Question

Answer this question in light of the concepts, cultural types, value orientations and analytical frameworks provided on the course and applied during the seminars.

A​A South-American telecoms company wanted to find a partner to handle its telecoms system. Two firms, one American and one European, were in final contention. The Europeans visited the country for three weeks, getting to know the people in the exchanges, understanding how the operation works and the workforce’s problems. The American team spent three days in the capital, meeting and presenting to the top brass. They offered a better specification system than the Europeans and at a lower price. But the European firm won the contract!!

B​After extremely long negotiations, the US delegation was pleased to see that the contract for a new venture project with their Chinese partners was ready to be signed. They were particularly impressed that the Chinese had invited local dignitaries to the signing ceremony. Everything went smoothly until work on the new factory was supposed to begin. It was found that the Chinese were not following the conditions laid down in the contract, and had even suggested further negotiations.

Answer 1

A.

The europeans won the contract because, they spent time n building the relationship and confidence for their client. That relationship was worth extra money spent on the project. A decision can be made in two ways- Based on facts and figures and the other way is to be based on intuition. So in case A, its the intuitive or instinctive decision made by the south american clients.

B .

The contract's usage can be seen differently in US and China, In US it comes at an end to lay down all the principles of rights and duties for all the co-workers involved.In china it is seen as a declaration of mutual trust. In china they prefer to mould things in the shape they want to, keeping their objective in front. They cope with the changing conditions as a part of their cultural fit.

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