Negotiation Strategy In International Business Negotiation

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Name: Ahmed Mostafa
Date April 7, 2014
Class: International Business Negotiation
To: Professor Richard Marks

THE AFFECT OF THE CHOICE OF NEGOTIATION STRATEGY ON THE
OUTCOME OF THE NEGOTIATION IN INTERNATIONAL BUSINESS DEALS

This research paper discusses the affect of choosing the right negotiating strategy on reaching an agreement in the international level. This paper depends essentially on an international business negotiation simulation between KJH and
MCC. That simulation took place via videoconference and lasted two months.
This paper will try to analyze the different strategies used in the simulation (the
“Simulation”). As a summary MCC is a 75% government owned Agriculture
Company in Africa. MCC buys Cassava from farmers in Malundi and sells it inside and exports it outside of Malundi. On the other hand KJH is an American based pharmaceutical corporation that recently discovered a new treatment for arthritis made of Cassava extract. KHJ also invented a process to transfer
Cassava into Cassava extract that will be used to make arthritis drug. KJH will need a contestant supply of Cassava extract in order to make that medicine. For this reason KJH and MCC entered into a two-month negotiation round to agree on a letter of intent. KJH and MCC agreed in the end to establish a Joint venture in Malundi to buy MCC’s Cassava and process it into Cassava extract using KJH 2 patented process. KJH will lend amount of money to MCC to be a partner.
Additionally KJH will help MCC in the training of the employees and preparation of the new factory. Both parties agreed to allocate 25% of the profits of the fist year for research and development. KJH and MCC agreed to partner for an initial period of 17 year...

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...o comprehensive theory of legal negotiation strategies, there are three key approaches. Choosing the right strategy would help the negotiating team to achieve their goals directly. The choice should be based on the negotiation situation. Different factors can determine the negotiation strategy.
The bargaining power each party holds, whether the parties expect to have future deals, and each party degree of concern about the outcome for the other party.
Each of those strategies provides for the negotiating team some advantages. For
KJH negotiation team they were very close to the cooperative negotiation strategy. This strategy allowed them to achieve the required mission. As the parties are most likely will work together for long time and moreover they will be partners, the cooperative approach was suitable for the negotiation.

Ahmed Mostafa
April 7, 14.
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