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  • Essay / fdfd - 1330

    In this role play, our group acted as negotiators from Beta, Inc. to negotiate with representatives from Alpha, Inc. Both Beta and Alpha are engaged in robotic production. They want to reach an agreement and form a strategic coalition. Beta is the main producer in Country Beta while Alpha is a large company in Country Alpha. In other words, the negotiation between these two companies is associated with intercultural issues because the companies have different business backgrounds. The main objective of our group, alongside Beta, is to improve our manufacturing capacity and develop a strong export market. In fact, Beta wants to increase sales of robots abroad and achieve more impressive economies of scale in production. To achieve this, Beta decides to enter the rapidly developing robotics market in Alpha country. Thus, Beta aims to conclude a licensing agreement with the Alpha company. The two companies have already held discussions and obtained the preliminary agreement for collaboration. Today, Beta and Alpha met to finalize the other four issues that were still needed to decide whether to get the deal. First, the number of different models to offer to the Alpha team is considered. Beta currently has eight models, but only wants to offer Alpha 4 models for strategic reasons. Second, it is preferable that the number of units per model of Beta imported by Alpha each year is 300 so that Beta can achieve economies of scale. Third, Beta wants access to Alpha's machine vision technology. This is the biggest issue for the beta. Finally, regarding the royalty rate, Beta wants a royalty rate of 5%, but can consider a volume of 3% of this rate if necessary. ...... middle of paper ...... surface, resolve a conflict. Also, Russians prefer to get information rather than share it, but the Irish are more open to showing information and expressing their interests. So, different cultures can lead to different negotiation styles. Negotiators should be careful when preparing for a cross-cultural negotiation. To achieve successful cross-cultural negotiation, nine facets must be considered, including timing (short term or long term), focus on the task or relationship, tactics (negotiation, first offer), trust ( collectivism, or individualism), Preparation, Process (formal or informal), Selection of participants, Communication patterns (direct or indirect), Conflict orientation. In short, preparation is key to any negotiation, especially when the situation is sensitive, such as negotiating with a counterpart from a different culture..