Luna Pen

1090 WordsApr 29, 20135 Pages
Maria Arzola WRI 118 April 10, 2012 Luna Negotiation Case Analysis After reading the Luna Pen case, I did not think that Erika’s approach was the best one. All of her actions, although I know were strategic and worked best for her, were somewhat unwise. For example, I though that the first mistake she made was in the very first situation, when she initially decided to contact Feng. She made the decision to start with an open approach, but she failed to realize that there might be cultural barriers. Although her tone was neutral, by giving him a lot of information through fax, I think that she limited herself from a strategic point of view. Some of the things she mentioned in her fax, I feel, should have been spoken about in person.…show more content…
In this case, each choice that the Erika made was crucial to how Feng reacted and read their relationship. In contrast to Chinese, Germans do not need a personal relationship in order to do business. Germans are more interested in your credentials and how you look on paper (i.e. the credibility of a company, or your own credibility and position in the company). This can be seen in this case, since Erika tries to demonstrate her position and establish her authority in the matter to Feng multiple times. Germans are also skeptical when it comes to business. That is, they are suspicious if something seems to good to be true. They also like to communicate through writing in order to keep records and are very blunt: They like to get straight to the point. DGG as well as Global Services both had strong BATNAs. I think that DGG’s strongest BATNA was taking back the Luna Pen name and continue manufacturing it, although it would not have necessarily been the wisest move in monetary terms. However, they were really only interested in receiving some sort of monetary compensation from Global Service for selling the Luna Pen for issues such as brand integrity, not to mention the possible revenue that could be made from selling those pens. Erika’s interests simply included wanting to look good in her company. This was the first major task she had to do and she wanted to come off as professional and efficient. I

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