Political+Impact+on+Global+Negotiations

The word “negotiation” is defined as a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests. This case talks about the impact of the political landscape of different countries, and the effect of not properly understanding how this can change the negotiation process. Raytheon was negotiating a NATO weapons system with a consortium of European companies. They had done their research pertaining to all of the companies that they believed were best able to handle the work at hand, and then contacted these companies to begin negotiations. Negotiations with these companies came to an abrupt end when the governments of several of these companies informed Raytheon to cease the negotiations. They were informed that the decision on which companies to negotiate with was not up to Raytheon, but up to the respective governments. Following these direction, Raytheon was able to successfully complete the weapons package. Some years later a similar system was being implemented for Japan. With the lessons learned in Europe, they immediately began their talks with the Japanese government, not individual companies. Nothing happened. Only after a senior executive had a private conversation with the Japanese deputy minister of defense, did it become clear. Unlike European governments, the Japanese government wanted nothing to do with the decision making of what company to use over another. Concern by the Japanese government over angering one company or another, and alienating associated political clout, was the main reason. This is a great example of why cultures need to be studied and understood before entering into negotiations. National political culture is one of the many factors that influence behavior at the negotiation table. A key error in Raytheon’s thinking was that the way negotiations in Europe were successful could be replicated in Japan and the same results would occur. When negotiating any new deals with foreign governments and/or companies, Raytheon needs to have a set pre-negotiation strategy. This should include taking the time to learn the local customs and culture of the country and knowing foreign expectations as well. Researching foreign negations, it is said that cultural differences cause four kinds of problems in international business negotiations at the levels of: It would seem to me that Raytheon needs to take a look at cultural differences at all levels moving forward. I think the list above ties into the politics of any foreign company as well. I would also add that Raytheon needs to be very careful of stereotyping when doing their future due diligence when researching the political culture of any countries they may be dealing with. Stereotyping can be counter-productive, and those tasked with learning about other cultures must get to know the parties that they will be dealing with, not just their culture, country, or company.
 * Language
 * Nonverbal behaviors
 * Values
 * Thinking and decision-making processes