Disclaimer: It is against the The Negotiation Experts' principles to offer its services to the tobacco industry. The Celanese case study has been reproduced for the purposes of study only, and is in no way a condonement of the damage the tobacco is causing.
Overview
One of the most closely studied Chinese joint ventures is that involving Celanese Corporation of the United States, a producer of value-added industrial chemicals, and China National Tobacco Corporation (CNTC). The venture produces tow, the fluffy synthetic fiber in cigarette filters.
In 1982, when CNTC decided to increase its production of filter cigarettes, it was on the lookout for international suppliers. Since all tow providers refused to sell their technology to
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New cultural difficulties arose daily, as Chinese practices collided with Western performance imperatives. Celanese employees noted:
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Crews of Chinese subcontractors would disappear for days at a time, leaving work unfinished. *
In work units supervised by foreigners, the Chinese observed workloads; but in those supervised by Chinese, the workloads were usually reduced and additional employees hired. *
Many employees appeared indifferent to the satisfactory completion of the project. *
The Celanese habit of flagging errors or shortcomings was taken by many Chinese as a personal affront—compounded by the indignity of seemingly being “talked down to.”
The Nantong factory was completed in 1989, when the joint venture went into operation, with a mixture of Chinese and U.S. managers and staff. Most of the Chinese managers appointed to the new enterprise saw themselves as loyal to CNTC, and their allegiance to the new venture was initially fragile. The Chinese managers discussed problems with their seniors at CNTC, rather than with their U.S. venture colleagues. Neither side could identify with the new entity at first, and managers held meetings in their native tongue, which upset those on the other side.
But overall, a long-term perspective was taken regarding the factory, where training was provided to enable employees to carry out prescribed operations.
At the same time,
Training is used to build knowledge and skills after employees have made the personal decision to support the change.
The 2001-2002 failed Caxtalene joint venture negotiations between CLQ and Wyoff provide important lessons on how to avoid failure in the current negotiations over the proposed AD/CE JV at CLQ’s Rizhao complex. In the Caxtalene negotiations there were critical substantive differences which prevented the parties from even reaching a preliminary agreement on ownership structure. Wyoff and CLQ were at polar opposites on both the equity split and the terms of technology transfer, with Wyoff demanding 80% and CLQ not prepared to go over 50%, Wyoff anxious to limit any substantive technology transfer and wanted to charge a substantial licensing fee for any technology that was transferred and CLQ expecting a free transfer of technology as part of the JV agreement.
Tobacco has been around in the world for over 2.5 million years. It was not until a few hundred years ago when the tobacco industry decided to put these crops into use and conjure up tobacco products for the community. A popular tobacco product in society is cigarettes, as they are cheap and simple to use. As long as one is over eighteen, acquiring cigarettes is a straightforward process for a reasonable price, albeit the sin tax. It was not until recently when cigarettes became widely controversial due to the plant containing nicotine, an addictive drug to the body. Aside from containing nicotine and other hazardous chemicals to the body, cigarettes also cause a whole host of health implications
market, in response of falling market prices of tobacco due to the oversaturated tobacco market, famers
CVS Health announced in 2014 that it wanted to stop selling all tobacco related products. This will affect every CVS location in the United States of America. The problem that arises in the U.S. is the usage of tobacco products. As a successful pharmacy chain and a lucrative company, CVS health wants to do its best to strengthen the health of American citizens. In order to solve the tobacco problem, the health professionals are taking it upon themselves to make a difference. If the distribution of tobacco products come to a halt at CVS pharmacies, consumers will either stop buying the products all together or looking for the products elsewhere.
Tobacco use and the effects of second hand smoke have been an ongoing issue for many years. Looking at the attitude of the 1950’s and 1960’s when smoking was thought of as cool, suave, mature, etc., there has been a major turnaround in the way society looks at the use of tobacco. Now the issue is not just smoking and the damage to health that it causes, but now there is the additional awareness of what second hand smoke can do to individuals.
was 35.1 billion dollars. With a product that kills so many of its customers, your only concern in this industry is to increase sales and make a profit. Definitely in the tobacco industry and most others, it is my opinion that you cannot cater to the best interest of both the company and the consumer. Even a good company with the best intentions will eventually come to a crossroad where choosing what is best for one will not have such a great outcome for the other. Their best interests will ultimately conflict, and you will be forced make a choice between the two.
Tobacco is one of the world's dangerous drug which is haunting human lives to death. Over a billion adults are addicted to this drug and wasting their money, time and health. Nowadays there has been an ongoing debate/discussion among many people about the role of government in restricting the usage of Tobacco and thereby safeguarding the health of the public. In my personal opinion, both government and the Individual together needs to work to overcome this problem.
The use of tobacco is a very controversial topic here in the United States. The harmful side effects of tobacco are well known and consequently, many believe that it should be outlawed. Though this has not yet occurred, constant regulations on the industry and
On the other hand, Chinese worker are centered on relationship. Chinese focus on relationship with others and live in the world of trust. Chinese trust people around them in their work place. Often, Chinese did not require signing contract in every agreement unlike American where all agreement must be in contract. By trusting others credibility, it helps create a friendly working environment and promotes intimate relationship among the workers. However, their main weakness is their business culture, where they are quiet and reserved which will reduce their credibility when dealing with American. They weakness also made them a weak immediate decision maker. As for interpersonal problem, Chinese are very concern about the good relationship, and hold it as their top priorities. Chinese would not do any agreement or trade that could harm their relationship with others. Lastly, Chinese are very polite and indirect. They try as hard to prevent the relationship from
American companies rely heavily on systems and processes, which is viewed as highly efficient by the American standard while the Chinese workers with ECL aren’t accustomed to this and believe that it’s not always necessary to establish a system to follow in order to complete a task. The difference in views on this could also present some serious problems for ECL, as the Chinese workers may view the American management style as inefficient or sluggish.
However our concern here is not only about the cigarette as a product but with the ethics of cigarettes as well, that affect the social process of marketing. This is because marketing process makes things worse and is also considered as unethical, and as a result has a significant negative impact on the societal welfare. Multinational tobacco companies apply sophisticated strategies ( such as putting flavor in the cigarettes and placing cigarettes in the shops near the sweets to make them more appealing) and invest huge amounts of money for marketing, in order to establish brand familiarity and future loyalty among young peoplem, to secure profits in the long run. 'The tobacco epidemic is a man-made international health crisis, created and sustained by multinational tobacco corporations.' (Yach, Brinchmann, Bellet page 2).
Furthermore, spoiled work, damages, and accidents to equipment and machinery can be kept to a minimum by well trained employees, continued training helps employees develop their ability to learn by adapting themselves to new work methods, learning to use new kinds of equipment, and adjusting to major changes in work relationships and job content, also, through training, new employees learn to measure up to standards for performance, thereby satisfying their human need for personal growth and increasing their value to the organisation (Pigors and Myers 1977).
There are several ethical philosophies in play here regarding the tobacco company and these ethical issues can be explored by analyzing the myriad of interplay of relationships
This case deals with the ethical dilemma that Tobacco manufactures face when selling tobacco products in third world countries. First, there is the ethical dilemma of business versus health. The opening and development of the tobacco business in Third World countries like China, Malaysia, Indonesia, India and Africa, is considered against the health consequences of tobacco use which according to an Oxford University epidemiologist, has estimated to cost 3 million lives annually rising to 10 million by 2050 without effective tobacco control program A second ethical dilemma is employment versus impoverishment, where the opportunities for work in the tobacco industry are considered against a background of malnutrition. This is a problem that