ALPHA - BETA
Pre-Negotiation Report
Alpha Group

1. What research will you need to do to prepare for this negotiation? Discuss how this research is important to the outcome of your negotiation.
There is an old saying in china, “Know the enemy and know yourself, and you can fight a hundred Battles without defeat” and this can be applied for the negotiation. To fully understand the situation and interest for both sides, we need to do research as followings. 1) Background information about both companies
Since the scenario and relevant material is made up, we cannot find more realistic information online or from other resources. What we need to do is to read the case has been give carefully and extracting all available information from it. 2) The industry information in both countries
Besides the information of two companies, we need more data about the whole industry in the nation of each company. These figures give us more details about what is the position of each company and the role played among their competitors in their country. This provides us a better understanding of the positioning and vision for both sides. 3) The preference of representatives in both teams
Before the negotiation, our team members have spare lots of time sit together talk about and change our opinions. During this time, we have already known each other’s characters and have dividing the work responsibilities and allocate them to each person. That is the first part called self-exploration. In addition, analysis the members in opposite team are as important as the first part. Same as us, even though built on the multi-cultural foundation, with a mix of Indian, Chinese and Sri Lanka, all of us come from the high-text and masculinity society, and the sex ratios in both teams are same. This endows us a balance between the two teams. During the negotiation, we can use corresponding methods and techniques to communicate with them and achieve our goals.

2. From your analysis what are your interest and opinions? What are the interests and opinions of the other party?
Based on our analysis about the material has been given, our interest and opinions are as followings: 1) According to our situation, we set our goal as to be a worldwide, full-service supplier of the automation system. Even though the domestic market in the nation of Alpha is comparatively small, but as a leading company in this industry we want to go outside of our country. With this aim, what we need to concentrate on building up a global image. As consequence, we may not have enough time and resources to start new market and boost productivity at the same time. So a company, no matter it is comes from domestic or overseas, who can act as an OEM(original equipment manufacturer) and provide high quality robotics during this time is really important and helpful for us. 2) From another aspect, our company have invested hundreds of millions of dollars in plants and product development to put together a wide range collection of automation. It made it hard for us to spare more energy and money to pay attention to the development of the R&D labs. As a research oriented company, with over 9000 researchers and expend nearly 5.9 percent of annual turnover, the R&D labs in Beta Company has been set up very well. Somehow we can access and benefit a lot from there labs through this collaboration.
From the other party’s point view of, their interests and opinions might be as followings: 1) The Beta Company set their short term goal as to become world’s largest robot producer. To achieve this goal, largely boost its production capacity is compulsory. Even though they are just one of the 150 robotics manufacturing companies in the nation of Beta, as the most research oriented company, they still have great advantage and reputation to promote their products. 2) On the other hand, since to date, nearly all of the Beta’s output has been sold out in domestic markets, the high competition has made them try to push the exports. From the whole nation’s point of view, the export is only 2.5 percent of the total production, together with the great increase demand in the nation of Alpha (20%); the Beta Company will try hard to seize this opportunity to reach the agreement with us. 3. What is your BATNA?
The BATNA for this exercise is 10% of all Beta’s models, 20% units to be imported per year and 2% royalty rate on gross sales and no access to vision technology. We don’t want to reveal our technology and potential customers and it’s not the way we deal.
As the Betans didn’t offer and supposedly might be the final offer we presume that the BATNA for Beta Inc. would be 25% different models and 55% units to be imported per year and 10% royalty rate or higher and fully fledged access to vision technology. 4. What will be your negotiating style? Why?
Unlike most of the other cases, the case we have been given is not a zero-sum situation, base on this premise we will use collaborate negotiating style to maximize the benefits for both companies. 1) In one country, our company, which is known as Alpha Inc. is a diversified electrical appliances supplier and manufacturer. In another country, Beta Inc. which represented by counterpart team, is a high technology supported manufacturer of integrated electrical machinery. Our company have invested hundreds of millions of dollars aims to become a major worldwide, full-service supplier of automation systems. During this time we need an OEM to make products under our label to open domestic and overseas new markets. 2) Despite its short establishment time, Beta Inc. is very high-tech oriented. They plan to double its manufacturing capacity and become the world’s largest robot producer within next few years. Even though the business in these two countries is sort of overlapping and could be competitive on same market, the different market positioning give both teams a big chance to cooperate. It would be difficult for both of us to achieve business goals without this the agreement of this negotiation.
Besides, according to the tentative agreement which has been set up by these two companies, the tie-up collaboration will maintain at least 7 years, so it is important to build up good relationship with another team. There are some detail questions such as quantity and models of products we need to buy, the reasonable price and royalty rate to pay for Beta and the accessibility of our patented technology we will mainly focus on in negotiation. We will try to maximize the benefits for both sides by providing multi-issue offers during the tie-up duration and seek other possible information exchange and collaboration opportunities beyond the duration of the contract. 5. What non-verbal communication do you plan to use and why?
In the negotiation, word communication just like a single word, it could be unclear and multiple meaning, without the coordination with other non-verbal communication, we can never make a full sentence. 1) Facial expression and head
In the negotiation, the most important part we focus on is the facial expression of members in other team. In counter, we should use appropriate expressions to deliver specific information. During the process of negotiation, we will keep using a smiling facial expression to show our confidence and friendly attitude. Always listen carefully their opinions and give feedback by nodding or shaking heads. 2) Physical gestures
Since we are sitting behind the table and opposite to the counterpart team, the physical gestures would be mainly about the movements of hands and arms. At the beginning of the negotiation, all our team members will shake hands with the members sitting opposite there. When negotiating we will always put our hands and forearms over the table where the rival team can see. According to psychological research, it makes person seems more trustworthy. Using appropriate hand gestures to coordinate with what we are expressing, and avoiding use fingers to point to another one or holding arms in front of the body. That is very impolite and cause hostility. 3) Posture
Even though they will not notice this, but we will pay attention to keep our legs uncrossed. Not only this posture feels more comfortable during this long negotiation, but also it will free us from being perceived as arrogant and uncooperative. Besides that we will make our top body straight and slightly tilt towards the other team members, it is a good way to show our positive and cooperative attitude. 4) Personal space
To leave enough personal space for counterpart and other team members are same important. When sitting opposite to the counterpart team, we will keep a certain distance from them and never come too close. It’s a way to show our respect and consideration for others. Meanwhile, the personal space within the team should also be considered. For all the members in our team we will try to sit not too closely and keep in a horizontal line, which means all of us are equality and none of us should be deprived the opportunity to speak during the negotiation. 6. What culture factors will your team need to be aware of? How can you minimise the impact of these cultural factors? 1) Time limitation: To be punctual is a sign of respect for both sides of negotiation, especially for the people who take the time seriously. Consequently，we should be punctual and control time effectively because this factor is very significant all over the world. 2) Speaking style: During the negotiation, if we do not agree with each other's proposal, we not are able to interrupt immediately because it is very impolite. This important factor is recognized in the world. 3) Behaviour: In our negotiations, both sides have female members, so we have to pay attention to the contact way, and not overly polite. 4) Decision-making style: When we given our decision, we should to pay attention to the interests of each other, moreover, we can't hand over.
The challenging job is working with the international team. There are number of steps that we can minimize the challenges and maximized benefits while working in the international team. We have to think about the people who are working with us and we need to know the working style of our group without dismissing the team member’s ideas. We need to think from the member point of view as well. We do not have to make imagination for the other’s ideas which might be good for the company. We do not have to think about the past like the previous ideas did not work and it does not work this time as well, it might work this time quite well.
Particular our own attitudes, behaviour and biases are very important factors of working in the effective international team where we need to aware of cross-cultural differences. We need to make sure that we need to have the skills and consistently use those skills to make sure that we communicate and work effectively with the different background of the people. The cross-cultural team working is not the minimizing the differences among the people, it is about making the most added value that a diverse team offer.