Tiger Surgical Supply Case Summary

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The case analysis presents a French manufacturer of surgical supplies who establishes a production in Chin Minh City, Vietnam, where labor costs are low. The French surgical supply company, Bordeaux Plastique Fabricant, thought that establishing a foreign subsidiary in the emerging economy would be easy as well with the government relationships. However, since the beginning of the planning and investing, the company had early difficulties with the government. Philippe Desmarest, was placed in charge of all government relations and as the chief operating officer for the new facility. Philippe prepared many reports that showed how the joint venture between Bordeaux and a local partner would benefit Vietnam; however, the government officials were confused and suspicions about the company. After the permits of the plant were approved, the Tiger Surgical Supply was ready for production in 1997. Nguyen Tam Chien was selected to be the plant manager for the company. The production of Tiger Surgical Supply got a slow start and was far away initial expectations, this was due to Vietnamese habits and culture of practicing napping in the afternoon. Chien decided to terminate 16 employees who had poorly performance; however, terminating employees in Vietnam is not a simple matter because workers can appeal its decision to a people’s committee. Chien decided to classify employees in different categories according to their performance, which helped to improve overall efficiency of the firm. In addition, the company consider expanding the production capacity of TSS, so Philippe contacted the Vietnam government officials to inform them of the expansion; however, the Vietnamese officials did not have much enthusiasm in the project, and they decided not to be involved. The government not being involve in the expansions caused many problems such as $2 dollar inspection per container and $1 dollar loading fee. All the situations and problems were the company was involved made Philippe think that he made a mistake for promoting Vietnam as a desirable location for production facility. Since the beginning of the negotiation process between Bordeaux Plastique Fabricant and the Vietnamese government, there was early difficulties and problems that gave signals of conflict at some point in the negotiation process. The Vietnamese government was confused about the company proposals and had suspicions about its intentions. Vietnam is a face culture where trust is a very important part of the negotiation process, and people tend to have a holistic mindset that relies more strongly experiences based on knowledge than does the analytic mindset. On the other hand, France is a dignity county where the key characteristics of dignity culture is the emphasis of the individual, where they value independency and own welfare; however, when self-worth is an …show more content…
The S&O strategy solves trust problems in a peculiar way, rather than opening a window into a negotiator’s interest and priorities, offer emphasize negotiator’s position. In addition, I will suggest to learn the country values and political system in order to understand better the type of government relationships with foreign business and take best decision that benefit both parties by creating a win-win situation. In addition, I will suggest for Philippe to spend more time getting to know the government officials by building relationships, then winning their trust by researching their history, culture, and

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