example paper for students - 大连东软信息学院2016～2017学年第一学期大作业范例

Case # 0
The Negotiation between Canadian and Chinese Wallpaper Company (case study in week 14)
Part I Case Study
I Case Brief
Two Canadians (Burton and Raines), representing Canwall, came to China to negotiate the sale with a Chinese wallpaper production company in a small town in Jiangsu Province. The Chinese treated Burton and Raines with hospitality but the meeting was delayed for 2 days because of banquets and sightseeing.
The Canadians were not comfortable with the slow pace of the negotiation while the Chinese weren’t sure if Canadians really wanted to make a deal with them, because it looked like the company didn’t have enough maintenance service and they weren’t willing to bargain the price.
Another reason of discomfort was that while the Canadians were doing their presentations some of the Chinese left the room or the new people came in – which forced Canadians either to change the pace of their presentation or start from the beginning. The Canadians also observed some of the Chinese members playing with their phones and they thought the Chinese didn’t pay enough attention.
Eventually, cultural differences lead to conflicts concerning negotiation style and business protocol details between the two parties, which resulted in a failure of the negotiation.
II. Identifying the conflicts
There are a few differences concerning the negotiation styles of the Canadians and the Chinese.
➢The Canadians are direct while the Chinese are indirect.
➢The Canadians are focusing only on the contract while the Chinese care more about the long-term business relationship.
➢The decisions are made by authorized Canadian managers while in China the decision cannot be made until a consensus is reached. (leadership style difference)
The key issues include the Canadian side failed to provide required after-sale
maintenance and refused to compromise on the bargain.
III Analysis
Cultures have very different personalities when engaging in intercultural negotiations. There are negotiation style differences between Chinese and Canadian businessmen, including being direct or indirect when speaking, working at a slow pace or a rapid pace, working collectively or as individuals.
Influenced by Confucianism, Chinese usually look for setting up long-term relationship with the business partner, while the Canadians, according to Hofstede, are often concerned with short-term results and seek quick gratification of their needs. Because of this the Canadians failed to recognize hospitality of the Chinese and they didn’t understand that the Chinese were actually trying to be long-term, trustworthy business friends. The Chinese, on the other hand, didn`t see the Canadians` concern for time and their being task oriented rather than relationship oriented.
Since bargaining is not really a part of Canadian understanding of business, the Canadians stuck to their original price (with only 3% discount), which was perceived by the Chinese as “not showing enough commitment and sincerity towards the cooperation”. The Canadians, on the other hand, might have thought that the Chinese were trying to take advantage of them.
Also there are differences on business protocol details between the 2 parties, for example, the Chinese left the meeting room without any explanation, which was considered being rude by the Canadians, who are from a Monochronic-time culture.
PART II – Action Plan
First of all, both parties should have been well prepared for the negotiation. They should have known the negotiation style differences of the Canadians and the Chinese to avoid the misunderstanding caused by direct and indirect ways of expression.
I. Suggestions for Party 1
The Chinese may have developed sensitivity to the use of time. It is advised that the Chinese side should have asked for a consultation for the agenda arrangement, with proper time for the dinner and efficient schedule for the business meeting. Also it is important for the Chinese to be conscious of the Canadians’ Monochronic-time cultural characteristics, so that the Chinese may behave much better during the meeting, rather than answering the calls at the table or leaving the room without explanation.
Another solution might be learning more about culture of bargaining …………….……………………………..
II. Suggestions for Party 2
It is suggested to the Canadian side that they should have studied more before the meeting if they wanted to ensure the deal is successful. If the Canadians could realize earlier that the after-sale maintenance and the discount offer are usually considered as “showing goodwill and sincerity towards the long-term cooperation” in China, they may improve the price before coming to China and provide a better discount.
Furthermore next time Canadians should make enough time to set up a relationship with their Chinese partners and ………………………………….……………………………………..
III. Discussion
I believe my suggestions for the Chinese side are valuable and would help them set up better relationships in the future for two reasons.
First of all, Western countries, especially Canada and USA are very future oriented cultures which means they plan their every minute and like to stick to their plans. They will feel more comfortable and secure if they know what they will need to do each and every day and hour they spend in China before coming to China.
Otherwise, the Canadians might feel like they are being dragged around for no good reason.
The second reason is that it is very important for China to not lose face and respect. When they start to see using phone and coming in and out of the room freely during the meetings is actually a matter of respect for the Canadians (just like face), they will be more accommodating and understand that “face” and “respect” can happen in different ways in different cultures – which sometimes become visible in business manners. This kind of understanding will strengthen both cultural and business relationships between the two parties.
I think, my suggestions for the Canadian party are also equally significant and can work very well given the cultural context and value system. I have mentioned that Canadians are task and future oriented and care about only the results when it comes to business. However, we should remember that they are also innovative and always would like to have space for new approaches to business. In this respect, they would be ok to add the human element into their business negotiations when they learn about Chinese people`s hospitality and care for long-term relationship.
Also …………………………
……………………..
IV. Conclusion
All in all / In summary …………。