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1、Referential Answer for the case studies and negotiation simulations:Chapter one5. Read the case study, and consider the questions: What are the major reasons that Chrysler misses its opportunity entering China automobile market? What is the opportunity cost of Chrysler?Chrysler made a wrong estimati
2、on about the development of Chinese automobile market and development of Chinese automobile industry. Chryslers interest in selling just a processing line is a strategic blunder. Its opportunity cost is missing the chance of entering Chinese automobile market, the most lucrative and potential one.Ch
3、apter Two4. Do simulation An Economic Recession“ as required.Analysis: The interests of the employees are to keep the present job, which is also the bottom line of the employees, and at the same time try to negotiate a rise in their wages. While for the management to tide over the recession and avoi
4、d losses are the most important. Comparing the two options, the first one is better choice for the labor representatives, since at least both white-and-blue collar workers5 jobs are kept.5. Read case study (I) and discuss the following questions:1) Do you think the case shows the principle of mutual
5、 giving and taking for negotiation?Yes. The seller also asks the buyer to give their retailing sales cost and the buyer agrees, which is a practice of giving and taking.2) How important is the exploration of alternative option in this case?The cost of producer is proprietary information. The negotia
6、tion would have failed if the seller insisted on not giving the information. The seller here shows flexibility by providing an alternative solution that saves the negotiation.6. Read case study (II) and discuss the following questions:1) What are Chinas interests and what are US interests in IPR neg
7、otiation respectively?Chinas major interest is to get US support to join WTO as a developing country. However it is also for Chinas future interest if such an IPR protection system is to be established. US interests are to protect their IPR holders9 interests in China and gain more access to China m
8、arket.2) What are the issues talked about in IPR protection negotiation?Major issue : IPR protection; Related issue: Chinas accession into WTO; China-US trade unbalance3) What are the direct and indirect impacts of Chinas effort into WTO on the consequence of the IPR negotiation?Chinas effort to joi
9、n WTO was frustrated by countries like US because of Chinas developing country requirement. China makes use of accepting Chinas developing country status as a bargaining leverage in exchange for US demand to protection of its TRP holder interest.However Chinas WTO entrance is not a main issue of the
10、 negotiation, therefore it has both direct and indirect impact on the result of the negotiation.4) What are the implications you have learnt from IPR negotiation?Ask students to answer the question.Chapter Three5) Read the case study and discuss the following questions:(1) What is your first reactio
11、n after you read the Gabon case? Interesting or surprising? Ask students feedback.(2) We have a saying in Chinese seeing is believing”. After you have read the case, do you think the saying is true or not?Depending on situations. In this case, seeing is not believing.”6) Do simulation: silk sellingA
12、nalysis: the actual result of this simulation is $5.36 per yard, however almost all students doing the simulation, their results are below $5.36 per yard. Discuss with students the reason behind.Chapter four:5. Do negotiation simulation: Financial Leasing NegotiationAnalysis: The most important inte
13、rest of the lessee is the length of the leasing, the longer the better; while for the lesser, the most important is leasing interest rate, the higher the better. In this negotiation, the actual results: the length of leasing period: 5 years; way of payment: equal share approach, Sanfeng Group pays a
14、n equal amount at every end of a month, which is about 24.19 million yuan; service fee: 1.5% of 1200 million yuan; leasing rate: 7.76% of 1200 million yuan; additional benefit for Sanfeng Group, the length of depreciation year: reduced from 15years to 5 years, a reduction of 250.8 million yuan of ta
15、xesChapter five6. Read the case study and answer the following questions:(1) In the negotiation, one party uses positional bargaining and the other principled negotiation. Tell who uses principled negotiation and how has he applied it.Tom practices principled negotiation by not haggling with the ins
16、urance adjuster, but by emphasizing “what is the standard for replacement of a comparable car”.(2) Has the negotiation produced a winner or a loser?Everyone is a winner.7. Simulation: Hotel SellingTips for the simulation: the actual result of negotiation price for the case is $ 300 000, plus $25 000
17、 donation for hotels financial aid fund for those who may not able to pay for their stay.Chapter six6. Do simulation “A Dam on the River as required.Analysis: The three parties finally came to a solution after a careful analysis of each others interests. The agreement includes reducing the original
18、capacity design under the condition that the local peoples electricity demand is satisfied. The modification of the design guarantees enough water flow at the lower reaches, meanwhile maintaining the eco-environment. The agreement also decides to establish a protection fund for American cranes.It is
19、 important to have students realize why reducing the capacity of the dam is a win-win solution and learn not to turn to government for help as Chinese are used to. The option of reducing the original capacity is based on careful survey of the local need for electricity and water need for farmers. Th
20、e protection fund comes from money saved from original design budget7. Read the case study and discuss the following questions(1) What are the major issues concerned in the negotiation?Direct issue: market access; related issue: dumping(2) Who are the key actors from the American side, and from the
21、Japanese side?The American side: the Department of Commerce and the US Trade Representative (USTR),The Semiconductor Industry Association (STA) and individual chip manufacturers were thechief initiators and catalysts of the disputeThe Japanese side: Ministry of International Trade and Industry (MITI
22、), the Prime Ministerand Liberal Democratic Party leaders were allied with MITL(3) Compare the American win-sets with the Japanese win-sets and tell which is more specific?The American win-sets is more specific because they have two targets and are all supported with specific measures and numeral ta
23、rgets; while Japanese win-sets are very general without specific measures.(4) Comment on the final results of the Semiconductors case and try to explain why Americannegotiators could gain what they demanded for?By the final deadline for settlement set by the US, an agreement was reached. It gave the
24、 US everything it had demanded, including Japanese government monitoring of export prices and third-country markets, and provision of firm-specific manufacturing data to the US Commerce Department to determine whether dumping, as defined by the Americans was occurring.The agreement is a result of Am
25、ericans specific and forceful measurements, besides, the unification of the government and the industry, and less dispute between domestic producers and end-users made it possible for American side to work for one purpose set by the American negotiators set in the win-set.Chapter seven4. Do simulati
26、on Negotiation on Oil Contract“ while considering the following questions:(1) Analyze CO company and J&Rs stakes and power.CO companys stakes: the estimation of the market for VCM supply is over demand, so successful renew of the contract is crucial for the company. If the negotiation fails, the com
27、pany may lose 20% capacity, which means that it may have difficulty selling enough VCM to run its plant profitably because CO breaks even at 70% of rated capacity and it is now running at 87% of capacity, including 4% to the spot market. So CO company has a high stake in the negotiation.COs negotiat
28、ing power:One of the largest and best known world-wide producers of industrial petrochemicals;Good reputation for fine quality of VCM, which is important for J&R;Having its own pipeline to J&R, which ensure the stable supply to J&R, and relatively lower cost of transportation, 5% less of cost compar
29、ed with suppliers without pipelineJ&Rs stake: To sign the contract is also important for J&R, because J&R is expanding its manufacturing operations in the production of plastic pipe and pipe fittings, particularly in Europe. J&R buys a large quantity of VCM and CO is geared to supplying product to J
30、&Rs quality specifications. Interruptions in supply due to unacceptable quality or delayed shipments can force a customer like J&R to cut back production or shut down in two weeks.J&Rs power:COs second largest buyer, taking 20% of COs capacityThe market is getting over supplied.(2) Use table 7-1 to
31、estimate the two companies negotiating power.With the changing situation of the supply and demand market, J&R is gaining upper hand in thenegotiation.(3) What alternatives can you explore? Why?CO company can sell its VCM at in the spot market where prices and amounts available varied considerably fr
32、om week to week.It could replace 100 million pounds of J&Rs 200 million pounds/year VCM demand by selling to four small, new customers. To get these replacement sales in todays market (June, 1977), you would have to make price concessions which would reduce revenues an estimated $1 million a year be
33、low your provisional agreements with J&R. Also the replacement sales would increase COs operating and administrative costs $150,000 a year for three years.Encourage students to work out other alternatives.(4) What is your companys interest in, and your “walk away“ position for:MFN, MTC, RTRCO can ac
34、cept MFN, but not MTC and RTR. MTC would allow J&R to demand CO to follow those supplies who sell VCM at low price but also poor quality. RTR would produce a potential competitor with CO company at VCM market.(5) Are the fundamental interests of the two companies in convergent or divergent?The funda
35、mental interests of the two companies are convergent because CO needs J&R to keep its profit and J&R depends on COs stable supply of qualified VCM.(6) What concessions or trade-off are you willing to make? Why?CO company has made concessions on price, minimum quantities, length of new contract and m
36、etering, so in future negotiation, CO company should make no more concession except in MFN.5. Read case study and discuss the questions:(1) What help the client to increase his negotiating power?The law helps the client. As the case shows that he was put in touch with an aggressive law firm and the
37、debt was renegotiated with another bank. The debt was discharged with the original lender and all accounts were closed. Legal action was immediately commenced. In the meanwhile, it was noted that similar actions before the courts were being decided in theborrowers5 favor.(2) What losses the client w
38、ould have suffered if he had not turned to litigation alternative? His only course of action was the liquidation of his business and personal assets.Chapter eight8. Read the case study and discuss the following questions:(1) What are the major problems the company confronts?The major problem is the
39、conflict between modernization and expansion of facilities, essential to the companys long-term success, and improved profits next year.(2) In the case study, between the board and the management are the conflict of present interests and the long term development. What can be done to address such co
40、nflicts?It requires the board and the management to trust each other to address the conflicts. Besides, the management has to trust each other in order to work out feasible measures to satisfy the companys long-term success, and improved profits as suggested by the high trust group in the simulation
41、.(3) The conflicts between the board and the management are quiet common. Try to tell the interests they represent respectively?The board represents share holders5 interests and management represents the firms interests.(4) The results of two trial groups are quite different. Do you think the result
42、s reflect the real situation of the negotiation?Yes, the results of high trust group and low trust group can be expected and reflect the real situation.Chapter nine7. The point of the simulation is that students should keep their roles as American or Japanese negotiators as required by the simulatio
43、n. Thus the result of the simulation is not so important.8. Read case study and answer the following questions:(1) What is the possible personal style of the Chinese student in the case study?Her personal style is avoiding style because she does not state consent or objection openly and resists pass
44、ively all the time by finding excuses, or changing topics or leaving the matters to others.(2) Compare the Chinese students personality with that of Mr. Wangs from New York Consumers Association. Do you agree that personality plays an important role in negotiations?Yes, certainly, but it does not me
45、an that avoiding style has no merits at all. For instance, a person of avoiding style can frustrate efforts of a person of competing style effectively and makes the latter to make concession in the end.Chapter ten6. Do simulation of “China and Japan in Iron Ore Negotiation as required.(l)Do you have
46、 dominant strategy among the four strategies?In the four strategies, both China and Japan have dominant strategy, which is “not agree to price rise”, so both of them should gain 2.(2)Is your dominant strategy the most beneficial for you?Not necessary, because Japan may choose not to cooperate, agree
47、 to price rise“ for purpose of defeating China while gaining 2.5. In that case, China would suffer the worst result, gaining -3. If China also chooses not to cooperate, both of them fall into cell one.7. Read the case study and discuss the following questions:(1) The case study shows how we can make
48、 a decision when we are in a dilemma. Do you think you can apply the method in your negotiation decision making?Yes , I agree because I will be able to estimate the probability of the other partys decision against or for me.(2) When you are not sure of what to do, do you prefer to play head or tail
49、or to make you decision based on a rational analysis?I would make my decision based on a rational analysis because to try ones luck is risky.Chapter eleven7. Read the case study and discuss the following questions:(1) How did the buyer find out the price of the equipment was overvalued?The buyer did the cost anal