Business Negotiations: Part-A Report

Running head: BUSINESS NEGOTIATIONS: PART-A REPORT
BUSINESS NEGOTIATIONS: PART-A REPORT
Name of the Student
Name of the University
Author Note

BUSINESS NEGOTIATIONS: PART-A REPORT1
Section A: Case Study and Report
Answer 1
a. Importance of trust
In any organizational setting trust becomes an essential aspect when it comes to
negotiations. Negotiations are important in determining the effectiveness of various business
decisions. They help to manage critical conflict situations that can arise within any given
workplace. It is important to develop proper negotiating techniques when organizations tend to
operate in vastly different cultural contexts. Especially, cross-cultural negotiations become very
important in this scenario as Americans and Chinese negotiating parties have very different
cultural inclinations. It is important to understand that the American firm Intel normally works
according to the American work culture. However, the state government officials of China work
according to Chinese work ethics and principles. The trust levels can be affected by the
differences in their expectations and work values. The American’s believe in individualism. On
the other hand, the Chinese are more collective goal oriented in their approach. In essence,
conflicts are disagreements that arise between parties with different frames of references. Trust
becomes much important in negotiations as the establishment of trust becomes central to the
negotiation process. Without effective trust building, negotiations cannot have any effective
impact. There is a need to develop better negotiation strategies that can help to build trust at
optimal levels. Cross cultural negotiations between American negotiators and the Chinese
government can affect trust levels to a great extent. For example- If the Americans use language
and non-verbal communication in a way that helps to initiate better relations with the Chinese
officials, it can create greater trust among the involved parties. Trust levels would be positively
affected if the cross cultural communication takes place on the lines of the Chinese officials.
However, if that is not the case negative trust development might take place.
It becomes important in this situation that integrative bargaining is given more
prominence in the negotiation process. Integrative bargaining is a form of interest-based
bargaining process. It is focused on the creation of a win-win situation for any dispute. Cross-
cultural negotiations need to much importantly consider trust building exercises as they help to
bridge the cultural divide. In this case trust becomes important to bridge the cultural gaps that
exist between the American and the Chinese negotiators. More non-verbal gestures become very
important in this case. This can help in the effective development of trust. However, this needs to
be done through the judicious consideration of the factors that are very important in accordance
with the Chinese culture and customs. Trust development is important as it can help to create
better value for the negotiation process. The Chinese culture, becomes very important and the
gestures that reinforce trust need to be used.
b. Differences between the American and the Chinese
Ethical reason differs between the Chinese and the Americans. Ethical reasoning depends
much on the cultural norms that are followed by people from different regions of the world.
People that contribute to the effective functioning of any group are appreciated more. The
frequent use of idioms helps the Chinese workers to develop their understanding of people and
situations. These are also used to build social contracts that can help them to form greater team
bonding between themselves. It is important in the context of the social contracts that are made.
The American social contract is dependent on how much value the individual can bring to the

BUSINESS NEGOTIATIONS: PART-A REPORT2
organization. The people involved give pat on the back for some achievement of their colleagues.
It is important to note that the Chinese do not like much body contact. Social contracts are based
on the experience one brings to the group. People appreciate each other by standing at a distance
from them and paying attention. Information is not considered to be kept confidential within any
group. All the members in a group are liable to have all information provided as per the Chinese
ethical contract. The social contract for Chinese workers is based on the foundation and
operations of the group. The members are always expected to be loyal to their group and
contribute to its success. However, these factors do not guide the American social contract. The
groups are expected to be efficient on the basis of individual abilities. Intel would need to give
more emphasis on the Chinese ethical reasoning aspects. The ethical reasoning standards need to
be well established in order to create a better environment for both the parties to thrive. There is
a masculine culture that defines the American ethical reasoning. Intel would need to shun this
outlook to give more place to the Chinese ethical standards that focus on teamwork and
collective good. While negotiating with the Chinese authorities it is important that culture is not
given much consideration. It is important that the culture of the Chinese are kept at the front
when engaging in any form of negotiation. Moreover, it is much important that the cultural
contexts within which the negotiations take place in Dalian between the Chinese state
government officials and the Americans.
Answer 2
a. Importance of Communication
Communication is central to relationship building that is much important for multi-partite
negotiations. It helps to develop inter-personal relationships that can determine the value of the
negotiation process. The idea is to develop a common ground for relationship building that can
help the prospects of Intel in China. An important part of the communications process is the
development of integrity and trust. Two important reasons can be provided for the importance of
communication.
Firstly, multi-partite negotiations concern various viewpoints as there are more than one
or two parties that are involved. There can be various possible alternative solutions to a given
problem. Hence, a proper communication process is required to consider all these alternatives by
developing a proper framework. There can be conflicting viewpoints that need to be negotiated
for reaching an agreeable solution. It is important that all the parties that are involved in a
negotiation process are effectively integrated. Engaging all the members of the multi-parties can
help to resolve any differences that might be present between the members. Most conflict
situation can be resolved through the maintenance of proper communication between the parties.
Secondly, only through effective communication, multi-partite negotiations can be
effectively undertaken to reach more valuable solutions. The views of all the parties need to be
considered in order to develop a proper solution to a given problem or situation. The interactions
of all the parties can provide innovative ways of resolving any problem. Hence, it can be said
that the success rate of the negotiation process can improve if effective communication is
established between all the involved parties. It is important to consider that better agreements can
be formed by the parties if proper communication frameworks are developed. There is a need for
the creation of better communication processes that can help in the development of better
solutions as more brainstorming and collective thinking can be integrated.