Business negotiation case study

BCO313 NEGOTIATION Re-sit Assignment Task brief & rubrics Task The Re-sit assignment is to analysis and prepare for a negotiation using the ideas and theories from the course. • • • • • Individual written assignment The student must build a coherent discussion or argument in essay format, analyzing theories and models. Additional Case studies may be referred to when providing examples. Students must write in complete sentences and develop paragraphs. No bullet points are allowed. Answer the questions below as they relate to the provided case study. 1. What are the issues to be negotiated by both parties? 2 What are the priorities for the Chinese going into the negotiation? 3. What are the priorities for the Australians going into the negotiation? 4. How did the Chinese prepare for the negotiation? 5. How did the Australians prepare for the negotiation? 6. What are the walkaway points and BATNA for the Chineses? Briefly describe what is BATNA and how is used in a negotiation. Cite a source. 7. What are the walkaway points and BATNA for the Australians? 8. What did the two parties know or think about each other negotiator’s interests, negotiating style, and personal reputation before starting the negotiation? Cite a source. 9. What did the two parties learn about the each other negotiator’s interests, negotiating style, and personal reputation as the negotiation progressed? 10. What overall strategy or tactic did the Chinese use during the negotiation? Name and describe the type of Negotiation style used in the negotiation and how it was used. Cite a source. 11. What overall strategy or tactic did the Australians use during the negotiation? Name and describe the type of Negotiation style used in the negotiation and how it was used. Cite a source. 12. How did the two parties’ strategies or styles of negotiating blend or conflict during the negotiation? 13. What was the final result of the Negotiation and how was it achieved? What strategy and/or tactics were used by the parties to close the deal? Cite a source or an additional case. Formalities: • • • • • Wordcount: 2500 - 3000 Cover, Table of Contents, References and Appendix are excluded from the total word count. Font: Arial 10 pts. Text alignment: Justified. The in-text References and the Bibliography must be in Harvard’s citation style. Overview Rod Zemanek, the principal negotiator, designer and Project Manager of an Australian chemical engineering consultancy, (Predict Pty Ltd) has a warning for those wanting to do business in China: “Many Chinese see it as their patriotic duty to shoot down foreigners, so you can be like a clay pigeon at target practice.” Despite this, Rod Zemanek has been successful in China and is responsible for the design of many of the country’s modern breweries. He was invited to submit a proposal for a huge Guangdong brewery by Dr. Pasteur Lai, the son of a former Chinese minister of health and now an Australian citizen. Lai had many connections deep within the Chinese government, had done his homework on Rod Zemanek, and was able to report to the Chinese that Rod Zemanek was the premier brewery designer and builder in Australia. The Scene Rod Zemanek was initially cynical. “We get a lot of ‘tire kickers’ in this business—people who aren’t serious about a project but just want to test the waters,” he explained. Rod Zemanek sent the Chinese a questionnaire, asking for information about specifications, resources, brewery capacity, products they planned to produce, budget, and business plans. The response he received convinced him to head to China to discuss a potential deal to build Guangdong province’s largest brewery—a $20 million project. But, having heard from others about their China experiences, he decided to pitch only for the business in which his company had special technology to offer. “One of the first things you need to understand about China is that you can’t compete against cheap, local rivals,” he advises. “The Chinese only want foreigners involved if we can offer special technology they can’t get at home. We knew if the Chinese could have got locally what we offered, they would not have approached us.” Preparing To Negotiate In the lead up to the negotiations, Rod Zemanek knew his business could provide strengths the Chinese business lacked. He had access to technology that could increase the capacity of the planned brewery while also reducing waste. He specialized in understanding and predicting market trends and had access to sophisticated, international market data the Chinese company lacked. The Chinese party had no experience in designing breweries whereas, since 1983, Rod Zemanek had built or redesigned all Australia’s major breweries and most of its boutique breweries. Before starting negotiations, he did extensive research on the Chinese market, including its beer industry and the Guangzhou company. He found that, despite the company’s listing on the Shanghai Stock Exchange, it had direct links to the Chinese government. “If you’re working with a brewery in China, you’re working with the government, because the industry is so tightly regulated. I also found that the government department in charge of the alcohol industry is run by ex–Red Guards, so I knew I was dealing with people who had to report back to important government figures.