Throughout the negotiation process, businesses must be careful of cultural differences. Furthermore, the business must be aware of the stages of negotiations for both Saudi Arabia and Russia. This involves knowing what the cultural differences are for each country. This includes political, legal, economic, and ideological issues. Finally, the negotiator must consider the differences in the decision-making process for each country.
Stages of Negotiation
The stages of negotiation are simple. These include “preparation, initial positions, discussion, compromise and flexibility, and making the deal” (Tschiesche, 2012). In general, these stages are the same internationally. For example, through the preparation process, it is possible for the negotiators to come to the negotiations table prepared for the causes and effects of the issue at hand. The negotiator may want to know what the business’s position is, how this position can come close to the other party’s position, points of compromise, and personality differences between negotiators. These can all have factors in the outcome of the negotiation. The second process involves each party’s initial position. These should be stated “clearly and assertively,” describing how things are seen through the eyes of the negotiator (Tschiesche, 2012). Personal attacks should not occur and each party needs to give the other party the courtesy of attention.
During the discussion process, the parties need to be willing to listen to the other. This will promote cooperation later down the line when it comes to finalizing a solution. This also allows for the greater opportunity of compromising. For example, “it is sometimes helpful for parties to make tentative suggestions to the other to try to move things forward” (Tschiesche, 2012). This allows both parties to see that the other is willing to try to work together in order to develop a solution that is acceptable.
This procedure is the same internationally. All parties must find a way to work together as a cohesive team and compromise. This allows for a greater working relationship, as well as a lasting partnership.
Cultural Differences
It is important to be aware that “doing business in Saudi Arabia can be a highly-lucrative venture for Western businesspeople if they can handle the cultural differences” (Li, 2012). In fact, “the U.S. Department of Commerce described Saudi Arabia as the most stable economy in the Gulf and its government as having conservative economic and financial policies” (Li, 2012). However, some differences exist. For example, the Saudi Arabian weekend is Thursday and Friday. Furthermore, Saudi Arabian “businesspeople pray five times a day” (Li, 2012). Therefore, American negotiators can expect their negotiations to be interrupted at these times. In order to prepare for this, it would be wise for American negotiators to read the local newspapers in order to ascertain when these times are and plan ahead for them. Additonally, it is recommended that negotiations do not occur during the month of Ramadan. The reason is that businesses tend to slow down during this time. If negotiations must occur during this time, American negotiators must be considerate of the habits of the Saudi Arabians, such as fasting, during this time. This goes a long way in establishing trust. In fact, trust must be established before business can even be discussed. Finally, interactions between the genders are strictly limited.
Russia prefers what is known, as compared to new ideas. In fact, Russians “value stability, security, social order, and predictability, avoiding risk” (Goehner). Furthermore, “Russians rely on a close network of family, friends, and co-workers as protection against the risks and unpredictability of daily life. This extends into the business world as a way of getting things done. Friendship with a Russian is not to be taken lightly” (Goehner). Therefore, ultimately, treating Russians respectfully and considering their habits is a positive way to enhance negotiations.
Political, Legal, Economic, and Ideological Issues
American negotiators will need to know what the current political, legal, economic, and ideological issues in each country are. For example, it is important for the negotiator to be well-versed in specific cultural differences. These differences also include personal culture difference. In that, these differences specifically relate to business and casual circumstances. Furthermore, legal issues need to be considered. This involves the use of legal papers and procedures in order to enact the result of the negotiation. Each negotiator will want to ensure that each aspect of the outcome is fully explained and gone over with legal advisors. This ensures that the outcome is enforceable in a court of law if necessary and that all contracts are valid.
Decision-making Processes
The decision-making processes for each country varies as they do business. For example, both countries focus on business relationships with strong personal relationships. Therefore, the American negotiators will want to ensure that personal relationships with foreign businesspeople are solid before broaching the business topic. This shows trust and common welfare among the people involved. The negotiators will want to be considerate towards each country’s beliefs. For example, Saudi Arabia has strict guidelines about doing business with women. Therefore, American negotiators will want to take this into consideration and accommodate it.
Negotiations internationally are not simple. However, they can be very rewarding for both parties if done correctly. Furthermore, international negotiations award a sense of community among countries. This allows the business world to increase financially and economically.
