Common Differences between Western and Eastern Styles of Negotiations
Essentially, there are various differences portrayed by the western and eastern people in regard to the manner in which they negotiate. Importantly, Nelson exposes one of those differences when explaining how investors in China and those in US deliberate on issues such as pricing and terms of work. In specific, she indicates that the basis of engagement with the Chinese counterparts is mainly based on relationship ("Alpha Gearing Systems Shanghai Co. Limited” 4). This is an indication that the Easterners negotiate according to the relationship they have with the other party. If the relations are good, they will tend to engage in smooth and less strict negotiations. On the other hand, the westerners negotiate based on facts at hand. Even if the counterparts are friends, the negotiations must be structured on the basis of professionalism to ensure that the intended results are not compromised whatsoever. In essence, they follow the ideology that the company is bigger than anyone. This implies that the company comes before everything else including personal relationships unlike the case with easterners. Actually, it is stated that the western negotiators prioritize the achievement of gradual progress from the time of commencement.
Besides, Nelson reveals that the easterners use indirect communication when negotiating. In other words, they try to avoid all issues that would develop contention due to the fear that the other party will be disappointed. However, Nelson, who is actually a westerner, prefers direct communication. This is the same way she engages in negotiation because the westerners believe in addressing the real issues head-on.
Underlying Dynamics that May Have led to Negotiation Breakdown
Clearly, there are possible underhand dynamics that may have led to the breakdown of the negotiations. Importantly, it is evident that San Yu may have been trying to find local suppliers. This would be based on the fact that using a local supplier was a best practice because Alpha Shanghai was a foreign-owned company. In addition to this, there is a possibility that San Yu was working to buy time while seeking a local supplier as indicated. One of the ways in which they got to buy time was signing short term contracts with Alpha Shanghai. San Yu ensured that it never entered into long term commitments with Alpha Shanghai. This is an indication that San Yu was actively having underhand dealings, discussions, and consultations to ensure that it got an upper hand at the end of these negotiations even if it meant discarding Alpha Shanghai.
Communication Strategies that would have Strengthened Nelson and San Yu Relations
Essentially, the use of patient and delayed communication to create a relationship with San Yu was the major cause of the crisis experienced. Once Nelson anticipated that San Yu was playing underhand dealings, she should have changed approach in communication. She should have opted to use more direct and uncompromising stand in order to get an upper hand. Of course, this argument may seem ridiculous due to the idea that the personnel agreed unanimously that this was not be best way to approach the negotiations. However, negotiations are not conducted based on conventionalities. It was wrong to assume that creating a relationship on the upfront was the right thing in this case just because Chinese generally prefer that approach. In perspective, it was crucial to understand the nature of the company they were dealing with and its interest. In particular, San Yu seems to have been playing dirty in order to buy time and before they got a local supplier. This implies that Nelson would have been successful if she engaged in direct and stern negotiations early in the deliberations since San Yu did not have an able supplier at the time. In this manner, she would have secured a long term contract with San Yu on the basis of capability and professionalism.
Work Cited
"Alpha Gearing Systems Shanghai Co. Limited." Ivey Management Services 10.21 (2002): 1-18. Web.
