Google and the Government of China:
A case study in Cross-Cultural Negotiations
Develop a negotiations planning document using the Kellogg format in Exhibit 11
Purpose of negotiation
Position: focuses on profit and brand management
Position: technological, economic gaining
Interests: A population of 1.3 billion along with a growing economy makes Chinese market extremely important for Google to enter
Interests: It wants Google to provide its citizens and companies with the access to the very best technology, eventually, an achievement of technological parity with the US. Also, China knows the nation’s economy will be improved by internet access and use. Level of censorship
Position: doesn’t want to comply with the level of censorship required by China
Position: Requires Google to comply with China’s level of censorship
Interests: The image of Google in the media and among investors will be seriously damaged if it act antithetically to its philosophy of “Don’t’ be evil” It might affect negatively to the future prosperity of the company.
Interests: China’s leaders desire to improve their nation’s economy while preserving political stability. They want to censor political discussions to prevent “westernization” of China, Timing of Google acquiring Chinese domain
Position: Google wants to acquire “.cn” as soon as possible before firms from other countries step in.
Position: China also wants to work with Google, sooner but it is not as much urgent for China
Interests: The sooner it could distance itself from its American roots by adopting “.cn” domain, the sooner it becomes a member of “in-group” in Chinese culture which will lead to greater revenue streams.
Interests: China is already working with other American companies such as MSN or Yahoo, so this negotiation is not so critical for China than it is for Google in time wise. Services
Position: Google might want to provide China with only minimal number of services
Position: The Chinese government would want to be provided with all the services Google normally offer.
Interests: If Google also provide services such as Gmail, chat rooms or blogging that involve users’ personal information, The Chinese government could abuse the information that Google provides as it did with Yahoo. This will critically damage its principle of “Don’t be evil”
Interests: China wants to maximize Chinese engineers’ access to Google’s proprietary research technology. China would not want to be limited on the number of services. Saving-face issue
Position: Google does not want to appear as a company that strengthens a government that violates human rights
Position: China wants to enforce Google the same level of censorship so that it can appear to the world as an independent and powerful actor in the global marketplace.
Interests: Google got famous for its seemingly rigid adherence to utopian ideals. If it turns out to be false, harsh criticism will be unavoidable, which may lead to reduced revenue.
Interests: The Chinese government is head of a hierarchical culture that value status, seeking to promote China as a powerful and independent actor in the world forums. Notifying user when censored.
Position: Wants to notify users every time their search censored
Position: Does not want to notify
Interests: By adopting this, Google will be able to minimize potential freedom violation issues and also alleviate media criticism.
Interests: This might threaten political stability of China. BATNA
Lobby China for access to a larger stake in Baidu, and seek other means to enter secure Chinese users.
Rely on Baidu and other local search alternatives Reservation Price
Walk away point can be where Google need to completely comply with the level of censorship that the Chinese government requires. That is, the...
Cited: James S. O’Rourke IV, Brynn Harris, Allison Ogilvy: Google in China: government censorship and corporate reputation Journal of Business Strategy Vol. 28 NO. 2 2007
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