Negotiation with the Japanese from a westerner point of view A case study of the Influence of Culture on the Negotiation

1. Negotiation with the Japanese from a westerner point of viewA case study of the Influence of Culture on the Negotiation Style SOUBIGOU Antoine, LESCROAT Vincent, THIBERT Romain, d’HERBAIS Alexis, SHI Jing, Li Shijiao Japanese Business Culture with Mr Suzuki Friday 19th March 2004

2. Introduction • Pokémons, karaoké, Vidéo games, mangas... are Westerner’s stereotypes about Japan • Is the Japanese culture so stereotypical ? • Japanese culture through the business point of view • The Japanese negotiation style: Theory VS a practical point of view (interview) Negotiation with the Japanese from a westerner point of view DESS MI

3. Different parts 1- Hofstede’s model in Japan 2- The main features of the Japanese culture 3- Some more concepts of the Japanese culture 4- The Japanese negotiation process 5- The case study Negotiation with the Japanese from a westerner point of view DESS MI

4. Hoefstede’s Dimensions in Japan • Very high Power distance : respect of rank centralized power. • Collectivist society : integration of individuals in groups and teams (companies) is essential. • Masculine society : no expression of emotions or feelings, paternalistic society. • Uncertainty avoidance : Everything has to be under control Negotiation with the Japanese from a westerner point of view DESS MI

5. Main features of japanese culture • Japanese business organization :High degree of cooperation with governmentCompany is seen as a family for employeesHierarchically structured and quality oriented • The decision making process : Very slow, based on consensus Ringi system, everybody involved • The Japanese Seniority system : Age, sex, family names are status criteria Feudal society more than democracy Negotiation with the Japanese from a westerner point of view DESS MI

6. Main concepts of the « doh » (way) • The Face : Never lose the face • « Wa » : A zen social behavior • « amae » :the oil of life • « Uramu » : an hostile feeling • « Enryo » : rejection opposite of amae • « Koto To Shidai Ni Wa »: the circumstantial truth • « Tatemae/Honne » : The two-faced syndrome, the Yin Yang. Frankness or tactfulness Negotiation with the Japanese from a westerner point of view DESS MI

7. The negotiation • The non task sounding • Not to discuss business but to learn about the other • Integrity, reliability, commitment and humility • Giving of gifts on first meeting often occurs • Meishi, the traditional exchange of business cards Negotiation with the Japanese from a westerner point of view DESS MI

8. The negotiation • The task related exchange of information • Very important after the ”wa” • Ask a lot of questions and give no feedback • Negotiators will remain polite and won’t disrupt the harmony • The Japanese are information oriented • Often ask the same question Negotiation with the Japanese from a westerner point of view DESS MI

9. The negotiation • Persuasion • Avoid using aggressive tactics • To defeat the enemy psychologically is the superior strategy • Persistent and aggressive determination to achieve one’s end • tactical questioning • avoidance strategies (silence) Negotiation with the Japanese from a westerner point of view DESS MI

10. The negotiation • Concessions and agreement • A broad agreement first and to reach the consensus is a holistic approach • Verbal contracts in Japan remain widespread Negotiation with the Japanese from a westerner point of view DESS MI

11. The interview • The interview with the managing director of Konami • Main goal : Get impressions of Europeans negotiating with Japanese. • Two parts in the interview: • Japanese culture (according to Mr Klingborg) • Japanese negotiation Negotiation with the Japanese from a westerner point of view DESS MI

12. The Japanese culture • The first impression • “Good impression from the start is everything!” • Avoiding talking around • The hierarchy • “If the boss say no, then it is no.” • Business card • Sitting procedure • Long-term relationship • “They have to know you before before they trust you.” Negotiation with the Japanese from a westerner point of view DESS MI

13. The Japanese negotiation • Non Task Sounding: • Japanese’s face : on time, business cards (anecdote) • contradictory : Japanese ‘s laptop • Task-related exchange of information • to do : delicate preparation , get the trust , be patient • not to do : speak your own language , talk things out of the meeting. • contradictory : Japanese spoken among them, interrupt during the meeting Negotiation with the Japanese from a westerner point of view DESS MI

14. The Japanese negotiation • Persuasion • to do : emphasize benefit , respect hierarchy • not to do : treating • Agreement • dilemma in front of the Japanese rules Negotiation with the Japanese from a westerner point of view DESS MI

15. Anectodes • The hierarchy • The face • The collectivistic society & the wrong impression Negotiation with the Japanese from a westerner point of view DESS MI

16. The Hierarchy • When a big boss visits his subsidiaries abroad, every member of the staff has to be there and to greet the boss; even if it’s not that useful for the quality of the job… • In a conference room, you’ll sometimes notice that the boss’ chair is higher than the other participant’s one. Negotiation with the Japanese from a westerner point of view DESS MI

17. The Face • He is the superior and when he decided, you cannot change the situation, even when you have a better or more profitable solution. In fact the boss completely agrees with the critics, but he cannot agree, because his is superior. When the time went on they can change the situation without loosing his face Negotiation with the Japanese from a westerner point of view DESS MI

18. The collectivistic society & the wrong impression • All the employees of Konami have a pin. That is a comrade sign, it emphasizes that you are working for the same company. If you loose the pin you have to write a letter with a really good explanation to get a new one. • The Japanese close sometimes their eyes during a presentation. They give you the impression that they are sleeping, but that is not true at all !!! They close their eyes to focus on what you say during your presentation. It is a Japanese manner to concentrate Negotiation with the Japanese from a westerner point of view DESS MI

19. Conclusion • Japanese and Westerner’s negotiation styles are different • However, several similarities come to the daylight when examining the Swedish case (cooperation, teamwork, harmony and consensus) • The case study points out differences with the theory : high/low context, written contracts… • The Japanese are very flexible and prepared to negotiate with foreigners Negotiation with the Japanese from a westerner point of view DESS MI