Cross-Cultural Negotiation and ManagementPart 1Negotiation is the process by which two or more parties interact in order to arrive at some kind of agreement that is anticipated to last and which based on a background of common interests (Spoelstra & Pienaar 1999, 55). Negotiation may also involve resolving of conflict among various parties regardless of the parties’ or groups’ widely dividing differences (Spoelstra & Pienaar 1999, 55). The success of any negotiation is achieved when the parties involved in the process reach a common ground and create alternative solutions to the existing problems.
Along this line, common ground is not necessarily just what people attain in common, but what they could become together (Spoelstra & Pienaar 1999, 57). Negotiation is also the process of exchanging information through communication. In view of this, the information is created as a series of strategies and methods. The strategies and methods arise from the negotiation relationship between the parties involved and either prolong the existence of a relationship or terminate it (Reardon, 2004, 223). In the negotiation simulations conducted from week seven to week eleven, focus was made to three areas.
One area of focus was the Him and Her Australia (HHA). HHA is one of the largest retail stores for up market fashion clothes in Australia. The chain store is featured by a network of 80 stores. The success of the chain store can be attributed to its range of designs coupled by its crop of young designers form Sydney who have introduced characteristic Italian designs due to collaboration between the company and an Italian design house. HHA has also collaborated with Beijing Fashion Manufacturing (BFM), a move that has greatly lowered the price of its products though reduced costs while tremendously increasing profits.
A simulated e-mail negotiation was done between HHA and BFM. The negotiation was aimed at reaching a common ground with reference to a deal for production of clothes in the summer season for the year 2009 to 2010. In order to simulate the negotiations, the students were separated into eight groups, with groups one to four representing HHA whereas the other groups represented BFM. The two groups communicated from different computer labs strictly via e-mail.
This was a mock-up of the actual business environment and distance between China and Australia. A common ground reached by two groups was that the Chinese market, where BFM operates, provides a large market for Australian outfits, it was therefore agreed that BFM acts as a representative of HHA in China. In order to avoid competition, it was agreed that BFM produce accessories for the outfits produced by HHA. This specialization would greatly minimize competition between the two companies’ products. Another agreement was that HHA would provide training to staff of BFM as good will for the services delivered by the Chinese company.
Since both sides were meant to benefit from the negotiation an integrative kind of negotiation was used. Spoelstra and Pienaar (1999) describe integrative negotiation as a win more-win more type of negotiation because all the parties involved want to gain more from the deliberations. Part 2Preparation leading up to the Final Group Negotiation Simulation of 3rd August