Negotiation Simulation

A joint venture negotiations between China Shanghai EPSCO Elevator Co. Ltd and the USA Dabel Company

Party AChina Shanghai EPSCO Elevator Co. Ltd

Party BUSA Dabel Company

I. Background

China Shanghai EPSCO Elevator Co., with the gross domestic product yield of 50%, is the industry leader in elevator industry in China. The company and the United States companies are negotiating to build a joint venture limited company, the project, that is, to make a full preparation of the preparatory work. First, Shanghai EPSCO Elevator Co., Ltd. sent their representatives to the United States on-the-spot investigation, on the basis of comprehensive evaluation, jointly developed a feasibility study report. After returning home, they also specifically selected and organized a negotiating team, including those experts from the higher authorities, the staff and project legal counsel from the law firm, whom are invited to participate in the negotiations to lay a good foundation for negotiations on the project.

The United States Dabel company is the first big elevator industry company of United States. There are more than 100 branches in the world, the company's elevator products marketing all over the world. Prior to the negotiations, the United States party made a full investigation, a comprehensive in-depth feasibility study on the international and domestic markets. They also specifically did a detailed analysis and understanding on Chinese market, gathered various information related to the negotiations, and on this basis, they organized a capable negotiating team, which was led by the company's chairman and chief legal counsel, who acted as the chief negotiator.

The project investment is large, and the Dabel Company is a big with high reputation in China. In addition, the United States Dabel company's vision is a long-term, for this negotiation with Chinese company; they did a full feasibility study in advance too. This project aims to open the Chinese market, and in the joint venture shares more than the Chinese side. China Shanghai EPSCO Elevator Co., Ltd. is the most suitable partners, because no matter from technology to products are domestic first class, if the United States in China's first joint project failure, it would be more difficult to invest in China in the form of a joint venture enterprise.

II Negotiation conflicts

1. In the Sino-US joint venture negotiations, the first conflict is the name of the joint ventures, the U.S. proposal named "Dabell elevator (China) Co., Ltd.", but the Chinese party opposed. Please state your reasons for the objection, and discuss a name that both sides benefit and the most favorable for both parties.

2. About the sales of product. In the feasibility study of the project, it mentioned twice that "the United States is responsible for 25% of the underwriting exports, the remaining 75% in domestic sales; the second is joint venture export channels are Dabell company, joint venture company and China foreign trade company. The two sides have different understanding on this statement. This understanding of the differences constitutes a serious obstacle to the negotiations. The United States expressed understanding of this is: licensed products (foreign technology production of products) can only be exported by Dabel 25%, a little cannot be more, and the other two channels, is for the export joint venture to stay. While the Chinese understanding is: licensed products from the export of 25% Dabel, and the remaining 75% of the product, it is possible to export through the other two channels. The two sides cannot reach an agreement with each other easily. How to settle the dispute with dignity and pragmatism has become a problem in front of both sides.

Please deal with the above mentioned conflicts through negotiation. Your issues may not only be limited on the two issues.

Requirement and the Criterion

1. If no Agreement reached, a relative lower score for all participants.

2. Some negotiation strategies or tactics are required.

3. A formal processing is required.

4. The negotiation contents exploring (40%), the proper strategies (30%), language, including hummer and completion, fluency and mistakes of grammar, etc. (10%), team-work spirit (10%), others (10%)

Questions

1. Try to explain that a qualified negotiator should combine both assertiveness and collaborativeness

2. Compare building a coalition and keeping a coalition, which is more difficult? Why?

3. How to break through the deadlock?

4. What is your opinion on the statement that "Human natures are identical, but habits are varied"?

5. What is your attitude toward cultural differences arising in the course of negotiation? 150 words each