Discussion Class 1

Discussion Class 1 (2 periods)

T eaching aims:

Help students put theories they learnt into practices;

T eaching points:

Read the case intensively

Study the case by using the knowledge learnt in theoretical classes

Preparation work for discussion

Bring the notes on negotiation preparation and opening you have taken in the classes;

Each group takes at least one dictionary for better understanding of the case;

Requirements

Read the case carefully and study it with teamwork spirit.

The leader of each group arranges the tasks for each member.

Answer the discussion questions designed for you at the end of the case in one period of class. Get ready for the oral presentation in the next period.

Case Study 1

Graham, the chief editor of the “European Business”magazine in Germany was invited to Shanghai to have a negotiation for the cooperation in advertising and information with the “International Market Journal” in China.

In order to provide convenience for the German editor who had come the China for the first time and demonstrate the power and strength of “International Market Journal” and to impress the editor with Shanghai, the most developed city, the Chinese party intentionally made arrangement for the German editor to stay at the Peace Hotel, which was in close proximity to the “International Market Journal”headquarters. This five-star hotel was one of the earliest European-style hotel in the prime downtown Shanghai, situated at the doorstep to the Bund, on Nanjing East Road--- the busiest pedestrian shopping mall in Shanghai. Looking out of the window in each room, one can see and enjoy the gorgeous scenery on both sides of the Huangpu River. Staying at such a hotel undoubtedly would give the German editor, who came from Hamburg, a seaport in Germany, a sense of astonishment, delight, and intimacy.

The negotiation was set at the big conference room of the “International Market Journal”headquarters, 33 Zhong Shan Dong Y i Road. The compound at 33 here used to be the British Consulate General in Shanghai. Building No.1, where the “International Market Journal”was situated at that that, used to be the place where the British ambassadors met guests and handled official business, as well as one of the earliest European buildings in Shanghai with quite a longer history than Peace Hotel. Nowadays, as the most expensive piece of land in the background and power, even though the floors, doors and windows of Building No.1 were a little torn and worn, the high and spacious conference room could still divulge the grandness and magnificence of the former British Consulate General

At the beginning of the negotiation, two sides began with the first impression of the German

editor towards Shanghai and the comments about the European-style architecture in which the “International Market Journal”office was based. And then, they introduced the historical backgrounds and the status quo of both organizations respectively---though they got good knowledge of each other. In the following period, the editor of the “International Market Journal”came down to the main business of the negotiation because of the various restrictions on the cooperation between domestic and foreign media imposed by the Chinese government, especially in Shanghai, a city under rigorous and strict administration, there was no precedent of the cooperation between Chinese and foreign journals or magazines to go by; therefore, their negotiation was quite like an icebreaker.

In order to make profits as well as not to run counter to the rules and regulations of the Chinese government, both parties had a quite careful discussion in the first round of negotiation, exchanging ideas about the detailed clauses one by one. However, there seemed to be no room for compromise in the disputes on a few clauses between two parties. To ease up the tense climate in the meeting and to make the German editor get more familiar with Shanghai market, the Chinese chief editor sent a reporter who spoke fluent foreign language to show the German editor around Jin Mao Tower (“Gold Luxuriance Building”in Chinese) and Oriental Pearl TV Tower in Pudong. And in the streets downtown and inside the subway stations, they make an inquiry about the sales of the latest issue of the “International Market Journal”. At the People’s Square and LUjiazui subway station, the German editor found several large lighted billboard ads which surprised him and so he took several photos with his digital camera.

That evening, the editor of “International Market Journal” welcomed the German editor to a dinner at Mei Long Zhen Restaurant at Nanjing Xi Road. The former British Prime Minister, Mrs. Thatcher, the French president, Chirac and many other world famous people had dined and enjoyed the traditional Shanghai cuisines in the restaurant. Being invited to such a prestigious place which was patronized often by celebrities, the German editor was overwhelmed by an unexpected favor. Additionally, for what he saw and heard that afternoon, the German editor finally eliminated his doubts. While they were tasting delicate Shanghai cuisine and Changyu wine, enjoying the unique background music--- the pleasant Sizhu (a kind of traditional Chinese stringed and woodwind musical instrument) music of South China, the Chinese editor referred to the issues on which they failed to establish a consensus that morning again, and this time, the German editor obviously changed his attitude. The Chinese party also adjusted some of clauses to some extent. consequently，in the opening phase of the negotiation on the first day, two parties reached an initial agreement on the main clauses and terms for cooperation.

Discussion questions

1.Had Chinese party made sufficient preparation for the negotiation? What were those

preparation works?

2.What types of strategies had been employed by the Chinese party in the opening phase of the

negotiation on cooperation between the German magazine and the Chinese journal?

3.Were these strategies effective? Why?

4.How did the Chinese party ease the tense climate in the first round of negotiation?

5.If you were the editor-in-chief for the “International Market Journal”, how would you design

the negotiation opening?