Negotiation: Phillips and its Subsidiaries in Japan and Korea

Table of Contents

Introduction1

Purpose of the Study3

Discussion3

Background for the Study4

The Research Process5

Literature Review6

The Impact of Culture8

Head Office Subsidiary Relationship9

Aspect of Doing Business in Japan with Cultural Differences10

The South Korean Market and Culture10

Negotiation Model11

Negotiation Process13

Summary & Conclusion14

Recommendations16

References18

Negotiation: Phillips and its Subsidiaries in Japan and Korea

Introduction

The process of managing relationships is termed as Negotiation. In its simplest term it is not a complex thing, it is a basic human activity that exists between wife and husband, parents and children etc. When talking about negotiations in business side parties involved are employer and employees. The difference between daily routine negotiations and business negotiations is that stakes are relatively high in business negotiations. The purpose of the parties involved in business negotiations is to influence other parties so as to cut a better deal between them by accepting or rejecting what other party has to offer. Before any negotiation deal is finalized it is a voluntary process in which both the parties involved have the rights to change and modify the offer. The expectations between the parties are met and they try to come closer so that both can be benefited from what other have to offer. A different view of the term negotiation is to see it as a problem solving process, this view emphasis that negotiation is an integral and important part of developing or expanding any business. As per prior research study, the estimated time that is spent on the negotiation table is approximately half of the total working time.

Negotiation is the process to improve relationship between different parties to come onto a single consensus. The aim of the negotiation is to come onto a win-win situation that is fruitful for all the parties involved. Negotiations these days are very frequent part of international business world. Successful outcome is always the aim of the negotiation process and the parties involved always try to come onto a mutually agreed outcome. In this study, it has been observed that cultural differences are the major issue while dealing in negotiations between different countries. However, business negotiations are a bit different from other negotiations. They want a great deal of importance and significance from all the parties involved. Here, in this study, the negotiation process between the head office of a global company and its subsidiaries in different nations has been studied and discussed in detail. This paper provides a basic understanding of the influencing factors of the negotiations process between head office and its subsidiaries. One of the important aspects that make this relationship complex is the different cultural background of head office and its subsidiaries. The main emphasis of study is on these differences between a global player Philips and two of its local subsidiaries located in Korea and Japan. The entire framework of the study has been developed to have a better in- depth understanding of the influencing factors; with this the factors affecting negotiations are also identified. Having said about the culture, it is also ...