Internationalization of the company

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AG2236 V1 Article

Internationalization of the company

Author : Anne DEYSINE

Publication date: July 10, 2010 | Lire en français

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Overview

ABSTRACT

Culture plays a major part in the construction of the real or perceived image of a country, a company and its products. A strategy of influence must be implemented at all levels, involving watch, intelligence and promotion as well as human resources and lobbying, in Brussels via the European Union (as is the case within the WTO for instance). Ways of thinking, working and management syles within a company condition and influence the style of negotiation and its efficiency. This article explains the dangers of both hard and soft negotiation strategies as well as the mechanisms and advantages of what is called the "reasoned" or "win-win" negotiation". It also details certain tactics and strategies as well as the way in which project negotiation is to be conducted. Their components vary according to the different cultures and additional information concerning the Chinese way of negotiating are also provided.

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AUTHOR

  • Anne DEYSINE : University Professor - Director, Master 2 – International Affairs and Intercultural Negotiation, Université Paris-ouest Nanterre la Défense

 INTRODUCTION

Analysis of a nation's culture and its underlying values shows that it influences the image of both countries (France or Germany) and companies perceived as "French" or "German". In some cases, companies may decide to erase their origins (e.g. Essilor in the U.S. under its flagship brand Varilux) or, on the contrary, take advantage of them when France's image is positive, buoyant and rewarding: this is particularly true of the luxury goods, haute couture and gastronomy sectors, much more so, with a few exceptions, than of the high-tech sectors.

In addition to these strategic choices, which are based on what already exists (such and such an image of a particular country or company), it is essential that the various players - governments and companies alike - work on their image, combating stereotypes, for example, so as to build as positive an image as possible. This is what France and French companies need to do better, and more, by implementing influence strategies at both European and international level, both in political bodies (Brussels and the European Union, World Trade Organization – WTO) and in more technical bodies, such as European (CEN, Cenelec) or international (ISO) standardization bodies.

These actions encompass business intelligence, monitoring and lobbying, of course, and all require good negotiation skills: listening to others, being aware of cultural differences and wanting everyone to come out a winner, hence the name "negotiation raisonnée", also known as "win-win".

The principles of principled negotiation are presented, along with a number of negotiation techniques that vary from culture to culture. The Chinese case is studied in greater detail to highlight the pitfalls to be avoided.

The previous issue, [AG 2 235] , deals with human and cultural issues.

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