COMMUNICATION IN BUSINESS-case study Essay Example | Topics and Well Written Essays - 2750 words

COMMUNICATION IN BUSINESS-case study - Essay Example Cultural dimensions like Power Distance Index (PDI), Individualism (IDV), Masculinity (MAS), Uncertainty Avoidance Index (UAI), and Long-Term Orientation (LTO) etc can affect international business negotiation process. Most of the societies are unequal because of the variations in power possessed by them and the different perceptions about the long term and short term goals. Some societies do things collectively whereas other societies do it individually. Moreover, some societies treat males and females differently whereas some others treat them equally. The ability of some cultures or societies in avoiding uncertainty is more than other societies. Moreover, political, economical, social, technological, environmental and legal factors can also affect the cross cultural business negotiation process. The international negotiators should possess adequate knowledge about all these factors in order to conduct the negotiation process in an effective manner. They should do their homework pr operly before going for the negotiation process. Terms of Reference Business negotiation is a complex task which requires lot of preparations and planning. Cross cultural business negotiations are even harder because of the high percentage of uncertainty and ambiguity in such negotiations. Most of the organizations will seek the guidance of business consultants before actively participating in international business negotiations. I am working as an international business consultant and recently one of the biggest American firms approached me in order to seek my advice for expanding their business to the Chinese territory. My client was interested in joint venture business strategy for entering into the Chinese territory. They already short listed few Chinese companies as their future partners and asked me to submit a report about how to negotiate with them. My client asked me to give more emphasize on the cultural aspects of international business negotiations since America and Chin a have entirely different cultures. This report is prepared for my American client in order to make them aware of the role of culture in international business negotiations. Overview of the situation Both China and America have extremely diverse population. America is under a democratic regime whereas China is under an autocratic or communist regime. In other words, China and America are extremely different nations as far as politics; culture, social setups, economy, legal frameworks, etc are concerned. Language, environment, social organizations, level of knowledge and authority possessed by the people, verbal and nonverbal communication means, temporal conceptions etc are entirely different in these two countries. In my opinion, my client should have better ideas about all these things in order to conduct successful business negotiations with their Chinese counterparts. An international negotiator should possess intelligence, creativity etc and he should have flexibility and diplo macy in his approaches. He should also possess skills such as problem solving, negotiations etc. He should also possess knowledge about different legal structures, governmental policies, possibilities of natural and manmade disasters. He should be hardworking and should do the