Case Study
Selected Readings in Business (Shulman) Chapter 12 China: The Case for Negotiations
Case Study: Chapter 12, p.1
After a year of market research, the United States asset management company Investese has decided to enter the Chinese market, a lucrative market with great growth potential. Therefore, it has begun to investigate the possibility of forming a joint venture with the Chinese fund-management firm Chan Ching, one of the largest such firms in China. Investese President Dan Brighton hopes to convince Chan Ching President Wang Jiao Hai to offer the country’s first “foreign” mutual funds. Paul Wendt and Carolyn Goodwin, from Investese, have been given the assignment of traveling to Shanghai to meet with the high-level management of Chan Ching. Their task is to lay the groundwork for a joint venture that would go into effect in about three months if things go smoothly. Paul and Carolyn are experienced and tough contract negotiators who have handled a variety of business agreements for Investese, but this is their first international negotiation. In preparation, they read a book on cross-border negotiations, and they both are confident that they will succeed in their overseas assignment. On Sunday, Paul and Carolyn checked into their hotel, the Grand Hyatt Shanghai, in the heart of Shanghai’s business and financial district, and spent the rest of the day resting up for their first negotiating session with Chan Ching executives on Monday. They met for dinner and discussed the talking points that they would present at 8 am the next morning. Paul and Carolyn were unsure about who would be representing Chan Ching, as the short memo they had received from President Wang had referred to “several company representatives” without giving specific names or titles. The president had also mentioned that the representatives spoke English fluently, so no translators would be required at the meetings. “I am curious to see who the company sends to this meeting and whether
Case Study: Chapter 12, p.1
After a year of market research, the United States asset management company Investese has decided to enter the Chinese market, a lucrative market with great growth potential. Therefore, it has begun to investigate the possibility of forming a joint venture with the Chinese fund-management firm Chan Ching, one of the largest such firms in China. Investese President Dan Brighton hopes to convince Chan Ching President Wang Jiao Hai to offer the country’s first “foreign” mutual funds. Paul Wendt and Carolyn Goodwin, from Investese, have been given the assignment of traveling to Shanghai to meet with the high-level management of Chan Ching. Their task is to lay the groundwork for a joint venture that would go into effect in about three months if things go smoothly. Paul and Carolyn are experienced and tough contract negotiators who have handled a variety of business agreements for Investese, but this is their first international negotiation. In preparation, they read a book on cross-border negotiations, and they both are confident that they will succeed in their overseas assignment. On Sunday, Paul and Carolyn checked into their hotel, the Grand Hyatt Shanghai, in the heart of Shanghai’s business and financial district, and spent the rest of the day resting up for their first negotiating session with Chan Ching executives on Monday. They met for dinner and discussed the talking points that they would present at 8 am the next morning. Paul and Carolyn were unsure about who would be representing Chan Ching, as the short memo they had received from President Wang had referred to “several company representatives” without giving specific names or titles. The president had also mentioned that the representatives spoke English fluently, so no translators would be required at the meetings. “I am curious to see who the company sends to this meeting and whether