Tiger Barrels Case example essay topic

1. How to demonstrate Chinese "giving face" in the Tiger case? Chinese intend to build personal relationship and try to make sure their counter partners are trustful enough to do business before they begin to assign the relevant contract. They practice the important notion of giving face by traditionally serving gracious hosts, making the welcoming ritual long lasting and abundant. That way that Chinese treat their counter partners is to increase their partners' feelings of self-esteem by frequent praise and close attention to all levels of etiquette and formality required in China.

For instance, in the Tiger case, Upon Lynn's arrival in Beijing, he was helped by a chauffeur around Beijing the first day; Lynn was introduced to the lush agricultural region in which the Forestry Bureau headquarters was located; he was interviewed on local television and given tours of the town; the busy days were highlighted by lavish banquets lasting several hours each every day at both noon and in the early evening. Large amounts of spirits and rich foods were consumed. During the highly ceremonious meals, the Chinese officials toasted often, underlining the importance of the new union of friendship and trust between the two companies and the prosperity that would soon follow. Those created feelings of warmth, appreciation, and gratitude on the part of Westerners. So in the end, Lynn conceded and sign the contract even though he didn't agree to some points that Wang pointed out. 2.

How to interpret ate the situational contingencies in the Tiger barrels case? Location - the Chinese prefer to have major negotiating sessions take place in China, not just to minimize their own expenses, but also to keep the upper hand. And the schedule time is on the Chinese side, in the case, such as the demanding schedule of entertainment, sightseeing, and dining. Participants - Numerous meetings were held with many managers and officials of the state to discuss points of the business deal. And in the end, a very forceful, aggressive stance was displayed during discussion in Wang's office with the ever present hordes of staff members and managers. Chinese negotiating teams tend to greatly outnumber those of their foreigner counterparts.

This physical presence of more people communicates greater power and importance - an essential nonverbal message. And the higher position of the persons who attend the meeting, the more attention they pay to the deal and the more respect they show to their counter partners. So at one evening banquet soon before Lynn's departure, Lynn was informed that this was the first time all the three important Directors were at the same meeting and that he should feel highly honored. 3.

How do you understand Chinese "Guanxi" from the Tiger case? In this Tiger barrels case, Lynn did not know who the endless stream of managers and officials were but was told that one director was in charge of the Foreign Relation Department. Later Yu explained that this person was the government PRC party representative. Upon being questioned, Lynn discovered that the man knew little of foreign affairs. This kind of circumstance usually happens in China when people do business involving government. Because Tiger barrels belongs to Kweilin Forestry Bureau which is controlled by local government.

So having "Guanxi" with the person working in government and inviting the person to attend the meeting are important to a successful business, which will contribute the contract to be approved by the government effectively and quickly, and also can get some benefits from it, such as reimbursement in some aspects. 4. What's the difference of attitude toward law between Chinese and Americans in the Tiger barrels case? Americans rely heavily on the rule of law, especially in businesses where they must comply with federal, state, and municipal regulations as well as state contract law. The Chinese businessmen, however, don't regard the contract as an important part to bind each other's duty and right. Like in the case, when Yu wanted Lynn to sign the contract, Lynn was informed that the contract would not hold him accountable to buy the barrel quantity stated but that it was simply a formality needed by Wang to show his superiors that the project had true potential.

Contract in china are a reference point to continue further discussion and are not intended to be binding the way Americans understand them and to later show them their mistakes in planning. 5 How to identify the Chinese negotiation style in the Tiger barrels case based on Tricks of the China trade? First, in the pre-negotiation preparation, the Chinese assessed the trustworthiness of the foreigner partner (Lynn) by arranging schedule of entertainment, sightseeing, and dining. Second, in the initial stages of the negotiation, the Chinese team tends to focus first on explaining general principles and establishing agreement on common goals before moving on to more specific and possibly contentious issues. Like Lynn found that although numerous meetings were hold with many managers and officials of the state to discuss points of the business deal, the meetings seemed only to be formalities as topics and principles were discussed in a very general nature. Third, throughout the course of the negotiation, the bargain began to extend beyond the actual negotiating room.

Lynn was taken to the barrel-making factory during work hours and social activities such banquets are still used to cultivate the business relationship. Forth, when the Chinese decide to push for a project, they often express a strong sense of urgency. That was manifested by Lynn's feeling of a very forceful, aggressive stance was displayed during Wang's office with hordes of managers and staff before his departure. And it was the first time that the three important Directors were at same meeting to discuss the business.

And the last final stage concludes the signing of the contract and specific issues like price and sales amount (Lynn made more concessions than the Chinese), but negotiations may well continue through the implementation stage of any agreement. On the last day of Lynn's staying in China, Wang suddenly began discussing the future sales amounts and pricing shifting dramatically from his cordial style and attempting to convince Lynn that his cost structure required that the barrels be sole at his suggested price. Considering all the lavish attention the Chinese had bestowed upon him and in an effort to build trust, Lynn signed the contract although he didn't agree some points. Furthermore, the contract was simply a formality needed and, more important, was a reference points to continue further discussion, which meant further negotiations may well continue during the implementation of any agreement.