Candace Lun and Jeswald W. Salacuse
Two-party, four-issue negotiation between representatives of two companies with different national and corporate cultures regarding a possible joint venture
MedDevice, a U.S.-based Fortune 500 company that manufactures high technology medical equipment, and Lee Medical Supply, a small Thailand-based company that distributes medical equipment in Southeast Asia, seek to conclude a joint venture. The venture, to be named MedLee, Ltd., will take the form of a Bangkok sales office that distributes MedDevice brand medical equipment. The CEOs have met and signed a Memorandum of Understanding. They have now instructed their subordinates (Pat Armstrong, the Director of International Strategic Market Research at MedDevice, and T.S. Lee, the Vice President and son of the owner of Lee Medical Supply) to conduct preliminary negotiations on four issues they consider central to the joint venture: decision making, staffing, profit distribution, and a conflict resolution mechanism. MedDevice and Lee Medical Supply differ greatly in their corporate cultures, which are shaped by their national cultures and the demands of their respective industries. MedDevice, a publicly traded company in a highly regulated industry, is rule-oriented, efficient, structured, data driven, and merit-based. Lee Medical Supply, a family-owned and operated company, places a high value on relationships and family loyalty, and favors informal consensus arrangements over rules. The respective negotiators must develop a way for companies with such divergent cultures to work together.
Joint ventures; cross-cultural negotiations; agent-principal tensions
- Handling the challenges involved in preparing for and conducting cross-cultural negotiations.
- Recognizing and dealing with divergent assumptions and perspectives.
- Bridging cultural differences and communicating effectively across cultures.
- Handling agent-principal tensions.
Minimum Participants: 2
Preparation Time: 30 min. – 1 hour
Negotiation Time: 90 min. – 2 hours
Debriefing Time: 30 min. – 1 hour
Teacher’s Package (30 pages total) includes:
- Participant materials
- Teaching Note
ENHANCED VERSION AVAILABLE:
A digitally enhanced version of this simulation is available through the iDecisionGames platform and includes the following features:
- An Instructor’s Guide summarizing the negotiation concepts covered in the simulation, a quick review of simulation logistics, and a ready-to-use set of debriefing slides;
- Highlights from background readings that will help both students and instructors gain a better understanding of negotiation concepts and methods covered in the simulation;
- Pre- and post-simulation questionnaires instructors can use gauge each student’s grasp of the core concepts before and after participating in the simulation;
- PowerPoint slides that introduce key concepts before the simulation and highlight lessons for debriefing;
- Real time, interactive, data analytics provided via the iDecisionGames platform.
|Time required:||2-3 hours|
|Number of participants:||2|
|Neutral third party present:||None|
|Teaching notes available:||Yes|
|Non-English version available:||Chinese, German|