《復旦卓越·21世紀國際經濟與貿易專業教材新繫:國際商務談判(英文,第二版)》:
A Chinese automobile industry group negotiated with a famous European automobile producer regarding introduction of their production technology. The Chinese side intended to set up assembly lines for their three best-selling sedans, but the European side worried that their latest patented technology would be diffused too early. They also had another worry: after the establishment of production lines in China, their operating profits might be reduced, because the profit margins were lower for exporting parts than whole cars, especially two models of their high quality sedans, which were their cash cows. Therefore, the European side refused to transfer the technology. After several negotiations, the two parties reached an understanding, which meant they would put aside the issues concerning the production technology of the two high-quality models of sedans temporarily, and begin negotiating over a moderate-priced model first. The technology for producing this car was more mature and the price was acceptable for the Chinese market. The other two models would be imported as whole cars through the distribution channels of the Chinese group, which would act as the sole agent. Both parties were satisfied with this arrangement, and signed the contract finally.
Seeking common ground while reserving differences is a bridge to success in international business negotiation.
2.4.1 Seeking common goals
In the above case, both Chinese and European companies obeyed the game principle of seeking common ground while maintaining differences, putting the relatively greater discrepancies aside, and starting from their mutual interests.Their negotiation was quite constructive and proved successful after a consensus was reached.
In international business negotiation, there are always conflicts or discrepancies between all the parties and their interests. In the case, the Chinese
negotiators intended to bring in the production technology of three best-selling high priced and moderate-priced models of sedans as well as roadsters and jeeps in order to gain a high position in the Chinese high-and-moderate-priced car market.Bringing in this technology proved too difficult and costly. This was not compatible with the Chinese target interest. So the Chinese negotiators decided to use the principle of "easy issue first and difficult one later" and the principle of "be weak but win the negotiation with the powerful". Firstly, they brought in a sedan model with mature technology which incurred lower transfer cost, to achieve their target of occupying a higher place in the market quickly. Considering the overall global strategy, the European firm didn't want to play all of its trump cards at one time-transfer the whole technology. They worried that this would have a detrimental effect on their whole profit pattern. Furthermore, as far as market is concemed, they thought of China as a new market in her infancy with limited demand for high-quality cars. And as for production, China did not have the experience of producing high-quality cars. If any problems arose in the production process or the finished cars, it could ruin the reputation of this famous brand.However, the European company also was aware that international automobile giants-U. S. General Motor Corporation, German Volkswagon, Japanese Honda and the like, which had entered Chinese market first, now had earned high profits. So giving up this new large potential market could have an adverse impact on the company's development in the long run, but setting up production line in China and mass-producing one elementary model sedan would not only satisfy China's demand for this brand car but also empower the export of other cars under
its banner.
To launch the world famous brand sedans in Chinese market quickly at the lowest cost was a common objective of both parties which was identified after several rounds of negotiation. In order to achieve this great goal, disagreement in other issues could be postponed.
……