I have used this exercise successfully with
students in both undergraduate and graduate management classes. I
have also used it in a workshop that included
executives from both the private and public sector. All groups got
into the spirit of the exercise and seemed
to enjoy it and learn from it. The results differed on each occasion but
always provided the basis for an interesting
and stimulating discussion.
Background – The class
is divided into two groups of different sizes of about 6 and 4 (if your
class is large,
you can do multiple sets of two groups), each
represents a team from a different company in a country – the A1
company in Alpha has 4 members & the Bigg
company from Beta has 6 members. The two companies are negotiating
a joint venture agreement and each company
is very hopeful of successfully concluding an agreement.
There has been preliminary discussion between
the senior executives of the two companies regarding the joint
venture but these are the first face-to-face
discussions. Each company is sending a high-level negotiating team
to work out important details of the joint-venture.
The teams are meeting in Alpha for the negotiations because
Alpha is expected to be the physical location
of the joint venture.
Preliminary Discussions
– Total capital investment needed for the joint venture is US$20 million;
provision
of equipment, machinery, technology from the
parent companies may be possible; each parent will provide
some management personnel; government incentives
are available if the joint venture is located in a specific
parish of Alpha.
Issues to be Negotiated
– Joint-venture ownership percentages for A1 & Bigg; capital investment
by each
parent; management structure; provision of
equipment etc. by each parent.
Instructions – You will
need two rooms so that Alphans can work in one, and Betans in another.
Divide class
into groups and provide each group with the
instruction sheet. Allow about 30 minutes to discuss as a team and
prepare a negotiating strategy. (I usually
listen to a bit of each groups discussion and stimulate their thinking
if
necessary.) Remind the A1 group that negotiations
are in their country so they must think about the physical
arrangements. Tell the Bigg group that the
A1 team will be "collecting them from the hotel". Have the groups
meet for negotiations. Allow approximately
30 minutes for negotiations. Let each team meet individually for
discussion for about 15 minutes. Conclude
with class discussion and "lessons" about effective cross-cultural
negotiation.
Issues for Team and Class Discussion
1. How well do you feel your team succeeded
in the negotiations?
2. How well do you feel the other team succeeded?
3. What factors encouraged success?
4. What factors made the negotiations difficult?
5. How comfortable were you as an Alphan or
Betan?
6. Would you prefer the Alphan or Betan role
if you did the exercise again?
7. Why do you prefer one role over the other?
Insights from this exercise
…. Results vary from reasonable agreements to total stalemates to one group
walking out and refusing to continue the negotiations.
The instructions are written to allow for all these outcomes.
The most successful teams are those who decide
initially to deal with the cultural issues and be flexible,
given their mandates. The least successful
are those who really buy into their negotiating rules. The instructor
can draw valuable lessons from the exercise,
no matter what the results. |
