Business negotiating across cultures Tomas Petovsky

Today’s class Intro and Fundamentals Uber Case Study Uber & Didi Why negotiate? 3 keys to success in nego Types of negotiations Group negotiations Agents and ethics Conflict resolution Culture in negotiations Uber in China Tomas Petovsky

Negotiate!!! €312.339 350000 €281.386 300000 250000 Didn't negotiate Negotiated 200000 €111.000 150000 €100.000 100000 50000 Salary at 30 Salary at 65 Your buddy will make €1,600 000 more in 35 years (3% y raise) Tomas Petovsky

Three keys to negotiation success Best Alternative To Negotiated Agreement (BATNA) What’s your alternative if you don’t get a deal? Reservation Price What’s the worst deal you’re willing to accept before you walk away? Aspiration Price What’s the best possible deal you aspire to? Tomas Petovsky

How can you remember these 3 keys? Put on your BRA! Best Alternative To Negotiated Agreement (BATNA) Reservation Price Aspiration Price Tomas Petovsky

Two types of negotiations Distributive Integrative Single issue Multiple issues Goal: Individual gain Goal: Individual & mutual gain Win-Lose Win-Win https://www.youtube.com/watch?v=6PpQk63iIWw Tomas Petovsky

Today’s class Intro and Fundamentals Uber Case Study Uber & Didi Why negotiate? 3 keys to success in nego Types of negotiations Disruption thru innovation Business model Looking ahead Culture in negotiations Uber in China Tomas Petovsky

Two chefs and an orange

Today’s class Intro and Fundamentals Uber Case Study Uber & Didi Why negotiate? 3 keys to success in nego Types of negotiations Disruption thru innovation Business model Looking ahead Culture in negotiations Uber in China Tomas Petovsky

“My biggest fear is that it’ll be too successful.“ Cultural controversy Euro Disney S.C.A.'s then- chairman Robert Fitzpatrick: "We didn’t come in and say O.K., we’re going to put a beret and a baguette on Mickey Mouse. We are who we are.“ “My biggest fear is that it’ll be too successful.“ Tomas Petovsky

Phrase became synonymous with Euro Disney's initial years. Cultural controversy Ariane Mnouchkine, a Parisian stage director, named the concept a “cultural Chernobyl”. Phrase became synonymous with Euro Disney's initial years. Tomas Petovsky

Animals Tomas Petovsky

Problem-solving Tomas Petovsky

Culture expressed more when stressed, tired, drunk German accent last minutes of classes going to 19:00 - Hier is vat ju nid to du Tomas Petovsky

Culture in negotiations 2 What gives negotiators 3 Which information power negotiators exchange Power through BATNA Asking questions directly or or power through position? exchanging offers? 1 3 Who negotiators negotiate for 2 What gives negotiators power Power through BATNA or power through position? Which information negotiators exchange Negotiate for the self or negotiate for the group? Asking questions directly or exchanging offers? Tomas Petovsky

Individualistic vs Collectivistic countries Value claiming differentiates across cultures Lowest 2nd lowest 3rd lowest China Hong Kong India #1 #2 #3 United States of America Israel Germany Tomas Petovsky

Batna vs Social position Value claiming differentiates across cultures Lowest 2nd lowest 3rd lowest China Hong Kong Thailand #1 #2 #3 United States of America France Germany Tomas Petovsky

Low vs high context communication Low Context High Context Explicit messages: simple, direct, and clear. Implicit messages: between the lines. Sign on Chinese Buses: “Respecting the old and caring for the young is a great virtue in Chinese traditions” Sign on UK buses Tomas Petovsky

Today’s takeaways Intro and Fundamentals Uber Case Study Uber & Didi 3 Things to remember BATNA = power Reservation price = walk away point Aspiration price = your goal Top-Down strategy vs Bottom-Up Build compelling value proposition for drivers and riders Always break down negotiation into smaller wins Consider cultural nuances as important key factors Adapt your strategy given market specifics and opportunity costs Tomas Petovsky