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CASE PROBLEM 6B: Getting Down to the Wire with the Taiwanese Negotiators Negotiations have entered their third day between rep- Kuan-yu: We have studied the numbers carefully, a resentatives of a major hotel and resort chained based think that $650 is a fair price. Do not forget that in the United States and their counterparts from a world leaders in providing follow-up technical su leading manufacturer of computer hardware based in for our hardware. But take as much time as you w Taiwan (the Republic of China). The Taiwanese com- like to reach a decision. pany has many offices in the United States but relies on Karen: If we make you a final offer this afternoon home-country representatives for major sales. Negoti- you think is right, do you have the authority to acc ations are taking place in a company hotel in Tampa, our offer? Florida. The negotiating team from the hotel chain con- Chun-hung: That could very well be, but our honora sists of Buzz, Karen, and Calvin. Their counterparts are executive team in Taiwan likes to be included in ma two men, Kuan-yu and Chun-hung, and one woman, decisions Shu-fen. Shu-fen: We want to reach a final deal. But we want to mal The major issue being negotiated is a price for the sure that the computers we are offering you will be ju sale and service of 3,500 all-in-one desktop computers what you need and add to the productivity of your hotels and laptops for use throughout the hotel chain. At We think you would be a valuable partner for our company this point, the Americans are seeking an average Karen: Tenjoy talking about how we are going to become price of $550 dollars that would include a one-year long-time business partners. But my clock is ticking on service contract. The Taiwanese think that a generous this deal. I say $575 average cost per unit. Let us know average price per unit would be $650. A partial transcript in 15 minutes, or we will be in touch with one of your of the negotiations follows: competitors tomorrow morning, B: I just can't understand why you folks don't jump on our bid of $550. You know as well as I do that the PC Case Questions and tablet markets are shrinking worldwide. Just think 1. What do the Americans seem to be doing right in of the hundreds of thousands of guests from all over the this negotiation? world who would see your computers on display in our 2. What errors in cross-cultural negotiations do the lobbies. That would be great publicity for your company Americans seem to be making? Karen: Buzz is right on target. Why isn't at least one of 3. What do the Taiwanese seem to be doing right in you responding right away to Buz? this negotiation? Chun-hung: We are not saying that your offer is co- 4. What errors in cross-cultural negotiations do the pletely unfair, but maybe we should get to know your Thiwanese seem to be making? team a little better Calvin: Get to know us better? This is our third day of Associated Role Play negotiation, and we have already had lunch together twice. Should we go on a week's vacation together be- Six role players are needed for this exercise, one for each of fore closing the deal? the people. Focus on the final offer made by Karen and the Shu-fen: I hope that we did not hurt your feelings. But response of the negotiating team from the computer man- becoming business partners with people we know quite ufacturer. Attempt to illustrite the most likely negotiating styles of the American and Taiwanese teams. Observers well is important to us. Kuan-yu. We need a little time to think about your final might provide feedback on the realisas of the negotiation offer Profit is important to us also and the negotiating skills of the players involved