International Business Negotiation: Case Study Presentation Analysis

This presentation analyzes a case study involving a French construction company facing challenges in a Russian redevelopment project. The company, six months into a two-year contract, encounters issues such as noise, dust, and employee behavior, leading to a negotiation meeting with local officials, business leaders, and residents. The presentation explores the interests of all parties, including the company's need to avoid bankruptcy and the officials' demands for reduced noise, employee apologies, and financial compensation. It examines negotiation techniques like anchoring and ploys, considering cultural differences and existing issues. The negotiation team aims to convince the local officials to lower their demands and ensure disciplined behavior from employees. The presentation outlines the benefits for each party, emphasizing the importance of a win-win outcome and addressing concerns related to compensation, noise reduction, and project timelines. The company will focus on reducing compensation and ensure all machine related work will be done during the day time. The team must ensure all the parties gets profitable outcomes from this business negotiation meeting.

BUSINESS
NEGOTIATION

Introduction
• The business negotiation is being conducted to address the issue related to the
continuation of the redevelopment process of the office blocks in the Russian capital.
• The French construction business is into a two years contract and already complete
six months of the tenure. Due to various issues arising in the completion of the
project, the French company decides to arrange a negotiation meeting with the local
officials and business leaders regarding solving the issues as the company could not
stop the project (Hulea 2018).
• The company will go bankrupt if the project is stopped in between as a huge amount
of cost has been incurred.

Related Parties
• The main parties related to the case are the local business leaders,
residents, and local officials.
• As the project is a construction activity and causing issues such as noise
and dust, speeding of the construction vehicles, and even complaints have
been received related to rude behaviour of the employees of the company
(Kennedy 2017).
• The company has addressed all the issues and identified specific strategies
by which the dispute can be solved.

Interest of related parties
• The negotiation team of the French company comes up with relevant
strategies that will be beneficial for both the parties associated with the
case that is the construction company and the other parties that are facing
issues due to the project.
• The local officials are demanding $30,000 every week and asking for the
assurance that there will be reduction in noise around 50%, the officials
wants the employees to apologise to the residents and be disciplined
throughout the work.

Negotiation techniques
• The negotiation team could ask for anchoring by stating the fact that the
company had already incurred a cost of $1.5 million and $10 million for
development purpose, if the project is stopped then it will have to bear a
huge loss (Vojvodic, Martinovi and Pusic 2019).
• It depends upon the local officials whether to agree for the negotiation or
not however, the company must stick to the fact that incurring extra cost
will be loss for the company and even after adding extra resources the
project could be speed up only up to three months (Fells and Sheer 2019).

• Ploys must be used in negotiation as in this case the negotiation team can
try to convince the other party that they must lower their demand as the
company is already facing a huge amount of cost and it needs maximum
two years to complete the project (Caputo et al. 2019).
• It is not possible for the company to pay $30,000 every week to the
officials.

Existing issues
• The case study involves two parities that belongs to two different culture,
the project is being operated in a Russian local community and it is well
known fact that Russians are serious and liked to maintain a disciplined
life

• The company decides to negotiate the cost that has been demanded by the
local officials as the company is not in a situation to incur extra costs and
will not be able to pay an amount of $30,000 to the officials.

• The parties having issues because of the construction project are stating
that the crew member involved in the construction project are rude
towards the local residents and even are not disciplined.

• The negotiation team must clearly state the facts that the company will not
be able to pay a huge compensation and should try to ensure the local
officials that there will not be any kind of indiscipline activities from its
employees (Dunne et al. 2016).

• The negotiation team should make it clear that it had invested $1.5 million
and the business will be in great danger if the construction permit is
revoked.
• The issue related to night-time security will be properly taken care by the
company, the management will ensure that the residents will not face any
problem because of the security issue (Jokic and Krstic 2018).

Benefits of each parties
• It is entirely dependent upon the negotiation team how to put forth all the
ideas in an efficient way that will be profitable for the company.
• The team mainly used anchoring and ploys negotiation techniques and try
to make the parties understand about the existing issues of the company
(Baber and Fletcher-Chen 2015).
• Even though one of the company contract has been revoked because of
these issues however, the company must ensure the local authority that it
will try to maintain all the business ethics at the work premises.