6 Jun 2022

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Hofstede's Negotiation Strategy

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Academic level: College

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The American society is an individualism society that is driven by a capitalistic approach to any of its business venture rather than the people it represents. This aspect of the society gives American negotiators a rather outright approach when negotiating with other countries. On the other hand, the Japanese society is a collectivist’s society that incorporates its people as the basis of any relationship they choose to enter. Unlike the American approach, the Japanese approach adopts a rather inclusive aspect that incorporates all the other aspects of the society. This aspect of the society requires any other partner or country choosing to make any formal engagement to learn and understand the Japanese culture before they sit down to make any agreement. In the Orange negotiations, the Americans before making a move towards engaging the Japanese group needed to understand the importance of such a deal to the Japanese society rather than the Japanese government. 

The Japanese culture is an incorporated society that bestows importance in the people and their subsequent growth and development. The American society, on the other hand, is a cosmopolitan society that allows individuals to seek personal gains over social gains. This difference creates a challenge between these two groups when choosing to make any form of agreement ( Jeong 2016) . For example, the fact that the Japanese society holds true to its culture as an important element means that it has a high index opt that requires any negotiator to adhere to a stiff code of conduct, behavior and laws. It means that they have to be truthful in their negotiations otherwise the whole contract will not finalise. Due to its abrasiveness, the American approach scores a low opt index meaning that American negotiators are deemed to impose less strict laws. 

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There is a great difference between America and Japan in power status. America is a super power while the Japan is a second level power status country. This difference between the two countries means that members of such society adopt different approach and attitudes when dealing with each other. The Japanese know and understand that America holds a higher card in regard to making any deal especially with the advantage of power it has over them. This piles pressure on the Japanese to negotiate for more as a way to balance this inequality in power. This is because in such a society, members tend to question any deal made as they hold a perspective that they may be taken advantage of. The power distance index between these two cultures vary greatly. 

The American society is a feminist society. Females hold considerable sway and power in the societal hierarchy both in jobs and in the family setting. In this society, culture “allows” women to hold power, earn, and represent other members of the society in any rank. In Japan, the cultural approach is a masculinity one. The society has a basic structure that requires women to “fall in line” behind their male partners and are not allowed to hold more power than their male counterparts ( Korobkin 2014) . Women in such a society are accredited the role of maintaining the bonds that exists within the society. Thus, when instituting negotiations between the American and the Japanese, it is important that the American team chooses an all-male team as a way of ensuring that the Japanese team does not feel looked-down upon. More so, the Japanese negotiation team should respect the American feminine culture if they are accosted by a female negotiator. This difference between these two very different countries requires either countries to appreciate each others cultures and choose to understand the other party. 

In the Orange negotiations, the Japanese intendent to utilize that negotiation as a way through which they could improve their image as a dominant trade partner. It also intended to avoid sanctions from abroad. The Americans, on the other hand, main aim was to export oranges abroad and demand liberalization of the Japanese market. The demands of these two countries depicted a difference in LTO (Long-Term Orientation). The Japanese goal of improving its image was a long-term strategy while the American goal of exporting oranges was rather a short-term goal as a more suitable market would arise any moment or crop failure may occur. This difference affects how either of the negotiation teams chose to approach the negotiations and what terms they chose to agree to or refuse. It is a rather complicated aspect of negotiations as either teams do not understand whether the other team has a long or short-term orientation. Therefore, it is important that either team chooses to be truthful in their dealings in order to give the other team a perspective that allows them to negotiate comprehensively. 

The American society and culture is an indulgence society that allows its members to enjoy the little joys of life. This element of the culture empower the Americans in engaging in negotiations as the negotiating team believe they are in total control. They chose to approach the negotiations with more self-belief as compared to Japan negotiators ( Hoppa 2012) . This is because the Japanese culture is more dependent on traditional elements of culture such as gods, natural phenomenon, and the very crucial roles they play in every aspect of their lives. Therefore, the Japanese team will tend to regard every element of the negotiation to be influenced by a high power or by fate. This element of the Japanese culture can influence any negotiation in any way and the American team should take this aspect of the Japanese culture when entering into negotiation with them. 

References

Hoppa, J. (2012). The Implications of Hofstede's Dimensions of Cultural Variability for First Contact Situations.  Maryland: BiblioScholar. 

Jeong, H. (2016). International Negotiation: Process and Strategies. Cambridge: Cambridge University Press. 

Korobkin, R. (2014). Negotiation: Theory & Strategy . New York: Wolters Kluwer Law & Business 

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StudyBounty. (2023, September 14). Hofstede's Negotiation Strategy.
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