Cell Phone Negotiations Danita Carter MGT/557 February 17, 2013 Marie Smith This paper addresses the situation of cell phone negotiations between the United States and China, specifically the situation involves: The all-male negotiating team from the United States seeks a cell phone price of $6 per unit. Assume the American team embodies the following Hofstede’s cultural dimensions: * Individualistic * Low-power distance * Low-term orientation * Low-context The all-female negotiating team from China offers cell phones with a $9 per unit price tag. Assume the Chinese team embodies the following Hofstede’s cultural dimensions: * Collectivistic * High-power …show more content…
The Chinese team, on the other hand, consists of only females and has a gender more relationship-oriented. Collectivism, like the Chinese team will form a cohesive group and the person holding a supervisory role will make the decisions. Members of this team will look for approval from the leaders of the team. Also the difference in gender in the two teams will focus on the concept that men will see a beginning to the negotiation process and an end. They see the relationships as separate from the negotiation. The Americans will focus on the goal with a strong point of view, and the Chinese will seem take more time because the Chinese will work more on their relationships. The need to go through the powers of authority to make a decision will delay any decisions. Gender differences also play a part in low or high-power distance of a party. In the American party the decision would be spread throughout the organization with respect given to all. In this respect also comes the confidence to question decision makers in this a lower-power distance. In the Chinese world, high-power distance is more the case with the decisions made only at the top, and the finalization given by the leader. For every decision, approval from the superior delays negotiations farther. In the American team culture, low-term orientation occurs there is a more change occurring and commitments do not become a problem for change to take place. This
The differences between Chinese Culture and American Culture are immense. Both cultures have very different values and norms, and these differences come out within the negotiation between Buckeye Glass Company and the Xia Xian Glass Factory. Both parties during this negotiation had different objectives and ways to get what they wanted out of the proposed joint venture.
2. Using the cross-cultural criteria defined in class, list the expected discrepancies in the behavior of the Korean and US negotiators.
The case informs us that the consumers will buy both the products and that the willingness-to-pay for each of the product is independent across the products but the maximum a consumer will pay for both the products combined is $100.
The legal system is another issue to be considered when doing business in China because it is still viewed as being in a developing stage. Contracts, for example, are highly influenced by this difference. In the Chinese culture, contracts describe how relationships will be developed whereas in the United States, the contract is a binding agreement that spells out the specific terms, conditions and expectations from each party involved. As Company X pursues the possibility of expanding business to China, it must understand that the Chinese business culture does not place as much emphasis on the binding force of a written contract.
This paper shows cultural differences between Iranians, Chinese and Indians in business negotiations based on interviews with three businessmen: an American citizen who set up a general trading company in China, an Iranian Canadian citizen who has a trading company in Iran, and an Indian America who set up a business in India. The interview questions focused on cultural elements based on Hofstede’s research: power distance, low-high context, and general business behavior in these countries.
This Lab is designed to help you get started gathering information on your assigned country. As you work on this lab, you are free to share questions or information found with other members of you negotiation group. You all share the same country, though you do not share the same firms.
The problem arising in this situation is that Fletcher Guitars decided to merge with a Spanish company without fully understanding the culture of business in Spain. Adam’s ethnocentrism is harming his mission to somehow increase production. Ethnocentrism is a person’s regard to their own culture as superior to another, meaning Adam is unable to appreciate the difference in social values between Spain and the United States. On Hofstede’s Value Dimensions, the United States ranks 6th meaning that they have higher power distance and accept inequality in power among institutions. In this case this is displayed by Adam’s pursuit to increase production regardless of Salvador’s standards and viewing him as an equal. Another social value that differs between Adam and Salvador is the uncertainty avoidance. Adam comes from a company that relies on high uncertainty avoidance due the need to keep pace with the market while Salvador’s low uncertainty avoidance causes him to remain relaxed and less worried about increased production. An additional social
A Canadian company named Canwall Papers sends a team of two to represent a company in China to negotiate a sale to new wallpaper company. The Canadian team consists of Charlie Burton, the president of Canwall Papers and Phil Rains, the marketing director. Before the Canadians went to China, they had several meetings. The first meeting was with Mr. Lee the manager of the Chinese company and the others were via numbers of letters and faxes. When the Canadians and the Chinese started the negation, it did not go very well. Although the Canadians knew that their product was good and the price was acceptable the Chinese ended up buying from a Japanese equipment manufacturer. This report will analyze the things that caused the Canadian
In this negotiation, we learned that it is important to research your opponent, to understand their culture, not only of their country or backgrounds, but also their company culture. When we are able to understand our opponent’s way of thinking about business and doing business we can then understand how to approach a negotiation situation with them. In this exercise, we learned that it is difficult for us to adjust when it involves breaking or acting in a way opposite of what we are accustomed to. We also learned that although my classmates live in the same country as we do, their upbringings may have similarities to their origin country and will therefore help them to communicate and adjust to that country’s norms and standards. We were surprised how we were able to stay in character although it was hard and it was surprising how people responded when they were unaware of your intentions and strategies. If we had to do this exercise again, what we can do is do more research on our opponents so that we would have an idea of what to expect in the negotiation table.
Take iPhone 6 as an example: Chinese people are willing to pay $1000 to buy one from the United States.
How does culture affect behavior during negotiation in general and the different stages involved? Critically evaluate this link and assess its importance for international managers. Throughout your answer, refer to at least two contrasting cultures of your choice, and cite relevant theories and examples from international
Kendra Sherman, a business development specialist for Celluclear Wireless has secured an order for 100, 000 cell phones from Russia, who has a promotion with a telephone provider there, the order must be ready in the next 90 days. These phones are somewhat identical to the Alpha Model currently produced by Celluclear, which runs $20 a unit. However, the Russian Company is only willing to pay $15 per unit for the order that has been secured by Kendra. Kendra is eager about meeting with Lars Norman the production manager to ascertain whether or not she can win
The purpose of this paper is to examine the similar driving forces between Chinese and Mexican cultures and how those forces direct the negotiation tactics of Chinese and Mexican nationals. The goal is to determine what the major driving force is for Mexican and Chinese negotiators and to give foreigners an idea of what to expect and how to successfully negotiate among Mexican and Chinese cultures. The research focuses on the similarities in the cultural priorities
DRAGON is a Chinese company ranked as the world’s second largest entertainment corporation. During this negotiation, Andy will be the senior manager responsible for permits issues, Kristine will have the role of financial manager responsible for financial demands, Linh will be the marketing manager responsible for press release issues and finally Laetitia will be the international manager responsible for issues regarding visas.
Explain each stage of the negotiation process and the role that culture plays in each stage. Give example to support your answer