In: Operations Management
Read the case study below, based on the experiences of Larry Zeenny in the Lebanon. It concerns a football agent’s attempt to make a deal for his client. When you have read it, answer the questions that follow.
An own goal
The taxi arrived at the impressive mansion in Faqra and I made my way through the blistering sun towards the entrance. I was met by two servants and directed to Mr Haider’s room. He had faxed me a contract, the terms of which were ridiculously low, and I was determined to get a better deal for my client.
A peek at my watch revealed it was 11.30. I’d arrived just in time, despite the flight delays at Frankfurt and the queues at Beirut airport. In front of Haider’s door I cleared my throat, tightened my tie, gathered all my courage and entered the room. ‘Mr Haider, I am delighted to meet you’, I said, rather too exuberantly. ‘AhlanWilhelm, welcome my friend’, said Haider. ‘I just have to say goodbye to my important visitors. Please make yourself at home while you’re waiting.’
A servant led me to a large room where there were two men and, in the far corner, a beautiful oriental
woman. I sat down in a chair and waited for Mr Haider. An elaborate clock chimed twelve, but there was still no sign of him. By now the other three were thoroughly enjoying their lunch, which I had refused out of politeness. To keep my nerves steady I had only accepted a glass of arak. By 12.15 my patience had started to desert me. I was going to be too late for my next meeting. How could I trust Mr Haider if he had already broken his promise beforehand?
Eventually, at 12.30, Mr Haider entered the room. He looked extremely relaxed in his traditional dress and I jumped up to greet him. Before approaching me he first kissed both men and had a brief conversation with the woman. I had prepared myself well for this moment. I gave him a firm handshake and seated myself.
‘Ahlan Wilhelm, welcome to Lebanon’, he said. Looking at the table, he added: ‘I hope you enjoyed your delicious lunch with my beloved sons, Alain and Elie, and of course with my habibi, Charlotte.’
‘Mr Haider’, I replied, ‘Thank you for your warm reception, but I ate on the plane. My client is extremely pleased about your interest and he is looking forward to playing for such an illustrious club as Al Ansar. Shall we come to terms as quickly as possible so we can finalise this matter in the best interest of both parties?’ ‘Shouf Wilhelm’, he retorted. ‘Please call me Hashem. But why the rush? We have the time for business until the sun walks out on us! When will your client arrive?’
I told him that my client, a goalkeeper who had played for German,Italian and British teams, as well as for his home country, Denmark, would be unable to attend the negotiations. ‘The thing is . . .’ (I hesitated: how could I call him by his first name and show my total respect?) ‘It’s usual for a player to leave such dealings to his agent.’
Mr Haider seemed disgruntled, but agreed to talk. He called his two sons over while his wife quietly
headed for the door. As she passed by I respectfully looked her in the eye and wished her a pleasant day.
The bargaining process began and, quite disconcertingly, Mr Haider’s sons joined in. Was he hoping to get the upper hand through force of numbers? Could I trust his sons to honour the confidentiality spect of the negotiation? I was concerned details would leak out to the predators from the international press. After anhour we had reached an impasse, but I couldn't really understand why. Mr Haider refused to provide me with a bank guarantee with respect to my client's salary and signing-on fee. In fact, Mr Haider persistently refused to go into financial matters. These could be discussed the next day, he insisted, since they would not be aproblem as far as he was concerned.
But for me they were the problem. And that was why we had reached a stalemate.
Questions (each answer should be 250 words long)
Q1. Explain the title of the case study "An own goal".
Q2. What is the main problem faced by Larry in this case study?
Q3. Using the cultural values model (Time focus, space, structure......) explain the main reasons why Larry feels that he reached an impasse with Mr Haider and compare their respective cultures.
Q4. Did Larry used the best approach to deal with Mr. Haider? Explain how you would behave in his situation? Propose a solution to overcome this impasse.
Q1. Explain the title of the case study "An own goal".
The tile of the case study could not have been more apt. The title captures the essence of the case that is reflective in the distributive negotiation process. Moreover, the title is more apt from the perspective that the case is about a goal keeper’s agent trying to strike a deal with Mr. Haider. However, Mr. Haider and agent are concerned about reaching their own goals in the entire process of negotiation. Therefore, from this self-centeredness stems the negotiation that takes the distributive shade where win-lose kind of an agreement is imminent.
Q2. What is the main problem faced by Larry in this case study?
There are multiple problems faced by Larry in this case ranging from him being late for his next meeting, to Mr. Haider’s Son’s being part of the negotiation. However, the biggest problem that is facing Larry is the persistent refusal of Mr. Haider to discuss the financial matters related to the deal. The deal’s success or failure will depend on the kind of financial terms that are agreed between Mr. Haider and Larry, but Mr. Haider doesn’t seem interested in broaching the topic of finances
Q3. Using the cultural values model (Time focus, space, structure......) explain the main reasons why Larry feels that he reached an impasse with Mr Haider and compare their respective cultures.
The cultural values model delineates a framework using which we can understand what is valued in a culture depending on the background. In our case, Larry being from a western country holds the concept of time and discipline in high regard, however Mr. Haider being from the middle east doesn’t seem to care too much about how much Larry has waited for him.
The other difference is the difference of individualism and collectivism, in societies of middle east, the concept of family and family decision making is prevalent, and the familial bond is treated as sacred, therefore it is quite natural for Mr. Haider to involve his two sons in the negotiation process.
Larry, under these circumstances feels that he has reached an impasse because nothing is going ahead as per his plan and he is unable to understand the cultural background behind Mr. Haider’s behaviour. This, to Larry is seeming like a deal that is slipping out of his hands. However, on the contrary if he wants to win Mr. Haider’s trust, he needs to show trusting signs first.
Q4. Did Larry used the best approach to deal with Mr. Haider? Explain how you would behave in his situation? Propose a solution to overcome this impasse.
Had I been in Larry’s shoes, I would have surely approached the problem differently. To begin with I would not have scheduled a meeting just after the meeting that was scheduled between Mr. Haider and him. I also would have done some cultural research. I would have accepted the meal offered by Mr. Haider and enjoyed good camaraderie with him and his sons.
The solution to overcome this impasse is to trust Mr. Haider and listen to him and if he wants to involve his sons, then listen to his sons as well. Most of the times we get carried away in meetings trying to put forth our point only. Winning negotiations becomes easy when we lend a empathetic ear to listen to the other party and then put forth our point. In this case, I would explain my fears to Mr. Haider and his sons. It is about developing relationships with the party and coming to a consensus that is reflective of integrative negotiations.