University : SINGAPORE UNIVERSITY OF SOCIAL SCIENCES-SUSS UniLearnO is not sponsored or endorsed by this college or university.
Subject Code : BUS356
Assignment Task:

Case extract for Questions 1 and 2
 

The case below is adapted from a book entitled ‘Intel in China: The Inside Story’ (2010) by T.W.Thing and published by Marshall Cavendish International (Asia) Private Limited.

This case involved complex multi-partite negotiations where there is a high degree of interdependence between various negotiating parties. There are also associated issues around communication processes, conflict management, ethics, etc.
 
Intel Corporation (herein referred to as Intel) is a global technology multi-national company which is headquartered in Silicon Valley in the United States (U.S.). Intel has facilities in nine other states in the U.S. and nine more operational sites out of Intel’s Asia-Pacific Headquarters based in Hong Kong.
 
Intel made inroads to China in 1993. Intel’s Asia-Pacific Headquarters did exploratory studies in many parts of China. Their management team held multiple discussions and brainstorming sessions with different stakeholders in China to obtain diverse views. This is done to figure out issues, explore common interests and also, to prioritise negotiation issues. In early 1994, Mr Jason Chen from Intel (Taiwan) led efforts and started Intel’s operations in Intel China. Intel China was fully operational in 1996.
 
Intel China (located in Beijing) oversaw the work done by Intel’s offices in China. Intel China comprised a few senior management staff. They are (1) Mr Tan Wee Theng (President, most senior representative from Intel to represent Intel’s interests in China. He is from Singapore), (2) Mr Jim Jarrett (Vice President of Legal and Government Affairs, from the U.S.), (3) Mr Ian Yang (Vice President, Sales and Marketing Group, from Chongqing), (4) Mr Cadol Cheung (Managing Director, Intel Capital Asia Pacific, from Hong Kong), (5) Mr Jason Chen (Vice President of Worldwide Sales and Marketing, from Taiwan) (6) Ms Deborah Conrad (Regional Marketing Director, based in Hong Kong), and (7) Mr Larry Hong (Product Marketing Director, based in Beijing).

In 1995, Intel opened an Architecture and Development Laboratory in Shanghai. By the end of 1995, Intel had built a semiconductor assembly and test plant in Shanghai. In 1996, Intel China started full operations to oversee the work done by Intel’s offices in China. Intel also has Sales Representative Offices in Beijing, Guangzhou, Shenyang, Chengdu, Xian and Wuhan. The majority of Intel’s engineers in China are mainland Chinese and expatriates are few in number. The management team within Intel China are from a diverse background.
 
Intel’s head office in the U.S. is staffed mainly by Americans. The head-office set a goal for its China offices. It is to build technological capacity in China while ensuring the protection of its intellectual property. To achieve this goal, Intel employees in China have to be strong communicators and negotiators. They have to brainstorm ideas, coordinate their plans and problem-solve together with the Americans in the Intel head office in the U.S. as well as with the Intel staff of various nationalities in Intel China.
 
Within the China offices, there could be heated tussles arising from an intra-group conflict between the negotiators from various sites. The nature of each of their work is diverse and is not easy to appreciate. Also, the goals set for each site and personnel are ambitious. Conflicts arise during the complex negotiations as the stakes are high. Heavy investments are required for wafer fabrication plants and multiple parties are involved in controversial decisions like where to site the fabrication plants in China. For example, when Intel initially brainstormed on the feasibility to build a wafer fabrication plant in Dalian, there were many issues to consider during the brainstorming sessions. These issues include the location of the plant, intellectual property rights protection, environmental sustainability and the need to secure American government approvals and negotiate with the Chinese governments at both the local and national levels.
 
Intel prides itself on its strong corporate culture and philosophy. Its “constructive confrontation” culture and philosophy encourages individuals to speak up and express their own views even if they may directly contradict what others may be saying. Intel strongly advocates ethical decision-making. It has a set of values which they call Business Practice Excellence. Intel’s ethical code of conduct is being propagated globally. 

On the other hand, the Chinese Intel staff (in China) practice a social behaviour known as “giving face.” Essentially, it means according to due respect to someone and ensuring that the other party’s reputation is upheld. Given this culture, Chinese negotiators may not speak up openly if what they say contradicts what the other party may say. This complicates communications and negotiations, especially at multipartite negotiations.
 
Chinese culture is also unique in another aspect. Mr Larry Hong, the Product Marketing Director of Intel China once said, “The Chinese culture is more of group culture and this affects consumer behaviour.” Mr Larry shared that the Chinese people emphasised: “Guanxi and Renqing” or relationship-building behaviours in China. The inter-group conflict between Intel China (staffed by several nationalities) and the China stakeholders is complex. Most decisions involve massive investments and different negotiating parties have different goals.
 
Whenever Intel is involved in multi-partite cross-cultural negotiation with various Chinese stakeholders (Chinese government officials, suppliers and management staff in Intel’s offices in Shanghai, Beijing, Chengdu ad Dalian offices, etc.), Intel’s over-riding negotiation goal is relationship preservation. During negotiations, Intel China may make concessions on substantive issues to preserve and enhance the relationships with the Chinese stakeholders. The belief is that “Guanxi and Renqing” increase the positive common interests towards integrative negotiations.
 
Intel’s relationship focus is part of their collaborative negotiation strategy and it enhances negotiation relationships between Intel and their Chinese stakeholders. In a relationship, gathering information about other parties’ ideas, preferences and priorities is often the most important activity. Done in a trusting and collaborative manner, this relationship approach can lead to better integrative bargaining outcomes. However, relationship building and trust are not easy to develop. They have to be developed through many rounds of communications, before and during negotiations. Intel China and the Chinese state authorities, in particular, hope to develop trust between each other and enhance cooperative behaviour during negotiations.

In 2007, Intel finally set up its fabrication plant in Dalian. Intel also set up a Semi-Conductor Technology Institute in Dalian in partnership with the Dalian Institute of Technology and the Dalian state government. This training institute will become a National Training Center to support the broader talent development efforts for the entire semiconductor industry in China. The negotiations were not easy. Each party would flex its power during negotiations. For example, China’s National Development and Reform Commission Minister, Mr Zheng Peiyan commented to Intel’s CEO (Mr Craig Barrett) that Intel could not be too complacent with their concessions if they wish to set up a fabrication plant in Dalian. Mr Zheng said that while the plant is a big project for China and brought it much gain if Intel had not invested in the Dalian plant, some other semi-conductor company would have taken the chance and invested in Dalian.

Both parties have to adopt marginally ethical negotiating tactics at the negotiation table. Intel China’s biggest concern was the protection of the intellectual property rights of Intel as the intellectual property was traditionally viewed in China as a communal right, rather than something owned by a business entity or by an individual. Mr Tan Wee Theng shared with the Dalian state government official negotiation team about Intel’s first litigation suit in China. Intel sued a small Chinese company over a software copyright infringement. The Chinese media reports were sympathetic to the local company as opposed to Intel. The articles portrayed Intel as a large foreign bully.
 
This thinking changed after 2001 when China joined the World Trade Organisation (WTO). China was then obliged to update its patent, trademark and copyright laws to ensure compliance with the WTO’s trade-related aspects of intellectual property rights. Strict intellectual property protection laws have been in place since 2003. 
If the issue of protection of intellectual property was not settled in China, Intel would not have invested in China. Mr Dai Yulin, Vice-Mayor of Dalian recounted how relieved he felt when Intel announced to build a wafer fabrication plant in Dalian. He was relieved and pleased that the many rounds of tough negotiations with Intel representatives yielded fruits for Dalian. His negotiating team had also faced many challenges in assisting Intel to get multiple licenses approval from other state agencies in China. 

Question 1
(a) In less than 450 words (indicate word count), evaluate the importance of trust in negotiations and analyse how cross-cultural negotiations between American negotiators in the American firm Intel and the Chinese state government officials can affect trust levels. 
 
(b) In less than 450 words (indicate word count), assess the differences between the Americans and the Chinese with respect to their views on ethical reasoning, and cite example(s) of social contract ethics and, elaborate why it is important to understand each party’s approach to ethical reasoning when Intel China negotiators negotiate with the Chinese state government officials of Dalian. 

Question 2 
(a) In less than 300 words (indicate word count), discuss the importance of communication processes in multi-partite negotiations. Provide at least two (2) reasons. 

(b) In less than 350 words (indicate word count), relate what conflicts can arise from the above case and how conflict can be managed, using any three (3) conflict resolution strategies. 
 
(c) In less than 350 words (indicate word count), analyse the characteristics of language, the use of non-verbal communication and active listening between the Intel China management team and the Chinese State Government Officials. 

Question 3 
(a) In less than 400 words (indicate word count), examine two (2) out of the four (4) relevant hardball tactics in the distributive bargaining process which involves a typical property negotiation between a seller and a buyer. Support your answer with example(s). 
 
(b) In less than 350 words (indicate word count), appraise how cultural differences arising from different nationalities of the property seller and a potential buyer can affect a typical property negotiation. 

Justify with a negotiating model on culture in the given example between the buyer and seller. 

Question 4 
Assume that a global IT company has used an executive search firm and through the firm, found you, interviewed you and is keen to offer you a job in their Asia-Pacific headquarters in Beijing as an IT Project Director on expatriate terms. It is not easy to find people of your calibre with 20 years of IT project management experience to fill that position. 

You are keen on the job and is about to enter their interview room for the second time, to discuss your expatriate job package (salary, benefits, learning opportunities, etc.) before you sign on with the company.
 
In less than 850 words (indicate word count), formulate a negotiation strategy using the ten (10) best practices of negotiation that all negotiators can follow.
 
Use yourself (an expatriate job candidate) as an example and elaborate on how you might use the ten best practices of negotiation to conduct a successful negotiation with your prospective employer. 
 
SECTION B:

Prepare a video recording of the presentation of at least 3 minutes but not exceeding 6 minutes. There are two methods for ECA video assignment submission; either Record Media or Upload Media. For Upload Media, please note that your file size should be no more than 500MB and the format is in .mp4. 
 
SECTION C:
Prepare a set of PowerPoint presentation upon which the video presentation is based. Please note that the PowerPoint must be converted to PDF before submission to Canvas. 


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