1. Business negotiating across cultures
Tomas Petovsky

2. 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

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

4. 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

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

6. Two types of negotiations
Distributive Integrative
Single issue
Multiple issues
Goal: Individual gain
Goal: Individual & mutual gain
Win-Lose
Win-Win
Tomas Petovsky

7. 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

8. Two chefs and an orange

9. 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

10. “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

11. 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

14. Animals
Tomas Petovsky

15. Problem-solving
Tomas Petovsky

16. 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

17. 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

18. 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

19. 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

20. 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

22. 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