MARIA EUGENIA ABUELA SOSA LUIS SARAI CHEHAIBAR GARCINI NOV 2010|
[“How Giving Face Can Brew Success”]|
MODELS AND TECHNIQUES FOR CONFLICTS RESOLUTION Prof. RINA PANDEY- FINAL PROYECT|
The following analyzed case presents a fundamental consideration in cross cultural business negotiations and it evidences how learning to understand cultural differences and work with them can make possible multimillion-dollar business and successful enterprises. Each country gives more or less value to every aspect into the negotiation process, so as we will see in this brewery negotiation occurred, Chinese negotiators do it specially valuing time patient and trustful relationships with the opposite party. Peter Benjamin the one involved within a huge and large negotiation analyze in here, mentions the importance of considering between many other things that we will also point out , “the patriotic duty over all for Chinese negotiators”, so considering that he has implement successfully agreements with them several occasions as in this time, his words may be the ones of an expert negotiator. Benjamin is the owner of an Australian chemical engineering consultancy and has design many modern breweries in different countries. In YEAR, Dr. Pasteur Lai investigated Benjamin and after reporting to Chinese government great references about him like that he was the premier brewery designer and builder in Australia, he was invited to submit a proposal for a huge Guangdong brewery. According to the information found over how the situation occurred, Benjamin was initially cynical claiming that there are many people who don’t take seriously enough projects of that side, so only after reviewing the response send by Chinese for an specific questionnaire made by him about specifications, resources, brewery capacity, products they planned to produce, budget, business plans, etc. and consider others partners China experiences heard before, he proceeded to examine the possibilities of working together. Benjamin reflect only upon those business in which his company had special technology to offer, concluding that you can’t attempt to compete against cheap local rivals but offer technology that they can’t get at home. Finally a potential deal to build Guangdong province’s largest brewery began, a cross-cultural business project of $20 million.
ANALYSIS OF THE CASE
Analyzing the negotiation between, we decided to proceed in the order of information has been described in the found sources and facts may be happened for a convenient process in order to get to an effective negotiation. Preparing for a Negotiation: In the information face of the negotiation, it had been said that Benjamin build or redesigned all Australia’s major breweries and most of its boutique breweries since 80`s, while for Benjamin’s gathered information from an extensive research on the Chinese market, it was found that Chinese had any experience designing breweries and very important about the ones playing a role in decisions making, Guangzhou company has direct links to the Chinese government, being the industry so tightly regulated and in the particular case of alcohol industry, run by ex Red Guards. For Benjamin in the competitive face, the previous information was essential to construct a strategy and develop a beneficial business relationship, making these people who had no report back to important governments’ figures, look good in the eyes of their bosses. In the other hand Benjamin knew also about their lack of technology that he certainly had, capable of increase the capacity of the planned brewery while also reducing waste, predict market trends and had access to sophisticated international market data having then an advantage over them and the capacity to provide strengths to Chinese` interest....