Scenario

You are the President of a small island nation named the Republic of Walau. The island nation has 150,000 people and is highly dependent on a large South East Asian country named Drakul for donations and financial support. These donations assist Walau build better roads, hospitals, schools, etc. Due to the recent pandemic, many residents lost their jobs due to the lack of tourism that Walau was dependent on. Over the last 2 years, the President of Drakul has been generously donating huge amounts of money to Walau, which you gratefully accepted.

With the donations from Drakul, Walau was able to build modern infrastructure, renovate the airport and build schools, hospitals and buy medicines to combat Covid19. The President of Drakul has just informed you that he intends to build a military base in Walau and in return, there will be generous donations to assist Walau to "modernise". Drakul will also send their military experts to train Walau's defence forces and provide them with the latest military equipment, uniforms and weapons. In addition, Drakul will also provide Walau with modernised Navy ships, equipment and train their defence forces in addition to building a military airport to be used by both Walau and Drakul.

As President of Walau, you are happy with the relationship with Drakul and have welcomed the support from Drakul, and will most likely sign the important agreement in a week's time.

A large trading partner of Walau, New Sheepland was recently aware of this potential agreement and was not happy. New Sheepland has always supported Walau and has been a major trading partner for many years. It is believed that New Sheepland is concerned with Drakul's quest for world domination. As such, New Sheepland will be sending their Prime Minister and her entourage to discuss this matter with you. Their aim will be to persuade you not to sign the agreement with Drakul.

In terms of Business Relationship Management, what would you do, as President of Walau? You are assisted with a team of advisors and they appear divided in their opinions.

Required:

Include an Executive Summary and address the following criteria:

• Summarise the hypothetical situation, and add other details as you see fit which may be relevant to the scenario. You are expected to make some assumptions that will assist your assignment.
• Assess the potential types of conflict that are occurring between Walau and New Sheepland, and also between Walau and Drakul if the contract will not be signed.
• Analyse the relationship and attitudes between the various parties, relating them to the conflict roles they are adopting and their perceived responses to that conflict.
• Discuss how you will use problem solving techniques (either analytical or creative) to resolve conflict and persuade the Prime Minister of New Sheepland to accept your potential decision to enter into a contract with Drakul. Alternatively, how would you persuade the President of Drakul that you will not be signing the agreement with them?
• How will you approach the negotiations and discussions with the Prime Minister of New Sheepland?