(1) A well known Chinese manufacturer of electrical household appliances invited a giant of white electrical household appliances from European Union to have a discussion about co-operation. The European party sent an assistant, a fridge department manager and washing machine department manager to attend the negotiation. After over ten hours of flight, the European guests arrived in Beijing .Then they changed to another domestic flight to get to a city in Guangdong, where the electrical household appliances manufacturer was based at 23:40 that night. The senior managers and related department managers were all present to meet them at the airport, which made the European guests very appreciative.
In order to show our kindness and hospitality all the 12 Chinese senior managers, department managers and interpreters treated the two European guests lavish hospitality , the European guests accepted the toasts of Chinese representatives again and again, regardless of strain from the flight and the discomfort due to the jet lag. Two of them were totally drunk by Chinese maotai so that the negotiation planned on the following day was delayed till the third day. During the following week, Chinese party treated every meal. However, the three European representatives learned a lesson from their experience the night before, controlling the amount of alcohol they drank, and did not make a show of themselves.
The Chinese negotiation team can be described as powerfully and thoroughly designed: a president, two vice presidents, three department managers, a senior engineer, a CFO, a lawyer, an interpreter and a secretary. Chinese party was counterparts. Additionally, they had made carefully negotiation plans and physical preparations. All the expenses at the five-star hotel were charged to the account of Chinese party.
However, in the negotiation hall carefully arranged by the Chinese company were displayed the samples of the products produced by its factory over the past year, which had sometimes distracted the attention of the negotiation representatives. In addition, maybe in order to prove the feature of the air-conditioners displayed, the host party fixed the temperature at 16℃, which made the chief negotiator who had allergic rhinitis sneeze frequently. Fortunately, the host party realized the problem immediately and adjusted the temperature to the proper one. The European representatives noticed that Chinese party was very generous in all the arrangements with the eagerness to cooperate with them. Therefore, they made proper adjustments in their offer.
It can be seen in the above case that except the overdrinking and too low temperature of the air conditioner, the whole negotiation went on quite smoothly. Both parties reached co-operation agreements on the introduction of the latest technology and equipment from the European factories. During the negotiation, the Chinese party specially arranged the European guests to visit several local places of interest .the European representatives quite pleased; therefore, the negotiation went on quite smoothly.
(2) Japan lacks coal and iron ore resources very much, while Australia has an abundant amount of coal and iron ores. Japan hoped that it could import the above two resources from Australia, while Australia did not worry about the sale of their coal and iron ores at all.
Therefore ,Japan’s negotiation status was lower than Australia and Australia got the upper hand .however, after the Japanese party invited the Australia party to Japan for negotiation ,situation changed a lot .Australians are easy-going and not rigidly adhere to customs and courtesies anytime and anywhere, and they are always dressed in formal suits for the meeting ,which made the Australia representatives uneasy for they had accustomed to comfortable lifestyle .just a few days after their arrival in Japan ,the Australia were anxious to go back to their hometown to drift ,surf and hunt freely with their wives ,children and friends in the valley and on the beach. Hence, as time went by, Australia representatives demonstrated more and more impatience at the negotiation tables. As the host party, Japanese representatives bargained with the Australia party at ease and gradually they gained the upper hand. As a consequence, Japanese party only paid some expenses for food and drink as their “fish bait” to get the “large fish”-the transactions of a large amount of coal and iron ores
1. Try to analyze Case (1), and tell the merits and shortcomings about the arrangement of the negotiation.
2. Try to analyze Case (2), and tell the reason why the Japanese party can gain the upper hand.
3. What kind of role does information play in international business negotiations? 4. How do we collect the data and information of the negotiation counterpart? 5. How do we make preparations and organizations for the negotiation? 6. What qualifications should the chief negotiator possess? 7. How do we establish the negotiation goals and targets?
金融英语案例分析1
