards. Finally, welcome
discussion and do not interrupt your Irish audience
while they are speaking.31
3.4.3 Following a Meeting
After hosting a meeting, send the minutes, final
decisions, and signed contracts to all necessary
participants.32 As a low context culture, the Irish
value the written word over spoken agreements and
hard copies of the meeting’s results are important
to distribute. If any details need to be confirmed
following a meeting, a phone call is acceptable
and appreciated over an email.33 Finally, it is not
uncommon to go to a pub following a meeting.
If this is the case, make sure to follow your Irish
business partners’ leads and buy a round for your
associates if necessary.34
3.5 CONCLUSION
Ireland offers numerous business opportunities for
the American business professional, but preparation
prior to interacting with Irish businessmen and
women is critical. As a low context culture, the
Irish value directness and factuality in a business
transaction. Prior to the beginning of a meeting or
negotiation, time is allowed for socialization and
building of relationships and rapport. It is crucial
to be warm and humble especially in this pre-
meeting period, as well as throughout the business
33
3.6 Work Cited
1
Forbes, “Best Countries for Business,” http://www.forbes.com/best-countries-for-business/list/,
accessed February 2015.
2
Forbes, “Ireland,” http://www.forbes.com/places/ireland/, accessed February 2015.
3
Ibid
4
Observation of Economic Complexity, “Ireland,” http://atlas.media.mit.edu/profile/country/irl/,
accessed February 2015
5
The Irish Times Top 1000, “Top Companies,” http://www.top1000.ie/, accessed March 2015.
6
The Hofstede Center, “Dimensions,” http://geert-hofstede.com/dimensions.html, accessed February
2015.
7
Ibid
8
The Hofstede Center, “Ireland,” http://geert-hofstede.com/ireland.html, accessed February 2015.
9
Mary Guffey, Business Communication: Process and Product, Cincinnati, OH: South-western College
Publishing, 2009.
10
John Thille and Courtland Bovee, Excellence in Business Communication, Upper Saddle River, NJ:
Pearson Prentice, 1999.
11
Mary Guffey, Business Communication...
12
Richard R. Gesteland, Cross-cultural Business Behavior: marketing, negotiating, and managing
across cultures, Copenhagen, Denmark: Copenhagen Business School Press, 1999.
13
Ibid
14
Passport to Trade, “Meeting Etiquette,” http://businessculture.org/northern-europe/ireland/meeting-
etiquette/, accessed February 2015.
15
Ibid
16
InterNations, “Ireland’s Business Culture,” http://www.internations.org/ireland-expats/guide/
working-in-ireland-15478/ireland-s-business-culture-3, accessed February 2015.
17
Passport to Trade, “Ireland,” http://businessculture.org/northern-europe/ireland/, accessed February
2015.
18
Richard R. Gesteland, Cross-cultural Business Behavior....
19
Going Global, “Ireland,” http://www.goinglobal.com/guide-article-detail/?guide_id=67&guide_
article_id=776, accessed February 2015.
20
Passport to Trade, “Meeting Etiquette.”
21
Cross Cultural Business Skills, “Ireland,” http://www.minorccbs.com/countries/europe/item/ireland,
accessed February 2015.
22
Ibid
23
Richard R. Gesteland, Cross-cultural Business Behavior....
24
Ibid
25
Going Global, “Ireland,” http://www.goinglobal.com/guide-article-detail/?guide_id=67&guide_
article_id=776, accessed February 2015.
26
Richard R. Gesteland, Cross-cultural Business Behavior....
27
Going Global, “Ireland.”
28
Passport to Trade, “Ireland.”
29
Going Global, “Ireland.”
30
Kwintessential, “Ireland- Language, Culture, Customs, and Etiquette,” http://www.kwintessential.
co.uk/resources/global-etiquette/ireland.html, accessed February 2015.
31
Passport to Trade, “Meeting Etiquette.”
32
Ibid
33
Ibid
34
Ibid
34
35
Grace Guo
36
S I NGA P O R E
37
38
4.1 BACKGROUND 4.2 THE SINGAPOREAN
Ranking second in the 2014 World Economic NEGOTIATOR
Forum’s Global Competitiveness Report,1 Singapore’s globally integrated and technologically
Singapore possesses one of the world’s most innovative market may appear more modern
mature financial infrastructures and pro-business and westernized than other Asian countries.
environments. Singapore’s highly connective, However, its educational system, paternalistic
globalized free-market economy establishes the and bureaucratic corporate structure, high-
country as the business epicenter in the Asian context communication style, and kiasu cultural
Pacific. As Figure 4.12 shows, Singapore boasts mentality make Singaporeans rather passive and
rich ethnic diversity, and its official languages uncompromising negotiators.
include English, Mandarin, Malay, and Hokkien.3
This multicultural social dynamic requires foreign 4.2.1 Understanding Personal and Corporate
business professionals to adjust negotiation styles Backgrounds
to accommodate for the Singaporean negotiator’s Edith Ching, Professor of Business Administration
background. at the National University of Singapore, illustrates
in her article that Singapore’s examination-
oriented and “spoon-feeding” educational program
leaves little space for individuality and creativity.
Thus, Singaporeans do not advocate alternative
or personal perspectives during negotiations.6
Furthermore, early specialization in the sciences,
technology, humanities, or commerce makes
Singaporeans experts in their chosen field.
Therefore, they may be uncompromising and
unwilling to adopt different perspectives.7
4.2.2 Communication Style
While Singaporeans communicate more directly
than other Asians, they avoid direct rejection
4.1.1 Singapore’s Cultural Index Score in business proceedings. Deflective responses
According to social psychologist Geert Hofstede, such as “we will consider your demands” and
as Figure 4.2 depicts.4 Singapore is a collectivist an unwillingness to say “no” are common.
culture with an emphasis on harmony and Singaporeans sometimes smile to mask
cooperation. Power is centralized; employees are embarrassment, and it is important be aware of
expected to obey managers and executives. A nonverbal communications during negotiations.
low masculinity score in Hofstede’s American professionals should also manage their
Cultural Index indicates that
Singaporeans are modest people who
value consensus rather than competition
in the workplace. A low uncertainty
avoidance score indicates that they are
extremely factual. Singapore scores
high in long-term orientation, revealing
their high regard for perseverance and
commitment. Singapore’s intermediate
indulgence score indicates that
Singaporeans are materialistic but not
extremely indulgent.5
39
body language, as Singaporeans consider prolonged Chinese Singaporeans
eye contact with superiors as disrespectful.8 Please • Prefer thoughtful proposals outlining benefits
refer to Appendix A for a specific case study on for both parties.
cross-cultural business negotiations between an • Appreciate supporting arguments in a
American high-tech company and a Singaporean proposal.
pharmaceutical company. The case study
demonstrates the obstacles that Charles, a young Indian Singaporeans
American negotiator, experienced adjusting from • Value interpersonal relationships and
a low to a high-context culture and communication harmony.
style. • Abide by their perspectives
• Avoid compromise
4.2.3 Negotiation Style • Take risks
Singaporeans value interpersonal networks and
often give preexisting business connections Malay Singaporeans
preference when negotiating with several • Work with energy and enthusiasm
companies. Establishing friendly personal • Prefer proposals with exciting possibilities
relationships is a crucial step towards cooperative • Avoid conflicts and distressful situations
negotiations. Consistency and commitment are • Value personal and social relationships
highly valued in Singapore, and a sudden change 4.2.4 Kiasu Mentality
in negotiators may revert progress. Should a Kiasu is defined as “the obsessive concern with
disagreement occur during negotiations, remain getting the most out of every transaction and a
polite and use logical reasons to persuade rather desire to get ahead of others”.13 This mentality is a
than arguments to dispute.9 Keep in mind that a common characteristic among Singaporeans, and
meeting is usually a place to announce consensus it can dictate their negotiation style and tactics.
or proposed alterations. It is not a place to settle
debates. A study of kiasu’s impact on task performance
at Texas State University suggests that both
Singaporeans are goal-oriented, pragmatic, and “positive” and “negative” kiasu increase
straightforward negotiators; they tend to focus on competitive outcome and achievement. Positive
tangible outcomes and maximized benefits. They kiasu tactics are associated with maximization,14
are extremely practical and often conduct several as demonstrated by a Singaporean negotiator’s use
parallel negotiations to explore all business of multiple negotiations to find the most beneficial
potentials. Compared to the westernized managers contract. Negative kiasu tactics are deceitful, as
educated overseas, older and traditional Singaporean seen when a Singaporean negotiator may purposely
managers often approach a disagreement with a misrepresent certain information, enforce time
zero-sum mentality.10 Additionally, Singaporeans pressure, inflict guilt, and send misleading non-
will withdraw from negotiations if they think their verbal communication signals to gain momentum
business counterparts are stalling a deal.11 in negotiations.15
4.2.3 Cultural Influences on Negotiation Style
A 2002 study published in Thunderbird 4.3 NEGOTIATION STRATEGIES
International Business Review illustrates the Many Singaporean companies conduct business
preferred negotiation style of Singaporean within a network of familiar contacts based on
managers from different ethnic backgrounds.12 All previous collaborations or common cultural
ethnic groups prefer analytical, factual, normative, backgrounds.16 In addition to Singapore’s highly
and intuitive negotiation styles. The conclusions competitive free market economy, this reduces
of this study are summarized in the following list: U.S. companies’ leverage over negotiation.
Knowledge of Singaporeans’ negotiation styles
and communication strategies can reduce
40
misunderstandings resulting from cultural 4.4 BUSINESS PROTOCOL
differences. In the business setting, you should be punctual,
friendly, well prepared, and appropriately attired
4.3.1 Mirroring Communication style
in conservative business clothes.
Mirroring is a form of non-verbal communication,
where one person mimics another’s postures, 4.4.1 Greetings
gestures, and language.17 Numerous studies You should be observant of Singapore’s diverse
show that mirroring not only creates smoother cultural and religious variety by utilizing the
interactions, but it may also enhance the imitator’s different greetings displayed in Table 4.1 for your
persuasiveness.18 Singapore is a high-context specific audience. Singaporean society values
culture with an indirect communication style. You gender equality and many women hold executive
should practice using indirect suggestions and positions. Only shake hands with businesswomen
rejections. Rather than using bold statements, try if they offer a handshake. Always address
signaling your intentions and opinions nonverbally. professionals by their official title and name,
Singaporeans are collectivists with high team and use prefixes if the person does not have a
values, and you should display your strength as a professional title.21
team during negotiations.
4.3.2 Local Connections
You should utilize local
Singaporean connections as much
as possible. Local connections
should be natives with a good
reputation in Singapore’s business
world.19 Local natives will possess
valuable knowledge of the local
market economy and could act
as advisors on business dealings.
Additionally, a Singaporean
vouching for your reputation
will increase your business value
and give your business partners
incentive to collaborate with your company. 4.4.2 Business Meetings
Finally, local connections can act as mediators Singaporeans are accustomed to executing a task
should a conflict arise. in established ways. Negotiators may present
predetermined clauses and conditions during
4.3.3 Questions
meetings, and you should not initiate debates over
Singaporeans value harmony and avoid conflicts
specific terms and conditions. Singaporeans value
and rejection. It is common for Singaporeans to
harmonious collaborations. During presentations
deflect probing questions, and you should formulate
and negotiations, you should focus on the possible
your questions specifically and carefully.
agreements to establish a cooperative atmosphere
4.3.4 Technology before discussing terms.
Singapore’s economic development focuses on
4.4.3 Decision Making
technologically advanced industries.20 Highlight
Decision-making is centralized in Singapore’s
the technological products and advantages of your
bureaucratic corporate management system, and
company during negotiation.
correspondence between the negotiators and their
executives usually prolongs the negotiation.22
Decisions normally require group consensus after
41
negotiating the individual terms and conditions.
Winning the votes of key executives and
stakeholders will increase your standing overall,
since Singaporeans rarely challenge their superiors
and are likely to vote accordingly.23
4.5 CONCLUSION
A high-context communication style allows
Singaporeans to be direct and competitive
without compromising harmonious interpersonal
relationships. Although deeply cultural, the
Singaporeans are also extremely professional and
business-oriented. Professionalism, commitment,
good work ethic, cultural awareness, and sensitivity
to interpersonal interactions are crucial elements
for successful negotiations in Singapore.
42
4.6 Work Cited
1
The World Bank Group, “Economy Rankings,” http://www.doingbusiness.org/rankings, accessed
February, 2015.
2
Central Intelligence Agency, “The World Factbook: Singapore,” http://www.cia.gov/library/publications/
the-world-factbook/goes/sn.html, accessed February 2015.
3
Ibid.
4
The Hofstede Centre, “Country Comparisons: Singapore,” geert-hofstede.com/singapore.html, accessed
on February 2015..
5
Ibid.
6
Kwok Leung and Dean Tjosvold, Conflict Management in the Asia Pacific (Singapore: John Wiley &
Sons, 2005), p.131.
7
Ibid., p.133.
8
Terri Morrison and Wayne A. Conaway, Kiss, Bow, or Shake Hands, (Massachusetts: Adams Media,
2006), p. 441.
9
Lothar Katz, Negotiating International Business: The Negotiator’s Guide to 50 Countries Around the
World (BookSurge Publishing, 2006), p.363.
10
Leung and Tjosvold, Conflict Management in the Asia Pacific…, p.141.
11
Ibid., p.142.
12
AAhad M. Osaman-Gani and Joo Seng Tan, “Influence of Culture on Negotiation Styles of Asian
Managers: An Empirical Study of Major Cultural/ Ethnic Groups in Singapore,” Thunderbird International
Business Review 44 (December 2002): 836. Business Source Complete, EBSCO, accessed February
2015.
13
Ang A. Huang and A. Francesco, “The Silent Chinese: The Influence of Face and Kiasuism on Student
Feedback-Seeking Behaviors,” Journal of Management Education 26 (2002): 75. Business Source
Complete, ESBCO, accessed February 2015.
14
Eric Kirby et al., “Exploring the factors Affecting the Use of Kiasu Tactics” Journal of Behavioral &
Applied Management 11 (May 2002): 251. Business Source Compete, EBSCO, accessed February 2015.
15
Ibid., p.253.
16
Camille Schuster and Michael Copeland, Global Business: Planning for Sales and Negotiations
(Florida: The Dryden Press, 1996), p.178. p. 27.
17
Steven Handel “The Unconscious Influence of Mirroring,” Theemotionmachine.com, February 17,
2013, http://www.theemotionmachine.cim/the-unconscious-influence-of-mirroring, accessed February,
2015.
18
Lyn M. Van Swol, “The Effects of Nonverbal Mirroring on Perceived Persuasiveness, Agreement With
an Imitator, and Reciprocity in a Group Discussion,” Communication Research 30 (August 2003): 463.
19
Lennie Copeland and Lewis Griggs, Going International: How to Make Friends and Deal Effectively
in the Global Marketpace (New York: Random House), p.35.
20
Lim Chuan Poh “Innovation Policy Around the Wrold: Singapore: Being on Biomedical Sciences,”
Issues.org, November 27, 2013, http://issues.org/26-3/pho/, accessed February, 2015
21
Morrison and Conaway, Kiss, Bow, or Shake Hands…, p.444.
22
Schuster and Copeland, Global Business…, p.178.
23
Leung and Tjosvold, Conflict Management in the Asia Pacific, p. 137.
24
Lothar Katz, Negotiating International Business…, p. 365.
43
Galeela Michael
44
SWEDEN
45
46
5.1 BACKGROUND Swedish negotiator from Hofstede’s perspective.
Sweden’s economic platform is based on openness
5.2.1 Power Distance
to global trading investment and a high business
Sweden scores low on this dimension, with a score
freedom score.1 Their high-performing economy
of 31, meaning Swedish business style emphasizes
sculpts a financial safety net for their citizens,
independence, equal rights, accessible superiors,
due to the reduction of government interaction.
and management styles that facilitate and empower.
Sweden’s economy relies on wood, high-grade
They prefer to decentralize power, and managers
ore mining, hydroelectric power, and tourism
typically rely on the experience of team members.
industries. The most important export goods are
Employees dislike control, and their attitudes
electrical and telecom equipment, machinery,
towards managers are informal. Communication
crude oil, passenger cars, paper, pharmaceuticals,
also tends to be direct and participative.
foodstuffs, textile products, footwear, iron, and
steel. In addition, Sweden has one of the world’s 5.2.2 Individualism
most transparent and efficient public institutions, Sweden is an individualistic society, with a score
with very low levels of corruption.2 This, coupled of 71. This score signals a high preference for a
with a high GDP per capita, as displayed in Figure loosely knit social framework in which individuals
5.1, makes Sweden one of the most practical are expected to support only themselves and
business partner for the United States. their nuclear family. The employer/employee
relationship is a contract based on mutual
advantage and hiring, and promotions are based
exclusively on individual merit.
5.2.3 Masculinity
Sweden is a “feminine society”, with a score
of five, where a balance between leisure time
and work is important. The Swedish concept of
“Lagom” in Figure 5.2 highlights this balance,
and the Swedish government enforces “lagom”
by guaranteeing ample free time and flexible
work hours. “Lagom” is fundamental to Swedish
business and ensures that employees maintain an
equal work to life balance.4
5.1.1 Swedish Cultural Background
Sweden is a part of the Scandinavian Peninsula,
bordering Norway and Finland. The total
population of Sweden is approximately 9.5 million,
and one-fifth of the total population is immigrants.
Sweden’s official language is Swedish, a primarily
Germanic language. In 1995, Sweden emerged as
a part of the European Union, but the country still
uses the Swedish Krona.
47
consensus, and they will resolve conflicts through The Swedish value the spoken word, so verbal
negotiation and compromise. agreements are respected. However, written
contracts finalize deals after a handshake and
5.2.4 Uncertainty Avoidance verbal agreement. Written agreements act as
Sweden scores low on this dimension, with legal documents in case of conflict, but verbal
a score of 29, revealing a low preference for agreement solidifies a deal. Swedes will discuss
avoiding uncertainty. Low uncertainty avoidance and express their political values fluidly, creating
societies maintain a more relaxed attitude, where a platform to negotiate without limitations. The
practice counts more than principles and society Swedish democratic culture in decision-making
tolerates deviance from the norm. Accordingly, and discussion of concealed issues is universally
in Swedish societies, people believe that there recognized.
should be no more rules than necessary and, if
they are ambiguous or do not work, they should be 5.3.3 Making Contact
abandoned or changed. You should gently initiate conversation with
Swedish business professionals. Swedes like
5.2.5 Indulgence planning and procedures, and they appreciate
Sweden scores high in the indulgence dimension, similar gestures in their partner’s communication.7
with a score of 78, meaning the Swedish preserve The Swedish communication style is very direct
and enjoy leisure time, and they possess optimistic and open, and you should get to the point quickly
outlooks on business and life. to avoid wasting time. Swedes tend to be good
listeners and expect you to be as well. Interrupting
5.3 NEGOTIATION STRATEGIES is considered rude, and you should wait your turn
Negotiating in Sweden is similar to negotiation before speaking.
in the United States. However, the following
negotiation strategies address subtle differences Swedes like to establish informal relationships
between the two cultures, and the strategies quickly. However, the Swedish segregate their
presented here will empower you with tools to private and business life, and this informality does
efficiently negotiate with the Swedish. not amount to intimacy. To maintain their personal
space, Swedes tend to stand far apart when
5.3.1 Face-to-Face Communication conversing. With the exception of a swift and firm
Depending on the situation, introductions in handshake, you should respect this personal space
Sweden may be difficult. A third party will and avoid unnecessary physical contact. While
generally introduce you to new business contacts.5 speaking, you should maintain strong eye contact
The Swedes are friendly and open in discussions and avoid talking with your hands in your pockets.
but reserve their speech for important topics.
Regardless of status, Swedes address professionals
by first names. Speaking a few words of Swedish
is a kind gesture. Table 5.16 shows some common
phrases in Swedish and their English translations.
However, your Swedish colleagues will probably
switch to English rapidly. Swedes do not rely on
nonverbal communication, and they keep their
body language and hand gestures to a minimum.
Lastly, shake hands with everyone present in a
business or social setting when greeting or leaving.
5.3.2 Business Relationships
Compared to other Northern European countries,
Swedish people enjoy discussion and conversation.
48
5.4 BUSINESS PROTOCOL 5.4.4 Approach to Time and Priorities
You should follow standard business protocols in Sweden is a controlled-time culture, and adherence
Sweden, including attention to detail, punctuality, to schedules is important and expected.10 In Sweden,
and equality throughout organizations. missing a deadline is a sign of poor management
and inefficiency. People in controlled-time
5.4.1 Meetings and Negotiations cultures will tightly schedule their time, and you
To conduct business in Sweden, make appointments should provide and adhere to project milestones.
at least two weeks in advance.8 Punctuality is Effective cross-culture management depends on
important in business and social engagements, the individual’s ability to meet deadlines.
and the Swedish dislike tardiness. Additionally,
the Swedish value business professionals with
knowledge and experience and enjoy meticulously 5.5 CONCLUSION
planned and logically organized proposals and To successfully negotiate with the Swedish,
presentations. In the first meeting, the Swedish will American business professionals should follow the
evaluate you, your company, and your proposal. guidelines provided in this section. The Swedish
Big decisions and agreements are made after value coming to a consensus, and conducting
several meetings. Do not show emotions during business in Sweden relies heavily on negotiation.
negotiations and always remain cool, calm, and The economic growth and transparency of Swedish
collected during discussion. The Swedish consider industries makes Sweden one of the most promising
consensus the only avenue for decision-making, business markets for the United States. With
and you should not appeal solely to top-level preparation, American business professionals can
executives for support. In many cases, the power enjoy long-lasting and solid business relationships
to make a decision will fall to middle managers, with this top country for international business.
who may even pass the decision to lower levels.
5.4.2 The Role of a Manager
The Swedish value the specialized knowledge that
employees at all levels bring. In Sweden, as in
most egalitarian cultures, individual achievement
merits a position of authority. While respect of
authority is important, employees at all levels of the
organization are free to aspire to those positions.
The role of the leader is to harness and develop
group talent. Leaders act as the final authority in
decision-making, but they do not dominate the
discussion or generation of ideas. Leaders address
praise to the entire group as well as to individuals.9
5.4.3 Approach to Change
Even though they are cautious in business, the
Swedish are some of the most rapid high-tech
innovators in the world. However, Sweden’s
intercultural competence and readiness for change
is low, meaning change is slow to occur and met
with low enthusiasm. In order for change to take
hold, the group must see change as beneficial.
The negative ramifications of failure on both
the individual and the group dramatically affect
Sweden’s attitude toward risk.
49
5.6 Work Cited
1 “Sweden.” Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. Accessed March
5, 2015. http://www.heritage.org/index/country/sweden.
2 “Sweden Is A Better Place To Do Business Than The U.S.” Forbes. Accessed March 5, 2015. http://
www.forbes.com/sites/greatspeculations/2010/09/09/sweden-is-a-better-place-to-do-business-than-the-
u-s/.
3 “THE HOFSTEDE CENTRE.” Sweden. Accessed March 5, 2015. http://geert-hofstede.com/sweden.
html.
4 Accessed March 5, 2015. http://image.frompo.com/e2cdf1c6d1fb749c4df2a3915e2cf898.
5 “Doing Business in Sweden.” Doing Business in Sweden. Accessed March 5, 2015. http://www.
kwintessential.co.uk/etiquette/doing-business-sweden.html.
6 “Dino Lingo Blog – Educational Articles for Students.” Accessed March 5, 2015. http://dinolingo.
com/blog/category/swedish-culture/.
7 “Doing Business in Sweden.” Doing Business in Sweden. Accessed March 5, 2015. http://www.
kwintessential.co.uk/etiquette/doing-business-sweden.html.
8 “Sweden - Language, Culture, Customs and Etiquette.” Sweden. Accessed March 5, 2015. http://www.
kwintessential.co.uk/resources/global-etiquette/sweden.html.
9 “Intercultural Management - Sweden.” Intercultural Management. Accessed March 5, 2015. http://
www.kwintessential.co.uk/intercultural/management/sweden.html.
10 “Intercultural Management - Sweden.” Intercultural Management. Accessed March 5, 2015. http://
www.kwintessential.co.uk/intercultural/management/sweden.html.
50
51
Monica Kunz
52
SWI T Z E R L A N D
53
54
6.1 BACKGROUND 6.1.1 Swiss Cultural Background
Switzerland, also known as the Swiss Swiss businesspeople are experienced
Confederation, is one of the most competitive intercultural communicators because of
economies in the world because of its economic Switzerland’s immense cultural diversity6 as
and political stability. Switzerland is also one Figure 6.2 shows.7 Switzerland is landlocked with
of the top ten wealthiest countries in the world, several major European countries that strongly
enjoying one of the highest GDP per capita.1 influence the country’s languages and cultural
According to Forbes, Switzerland is one of the top practices.8 Switzerland has four official languages,
countries in the world for international business, and the population includes the German Swiss
ranking ninth in its “Best Countries for Business” majority, French and Italian Swiss minorities, and
list.2 Switzerland’s economy includes a highly smaller groups of indigenous Romansh, as well
accomplished and extremely skilled labor force as a number of immigrant cultures. Additionally,
that benefits from low unemployment.3 many of the Swiss speak English, along with two
additional languages.
Switzerland’s major industries are
machinery, chemicals, watches, textiles,
and precision instruments. While limited
in raw materials, Switzerland produces
high-value added exports by fabricating
raw material imports, and they have
the world’s highest manufacturing
economy.4 As an example of their export
acumen, Switzerland exports 85%
of their pharmaceuticals and 95% of
their Swiss watches and is the leading
insurance exporter in Europe. Figure 6.15
shows how half of the Swiss population
is employed in the highly developed
service sector, which includes financial,
insurance, pharmaceuticals, and tourism.
The machine and metal industry employs 40% of In business dealings, an awareness of a regions’
the population and the agriculture sector employs and/or cantons’ (sovereign state) cultural
10% of the population. influence can dictate the communication style
in negotiations. The Swiss are proud of their
multi-cultural country. In fact, the Swiss can be
ethnocentric and cautious about outside foreign
influences, especially in areas outside of the
country’s primary international business centers
of Zurich or Geneva. It is important to be aware
of this attitude because it can affect your business
negotiations.9
The political climate of Switzerland also influences
the communication and business style of the Swiss
people. Lars Feld and Gebhard Kirchgässner10
argue, in their research on Switzerland’s economy,
that direct democracy (the only one in the world)
affects Swiss culture and communication style.
Switzerland’s direct democracy political culture
55
incentivizes Swiss citizen’s into gathering all meaning and messages are literal. According to
pertinent information before making decisions, Edward T. Hall’s research, the German Swiss
thus empowering them with a say in the decision- have the most direct communication style and
making process. This political culture bleeds into the French Swiss are less direct. Because the
the business culture, where information and the overall Swiss communication style is more direct,
opinions of everyone involved in a negotiation are non-confrontational, and unemotional, all of the
considered and consensus is the goal.11 Swiss cultures are likely to reach thoughtful, well-
considered, and fair decisions.16
6.2 THE SWISS NEGOTIATOR Switzerland is a monochromic society, and time
One of the primary rules in negotiating is to “prepare, is a precious commodity, As task-orientated
prepare, prepare”.12 Cultural context influences businesspeople, the Swiss do not like to waste time.
business relations and communications,13 and it In a country of watchmakers, being a few minutes
is helpful to prepare for negotiations by learning late is a poor reflection on a business professional’s
Swiss cultural behavior. value. Punctuality is of utmost importance, as well
6.2.1 Hofstede’s Cultural Dimension as diligently adhering to deadlines and timetables.
Hofstede’s Four Dimensions of Cultural Variability
can help business professionals understand cultural 6.3 NEGOTIATION STRATEGIES
difference between Swiss and American societies.14 Negotiating in Switzerland is similar to
Although Switzerland and the U.S. score similarly negotiations in the United States; conversations are
on the Hofstede scale (Figure 6.3 ), the differences
15
generally impersonal, brisk, orderly, planned, and
warrant a brief overview of the Swiss negotiator. task-oriented. It is important to be well-prepared
Keep in mind that Hofstede analyzes Switzerland for a business meeting in Switzerland. The Swiss
as one overall country, without considering the divide their time efficiently. The Swiss tend to be
German, French, and Italian regional influences. calm and use non-aggressive arguments, and they
Additionally, considering the cultural influence prefer empirical evidence and facts as a means
from surrounding border countries can help you of persuasion. Negotiation is a problem-solving
avoid breaking protocol. process that leads to an acceptable agreement
between all parties. The Swiss follow the win-
The Swiss desire for security (risk averse) and win concept of negotiating and prefer to come
low power distance leads to a hierarchical and to a consensus in negotiation decisions. Trust
consensus social structure. However, in most and respect are extremely important to the Swiss
Swiss organizations and businesses, there is a businessperson.17 To negotiate effectively with the
strong sense of hierarchy with a tendency towards Swiss, you must possess the following traits:
a top-down management style. The German Swiss
appreciate independence and equality more than the • Patience
French Swiss do. The French Swiss
believe everyone has their proper
place, so hierarchy is welcome and
challenging leadership is unpopular.
Switzerland is a success-oriented
culture, and this trait is more
noticeable in the German-speaking
parts of the country.
56
• Thoroughness culture, and they believe facts and empirical
• Preparedness evidence are most valuable.20
• Straightforwardness
• Punctuality 6.4 BUSINESS PROTOCOL
• Efficiency The business climate in Switzerland is very
• Calmness formal, conservative, and regulated. Meetings are
• Non-aggressive punctual and behavior is reserved. You should dress
6.3.1 Business Conversation well and be very polite. Business attire includes
The German Swiss prefer to get straight down to nice suits for men and pantsuits or conservative
business. The French and Italian Swiss spend more length skirt-suits for women. Although the Swiss
time conversing and enjoy small talk about their appreciate wealth, they do not like ostentatious
country’s beauty, soccer, and skiing. The Swiss are and overt displays of wealth. Jewelry should be
extremely private people and do not like to share elegant and simple, and a Swiss watch is a nice
private information until a personal relationship is touch.21
firmly established. The Swiss are very earnest and
sober people, and you should avoid using humor 6.4.1 Prior to Meeting
and jokes when negotiating because it may be To conduct business in Switzerland, formal
perceived as mockery. It is extremely important introductions are necessary. Having a local Swiss
that you avoid interrupting the Swiss negotiator connection is essential to making future business
until they have completed their point of view, connections.22 Appendix B is a case study of what
and you should only offer yours when asked. The happens if you do not follow Swiss business
Swiss are extremely attentive and rarely forget, so protocol in this context. You must be well prepared
you should present your ideas carefully because prior to any meeting. The agenda details all topics,
errors can damage your negotiation process. 18 and time frames are set in a logical order and is
strictly observed.
6.3.2 Negotiation Pace
Patience is your friend when negotiating with the 6.4.2 Meeting and Greeting
Swiss. The Swiss are methodical in their planning You must have plenty of business cards, as you
and negotiating process, especially the German will hand a business card to everyone you meet,
Swiss. Negotiating and decision-making can be a including the receptionist and the secretary.
slow process, as the Swiss prefer to carefully gather Include your business title on your business
information and work through agreement details.19 card; it determines your status with the company,
Deductive analysis and thorough explanations are which is meaningful to the Swiss businessperson
expected from your negotiations. Swiss business and valuable in negotiations. If your company
professional believe in high-quality over fast pace. has longevity, you should put the start year on
6.3.3 Bargaining your card, as well, because the Swiss appreciate
Although the Swiss have a long negotiation businesses that are proven.23 Although most Swiss
process, the price is rarely negotiable. Your initial businesspeople speak English, it is a nice touch to
offer should be very close to your actual asking have one side of your business card printed in the
position. The Swiss will not bargain or haggle and language of the region you are visiting,
do not appreciate the other party attempting to As stated earlier, punctuality is extremely
do so. A non-negotiable price is part of the Swiss important. You should arrive no later than five
straightforward and non-aggressive character. The minutes before the meeting time to make a good
Swiss do not like pressure tactics because they impression. You must shake hands with everyone
are upfront and direct, and they expect to reach present (in a social context, even children). In
a fair agreement for all parties without haggling. German Swiss regions, greet men and women by
Emotional communication is not a part of Swiss handshake. The French and Italian Swiss regions
57
are more demonstrative then their German Swiss will result in long-lasting and profitable business
counterparts, and you may kiss cheeks with relationships.
women and shake hands or kiss cheeks (depending
on the length of the relationship) with men in these
regions.24
It is important to address all people as Mr. or Mrs.,
followed by their surname. In the German region
use Herr and Frau; in the French region Monsieur
and Madame; and in the Italian region Signore and
Signora. First names are not used until personal
the relationship is established, and your business
partner invites you to use informal titles.25
6.4.3 Nonverbal Language
It is important to avoid speaking loudly, the Swiss
are reserved and prefer quiet tones. The Swiss
look at poor posture negatively, so avoid slouching
and stretching. You should also avoid using the
following hand gestures because the Swiss find
them insulting:26
• Pointing your index finger to your head
• Pointing with just your index finger and not
your whole hand.
• Putting your hands in your pockets
6.4.4 Following a Meeting
The Swiss want to have everything in writing
after negotiations; including all details of the
agreement and signatures of the involved parties.
The Swiss prefer to secure everything legally, but
keep in mind, if you were to bring a lawyer to the
negotiations, your Swiss partners may misconstrue
the gesture as a lack of confidence in the Swiss
word. After details are in writing, the Swiss are
unwilling to budge or make any changes on the
agreement Any follow up conversations should
be in writing, including email, because the Swiss
prefer a paper trail.27
6.5 CONCLUSION
Doing business with the Swiss is a straightforward
process yielding positive results, if followed
correctly. The Swiss like to deliberate extensively
in negotiations to produce a well-made and long-
lasting final agreement. These characteristics are
why Switzerland is one of the best countries in the
world for business, and negotiation on their terms
58
6.6 Work Cited
1
Maps of the World, “Richest Countries in the World,” http://www.mapsofworld.com/world-top-ten/
world-top-ten-richest-countries-map.html, accessed February 2015.
2
Forbes, “Best Countries for Business,” http://www.forbes.com/best-countries-for-business/list/,
accessed February 2015.
3
Central Intelligence Agency, “The World Factbook – Switzerland,” https://www.cia.gov/library/
publications/the-world-factbook/geos/sz.html, accessed February 2015.
4
Encyclopedia of the Nations, “Switzerland – Industry,” http://www.nationsencyclopedia.com/
economies/Europe/Switzerland-INDUSTRY.html, accessed February 2015.
5
Encyclopedia of the Nations, “Switzerland....”
6
Lothar Katz, Negotiating International Business – The Negotiator’s Reference Guide to 50 Countries
Around the World- Switzerland Excerpt, (Booksurge Publishing, 2007), PDF e-book, p. 1.
7
World of Maps: online Maps and Travel Information, “Map of Switzerand,” http://www.worldofmaps.
net/en/europe/map-switzerland/map-languages-switzerland.htm, accessed in March 2015.
8
Verónica Garza Gonzàlez and Luis González Salinas, “Negotiations
with Switzerland: profile of an opportunity,” http://www.ur.mx/LinkClick.
aspx?fileticket=UO9PzE7swpQ%3d&tabid=2636&mid=11687, accessed February 2015.
9
Katz, Negotiating International Business, p. 1.
10
Lars R. Feld and Gebhard Kirchgässner, “Direct democracy, political culture, and the outcome of
economic policy: a report on the Swiss experience,” European Journal of Political Economy 18, (2000):
307, Science Direct, http://www.sciencedirect.com/science/article/pii/S0176268000000033, accessed
February 2015.
11
Katz, Negotiating International Business, p. 5.
12
Paul A. Herbig and Hugh E. Kramer, “Do’s and Don’ts of Cross-Cultural Negotiations,” Industrial
Marketing Management, 21 (1992): 295.
13
James W. Neuliep, Intercultural Communication: A Contextual Approach, (Thousand Oaks, CA: Sage
Publications, 2012), p. 10.
14
The Hofstede Center, “What about Switzerland?”, http://geert-hofstede.com/switzerland.html, accessed
February 2015.
15
Ibid.
16
Jacinta Akerboom and Nathasja Boon, Cultivating Cross-Cultural Acumen: A Guide to Managing,
Meeting, and Negotiating, (Amsterdam, Netherlands: Hogeschool van Amsterdam, 2013), e-Book, p.
142.
17
Ibid.
18
Cross-Cultural Business Skills, “Negotiation Styles in Switzerland,” http://www.minorccbs.com/skills/
negotiations/item/negotiation-styles-in-switzerland, accessed February 2015.
19
Expatica, “Doing business in Switzerland: Swiss business culture,” http://www.expatica.com/ch,
accessed in February 2015.
20
Terri Morrison and Wayne A. Conaway, Kiss, Bow, or Shake Hands: The Bestselling Guide to Doing
Business in More Than 60 Countries, (Avon, MA: Adams Media, 2006), p. 491.
21
Akerboom and Boon, Cultivating Cross-cultural Acumen, p. 145.
22
Expatica, “Doing business in Switzerland…”
23
Morrison and Conaway, Kiss, Bow, or Shake Hands..., p. 491.
24
Frank L. Acuff, How to Negotiate Anything with Anyone Anywhere Around the World, (New York, NY:
Amacom, 2008), p. 122.
25
Morrison and Conaway, Kiss, Bow, or Shake Hands..., p. 493.
26
Expatica, “Doing business in Switzerland…”
27
Acuff, How to Negotiate Anything..., p. 125
59
60
CONCLUSION
Tara McDermott
T his manual provides the American business professional with information regarding the unique
business and negotiation communication styles of Australia, Denmark, Ireland, Singapore, Sweden,
and Switzerland. Negotiation strategies for each country include the following:
Australia
• Remain modest
• Negotiate with an open-minded and firm approach
• Persuade with facts and testimonials
Denmark
• Be punctual
• Share information to build trust
• Avoid emotional displays and arguments
Ireland
• Allow time for conversation before meetings
• Establish credibility through facts and data
• Remain humble and friendly during negotiations
Singapore
• Utilize business connections
• Understand non-verbal language
• Identify kiasu negotiation tactics
Sweden
• Seek a consensus with all decisions
• Negotiate directly and unemotionally
• Avoid humor
Switzerland
• Seek a consensus with all decisions
• Negotiate directly and unemotionally
• Avoid humor and jokes
Collectively, these countries represent unrealized cross-cultural business opportunities for American
professionals. This manual addresses these business opportunities by providing the cross-cultural
background information that is needed for executing successful negotiations in top global markets.
Preparation with the correct use of this manual can help foster long-lasting business relationships,
ultimately leading to the creation of jobs and a connected global business environment.
61
ABOUT OUR TEAM
Grace Guo: Grace is a Global Studies and Art History double major at UCSB.
She is originally from China and lived there until age twelve. While at UCSB,
Grace studied in Florence, Italy for a semester. Additionally, she has traveled
to Germany, Czech Republic, Netherlands, France, Croatia, Spain, England,
Japan, and Korea.
62
Galeela Michael
63
APPENDIX
64
APPENDIX A: Cross-Cultural Business Negotiations with
High-Context Cultures
Grace Guo
Abstract: Charles, the negotiator in this study, is a thirty-year-old American working for Emerson Tech, a
company which designs technological advanced laboratories for pharmaceutical companies. Charles is a
potential candidate for a major promotion to be the project operation manager in Southeast Asia. He earned
this opportunity to conduct his first cross-cultural business negotiation by displaying his independent,
efficient, and assertive work ethic. However, Charles was rather frustrated by Singaporean negotiators’
passivity, and slow paced negotiation style during his initial meetings with the Singaporean negotiator,
William. Eager to impress his manager with a contract, Charles began to speed up the negotiation with direct
and probing questions, and demanded for quick agreements on detailed terms and conditions. However, the
pace of negotiations slowed down, Singaporean negotiators began to schedule meetings further apart. This
case demonstrates the importance of observing signifiers in high-context communication, and learning to
adjust one’s negotiation style and strategies during meetings with Singaporean negotiators.
CASE BACKGROUND
Nathan, Emerson Tech’s negotiator who conducted the pre-negotiations and project presentations, had
to leave the case for a crisis situation in China. Charles was ecstatic to substitute for Nathan in this
negotiation; with the promotion coming up, Charles was eager to negotiate and finalize agreements, which
included detailed terms such as unit prices of required technologies, suppliers, and project timelines. For
Charles, Singaporeans are highly westernized, fluent in English, and accustomed to conducting business
negotiations with Americans, especially because the United States is the biggest investor in Singapore.1
With Emerson Tech’s professional expertise, his extensive research, and no language barriers, Charles
expected to sign the contract with the Singaporean pharmaceutical company within two months of
negotiation.
First and Second Impressions
Charles arrived to the meeting with immense confidence, but was immediately puzzled by the Singaporean
negotiators’ interest in Nathan’s absence, rather than the project itself. The Singaporean negotiators,
William, seemed surprised that Nathan was replaced, but remained friendly and interested in negotiating
with Charles.
Charles attempted to bring the attention back to the case by highlighting Emerson Tech’s experience
and technological expertise in building research labs. However, without knowing that William was a
technological specialist, Charles was unable to answer many of the detailed technological questions. He
informed Williams that he will contact the team’s technology expert, and answer those questions in the
next meeting.
Eager to establish progress, Charles began to focus on negotiating the prices for resources and labor. He
gave the bottom-line offers of the project, but William expressed that the company has a tight budget, and
that he must deliberate with his superiors about this price offer. When Williams returned during the next
meeting with a lower offer, Charles immediately rejected the price during meetings, without consulting his
team or superiors. Charles presented several other prices that was lower from his initial offer by importing
parts from less reputable suppliers. He asked Williams for his opinion on the suppliers and his new price
offers; William responded with friendly smiles, and expressed that he would consider the offers. A month
passed by, Charles attempted to schedule future meetings with William and his team, but experienced many
delays. Charles was confused by William’s friendly demeanor, yet passive responses. While Williams
65
APPENDIX A: Cross-Cultural Business Negotiations with
High-Context Cultures (cont)
continued to show interest in the project during negotiations, they did not reach an agreement on any
terms.
Analysis and Solutions
Charles’s experience is common among American negotiators had to adjust from low-context to high-
context culture and communication style. As presented in Chapter four of this manual, Singapore is a high-
context culture, where people tend to use indirect languages to convey messages, avoid direct rejections,
and give face to others to create harmonious and collaborative relationships.2 Doing business in Singapore
also rely on reliability and established business networks;3 while Charles was motivated, professional, and
prepared, he did not have the personal relationship that Nathan established with William. William simply
did not know Charles personally, and therefore was uncomfortable conducting business right away.
Furthermore, while Charles tried to demonstrate his ability and expertise during negotiations, he failed to
demonstrate team collaborations when he had to contact his technical expert separately to answer William’s
questions. Charles’s well-prepared presentations showed his individual strength rather than team’s effort
and contribution. Although Charles considered individualism as an admirable quality, William saw this as
the team’s in-cohesiveness, and therefore a weakness in a collaborative project.
Charles immediately started discussing specific price offers to make progress, while he should have
discussed possible agreeable terms to establish potentials for partnership. Price offers are delicate subjects
which require many rejections and readjustments; discussing prices right away may discourage potential
business partners. While Charles interpreted, “we will consider your offer,” literally, William is actually
deflecting from directly rejecting the offer. William’s smiles and friendly demeanor was out of politeness,
rather than satisfaction. While William was giving face to Charles with passive responses and indirect
rejections, Charles bluntly rejected William’s offer in front of everyone at the meeting. Charles not only
lacked the sensitivity to William’s high-context communication style, but his low-context communication
caused William his face, thus made him less likely to cooperate with Charles.
Fortunately, Nathan returned to the negotiation, and traveled to Singapore with Charles for later business
meetings. Nathan’s personal foundation with William, in addition to his combined expertise and
professionalism with Charles, encouraged William to renegotiate the terms and prices for this project.
Furthermore, after another six meetings, Williams became more direct with his bottom-line offers and
expectations for the project, which allowed the negotiation to progress. During meetings, Nathan and
Charles’s collaborations showed collectivist team effort, which gave William confidence to work with
Emerson Tech.
In conclusion, Charles had the best intentions, all the information and resources he needed for a successful
negotiation with William, yet he lacked the sensitivity to high-context culture and communication style.
Too focused on business, Charles failed to observe the delicate indirect and non-verbal signifiers. Nathan’s
return, and his teamwork with Charles gave William the confidence in their abilities to achieve as a team.
Nathan was an important mediator in this situation; his personal relationship with William alleviated the
tightened atmosphere during meetings. This case demonstrate how insight into Singapore’s high-context
culture and communication style could prevent and resolve obstacles during business negotiations.
66
APPENDIX A: Cross-Cultural Business Negotiations with
High-Context Cultures (cont)
1
Export.gov, “Doing Business in Singapore,” http://www.export.gov/singapore/doingbusinessinsingapore/
index.asp, accessed on February, 2014.
2
Kwok Leung and Dean Tjosvold, Conflict Management in the Asia Pacific (Singapore: John Wiley &
Sons, 2005), p.131.
3
Lennie Copeland and Lewis Griggs, Going International: How to Make Friends and Deal Effectively in
the Global Marketpace (New York: Random House), p.35.
67
APPENDIX B: Swiss Case Study
Monica Kunz
John Berger is a brilliant mechanical engineer. John went to a top engineering school in the United States,
and he is extremely good at designing precision mechanics. John works as an independent designer. John
is a big fan of watches; he probably has ten different ones that he cycles through on a weekly basis. On
his personal time, John spent some time looking at the internal components of an old watch of his and he
discovered that he could improve upon the precision time keeping components of the watch; the balance
wheel and the hairspring. After extensive research and work, John believes he has created the most high
quality components for watches, yet.
The Swiss reputation on watch design is world-renowned and only the Swiss would marvel at John’s
design and improvements. John knew if he could get Swiss watchmakers to see his work, he would be the
exclusive maker for all Swiss watch balance wheels and springs.
Knowing how much the Swiss appreciate quality work and because John believes his design is of utmost
quality, he started calling the top Swiss watchmakers to arrange a meeting to show his quality design.
After a month of unreturned calls, John thought it might be better to show his work in person. John
gathered examples of his new component designs and booked the first flight to Geneva.
John went to the first watchmaker business on his list. He approached the receptionist in his business
causal dress, in an attempt to be unpretentious, and he asked if he could see the president, telling her he
had a component design that would “knock his socks off.” The receptionist quickly escorted Paul off of
the premises.
What did John do wrong in his approach with the Swiss watchmakers? Why would the Swiss not be
interested in using a high quality component in their high quality watches? If John were able to do it all
over again, what could he do differently?
Analysis
According to Terri Morrision and Wayne Conaway in their book, Kiss, Bow, or Shake Hands,1 Switzerland
has an “old-boy network” when it comes to connections. Vital to doing business with the Swiss is having
an influential contact that can introduce you. The Swiss conduct their business formally and they place
a great important on appointments made in advance.2 They are not spontaneous3 and prefer to be fully
prepared with an agenda before meetings and discussing business.
John could have avoided unreturned phone calls and being escorted out of the Swiss watchmaker business
office if he had prepared in advance. If John did not have any personal or professional connections, he
could have reached out to business associates to see if they had any connections. If that failed, he could
contact the United States State Department to see if they could help him with business connections.
Perhaps, John could contact the US Embassy in Switzerland to determine if there was a program in place;
introducing US business professionals to Swiss businesses. The extra effort could have helped John with
introductions, and this may have resulted in a return phone call.
John should not have shown up at a Swiss business without a prior appointment because the Swiss do
not conduct meetings without a prepared agenda. John’s unannounced visit would not be welcome in the
68
APPENDIX B: Swiss Case Study (cont)
Swiss business culture. As stated earlier, the Swiss are extremely formal. They place a great emphasis
on appearance,4 and they are conservative in their dress. Perhaps because he is an engineer, John is not
accustomed to formal business dress. If John had prepared ahead of time, he could have learned the Swiss
business dress code and dressed appropriately. Dressing in business casual does not make a good first
impression in Switzerland, especially if you want the Swiss to take you seriously in business.
The Swiss businessperson always exchanges business cards with everyone they encounter, and this
includes secretaries and receptionists. Without presenting a business card5 to the receptionist, John broke
Swiss business protocol, which did not help him after arriving without an appointment.
John’s greatest problem in this case study is he did not prepare. Preparation is key to doing business in
general, but adding the cross-cultural dimension to business negotiation makes preparation even more
important. If John had done research on Swiss business protocol and culture, he would most likely be the
exclusive maker of Swiss watch balance wheel and spring components.
1
Terri Morrison and Wayne A. Conaway, Kiss, Bow, or Shake Hands: The Bestselling Guide to Doing
Business in More Than 60 Countries, (Avon, MA, Adams Media: 2006), p. 487.
2 Frank L. Acuff, How to Negotiate Anything with Anyone Anywhere Around the World, (New York, NY,
AMACOM: 2008), p. 121.
3 Expatica, “Doing Business in Switzerland: Swiss Business Culture,” http://www.expatica.com/ch/
employment/business-culture/Doing-business-in-Switzerland-Swiss-business-culture_101552.html,
accessed February 2015.
4 Ibid.
5 Lothar Katz, Negotiating International Business, The Negotiator’s Reference Guide to 50 Countries
Around the World, http://instruction2.mtsac.edu/rjagodka/BUSM_51_Project/Negotiating/Switzerland.
pdf, accessed February 2015.
69
APPENDIX C: Country Facts
Australia Denmark
Capital: Canberra Capital: Copenhagen
Official Language: English Official Language: Danish
GDP: $1.5 Trillion USD GDP: $324 Billion USD
Gross Household Income: $43,960 USD Gross Household Income: $25,172 USD
Currency: Australian Dollar Currency: Danish Krone
Population: 22.5 Million Population: 5.6 Million
Major Religion: Roman Catholic 25%, Anglican Major Religion: 90% Protestant
17%, Unaffiliated 22%
Type of Government: Constitutional Monarchy Type of Government: Monarchy
Ireland Sweden
Capital: Dublin Capital: Stockholm
Official Language: English Official Language: Swedish
GDP: $221 Billion USD GDP: $552 Billion USD
Gross Household Income: $23,721 USD Gross Household Income: $27,456 USD
Currency: Euro Currency: Krona
Population: 4.8 Million Population: 9.7 Million
Major Religion: 84.2% Christian (Roman Major Religion: 66% Christian
Catholic)
Type of Government: Republic Type of Government: Parliamentary Democracy
Singapore Switzerland
Capital: Singapore Capital: Bern
Official Languages: English, Malay, Tamil, Official Language: German, French, Italian,
Standard Mandarin Romansh
GDP: $296 Billion USD GDP: $646 Billion USD
Gross Household Income: $3,164 USD Gross Household Income: $30, 745 USD
Currency: Singapore Dollar Currency: Swiss Franc
Population: 5.6 Million Population: 8.1 Million
Major Religion: Buddhist 34%, Christian 18% Major Religion: Roman Catholic 38%, Swiss
None 16%, Muslim 14% Reformed 26.9%, Unaffiliated 21%
Type of Government: Republic Type of Government: Democracy
70
APPENDIX D: US Embassy Contact Information
Australia Denmark
Capital: Canberra Dag Hammarskjölds Allé 24,
Yarralumla, ACT 2600 2100 København, Denmark
Phone: (02) 6214-5600 Phone: (+45) 33 41 71 00
Hours of Operation: Fax: (+45) 35 43 02 23
8:30am to 5pm, Monday through Friday
Hours of Operation:
8:30am to 5pm, Monday through Friday
Ireland Sweden
42 Elgin Road Dag Hammarskjölds väg 31,
Ballsbridge 115 27 Stockholm, Sweden
Dublin 4, Ireland Phone: +46 8 783 53 00
Phone: +353 1 668-8777 Fax: +46 (0) 8 783 5480
Hours of Operation: Hours of Operation:
8:30am to 5pm, Monday through Friday 8:30am to 4:30pm, Monday through Friday
Singapore Switzerland
27 Napier Road, Sulgeneckstrasse 19
Singapore 258508 CH-3007 Bern, Switzerland
Phone: (65) 6476 9100 Tel: 031 357 70 11
Fax: (65) 6476-9340 Fax: 031 357 73 20
Hours of Operation: Hours of Operation:
8:30am to 5:15pm, Monday through Friday 9:00 am to 12:30pm, 1:30 pm to 5:30 pm, Monday
through Friday
71