Beijing Jeep: Problem Solving: Negotiations

Discussion: Beijing Jeep, pp. 60-63 [review], 63-100

Review

What were AMC’s “interests” in establishing a joint venture?

What does BAW seem to want from the operation?

Problems

1. Why were formal contract negotiations "getting nowhere" from 1979-1982? In addition to information in the book, think about what you learned from the background briefing.

Problem Solving

2. AMC's V.P. of International Operations, Tod Clare, majored in International Relations with an East Asian Studies concentration and had lived for 5 years in Hong Kong (p. 28).

How well prepared was he for negotiations in the People's Republic of China? What were his strengths & weaknesses?

3. What factors finally made a the contract signing possible in 1983?

Why does the visit to Egypt and Tod Clare's cultural knowledge help (pp. 82-83)?

Research Methods: Media as Source of Information about Foreign Countries

4. How well did the U.S. media cover the contract to create the joint venture? What caused flaws in coverage?

5. How can one evaluate journalism to verify that it is a reliable source of information on a foreign country?

Impediments to Contract

History/Culture

Mistrust of outsiders

Fear of lies and exploitation

Culture

✓Negotiating style

Negotiating style (pp. 71-73)

Delay, deception, play off rivals

*State-owned enterprise (SOE)

✓Government permitting process

Government reduction in spending, 1979-82 (pp. 65-67)

✓Multiple lines of authority (p. 68)

Disincentive to take risks

Responsibility w/o reward

Clare’s Experience

*People’s Republic of China (PRC)?

Planned economy

State-owned enterprise (SOE)

*Hong Kong

British colony until 1997

Market economy

Partly Accidental Problem Solving

Organizational structure/culture

✓State-owned industry

Government mandate for agreements, 1981 (p. 76)

Negotiators with more authority

Chen Zutao (p. 76)

History/Culture

Increasing trust of AMC

BAW testing Jeep prices in Europe (p. 80)

Talks with Egyptian partners (pp. 82-83)

Decreased suspicion of exploitation

✓Clare's solicitous treatment of guests in Egypt

Research Methods: Media as a Source of Information on Foreign Countries

Public relations➡︎Uncritical reporting vs. Critical reporting/sources

Expertise of authors?

Language ability

Academic credentials

Research skills (academic)

Interview skills (journalist)

Country experience

Types of Biases (Objectivity?)

Values of author

Political motives

✓Financial motives of AMC and newspapers