Wyoff Task 8

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