Luna Pen Essay

1092 Words Apr 13th, 2013 5 Pages
Maria Arzola
WRI 118
April 10, 2012
Luna Negotiation Case Analysis

After reading the Luna Pen case, I did not think that Erika’s approach was the best one. All of her actions, although I know were strategic and worked best for her, were somewhat unwise. For example, I though that the first mistake she made was in the very first situation, when she initially decided to contact Feng. She made the decision to start with an open approach, but she failed to realize that there might be cultural barriers. Although her tone was neutral, by giving him a lot of information through fax, I think that she limited herself from a strategic point of view. Some of the things she mentioned in her fax, I feel, should have been spoken about in person.
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However, she did manage to get something that was satisfying to both her and her company: The company got their monetary compensation (or so they thought at first), and she was able to establish her new position in the company. It seemed that her company initially did not even want anything out of the Luna Pen name, since it actually abandoned the production of the pen. They also had no incentive to try to regain control of the company and begin producing it once again.

In my opinion, culture played a major role in this negotiation. To begin with, each of the parties belonged to cultures with completely different traditions and different attitudes towards interaction. Erika was German. Feng, on the other hand was Chinese. Both of these cultures have different ways of dealing with business and negotiations and many of the characteristics of these cultures are present in this case.

For example, I think that the Chinese negotiation strategy is a mixture of competition and a bit of cooperation. However, what I think is most important in the negotiation process, for the Chinese culture, is trust. Throughout the Luna Pen case, I could not help but thinking that Feng was using quite a bit of strategies, such as those learned in Getting Past No. At times it even seemed as if he was negotiating deceptively (such as in the first situation when he had his secretary fax Erika on the exact day she was leaving for her business trip). I think that

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