Advanced International Business

Board of directors is responsible for the overall management, organization and compliance. Members of the board and management can be held liable for compliance matters

Active / Passive bribery of Swiss officials: Up to 5 years prison or monetary penalty

Active or passive bribery of foreign public officials: Up to 5 years prison or monetary penalty

Granting or acceptance of advantage by swiss public officials: Up to 3 years prison or monetary penalty

Active/Passive bribery private individuals: Up to 3 years prison or monetary penalty

Art 102 SCC: A company can be held criminally liable if a crime or offense has been committed within its framework and this cannot be attributed to an individual due to a lack of organization. ---> Finde up to a max of 5 Mio.

• Policy that outlines principles/standarts to all employees
• Mission & Values of the company --> Guidence for daily activities
• Must be authorized by top level management
• Understandable language --> Acessable for employees and stakeholders 

Its not mandatory, but its recommended

• Whistlerblower = Individual (often employee) who reveals information within private, public or government organization that are unethical, illegal, fraudalent or abuse taxpayer funds.
• Two Option to report: Internal or external
• Important for a company is that they have an intern channel to adress anonym

• A Negotiation is the interaction of two or more independent parties, where each partyn want to realise its own goals in the best possible way 
• Neither of the two parties is able to reach its goal alone, they are controlled to some extent from the other side--> parties ned to cooperate 
• Negotiation is a strategic interaction ---> exchange of relations and informations

Knowing/understand the other party

• When do we negotiate
• How long do we negotiate
• Agenda of negotiation (Controll of agenda gives you advantage --> The place is essential)

Negotiations that create value:

• Integrative: Parties cooperate to achieve maximum benefits. 50:50 solution, both are winners 
• Principled: Separates people from problem, focuses on interests rather than positions

Negotiations that claim value:

• Positional: (Bargaining) Most used style: Takes successive and then giving up a sequence
• Distributive: (zero sum): Each side get as much of the transaction as possible

Good Negotiation:

1. If there is an agreement it should be wise i.e.

• Meets the legitimate interests of each side
• Duable and future oriented 
• Takes stakeholders interests in accoun

2. Should be efficent

3, Should improve or at least not damage the relationship between the 2 parties

1. Preparation (internal) Most important part of every negotiation (A weak party can win, if they are well prepared)
2. Contact (pre nego): Define the problem together, develop commitment, establish guidelines
3. Core Negotiation & Bargaining
4. Agreement: Closing
5. Implementation

• Zone of possible agreement

Concessions are compromises or discounts that one party makes in negotiations. An openong offer is usually met by a counteroffer, and these two define the bargaining range

Rules of concession:

1. Plan your concessions (Issues or terms  you will give up, you must keep, you want to get, create a chart of informations --> Info is power)
2. Don't set the first demand near the final one
3. Don't underestimate your power
4. Don't reveal your power too early
5. Never accept the first offer
6. First demand too high-->ask to be lowerd before counteroffer
7. Try not to make the first concession on importat issues
8. Never give a concession without anything in return
9. Never lose track of how many concessions you have made

Best alternative to a negotiated agreement (Plan B which satisfies both parties altough it is not the best solution)

BATNA has to be determined before the talks begin

Walk-Away

The dual concerns model for negotiation strategies takes two central factors into account.

1. Relational Outcome (vertical axis): Universalistic
   • How important is the relationship with the other party?
2. Substantive Outcome (horizontal axis): Individualistic
   • How important is the outcome of the negotiation?

Relation and Substantive Outcome important = Collaboration

Relation important, Substantive Outcome not important = Accomodation

Relation not important, Substantive Outcome imporant = Competition

Relation and Substantive outcome not important = Avoidance

Power is defined as: Ability to exercise control, authority

1. Destuctive power
2. Productive power
3. intergrative power

 ATTN: The potential power has to be mobilized (costly) to actual power (whats on the table) --> Mobilized Power = costly

Sources of power:

• Formal Position
• Personal Sources
• Reputation
• Expertise
• Control over agenda
• Contextual sources
• Allies
• Capacity of Reward & punish
• Control over resources
• Network

1. People: Separat the people from the problem
2. Interests: Focus on interests, not positions
3. Options: Generate different possibillities, invent win-win options
4. Criteria: Result based on objective standards

• Reciprocity (Owing a favor)
• Commitment & Consistency
• Social Proof (Kundenbewertungen, Likes)
• Liking
• Authority (competence)
• Scarcity (Knappheit)

System of values and norms that are shared among a group of people

The ability to recognize, analyze and influence behaviors in a positive way.

There might be different ideas, communication styles, (EG: Age, Justice, Fairness) and approaches in e.g. decision-making, problem-solving

Different culture = Different Values, ethics, behavior, etiquettes, communication

1. Universal
2. Cultural
3. Personal

Desribes the basic instincts and characteristics that mostly all humans share. Feelings such as fear,  love, or anger, or hope. -->Instinctual behaviors.

• Values, ethics, norms, behaviors, etiquette, and communication patterns, which are shaped by a particular group.
• Shared behaviors and actions of adaptation and integration to a specific environment, that culture you are born in.

Comparitive Culture 1

Personal experience, values and how they respond/intercat with others

Psychologicsl Level

• Focuses on internalized norms, attidutes, values & behaviors of individuals from particular culture. 

Institutional Level

• Group/national culture embodied in institutions (government, education, business organizations)

• A common and oversimplified fixed image of a particular type of a person.
• Based ont the tendency to group things togheter 

1. Cognitiv efficieny (economy): Efficient categorization to simplify information.

2. Social categorization: Grouping people into categories (based on shared characteristics/group membership)

Pygmalion Effect: Higher expetcations lead to increased performance

Golem Effect: Lower expectations lead to bader/lower performance

Stereotypes:

• Categorize all members of a group as having the same characteristics
• Selective, inflexible perception
• Observations are judgemental / Clichés

Generalization:

• Categorize many members of a group as having similar characteristics.
• Flexible perception
• Observations are neutral / Tencencies

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Universalism:

• Searches for sameness/similarity and tris to impose on all members of a class or universe the laws of their commonality (Gemeinsamkeit)
• Universalists follow the rules, even when friends involved. They try to deal equally and fairly in all cases

Particularism:

• Searches for differences, for unique and exceptional forms
• Particular circumstances are more inportant than rules / Response may change  according to circumstances "it depends"

Universalism

Advantages:

• Provides equality and equal treatments also under the law. Ecourages competition.
• This leads to higher value products at lower cost (mass manufacturin). Universalism pays off when the universe is large. Moreover, prices fall as scale increases. 

Disadvantages:

• Can lead to simplistic moral formulas and dogmas. Can be challanging to legislate and includes challanges of bureaicracy, impersonality

Particularism

Advantages: Flexibility, Improvisation, Interpersonality, outcome oriented, pragmatism

Disadvantages: Discrimination, favoritism, corruption, unreliabel, in extreme cases chaos, hostile human rights

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1. Global corporation: Highly cetralized
2. International corporation: Centralized but local adaption
3. Multinational corporation: Decentralized
4. Transnational corporation: Best of both