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Guanxi in Jeopardy Case Solution

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2525 711 Words (4 Pages)
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While Electrowide, as a company, refused to acknowledge the underlying cultural divide, the negotiators themselves required significant restructuring. The team from Electrowide was made up of three people (2 men & 1 woman) between the ages of 31 and 55, with only 1 out of the 3 team members proficient in Chinese (Helen, 2011). Not a single team member was proficient enough to gauge the cultural divide that existed between the United States and China; it ultimately led to the situation that they were not able to negotiate strategically.

Following questions are answered in this case study solution

  1. What factors led to the breakdown in negotiations?

  2. What should Tom do now?

Case Analysis for Guanxi in Jeopardy

The group was not prepared to embrace the cooperative and business performance-based model of its Chinese project stakeholders. The group's engineering, psychological, and financial qualifications were not able to help them negotiate well with the Chinese stakeholders effectively. Following the same trail, Motosuzhou’s team came with just a single member who can speak English. The Motosuzhou’s team had education in accounts and business management, however, it was not beneficial in their ability to understand culture specifics of America.

American and Chinese teams could have at least one international relationship and culture expert to have more robust negotiation. According to Triantis, this is a prime prep in terms of its importance for effective negotiations among the partners who are planning ventures together (Triantis, 1999). Companies should base their understandings of partner companies in terms of their own purpose, strategy, corporate requirements, and aspirations, along with the cultural environment of the partner company (Triantis, 1999). A skilled negotiating team is aware of its own position along with its partners' position (Helen, 2011). Such teams are able to balance out work accomplishments and intercompany connection building (Helen, 2011).

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