Is Geely interested in Opel Antwerp?

The Chinese car manufacturer Geely would consider to take over the production site of Opel Antwerp. Geely had previously acquired Volvo Cars from the American Ford Motor Company for 1.8 billion U.S. dollars. The trade unions react positive but they are cautious. This could be only one of many stories in the recent history of Opel Antwerp.

Geely is growing in his own country but exports are still a problem. Geely is  looking for better technology to develop its own cars. With the takeover of Volvo Cars, Geely has not only acquired two factories in Sweden and Ghent, but also a lot of technological expertise. The purchase of Volvo might be a great leap forward for Chinese car exports. Volvo’s knowhow can also improve the quality of Chinese cars. The production site of Opel Antwerp is logistically very interesting.

Some people are still sceptical about these takeovers by Chinese car manufacturers. Such a takeover is a cheap way to gain precious knowhow they could use for their own cars. This could be the reason why General Motors is not quite enthusiastic about selling Opel Antwerp to Geely. Chinese acquisitions of European car manufacturers may also herald the end of shamelessly copying the design, technology and even the emblem of our cars. 

(Source: De redactie/ Trends)

Stefaan Mels   

Your first cross-cultural negotiation...

Every businessman who works for international companies has to have his first cross-cultural negotation. This will probably make him verry nervous because he doesn't know what to expect. Here are some guidelines.

First off all: Prepare like a normal negotiation:

• What do you want to reach, what are your goals?
• What is already on the table?
• ...

(source)

This preparation is a must for every negotiation, cross-cultural or not. Not preparing at all will mostly lead to a poor outcome for yourself.

But when the negotiation gets a cross-cultural character (for example with Chinese businessmen), some extra preparation is needed, it's even harder when it takes place in an environment where you don't know. 

• Do some research on what the others will expect from you (what to wear, what to bring with you, how to act,...)
• Hire a local who knows the ettiquete, all the 'do's and dont's'. He can tell you what to do, and prevent you from maken bluders
• explain that it's your firs negotiation, you don't mean to do something awkward when you say, do something stupid
• apologize.
• ...

(source)


Hannes Ryheul

Learn young, learn fair!

In Japan, students can follow a course of cross cultural negotiations in order to develop skills for dealing with countries abroad.

The course "East-West Negotiations" is based on actual business negotiations and teaches students some general rules about how to trade with foreigners. After graduating, students will posses about more business experience and more knowledge about other cultures .

I am convinced that some training at university level would be a big advantage over competitors. Further on, a trainee is not only more competitive against other cultures, but also against his own nationals. That’s why I believe it is a good idea to integrate such a course at the University of Ghent, because  I don’t think I will be familiar with difficulties in cross cultural negotiations within 3 years.

 If I would be the prime minister of Belgium, I would already introduce this course from secondary school. Learn young, learn fair!

Ken Merckaert

Source :

http://www2.gol.com/users/cpwells/Negot.html

The consequences of “cross cultural globalization”.

 Cross cultural negotiations are a hot topic in a world of booming globalization, because a rising number of people are employed by multinationals  and outsourcing becomes more popular than ever in times of economic crisis. Is this a good thing?

On one hand, we get closer to other cultures. On the other hand, globalization includes capitalism, which means that the gap between rich and poor will become bigger.  Can you accept the fact that a company established in Belgium decides to stop their production here in order to restart in China, where it’s possible to produce at lower costs? Will you still negotiate with these more attractive countries, when you realize your job can be in danger?  

Moreover, I belief it is advisable to remind the importance of corporate culture.  I am convinced that a company won’t work when the ideas and beliefs shared by the shareholders aren’t the same anymore.  Finally, culture also contains national background, religion and ethnic. Do you think you are still talking about the company you remember?

Ken Merckaert

Source :

http://www.mindtools.com/pages/article/newLDR_07.htm

Cultural differences between East and West in cross-cultural business negotiations

Cross-cultural business negotiations are influenced by four main aspects. The first one is the difference in language and non-language behaviours. The meaning of a word can be very different in several languages. This has already been motivated in one of our previous blogs. An example of the differences in non-language behaviours is the appreciation of staring at someone. Americans don’t like it because it is impolite but at the same time, the Chinese use it to show curiosity or surprise.

The second aspect is the difference in customs. Americans are more egocentric and direct while Chinese people pay a lot of attention to what other people think of them.

Another aspect is the way of thinking. Chinese prefer overall thinking, while the people in America are more interested in the individual way.

Fourth and last aspect is the difference in values. Collectivism is preferred in the East while the central value in the West is the individual person.

All these differences are very important when you want to negotiate with foreign people. Knowing the other person’s culture can be very decisive in business talks.(Source)

Nils Meul

Comment on ‘Culture and business, related or not?’ (Ken Merckaert)

When you negotiate with other cultured people, training could be very useful. I agree with that but what type of training do you need and what if cross-cultural negotiations fail? Is this failure always a consequence of poor knowledge of the other culture? I don’t think so. There are so many aspects that can lead to misunderstandings, poor relationships, etc. I would like to give an example. When a person doesn’t succeed in arranging agreements in his own country, he probably won’t be capable of settling international contracts either. It would be better to teach him some negotiation skills first. As you can see, so many factors have their influence on cross-cultural negotiations. That’s why it isn’t always easy to see where negotiations went wrong.

Nils Meul

Why should we negotiate

The other blogs were mainly focussed on the 'cross- cultural' part of cross-cultural negotiation. In this blog I will talk about the second part, 'negotiation'.

Actually we negotiate all the time, not only for bussines purposes. We do it when we discuss a time and place to meet, what movie we're going to watch when we're going to the kinepolis with your friends, and their are a thousand other examples I can give.

When we negotiate we want to reach a compromise in wich we benefit as much as possible. To do so we use arguments.

We can distinguish 2 different types of negotiation, based on the goal the different parties want to reach:

1) 'distributive negotiation' : the main purpose is beating the opposition. In this kind of negotiation  the different negotiation  partners aren't searching for a compromise, they are aiming on a different outcome. This can lead to a failure or an outcome in wich non op the negotiaters benefit

 2)'friendly negotiation': the negotiatiors want to reach a compromise. This can make sure there is an outcome of wich the different parties benefit. (source)

Hannes Ryheul

Obama in Indonesia

Barack Obama went to Asia for an international meeting with the president of Indonesia, Susilo Bambang Yudhoyono. Obama, who spend a few months in Indonesia as a child, wants to improve the relationship of the West with the Muslim world. A task not to be taken lightly. The second most powerful person in the world says that there is a lot of hard work needed for reaching this goal. According to the President of the United States of America, the hard work consist of “building trust” and “more people-to-people contact”. This should lead to the elimination of some misunderstandings and mistrust between the West and the Muslim world. Obama has already tried to repair ties with Muslim communities a few times before, but still without success. Main question remains why Obama wants to re-establish those relationships with the Muslims? Is he really interested in the culture or is it just a smart move to decline the terror threat? Does he really want to improve the world economy or is it just a way of protecting his own country? (Source:BBC News)

Nils Meul

Cross-cultural marketing blunders

A poor awareness of cross-cultural differences in communication and marketing can finally lead to blunders with damaging consequences for your firm . If you still want to conquer foreign markets, a good translator is indispensable. A bad translation can often lead to a humorous situation.

In Germany, mist actually means dung. Would you like to be driven in your Rolls Royce Silver Dung? When Umbro named its new sneaker the Zyklon, the UK sports manufacturer forgot that Zyklon B was used by the Germans during the Second World War to murder millions of Jews. Brillo, manufacturer of scouring pads, is Italian for being drunk. These are only a few among various examples of cross-cultural marketing blunders.

If you want to start an advertising campaign abroad, you have to be very careful. Watch out for translation errors, historical names, cultural differences, etc. Poor cross-cultural awareness has many consequences, some may be humorous others very serious. One little mistake can cost you millions. (Source: Kwintessential)

Stefaan Mels

Is knowledge about the other culture really necessary?

Imagine; you are a representative of a Belgian company, and your task is to negotiate with a delegate from a Chinese company in order to get your product in Chinese stores. You know that the product you are selling is a hype in China, and you are 99% certain to get the contract. Do you really need to take courses (wich means extra costs)? Probably not, but we live in a global economy. There will be a lot of competitors, who are trying to sell the same product. In this case a negotiator has to use everyting available to make sure he gets the contract. Knowledge of the other culture is a very important factor. "Culture also determines buying behaviour, consumption habits, negotation habits,...*".
As you see you need information about the other culture, for negotiation itself, but also to understand the behaviour of the people who have to buy your product eventually.

The way I see it, knowledge about the culture of the people who have to buy your product is as important as negotiating skills. When you understand the people who buy the product you will understand the point of view from the counterparty and be capable to respond to their needs.  (source: onderhandelen.nl)

*Philip Kotler; marketing expert


Hannes Ryheul

The value of cross cultural negotiations

The G20 wants to tackle trade imbalances to affect world growth. However, this is a hard job in an economy in which there is an unbeatable player called China whose national currency is perfectly low to compete nowadays with countries abroad.

That’s why there is an economic conflict between China and United States. The US asks an appreciation of China’s currency to reach global stability, while China itself says that the Americans are doing the same thing. If China’s currency undergoes a devaluation, the market leader will become less competitive. Is it time for the G20 to take measures against China’s strategy?

I think it is necessary for all of us that leaders of major economies meet each other  to improve a global growth instead of a powerful boom in one country. Moreover, I believe that wars just exist because of economic reasons. Therefore, I am convinced that cross cultural negotiations  will lead us to a world with less conflicts.

Ken Merckaert

Source: BBC News

Avoiding the pitfalls

“Most people tend to underestimate cross-cultural negotiations but at the same time a lot of people overestimate cross-cultural negotiations.” This quote shows exactly how difficult it is to communicate with different cultured people. Even in the same country there are differences in culture. Sometimes people make certain assumptions about the other person because of their national background, but that’s not the right thing to do. You don’t have to know everything about the national culture, you need to understand the person you’re communicating with. With people from other cultures, we should be more careful for not making mistakes. People often forget to tell certain things to the other person when they know that his culture is more or less the same as their own. This is risky because it can lead to misunderstanding, poor contracts, etc. A negotiation coach can help somebody in this situation, but when you want to learn the habits of a specific culture, a culture coach might be better.

Cross-cultural negotiations are far from easy and they will get more and more complicated, but when you want to be successful, patience could be the key. (Source:movie)

Nils Meul

Gift-giving etiquette in Japan

In Japan gift-giving is an art form and an important part of the Japanese business protocol. The ritual of giving a gift is far more important than the gift itself. That is way the actual gift may be quite modest.

The Japanese expect you to offer them a gift at the first meeting.  “It’s a gesture that you’re looking forward to a long lasting relationship.”  The best moment to present a gift is at the end of your visit. The procedure is to tell the host beforehand that you have a small gift to offer.

Present your gift with both hands and bow while doing that. The Japanese will politely refuse at least once or twice before finally accepting the gift (do the same when you receive a gift). The present will not be opened in your presence, but in a private room.

Appreciated presents are imported top-quality drinks, like wines and scotch. The Japanese people like foreign brands, so it is a good idea to bring them something from your own country. Even the symbolism of the gift is very important. Red is associated with funerals and the number four refers to death. It is important to learn about the culture of the country you will visit, as a result, you will know what to expect. 

(Source: International business etiquette)

Stefaan Mels

Cross-cultural negotiation

Cross-cultural negotiation is something you can learn. A good training can give yourself an advantage over rivals. Cross-cultural negotiation training learns you more than how foreigners close a deal, it  learns you about the culture, values, beliefs and etiquette of your potential client.

The training instructs you that eye contact is considered rude through the eye of a Japanese. Time is money in western countries and Japan or China whether being on time is not so important in South America.

How do you meet and greet? Do you give a weak handshake or a hard handshake? How should we address our client? Can we offer a gift to our client? In China or Japan gift-giving is a part of the business communication, in the US or UK it is not.

Not only the etiquette is decisive, also relationships and negotiation styles are important. In Germany they have to analyse all the information before they make a decision while in England there is a deadline. But as everyone knows, Germans are very punctual. (Source: Kwintessential)

Stefaan Mels

Culture and business, related or not?

Cross cultural training is a useful skill in a world of globalization, because trade knows no boundaries anymore and business is harder than ever in times of economic crisis. Although some people are likely to believe that a job will succeed as long as it is financially attractive, the chance they underestimate the importance of cross cultural negotiation is bigger than you might think. 

In Western societies, “meeting and greeting”  happens with a handshake, but in other continents it may be classified as inappropriate.  Or can you imagine that you present at a business meeting in Japan without a gift, while Japanese people consider this as protocol. Will you take such a risk?

 I was wondering if cross cultural training really has influence on doing successful business. After reading this article, I am convinced that some preparation gives you a huge advantage over competitors.  With some knowledge of other cultures you will have more chance to close a deal with a foreigner.

 If I failed to close a deal in a foreign country, I would follow a course of cross-cultural negotiations as quick as possible!  

Source: http://ezinearticles.com/?Cross-Cultural-Negotiations&id=11769

Ken Merckaert

Body language in cross-cultural negotiations.

A big deal of negotiation effectiveness depends on body language. Because of body language we can gain an idea of other people's feelings and thoughts. These expressions and movements can be interpret  wrongly, so be careful when negotiating with people from other cultures.

A few examples:

First of all there is eye contact. In western countries making eye contact is considered as a form of paying attention to the speaker. But in Asian countries you show respect to the others by looking down.
A second example is the space between the negotiators. Asian men tend to stand much closer  than European or North American people when discussing certain subjects. Japanese people even tend to keep a distance from 4 or 5 feet.
A final example is punctuality.For Western negotiators being punctual is important and arriving late is considered disrespectful.African people on the other hand think differently. They don't understand why Americans and Europeans think puntuality is so important.

As you see there is a large difference in interpretation of body language between different cultures. Informing yourself before negotiating is considered a must when you want to gain respect from the others. (source)


Hannes Ryheul

Inter cultural communication

A lot of companies all over the world try to expand their area of distribution. The unavoidable need for reaching this goal is well used cross-cultural communication. When a company negotiates with a foreign organization, they have to know how those people communicate, behave, what their religion is, etc. It isn’t easy to know all those cultural differences and that’s why an increasing number of companies have an intercultural communication consultant. They help to simplify cross-cultural negotiations what makes them very useful for a multinational organization. It allows the company to communicate at an optimal level with potential new clients. Another way to avoid poor communication are translation media. A quick and perfect translation of documents is inevitable for international agreements.  Bad communication can lead to misunderstanding and poor business relationships.
There are a lot of things that may improve cross-cultural negotiations, but it’s still rather difficult to talk with different cultured people. (Source)


Nils Meul