Indian and the US Culture and Its Impact on Negotiation Practices - Capstone Project Example

The paper "Indian and the US Culture and Its Impact on Negotiation Practices" is a perfect example of a management capstone project. Multinational companies and other global business entities attempting to establish their businesses in India have been faced with unique challenges that demand the understanding of the corporate climate and culture. The levels of success or failure in Indian businesses are directly related to the manner in which international players adjust to the unique character of Indian culture.

According to Stephen (2010), there is a strong connection between culture and business in the Indian context. Past and recent analyses on Indian negotiation methods show that the styles adopted in the Indian business environment are largely consistent with their cultural beliefs, social values, and attitudes towards life in general (Stephen, 2010).According to Gesteland and Gesteland, Indians embrace family values and uphold principles of honesty, respect, order, and hierarchy. Indian culture also features a strong attachment to interpersonal communications and relationships.

The individual is never separate from the business transaction. They view the negotiation of a business transaction through the individual rather than a strictly technical business process (Kothari, 2009). In essence, Indian negotiation styles combine the values of the culture and focus largely on the results rather than the processes; therefore, it is important for business theorists to establish ways through which the synergies of culture, attitudes, and values can be incorporated into business practices in India.

For some US multinationals interested in conducting business in India, adapting to Indian culture and negotiation styles, poses a challenge (Salacuse, 2005). Although some multinationals in India have succeeded, a considerable number have registered failure, due to a lack of knowledge on how to successfully negotiate in India. Failure of most US multinationals to take into account the culture and current negotiation styles of the country will result in their continued low profitability and productivity (Salacuse, 2005).

For the past 20 years, foreign companies have been trying to gain entry into the business environment in India (Choudhary, Kshirsagar, & Narayanan, 2012).