Merging Cultures

(Environment, 2013)Case Study II

1. How could the Canadians have more effectively prepared for the negotiations with their Chinese counterparts?

Canadians failed because the lacked cultural knowledge or understandings of how Chinese people do business. When attending meeting in foreign markets, the cultural aspects should be considered very carefully. There should always be a checklist in preparing for a meeting abroad; the Canadians could have made sure of a few of these:

• Time: hosts should always respect time and show up early to meetings. In this case, there was lack of time planning, if the Canadians had been more culturally aware and better planned, then they would have had more time to spare. (Unknown, 2015) 
• Business attire: appropriate attire should be worn, if in doubt dress conservatively. (Unknown, 2015)
• Protocol: protocol is very important in business meetings; they show respect to the host but also show that the guests have good values. (Unknown, 2015) 
• Interpreters: from the story you can tell that the Canadians had a bad interpreter; if the had hired a better one then maybe the deal would have gone through. An interpreter credentials should always be checked thoroughly to engage someone who is fluent both culturally and linguistically. (Unknown, 2015)

 From the article you also get that the Canadians didn’t go through the four phases of negotiations; which are:

• Developing a relationship: this is the first phase and probably also the most important. Both parties need to develop a respect and trust for each other; this is usually done through dinners and other social activities. From the story, you can tell that the Chinese tried to  develop a certain relationship at first, but were faced with confusion. Had the Canadians taken that into account, then they might have had an agreement. (Cultural considerations – know before you go, Pg. 152).
• Exchange of information: to increase trust during negotiations, one might have to disclose certain facts at the beginning of the negotiations. Asking questions and showing interest makes it easier for the counterpart to open up. Asking questions can also prevent future problems/issues; for example if the Canadians had asked the Chinese group few technical questions then they wouldn’t have had  the issues towards the end of the negotiations, such as discounts or even sale price. (Cultural considerations – know before you go, Pg. 153).
• Persuasion: this phase is meant to analyze the weaknesses of the negotiations in order to reach an agreement. The Canadians had a couple of weaknesses going into the final negotiations; such as: the interpretation, technical details etc… had this been looked at more thoroughly then it might have gone different. (Cultural considerations – know before you go, Pg. 153).
• Concession and agreement: this stage is usually to finalise a deal or reach an agreement; but then this is if all the previous phases have been met. Canadians failed to take into account all the previous phases, had they respected this then they may have reached an agreement. (Cultural considerations – know before you go, Pg. 154).

1. The negotiating parties seemed to have different expectations about the time needed to complete the process. What were some of the key reasons that caused negotiations to last longer than the Canadians anticipated?

Going through the case, at first you realise that the Chinese are trying to create a relationship. During business negotiations, counterparts may involve the other party in social activities to create a personal relationship or some kind of trust before starting any kind of business. Obviously this might take time, and perhaps one of the most difficult aspects of Chinese culture for people new to China to grasp is the vast difference in communication styles. Understanding how the Chinese communicate with one another, and with foreigners is crucial in doing business with them. While the Chinese often use high context patterns, Westerners are more inclined to use low context patterns. A typical Chinese way of making a suggestion is through less formal conversations. One suggestion might be I think it is going to be better if we do it this way. Often the Chinese are unwilling to share the rest of information which they may or may not have. Some reasons may be because the information or tip came from personal connections, which the Chinese person has. Another reason may be that they don`t want to cause anyone to lose face. Canadians didn’t count that in.

China being a high context culture, interpersonal relationships are valued. Also gift giving is a high priority; and thus make an important aspect of protocol, Canadians should have taken this into account. (Sebenius, 2002)

1. In communicating with the Chinese what was the key problem? What could the Canadians have done to avoid this problem?

Communication was a problem because the two countries have different communication styles and cultures. China being a high context culture while Canada is a low context culture. In high-context cultures, in which one's behavior is to a great extent determined by social roles and expectations, a person is usually spoken to in order to motivate him or her to behave differently from what he or she would otherwise probably do. In such culture speaking is a real art, in which emphasis is laid on the emotional aspect. Questions are normally asked not in order to extract additional information, but to put the matter in a more philosophical perspective. The principal rule to be followed in high-context cultures is “Don't interfere, let him speak!” (Cultural considerations – know before you go, Pg. 138).

While low-context culture, the speaker expects to influence the partner to act in the speaker's interests by pointing out a number of options and providing enough information to enable him or her to take the desirable decision by himself. Here rational information prevails over social motivation. (Cultural considerations – know before you go, Pg. 138).

The Canadians could have avoided this issue by being prepared for any possible question that was coming their way after the presentation. Other then that, it would be better if the Canadian had sent their top negotiators and knowledgeable people to China to have possibly contributed to a better outcome. Sending someone that can focus on the personal relationships while also focusing on the business deal would have been the best bet for the Canadians, but I don’t believe that was the case in this deal. Having someone that possessed both those skills could have built better trust, and other key components that could have contributed to closing out this deal for the Canadians.