Negotiation - Case Study
One of the biggest stumbling blocks encountered by a negotiator is to clearly understand the real issues as the root cause and basis for the negotiation in the first place. All too many times, negotiators take insufficient time to clearly identify and frame the problem or issues to be resolved and negotiated. This is the crucial first step to any negotiation. If this first phase of the negotiation process is not addressed properly, than it is quite likely that the rest the whole negotiation process will unravel because the core issues were not properly …show more content…
The Chinese party had no experience in designing breweries whereas, since 1983, Benjamin had built or redesigned all Australia’s major breweries and most of its boutique breweries. Before starting negotiations, he did extensive research on the Chinese market, including its beer industry and the Guangzhou company. He found that, despite the company’s listing on the Shanghai Stock Exchange, it had direct links to the Chinese government.
“If you’re working with a brewery in China, you’re working with the government, because the industry is so tightly regulated. I also found that the government department in charge of the alcohol industry is run by ex–Red Guards, so I knew I was dealing with people who had to report back to important government figures. I thought that, if I could find ways to make them look good in the eyes of their bosses, it would help in developing a beneficial business relationship,” he said.
When Benjamin arrived in China, he discovered that the Chinese were also talking