Case Studies
Researchers and students asked us for case studies, so we delivered. We hope that you're able to learn from these practical examples from around the world. Check out our negotiation training when you're ready to elevate your negotiation capability.
Resolving Disputes Case Study: Business Mediation Example
Options to Resolve Business Disputes Companies that find themselves embroiled in a bitter feud over a contract dispute have three options to find a solution. They can either: Litigate their claim through the court system Go to arbitration Use a mediation process to resolve the dispute Many companies have invariably used one of these processes to address a dispute. There are significant differences to consider before deciding upon which method to employ. Arbitration and
Case Studies
How NOT to Negotiate in China
Overview In 1998 Simon Turner worked for Bassano, a large Australian women's wear company with eighteen retail outlets across Australia. The following story recounts his experience in a business negotiation in Beijing with Happy Clothing. Bassano required a cheaper manufacturer of tailored women's wear and approached Happy Clothing, a tailored menswear manufacturer, to provide this service. Turner and his CEO Brian Thompson travelled to Beijing with a Chinese-Australian
Case Studies
Unequal Indonesian Foreign Negotiations
Usage of power When two parties enter into an unequal negotiation, in terms of the negotiation power they bring to the table, the interests or goals of either party can have a dramatic influence on the positions they adopt in the negotiations. Sometimes this can have the effect of giving the weaker more negotiating power. Usually however, this power disparity is leveraged by the more powerful party for their advantage. The negotiation case study of the U.S. – Indonesian negotiations
Case Studies
Win-Win Negotiation Case Study
In trying to create win-win negotiation agreements, one of the biggest mistakes made by negotiators who haven't taken negotiation training seminars is to deal with the issues on an issue-by-issue basis. This often results in a breakdown in negotiations. Why? Invariably, conflicting monetary issues arise that result in a showdown between the two sides. Negotiating on an issue-by-issue agenda does not present the opportunity to make concessionary trade-offs between the
Case Studies
The 'Fixed Pie' in Negotiations
Missed opportunities The mythical fixed pie syndrome is one of those bizarre anomalies that still persistently seep stealthily into the minds of the largest corporations. It is not unlike a virulent pestilence that paralyses its host into a rigid mindset, blurring the host’s vision into a fixed stare where its hapless victim can see nothing more than what sits on the negotiation table. Many agreements fail to materialise because of this limited vision. The resulting loss
Case Studies
Chinese Negotiation Training on Sales Price
Sales Negotiation Overview K. G. Marwin Inc. developed a particular technology in the 1980s, called the Trilliamp Process, that the Chinese government sought to buy and integrate into an ethylene facility in Lanzhou, the capital of Gansu province. Marwin's successful sales negotiation training resulted in a contract with Chinese Government, which in 1985 invited further sales inquiries from U.S. and Japanese manufacturers for production of the machinery. Marwin recommended
Case Studies
Third-Party Agents
The Role of a Third-Party Agent Even as negotiation trainers we often use third-party agents to represent our interests in the negotiation process. We use them as we believe that their expertise as negotiators will better serve our goals and achieve better results. Many agents are paid on a commission basis. As a consequence, they can be very concerned about a negotiated outcome. This is because of what they might derive from the negotiation, whether trained or not. Their influence
Case Studies
The Price of Giving Face in China
Overview Chando, a Chinese shipbuilder, had agreed to change the main engine in a ship it was building for the Danish shipowner Danske. Although this would involve a lot of work and great expense for Chando, it was willing to substitute a low-speed engine for one of medium speed. Prior to this, Jurgen Martens, Danske’s vice-president and technical director, had made a very good impression on the senior Chando people, as had their sales and marketing director. Usually, a shipyard
Case Studies
Competitive Business Conflict Escalation
Healthy Competition Has Its Place Competition is clearly a healthy means to increase sales for any business. It's essential because competition provides a stimulus for a company or organization to prosper and grow. However, does this mean that a company should compete at all costs? The answer, of course, is "no"! There comes a point when excessive competition may cause serious harm when the losses exceed the gains. Sounds like simple common sense, doesn't it? Yet, there are
Case Studies
Negotiation Alliances
Alliance Benefits In multiparty negotiations, the negotiation power, or the position of one negotiating party, can be enhanced or weakened by making alliances. The use of alliances is a powerful technique. By utilizing alliances, any member in a multiparty negotiation can strengthen their own BATNA (Best Alternative to a Negotiated Agreement). Conversely, alliances can weaken the BATNA of an opponent. The main advantage of forming an alliance is that it allows two or more
Case Studies
Overconfidence in Negotiation
Balanced Confidence Negotiation courses often suggest that business managers need to possess a high level of confidence to succeed. Confidence allows managers to meet the many challenges they face in a fast-paced and evolving business climate. However, there's a hazy line that separates being confident in what we do and becoming overconfident. Overconfidence is a serious mental error that lurks in the background, like a banana peel lying innocently splayed on the sidewalk.
Case Studies
'Chinese Negotiations' 'Guanxi'
How it all starts A well-known, government-owned, five-star hotel in Beijing owns an associated marketing company called High Jewel Marketing. With branches in six cities including the capital, it has both a retail division, which sells jewellery and handicrafts to foreign tourists at high prices, and a wholesale division selling export-quality clothing and high-quality home appliances. One of the marketing company’s senior managers was formerly a high Communist
Case Studies
Distributive Negotiation Settlement
Theory A distributive negotiation will focus on the division of a set amount of resources, largely determined by the aspiration price (the maximum that party 'A' would like to get, constrained by the lowest amount that party 'B' would like to pay), and the reservation price (the lowest amount that party 'A' would be prepared to accept, and the maximum that party 'B' would prepared to pay). Well over 90% of all civil lawsuits in USA are settled out of court, and most are largely resolved
Case Studies
VW's Long-Term Negotiation Thinking pays off in China
Negotiation Overview At the time this case was written, Volkswagen (VW) was the first foreign overseas car-maker in China to have been making a profit in China over the past ten years. It all began in October 1984, when VW skillfully negotiated and then signed a joint venture agreement with China. One of the country’s first major joint venture agreements, it involved several government authorities, including the Ministry of Foreign Trade and Cooperation (MOFTEC, now MoCom),
Case Studies
Political Impact on Global Negotiations
Negotiators have a general understanding of their own local political environment. They are raised in a business milieu that clearly distinguishes who the key players are, and who has to be pitched about a proposal. They learn the roles that each level of government may bring to the table, and the impact roles bring to bear on negotiations. When negotiators take their proposals abroad and negotiate with a foreign power, negotiators often don't sufficiently realize the impact
Case Studies
Foreign Currency Contract Agreement Risks
When a negotiator embarks on an negotiating an international agreement with a foreign partner, they have to give serious consideration to which currency is going to be used in their financial transactions. There is a certain amount of risk that a company might have to assume as even veteran skilled negotiators consider whether they are going to issue or receive payments in a foreign denomination. It occasionally happens that between the time when a contract is signed, and when
Case Studies
Union Constituency Authority Limits
Union negotiators may find that the authority limits they are authorised to observe in a collective bargaining labour negotiation on behalf of their members can be a double edged sword. One tactical advantage in using their constituency authority can include the ability to manipulate public visibility to what is transpiring behind closed doors Another advantage to gain leverage. By raising issues into the public forum, negotiators may be able to manipulate public support
Case Studies
Japanese Business Communication
The importance of keeping the lines of communication open with your business partners cannot be overemphasized. Both our domestic partnerships and especially our foreign partnerships are premised extensively on the how frequently and on which important issues the partners talk. Lines of communications need to be a two way process, flowing back and forth. Too many international negotiators do not take the time, and dismiss the need to include some frank discussion in how
Case Studies
Success in China - The Celanese Joint Venture
Disclaimer: It is against the The Negotiation Experts' principles to offer its services to the tobacco industry. This Celanese case study has been reproduced for the purposes of study only, and in no way condones the damage tobacco causes. Overview One of the most closely studied Chinese joint ventures is that involving Celanese Corporation of the United States, a producer of value-added industrial chemicals, and China National Tobacco Corporation (CNTC). The venture
Case Studies
