Chinese-American Cell Phone Price Negotiations

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Table of Contents

Introduction
Cultural Difference
Personality
Gender Difference
Perception, Cognition and Emotion
References List

Introduction

Negotiation is a skill of bringing people together who have differences into a common platform where they can solve their disagreements. There are many dynamics especially in business negations which prevent people from coming to an agreement. These dynamics may include cultural differences, difference of gender, culture, perception, cognition and emotional differences.

This paper therefore tries to analyze an all male and an all female negotiating teams which have cultural dimensions. On one hand the all male negotiating team seeks to buy a cell phone at $6 per unit while the all female negotiating team seeks to offer the cell phone with a $9 per unit. The main objective of this paper is to emphasize on the potential influence on cell phone price negotiations between Chinese and American negotiation.

Cultural Difference

When negotiating the two parties it is important to engage a third party intervention. This is due to the cultural difference between the Chinese and the Americans. Some of the benefits of having a third party intervention are to create an enhancing environment and a platform of communication between the two parties. This helps to reestablish communication between people of different cultural beliefs.

Secondly, most of the time will be used on substantive means such as negotiating for a minimum price of the cell phone which will be satisfactory to every individual (Lewicki, et al, 2010). Moreover of there is any imminent conflict between the two cultures it can also be solved by a negotiator through engaging of the conflict resolution skills.

There are some of the factors that should be considered when engaging a third party intervention in a cultural based negotiation process. To begin with, a Chinese and an American cannot conduct any form of transaction due the difference in their language. This creates a barrier of negotiation and therefore makes the negotiation process difficult to be conducted (Pienaar & Spoelstra, 1999).

Evaluation of data is also another problem which requires intervention from a third party. This is due to the reason that all the parties have different figures in which they have to negotiate in order to come up to an agreement. Furthermore a third party may also be used in the case where there is no procedural or protocol for selling and buying of the cell phones between the two parties.

In cases when their cultural dimensions consist of low power distance and high power distance a third party mediator may be used. In addition, autocracy may be used between parties with low term orientation and long term orientation.

However, arbitration method may be employed between a low contest negotiation and a high contest negotiation (Lewicki et al, 2010). Arbitration helps to encourage distributive bargaining more than any other form of third party involvement. Therefore most of the business people from diverse cultures should engage themselves in arbitration so as to increase the chances of an agreement.

Personality

Due differences which maybe brought about by negative response to some individuals, it may become difficult for the negotiation to take place without any form of conflict. Some of the conflicts may lead to an impasse, a situation where it is very difficult to reach consent. Some of the factors which lead to an impasse include divisiveness of the parties entering into a contract (Pienaar & Spoelstra, 1999).

The intensity of emotions may also increase thus leading to the formation of a conflict which may make it difficult to reach into an agreement. Moreover, the conflict may be so perverse especially to individuals who do not belong to the same culture.

The case at hand involves two divergent cultures, the American culture and the Chinese. One party may feel that they have been overpowered by the other party thus leading to conflicts of interest which may arise. Moreover, there is one of the characteristics which increase the probability of an impasse in a negotiation and they include lack of organization and structure which can help in formation of connectivity (Lewicki et al, 2010).

This should be resolved through arbitration from trusted individuals. Additionally, the conflict may also escalate due to the difference in fundamental values which may hinder any form of negotiation process. A consensus should be reached to ensure that each of the parties has been in agreement with each other.

Gender Difference

There are many dynamics which are brought about by differences in gender which can prevent a contract or an agreement from being entered. Gender difference can also lead to an impasse which is caused by lacking of reaching a consensus in regard to bargaining range (Pienaar & Spoelstra, 1999).

This can lead to a dispute which is caused by lack of agreeing to a common cost. There is also a possibility for the Chinese women to fail to enter into a negotiation with the men because they may feel that the price in which they are offering is discriminative thus blocking negotiations from taking place. When it comes to gender, the development of social identity within a particular gender may prevent any form of negotiation.

Perception, Cognition and Emotion

An individual with a negative emotion concerning another individual can also prevent a normal negotiation from taking place. This is because it is considered that one person perceives the other person as an individual who is more powerful thus creating unnecessary biasness.

A cognitive resolution is thus imminent to help the two parties to solve their problems. This helps to change the negative emotions into positive attributes which can lead to a negotiation (Lewicki et al, 2010). Another problem with doing business with people of different backgrounds is the belief that one particular gender contains a coercive power which might prevent the other from doing business.

This is because of the tendency created by women who feel that they are weak and may be extreme and biased to the men to the point that it might prevent negotiation from taking place. An adjustment from a third party is therefore required to increase the level of willingness to conduct business.

In conclusion, in order for the two parties to reach into a negotiation, they should solve factors which might cause conflicts and disagreements thus preventing a good environment for business. Some of the common issues which lead to conflicts such as personality differences, cultural differences, gender and differences in perception should be addressed effectively.

Aggressive bargaining techniques should also be employed to ensure that both parties have come to an agreement which would lead to a contract. Nevertheless, any barriers to negotiation should also be addressed using a third party intervention strategy which will help to improve negotiation. To sum up, the major tools of negotiation should be used to resolve any impasse which might block a normal agreement.

References List

Lewicki, R. J., Barry, B., & Saunders, D. M. (2010). Negotiation (6th Ed.). New York, NY: McGraw-Hill.

Pienaar, W. D., & Spoelstra, H. I. J. (1999). Negotiation: Theories, strategies and skills. Kenwyn: Juta.

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