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Case Study
The position of the Chinese company was that it would produce only two models, while the underlying interest was to keep manufacturing costs down. The position of the American importer was that it wanted four models, while its underlying interest was to increase its profits by selling more bicycles. As long as the negotiators focused on these positions, the dispute could be resolved only through concessions by one or both sides.
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▪ Student A:
▪ You want to speak to Ms.Black of G and B Company. Ms.Black isn't in the office, so you leave the following
The interests of the Chinese manufacturer were achieved by the solution—profit per unit remained constant. The interests of the American importer were also met—it sold more units at higher prices, which more than offset the increased manufacturing cost.
Business Negotiation English
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Case Study
In one negotiation in the early 1980s, a Chinese manufacturer was locked in a dispute with an American importer over how many models of the bicycles his company would produce. The American importer wanted four different models to give its customers greater selection. The Chinese company wanted to produce only two models, to keep manufacturing costs down.
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Solution:
But an interest-oriented examination of the dispute leads to the question: How can the higher cost of manufacturing four models be allocated between the American importer and the Chinese manufacturer? In this example, the parties were able to devise a formula that increased the unit cost of different models to reflect the Chinese manufacturer’s increased manufacturing cost.
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Simulated negotiation 1
▪ Directions: Read the short passage below. Do you think the conflict between the manager and the workers can be solved? Imagine you are the manager/workers’ representative who would negotiate with the workers/manager. How would you prepare your proposal that may lead to a win-win solution? Write down your plan and find a partner to role-play the negotiation.
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Role-play in pairs
▪ You are the assistant of George Smith, Purchasing Manager of HRC Corporation.
▪ Someone calls to be connected to Mr.Smith. Find out who's calling and why. Explain that your boss is not available now.
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Simulated negotiation 1
▪ The management of a major television manufacturer’s warehouse has a dispute with employees about overtime scheduling. Workers do not want to be locked into a spur-of-the-moment overtime assignment, yet management needs to be sure that the warehouse will be fully staffed. Please help both sides work out a solution that satisfies them all.