The negotiation plan is to sell motor vehicle spare parts to a Japanese company specializing in motor vehicles. The negation plan first involves identifying goals, the company's interest, and consideration of Japanese culture. In terms of goals, the program will consider them as the company's goals that have to be met after agreeing with the Japanese company. The plan introduces the viable agreement terms by ensuring that the Japanese company remains in business and continues making profits. The program will also highlight cultural matters by providing that the negotiation occurs acceptably and considers the company's norms of doing its operations. Interest is also crucial in the negotiation plan because agreements among negotiating companies involve stating their interests within the Negotiation. In solving any issues, the companies have to fully express their interests in a valuable and robust way in the agreement.
The first step is to introduce the American company supplying spare parts to the Japanese organization. Also, submit the negotiator's position and his or her role in the company. The plan acknowledged its importance within the negotiation process. It enables the company officials to get the essence of the partnership. It also introduces the company's will and the products it supplies. It is also worth mentioning the products' consistency to allow the company to eliminate interruption in production. This is because the plant's inadequate supply of materials will interfere with the supply of products.
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Negotiation plan procedure
Goal: The negotiation goal is to achieve market share expansion of the companies by selling their products. The American company will expand its products in the Japanese market and increase its market share both internationally and locally. Likewise, the Japanese organization will extend the sale of its motor vehicles both in the United States and the Japanese market. Thus, the Negotiation will result in an increased profit margin among the two companies.
Major issues of the Negotiation
Culture
Culture means the norms and traditions that give the organization a way of operating and doing things. These standards and practices are of great importance because it provides the company with a direction of attaining its objectives. According to Semnani-Azadw et al. (2020), an organization's culture will also detect the quantity and quality of services and goods to sell without disappointing the clients. When the company focuses on selling high-quality goods, it will get a good reputation internationally and globally. Hence, ease any other future negotiation with international companies. The bargain mix aims to uphold and respect each of the companies' cultures. They have an overall aim to increase their competitive edge in the market.
Conflict of interests
Conflict of interest arises when there is an overlap of interests among the bargaining companies. Such disputes can be resolved via the two companies reaching a consensus. Solving such issues enhances cooperation and will lead to the client's supply of quality services and goods. This cooperation enables an increase in market share and profit margins.
Delivery
Timely delivery of the products and services is paramount to any business success. It helps in reducing issues relating to production delays that interfere with the supply of the product. This section requires that our American company clarify how frequently they will supply the spare parts to the Japanese company without interfering with their production process. These issues have to be agreed on to make the agreement highly profitable to both parties.
Interests
The company's interests are to increase its market share, which will, in turn, lead to an increase in profit margin. Continuous production of high-quality motor vehicles to customers will mean that the company is increasing its market share. The Japanese company will increase its sales representing an increase in its market share. These goals are possible when the American company ensures a constant flow of high-quality products to the Japanese company.
Limit
The principal limit is selling all the products to the international market, which will imply a shortage of products at the domestic level. Another issue of resistance includes the government policies and regulations that may hinder the exportation of products to other markets. High tariffs and taxes on exported products can be imposed by the government, reducing spare parts to the Japanese company.
Protocols And Communication
The goals of the Japanese are the production of high-quality motor vehicles at an affordable cost. It aims to expand its market share by increasing the production of motor vehicles in the market. Culture is crucial to the company because it will limit the company from undertaking its functions, such as selling products at a given amount. Culture requires that issues discussed in the agreement be consistent and match with the organization's norms and tradition.
Resistance points
The top management may disagree with some terms of the agreement. Policies and regulations of the government may interfere with the negotiation agreements. The culture of the company determines the gender and age of the negotiator in the process of Negotiation. Interferences can also be from the Japanese company objectives and policies.
Opening bid and target
The main objective is to obtain an overall market share above 50% all over the world. To achieve this market share, the company must supply ten thousand tons of motor vehicles spare parts.
Social context
Romani et al. (2018) indicate that social context has to be distributive, intractable, and integrative. It enables the parties to interactively bargain to get an agreement that is beneficial to both.
Culture in the negotiation process
Protocol : Protocol protocols must be addressed on an invitation card to ensure no breach of protocols during the negotiation process.
Commination: good communication ensures proper understanding of the negotiations on all matters.
Sensitivity to time : it is possible to time sensitivity can be achieved by understanding a convenient time for both the negotiating parties, which reduces wasting of another party's time.
How culture impacts negotiations.
Negotiation opportunity is perceived differently by the Japanese and American culture. The North American cultures consider it as being distributive. Thus, challenges may arise as to whether or not the situation is integrative or distributive. Culture also affects the definition of Negotiation. Negotiation, according to (Brett 2017), the Japanese culture means an opportunity to share more information. Culture also impacts protocol. Culture differs as per the negotiating parties. Protocols of Negotiation in the Japanese culture are considered to be more formal compared to the American culture. Finally, culture impacts the selection of negotiators. The Japanese culture prefers older mature negotiators than the American culture, which can be done by both the young and old.
References
Brett, J. M. (2017). Culture and negotiation strategy. Journal of Business & Industrial Marketing .
Romani, L., Barmeyer, C., Primecz, H., & Pilhofer, K. (2018). Cross-cultural management studies: state of the field in the four research paradigms. International Studies of Management & Organization , 48 (3), 247-263.
Semnani-Azad, Z., Adair, W., Sycara, K., & Lewis, M. (2020). Influence of Culture on Reactions to Negotiation Deadline.
