Wyoff Task 8

Only available on StudyMode
  • Topic: Negotiation, Negotiation theory
  • Pages : 5 (951 words )
  • Download(s) : 124
  • Published : February 9, 2011
Open Document
Text Preview
Task 8- Wyoff and China -LuQuan: Negotiating a Joint Venture (A) Apply the Analysis process described in “Negotiation Analysis: An Introduction”, by Michel Wheeler to this case. Namely under separate headings (or in tabular form), address: 1. What were the parties BATNAs?

Caxtalene
Wyoff:
* 60% and full management control and full license cost for technology. * Right to adjust price.
* Profits paid immediately.
CLQ:
* 50% – 50% with lower license cost for technology.
* Trust between partners.
* Re-invest profits into the company.
AD/CE
Wyoff:
* 25% ownership in the joint venture.
* Broad product slate.
* 80% rights to the marketing and sales.
CLQ:
* 50% ownership in the joint venture.
* Narrow product slate.
* Stronger market.

2. Who were the real parties in the negotiations?
Caxtalene
Wyoff:
The negotiation team.
* The legal team.
* Corporate management.
* Stakeholders.

CLQ:
The negotiation team.
State government.
China’s government.
Stakeholders.
* French Company.
AD/CE
Wyoff:
* The negotiation team.
The legal team.
Corporate management.
Stakeholders.
CLQ:
The negotiation team.
State government.
China’s government.
Stakeholders.
3. What were their fundamental needs, interests and priorities? Caxtalene
Wyoff:
• Penetrating Chinas emerging market.
CLQ:
External assistance to increase production.
* Favorable treatment from the government of China.
AD/CE
Wyoff:
Expand into China.
* Management control.
CLQ:
Stronger market presence.
* Publicly listed chemical company.
* Expansion.
4. How value could have been created in the failed negotiations? Caxtalene
Wyoff:
Look at percent of ownership and other technology.
CLQ:
Look at percent of ownership and other technology.
AD/CE
Wyoff:
Did not want another failed negotiation.
CLQ:
Did not want another failed negotiation.
5. What obstacles have prevented agreement; and how these could have been overcome? Caxtalene
Wyoff:
Not knowing or having a complete understanding of the culture in China. * Negotiation team was too young.
* The US was all business.
CLQ:
Not knowing or having a complete understanding of the culture in the United States. * In China friendship was very important in business ventures.

AD/CE
Wyoff:
China’s culture should have been researched.
* The team signed an agreement without understanding the importance of the agreement to CLQ. * The team did not understand how important that the employees and people were to CLQ. * The US was more concerned with business than people.

CLQ:
Felt that Wyoff had no respect for the members of CLQ.
* CLQ was concerned with the technology licensing.
* CLQ was concerned about their employees and people.
6. How did each side influence the negotiation process?
Caxtalene
Wyoff:
The team was very arrogant
CLQ:
The team had lack of trust in the Wyoff team.
AD/CE
Wyoff:
The team was confrontational and direct.
CLQ:
The team showed patience and was indirect.
7. What was the right thing to do?
Caxtalene
Wyoff:
Should have researched the culture.
* The team should have become more friendly.
CLQ:
CLQ should have informed Wyoff of the intent of seeking other partnership.

AD/CE
Wyoff:
Set up resources to assist with customer support and sales resources. CLQ:
Researched the company and the culture.
Objectively identify the major sticking points in the negotiations. Prepare a strategy to resolve these points and discuss how your strategy can potentially lead to agreement. Which party should take the lead in implementing such a strategy? Who specifically should be trusted to gather the needed information from the opposite party in an attempt to break the deadlock? It appears that there are a few major sticking points in the negotiations with the China-LuQuan and Wyoff...
tracking img