Situational Problems Arise When Doing Business Essay

712 WordsMar 24, 20163 Pages
Situational problems arise when doing business. This study is caused by cultural differences like relationship building and a contractual obligation. The Chinese focus on personal relationships that are face to face versus a factual relationship approach like the American’s use. Each party has to adjust to each other’s cultural style. There is a lack of communication is presented as a breach of faith between the parties’ business arrangement. Introduction Beijing Bio-Tech (BBT) is an animal fed manufacturer in China who hired Edward Tang of Asia-Pacific Consulting Group to locate a United States supplier for feed grade lecithin. Lecithin is produced from soybeans. China’s main grains are for human consumption, which are wheat and rice. Mr. Tang found a handful of companies that sold lecithin in the United States, but those companies only wanted to deal with the seller directly instead of a middleman, Mr. Tang. Therefore, Mr. Tang contacted Bill Wright of US Fortune to help with his search. Mr. Wright reached out to Dr. Robert Fisher at NutriNex, a lecithin producer. Dr. Fisher was enthusiastic to work with the middleman and sell the product overseas. To secure funding, Mr. Wright elected to use a letter-of-credit to avoid any financial burden, to collect a commission for the transactions and to remain the middleman. The contract negations on the purchase agreement, a natural disaster, a lawsuit, and lower commissions are dilemmas discussed. Dilemma Contract
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