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MBA.Graduate Psychology,PHD in HRM
Strayer,Phoniex,
Feb-1999 - Mar-2006
MBA.Graduate Psychology,PHD in HRM
Strayer,Phoniex,University of California
Feb-1999 - Mar-2006
PR Manager
LSGH LLC
Apr-2003 - Apr-2007
This case involves an American mid-sized motorcycle refurbishing and accessorizing business, Roland Sands Design (see http://www.rolandsands.com/ and http://www.latimes.com/business/la-fi-himi-roland-sands-20160612-snap-story.html), and a large, Chinese manufacturer, Zongshen, (http://www.chinamotorrider.com/5-top-chinese-motorcycle-manufacturers/).
The situation is that Roland Sands needs a manufacturer to make, and often drop ship, custom-designed motorcycle parts and accessories, to allow them to concentrate on their core competencies of client relations and design in order to grow according to their strategy.
The Roland Sands CEO and CFO flew to Zongshen plant operations for 2 weeks the previous month were satisfied with both management (and Operations Manager, Ling Chou) and the quality of operations.
The two companies parted on good terms with the interest of more business as expressed in a 4-page outline to get the ball rolling -- a Memorandum of Understanding (MOU).
Back in the states, the Roland Sands gets a little worried about moving forward with Zongshen and heads to his lawyer to begin developing a contract that will protect company interests.
The lawyer listens to Roland Sands, reads the MOU, and shakes his head, “Roland, this is not good. What you have given me is probably already a contract.”
Roland replies, “But this was just an outline, a handshake! We never signed an actual contract.” Roland Sands Design is then counseled to draft a contract to send to Zongshen to see what happens. The detailed, 25-page contract is drafted, then approved by counsel, and sent to China for a response.
A week and a half later, a letter arrives from Zongshen. It says that plans are already underway, but they will halt them now, and there is no need for further contracts. The team at Roland Sands shakes their heads in confusion.
A quick call to Roland Sands’ lawyer begins to reveal the issue: Zongshen is cooling off on the deal because the contract after the MOU was perceived as “bad faith.” Under Chinese law, a memo is a legally-binding agreement. Unsure of how to best move forward, the team at Roland Sands now has to plot their next move.
[The above scenario from “The China MOU (Memorandum of Understanding). Use Them At YOUR Peril,” Dan Harris on December 28, 2012, http://www.chinalawblog.com/2012/12/the-china-mou-memorandum-of-understanding-use-them-at-your-peril.html].
In your discussion, please share the elements of a negotiation case analysis:
1. a) essential history
2. b) critical starting point issues
3. c) a sense of how each party saw
4. e) the strategies and turning points
(From: Developing Negotiation Case Studies, 2010 by James K. Sebenius.http://www.hbs.edu/faculty/Publication%20Files/11-008_0ab48ed0-a52f-4200-a2f2-f70afeeda124.pdf)
Review your Mind and Heart of the Negotiator readings to this point. Decide on a target, reservation point, and BATNA for Roland Sands and discuss the “integrative agreement strategies that will work” in this case.
Now, posit your strong, strategic, solution and recommendations in a paragraph on this case as acting CEO for Roland Sands Designs.
Next, briefly read, “Turning Negotiation into a Corporate Capability:”https://drive.google.com/file/d/0B5hAidGqjpfnY2ZlOGU4YjAtMjE4Zi00YjljLWE3OGUtMWE4YTQ4NDgyNzZm/view?usp=sharing. Last, apply your proposed, strong, CEO recommendations to the 7 new criteria for success as mentioned in the article and evaluate them in one paragraph.
Use in-text citations for facts and a 2+ references list.
Rubric/Checklist for this Assignment
1. 1-3 page Assignment
2. Essential history
3. Starting point issues
4. Key perspectives on the situation
5. How each party saw its no-deal options
6. Strategies and turning points
7. Target, reservation point, and BATNA and the “integrative agreement strategies that will work”
8. CEO recommendations
9. Apply your recommendations to the 7 new criteria in the article
10. Use in-text citations for facts and a 2+ references list
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