Greece

At the beginning of 2000, there was an inter-company dispute between two shareholders of a Greek consulting company, the business activity of which is the elaboration of studies for the establishment and expansion of companies. The project that they decided to implement concerned the transfer of the company’s offices from its existing facilities to new ones.

The issue, on which there was a disagreement, was between two shareholders of the organization regarding the selection of the location of the new facilities. Shareholder number 1 argued that the new facilities of the company should be in a new privately owned space of the organization peripherally of the city of Larissa, while Shareholder 2, in a rented space in a central part of the city market, as well as the existing ones.

The reason that Shareholder number 1 supported this position was twofold: a) the organization would have the opportunity to implement for, its size, a costly project with co-financing, and in the end the building of the facilities would be a fixed asset of the organization and b) the peripheral location where the new facilities were to be located was an area, potentially to become a commercial center.

On the other hand, the reason that Shareholder number 2 insisted on their position as they considered that it was more convenient, in terms of meetings with new and existing customers. They resolved this disagreement through negotiations to finally reach the position of Shareholder number 1.

As can be seen from the description of the situation, the negotiation between the two shareholders took place, in order to resolve their dispute between them. Conflict resolution is one of the reasons that lead people to negotiate. This kind of negotiation is a personal, informal negotiation. Only two parties are involved, Shareholder number 1 and Shareholder number 2, and, therefore, this constitutes a bilateral negotiation.

The subject matter is unique, namely the location of the project implementation, and therefore, it is about a monothematic negotiation. Finally, it was a negotiation based on the different perspectives of the two parties and not on their positions as both Shareholder number 1 and Shareholder number 2. At this point, it should be noted that since both shareholders are members of the same organization and – in fact – with equal shares, one could easily assume that their words would weigh the same, in the decision-making process. However, Shareholder number 1 had the status of the legal representative of the company while Shareholder number 2 did not. This feature automatically gives Shareholder number 1 extra power at the negotiating table, which is recognized as a force to be reckoned with.

Prior to the start of trading, Shareholders number 1 & 2 knew the positions and interests of the other person. The possible solutions to this situation were two and specific: either the construction of a privately owned building on the outskirts of Larissa for the new facilities of the company or the relocation to a rented space in the city center. Essentially, the possible solutions reflect the positions of the negotiators. Each party identified each solution based on the strength of Shareholder number 1, as the legal representative of the company, who had the legal possibility to disagree with a proposal that they did not consider satisfactory in the interest of the company. Understandably, the capacity of a legal representative gave Shareholder number 1 great power from a formal point of view, but they claimed that he would not use it to force the other shareholder to agree with them. After all, such behavior on their part would, as they explained, have a negative impact on their subsequent cooperation. But they would try to convince them of the correctness of their point of view with arguments. They pursue the best for the organization, but they both stood their ground and supported their point of view.

After a fruitful negotiation, which finally led to the prevalence of Shakeholder’s number 1 opinion, both parties continued to cooperate and joined forces for the good sake of the business future of the company (Christianopoulou, 2012).

Another example regarding the role of Greece in the Eastern Mediterranean negotiation is provided by an interview with Nikos Dendias, the Greek Minister of Foreign Affairs (click on the video link below):

Greece’s Role in the Eastern Mediterranean: A Conversation with Nikos Dendias

Romania

The Romanian company XX was involved in a complex transaction with YY – from Z. The object of the negotiated transaction was the supply by the Z company of an electric equipment for the annealing of household glassware.

First contacts

The first contacts between the two companies took place by correspondence. Following a letter of intent from XX, company YY submitted a general offer and issued an invitation to send a delegation to its premises.

Making a decision in principle

Being an important transaction, an investment of excellent value, XX General Shareholders Assembly was invited for discussions – which brought together three of the shareholders who together held 75% of the company’s shares. They knew each other well, since they were collaborating, but they lacked mutual trust.

Team organization

It was decided to create a team of three shareholders (all insisted on being part of the negotiating team), the General Manager and a consultant, a trusted person of one of the shareholders. The Director General’s proposal to integrate a specialist engineer into the team was rejected.

Visit the potential supplier

The team travelled to Z. The production plan was presented while access is only allowed in the assembly sector. The actual equipment could be seen only by displaying videos and technical drawings in video in a room arranged impeccably for it. The only participant in the Z who was talking was the Chief Engineer. He prepared a presentation however the Romanian delegation didn’t understand much, which lacked a specialist in equipment. During the visit, the hosts created a pleasant atmosphere, an extremely hospitable atmosphere, including by visiting some local tourist attractions.

Debriefing. Time out!

Following the visit, an extremely controversial deliberation took place at XX headquarters. Most of the controversies were related to the lack of technical information able to allow a timely decision. The talks were interrupted, and no consensus could be reached. The YY partner was confused for not receiving feedback for about couple of months.

The supplier returns

YY supplier insists on resuming talks and offers to present a clearer offer in Romania. A visit takes place, with the YY delegation including the Chief Engineer and a sales representative. They offer eloquent technical explanations but, noticing that the need of the Romanian beneficiary for their product was vital and to achieve their proposed objectives, they adopt a firm position of the negotiation from the beginning, hardly granting minimum concessions. As a negotiation technique, the YY prefer “point-by-point” negotiation, with a gradual approach to a compromise solution.

The final agreement

After internal discussions and deliberations with the technical factors, XX considers that he would have a great advantage by resorting to a different investment option, which he proposed to the supplier, namely, to conduct only a modernization of one of the existing ovens and not the purchase of a new one. The supplier’s representatives were reluctant to make the proposal, as the value of the supply would have been halved.

The transaction was completed in the end, but different from the first negotiation process. The purchase of a new oven is abandoned, and the existing one was modernized. Both sides win. XX saved a lot of money, and the supplier realizes that there is a wide market for such operations because many factories were in the same situation as XX.

Conclusions:

The negotiation process was deeply affected by the following

– Misunderstandings and lack of trust

– The composition of the negotiating team must not follow hierarchical and power criteria but especially professional, communication skills and experience

– Disclosure of internal weaknesses exposes risks and reduces the effectiveness of negotiating teams

Poland

International negotiations are far more complicated than domestic negotiations due to cultural differences. It is far more than just learning how to structure and sign contracts in another language. Polish international negotiations companies help their customers communicate in respectful manner with their foreign business partners.

Export-Experts – (https://szkolenia-eksportowe.pl/o-nas/) are a Polish business with professionals in export sales, marketing, multiculturalism, and international law. Which provides advice to entrepreneurs on how to profit from exporting, assess risks, and win in foreign markets. They specialise in export training and teach in an interactive format, with an emphasis on practical workshops and case studies. For over a decade, they have been running training projects for the SME sector and have trained over 2,500 businesses.

PUCCINI – (https://puccini.pl/marka-puccini) polish people associate Italian products and names with excellent quality and prestige; therefore, some polish brands use Italian names. PUCCINI is a Polish company with a long history and extensive experience. It is a major producer of luggage, women’s handbags, and leather goods. Travel was something that inspired the company’s founders and collection designers. PUCCINI has been putting functional and elegant products into the hands of customers for years, thanks to their travel experiences, as well as observation of fashion trends. PUCCINI’s gaze is particularly drawn to the Apennine Peninsula and the designers and artists who live there. The PUCCINI symbol refers to a steel hinge attached to the front of a Venetian gondola called II ferro, whose function is to balance the weight of the gondola standing on it. Several names of the suitcase collection are inspired by Italian cities:

Roma, Tuscany, Bologna, Siena, Modena, Latina or Parma. The company founders drew inspiration from Italian culture and wanted their brand to be known and that’s why they used an Italian name.

Dono da Scheggia – (https://donomoda.pl/) fashion house founded by Beata Drzazga located in Katowice. Poles associate Italian products with good quality and high prices, which is why many Polish brands choose the Italian name for their company. This is why the founder translated her name into Italian and used it for the name of her boutique. Dono DA Scheggia is a boutique offering the latest collections from the world’s fashion capitals including Milan, London, Paris and Vienna.

Scotland

Morris v Swanton Care & Community Ltd

Morris related to a sale and purchase agreement (the “SPA”) involving shares in a company. The claimant received approximately £16 million in preliminary consideration. The SPA also included a provision for deferred consideration in the form of an earn-out provision for the claimant’s consulting services. According to the SPA, the claimant “shall have the option” to provide his consultancy services for a period of four years following the completion of the SPA and “for such further period as shall reasonably be agreed” between the parties. The claimant worked for the company for four years and received approximately £4 million in earn-out compensation based on an agreed-upon formula in the SPA. The claimant then asked for a “reasonable extension” to provide his services, which the defendant denied (Jeremy Andrews, Jeremy Sher, Matthew Lo, n.d). In this website you can read the analysis about the case Morris v Swanton Care & Community Ltd.

Moreover, here you can also find two more cases.

Slovenia

Scheduling meeting. It would be advisable to schedule meetings at least two weeks in advance. Most Slovenians tend to work efficiently, with a focus on results, which can sometimes come across as too direct. Yet, this is part of the culture focused around respecting one another’s time. Punctuality is particularly important for business meetings. Being late demonstrates a lack of respect and it is highly recommended to call ahead to apologise and give a valid reason for the delay.

On the meeting. Businesspeople prefer to use their surname and formal greetings for conducting business meetings. Most managers have a significant level of education and experience: a large majority of them holds postgraduate degrees, and a considerable proportion of the population consists of university graduates. Slovenians as business partners usually do not like to share their private information. After a while, once trust has been built, they will talk openly about many subjects, but rarely about private topics.

Doing business. Maintaining proper eye contact when having a direct discussion with your business partner and firmly shaking hands with all participants on arrival and at the end of meetings are considered signs of confidence. At the first business meeting, partners should exchange business cards that display their name and degree or title. Most international meetings are conducted in English; however, Slovenians are also quite fluent in German and Italian because of the proximity to Austria and Italy. Business decision-making processes are often based on hierarchy, and many decisions are still reached at the highest echelons of the company. Business decisions are often based on personal sentiments about the other person. Therefore, it is a good idea to spend time in relationship building. Generally speaking, Slovenian businesspeople tend to prefer non-confrontational business dealings when possible. This means that even when giving a straightforward response, they will generally proceed cautiously rather than hurt another person’s feelings.

Some useful tips. The dress code very much depends on the sector and tradition of each company; however, when in doubt it is better to dress formally. Gifts are not normally exchanged in business settings due to compliance regulations such as bribery laws. However, in a social setting, if invited to someone’s home, always bring a small gift for the host or hostess such as flowers, chocolates, or wine.