Study Case
Case A: Chinese Negotiations
International Negotiations
Brown Casual Shoes, Inc.
Family owned for over 30 years Sales going down
Made in U.S.A
International Competition Problem with globalization!
Shanghai, China
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This Photo by Unknown Author is licensed under CC BY-SA-NC
China: Low cost, big population, preestablished U.S. connections!
BUT
Shanghai vs. Beijing
Pre-Negotiation Planning
Contact business network who have done international business to get idea of how to plan the visit
Contact athletic footwear trade associates to find manufactures in China
Schedule a meeting with the designated Chinese company
The Team
Brown Casual Shoes, Inc.: President (Robert Brown Jr.); Senior VP of Operations (Harry Livingstone); Marketing Department Manager (Roberta Jackson)
Chung Sun Manufacturing: President (Deng Kim Lee); Oversees International Business Development (Li Kim Son); Chinese Translator (Wang Chu Jiang)
The Negotiations
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Bow, handshake, and business card exchange
Mr. Brown gives gift to Mr. Deng. Mr. Deng is embarrassed.
Mr. Brown and Mr. Deng separate to discuss about the trip
No translator
Hours go by, still no mention of meeting
Negotiations Continued
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Chinese invite Americans to Buffet that last for hours
Mr. Brown first one to toast
Mr. Brown does not know who should leave first
(Next day): 30 minutes into the meeting and Mr. Brown is finally able to present
Chinese ask a lot of questions
Mr. Brown realizes this would be a long term negotiation