Cultural Differences
1) Read the following two cases (Source: Cellich – Jain: Global Business Negotiations) and answer the questions after each case. You can do this either individually or with a partner. Assessment Pass/Fail. 2) Culture has a great impact on different types of negotiations. Find out the general features of business culture in your home country and how you negotiate in your own culture.
Case 1
Background
Brown Casual shoes, Inc. located in Houston, Texas, is a second-generation family-owned company that specializes in casual footwear for men, women, and children. The company has been in operation for 30 years and has manufacturing facilities in Houston, Texas and Cincinnati, Ohio. Over the years, the company has expanded its operations throughout the United States and Canada. It sells directly to retail shoe stores such as Payless, to discount stores such as Wal-Mart and Kmart, and to wholesale outlets such as Costco. The company prides itself on manufacturing its shoes solely in the United States. Over the past five years, the company has felt the impact of cheap labor on the manufacturing of today’s shoes. Local and international competition is making inroads on the company’s niche markets. Sales have been down for the past two years. The president of the company Robert Brown, Jr., is concerned that if the downward trend in sales continues, the company may be forced to close its doors. Labor costs in the United States have been a major concern. Mr. Brown is aware that the US athletics footwear industry does most of its manufacturing in Asian countries such as China, South Korea, and Indonesia, where labor costs are appreciably lower.
The company must now find cheaper ways to manufacture its shoes, and it needs to expand its sales by entering the international marketplace. Mr. Brown called a board meeting to review his options. After much discussion, the board decided China was a good place to begin for a number of reasons: 1)The country has a cheap labor
Case 1
Background
Brown Casual shoes, Inc. located in Houston, Texas, is a second-generation family-owned company that specializes in casual footwear for men, women, and children. The company has been in operation for 30 years and has manufacturing facilities in Houston, Texas and Cincinnati, Ohio. Over the years, the company has expanded its operations throughout the United States and Canada. It sells directly to retail shoe stores such as Payless, to discount stores such as Wal-Mart and Kmart, and to wholesale outlets such as Costco. The company prides itself on manufacturing its shoes solely in the United States. Over the past five years, the company has felt the impact of cheap labor on the manufacturing of today’s shoes. Local and international competition is making inroads on the company’s niche markets. Sales have been down for the past two years. The president of the company Robert Brown, Jr., is concerned that if the downward trend in sales continues, the company may be forced to close its doors. Labor costs in the United States have been a major concern. Mr. Brown is aware that the US athletics footwear industry does most of its manufacturing in Asian countries such as China, South Korea, and Indonesia, where labor costs are appreciably lower.
The company must now find cheaper ways to manufacture its shoes, and it needs to expand its sales by entering the international marketplace. Mr. Brown called a board meeting to review his options. After much discussion, the board decided China was a good place to begin for a number of reasons: 1)The country has a cheap labor