When conducting business with Aisan, it is important to be aware of significant cultural features. Apart from having a general understanding of the historical and cultural background of the country you are dealing with, the more commonplace business culture in Asian countries includes toasting at banquets, handclasp, swapping cards and after-dinner activities such as singing at Karaoke clubs.
Asian negotiators have a reputation for being forceful, determined, and willing to take advantage of any weakness or opening. In order to negotiate successfully in Asia, Western companies should be sensitive to morals, behavior patterns and psychology, as well as business matters. The following is a list of points that companies doing business in Asia should consider, and tactics they should expect to come across during negotiations:
- Asian businesspeople will react unfavorably to a person they consider to be ill mannered, inconsiderate or conceited and welcome someone who is honest, courteous and determined in approach.
- Asian cultures place an emphasis on establishing a relationship, and so will focus on learning about your company before concentrating on the agreement.
- Avoid embarrassing people and causing them to lose face in the presence of others. If possible, criticize in private, or even better, use an intermediary to convey.
- Conduct a feasibility study on the Asian company prior to your first meeting. Research current economic conditions and government policies as thoroughly as you can.
- Eating and drinking play a key role in business in Asia, and it is often during dinner that the most important business relationships develop.
- Gift giving is normal Asian business practice and only small gifts are necessary (e.g. bottle of alcohol, carton of cigarettes etc.). Lavish gifts may indicate that a special favor is expected in return, so beware.
- Good preparation is essential in order to achieve an acceptable result. Expect your opposition to know your company, your products and the industry and to ask penetrating questions.
- In most negotiating sessions, businesspeople will speak both their native language and English. Western negotiators should therefore have available a native speaker on their team.
- Negotiations really only begin as the venture progresses, and the real substance of the relationship develops as the two parties negotiate issues and events, which arise on a daily basis. For substantial investments, on-the-ground representation is particularly crucial to success.
