Please read the case study that follows and address the following points:
— 1) Lay out the problem by highlighting the primary points.
— 2) Identify the issues that have led to the problem.
–3) What could have been done differently to have led to a different outcome?
Note that you have an hour from the time you start.
Provide enough details as you highlight the important aspects of the case.
Make sure you refer to the course contents in addition to your own common sense and check your syntax, spelling and grammar.
Good luck!
Shuangxi Development, a builder of luxury apartments in Shanghai,is negotiating with Halifax-based Evolution, a design firm specializing in certified high-end kitchens and baths, regarding a three-tower, 1,500-unit project. This deal would mark the first time that Evolution would do business in a foreign market. Four months ago, a Shuangxi delegation including John Yi, chief architect, visited Halifax. Yi toured Evolution’s showroom and manufacturing plant, had a five-hour consultation with designers, viewed developments for which Evolution had received prestigious international awards, and met with management regarding the project’s needs and specifications. He was also honoured at two formal dinners, but not all the Evolution executives could attend due to travel conflicts or illness. Yi seemed impressed with the company but disappointed that the dinners were not better attended.
Three months of extensive online communication followed, during which Evolution sought the advice of the Canadian Chamber of Commerce and the Canadian trade commissioner in Shanghai. Then Jack Fullerton, Evolution’s vice president, and Iona Campbell, its chief designer, were invited to Shanghai to negotiate the final details and sign a notice of intent. Both felt that the negotiations had already taken a great deal of time and effort and were eager to get started. When they arrived, they were greeted by Shuangxi CEO Victor Zhu, chauffeured to their luxury hotel, entertained lavishly at a banquet, and for the first two days toured city landmarks with five Shuangxi representatives. On the third day, they believed that negotiations would begin in earnest, but the sight-seeing continued. Through is interpreter, Fullerton asked, “Look, weren’t we supposed to get down to business today” Yi and his colleagues said nothing but appeared upset.
When talks begin the next day, a large group from Shuangxi attended, including Zhu. Through the interpreter, he complimented Evolution on its compact, forward-looking designs and commitment to sustainability; however, as soon as each item on the agenda was resolved, he seemed determined to return to earlier items. Fullerton was confused: “Haven’t we already addressed that issue”” In all previous discussions, Zhu had been happy with the quoted prices, but he suddenly began to say,” Too expensive. We ask for a thirty percent discount.” Fullerton and Campbell were outraged but did their best to remain conciliatory. Zhu then asked about Evolution’s special patented hinge and wanted to speak to the engineer who had designed it, even though the part had been fully explained in the opening presentation. Concerned that things were going badly, the Evolution team called in an assistant trade commissioner. However, Zhu was called away to other business and Yi, who expressed his appreciation for Evolution’s work and his faith in their continued cooperation, assumed his role.
Fullerton and Campbell left China with a signed notice of intent, even though the two sides hadn’t agreed on the price of some components or on a final project schedule. Two weeks later, they were astonished to receive an email from Zhu stating that Shuangxi would be supplied by a Scandinavian firm.
