Handling Business Negotiating

Business negotiation in Japan is largely different from those that are practised in the Western world and other countries. Being an isolated, independent country with a strong economic position, the Japanese people are always anxious to know where they stand in a negotiation. Thus, upon the first meeting, you have to introduce your position, your role in the negotiation, and whose interest you are protecting (this means your company). Your prospective partners will not be comfortable doing the negotiation until they find out where they stand with regard to power, because it is inherent in the Japanese culture to draw clear lines among social levels.

Meanwhile, one unique characteristic noticeable in negotiating business with the Japanese is that at a meeting, you will always deal with a team, even if it is only the first meeting. This is because the Japanese decision-making process or style is group-oriented. Each participant will be there with his/her expertise to ensure that all the areas that need clarification and explanation are covered.

Business Negotiation

During the first negotiation, do not expect the Japanese people to make instantaneous decisions to conclude the meeting. Members of the group who participated in the negotiation will have to spend more time exchanging information and opinions before a decision is made. So, as a foreign negotiator, you have got to be patient. You will only know whether or not further negotiation will follow, or whether a deal will be made after the second negotiation.

When doing a negotiation in Japan, it would be helpful if you take into consideration the following negotiation characteristics of the Japanese people:

Japanese value rapport and relationship, so the first stage of negotiation will centred more on knowing the negotiators on the other side.

Japanese see a business deal within the context of long-term relationship. This means that relationship may take precedence over the terms of the deal agreed on by both parties.

In a business negotiation, the Japanese value or put more weight on their trust in the other party rather than on the information presented on the table.

Japanese are highly opinionated on certain issues, but they usually avoid stating them directly to avoid offending others. This means that you have to learn to read between the lines (sometimes).