Business Content As The Most Important Factor For The Negotiation Process

1486 Words Nov 30th, 2016 6 Pages
Data description and analysis
While the Westerners consider the business content as the most important factor in the negotiation process, Chinese people believe that providing personal favors is the cornerstone of the business. The dynamics of face play a role in the interpersonal relationships, which determine people’s willingness to bargain or cooperate in business. During communications, Chinese businessmen use indirectness, praising, intermediaries, shaming, and requests to save face and give face (Cardon & Scott, 2003).
Honeywell-Bull offers a good example of the importance of saving face. As a hardware company, it had won a chance to negotiate for an order of 100 ATMs from the Bank of China. Near the end of the negotiation, the bank buyer asked for further price cuts. He spoke to Honeywell-Bull representatives, “If the price isn’t reduced further, I will lose face.” Translated to Chinese, his words meant “The deal will be off, and we’ll talk to your competitor.” Thinking in terms of face, it was not his only goal to save money for the company he represented for. To him, the problem was that he would not receive much reputation or profit out of this deal. The experienced Honeywell-Bull executive responded that he could possibly reduce the price, but the lower price would not allow this Chinese managers to train in the US. Then the Chinese representatives demanded a ten-minute break and came back agreeing to all the terms with smiles (Graham & Lam, 2003). At that time,…

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