Ericsson\'s Negotiations With Chinese Telecommunications Review Case

ERICSSON'S NEGOTIATIONS WITH CHINESE TELECOMMUNICATIONS

Review case study Ericsson's negotiations Chinese telecommunications organisations. write a Discussion posting describes Ericsson effective ineffective approach cross-cultural management. In explaining answer, make specific reference cultural dimensions: communication, ethics, relationships, marketing, human resource management, cultural characteristics ( models studied) specific Swedish Chinese culture.

Ericsson's Negotiations with Chinese Telecommunications

Ericsson being among the world leader in telecommunication sought to sell part of its operation in China and a joint venture of its establishment. At the time of the negotiations, Ericson's sales in the global market were U.S.$26 billion with 30% share in global mobile infrastructure. In china the corporation market share was 40% (Blackman, 1997). The initial investment of Ericsson in china was through desk telephone handsets to Shanghai. From this the country has continued to invest in China and also opened up representative office. This has seen the relations between China and Ericsson grow explosively making the corporation a major foreign player in China's telecommunication (Blackman, 1997).

Pre-negotiations

An understanding of the Chinese business management approach facilities success in managing and making partnerships with China's Corporations. Ericsson negotiation process started with early establishment of contact authority persons in the foreign country. This approach facilitates the Chinese's to assess ability of the foreign company to deliver and sustain desirable technology. The contact creation opens avenues to establish relations with persons and individuals with authority to take decision. This aspect facilitates business relations in the China's culture of business since no conversations are held with people who do not have authority to make decisions (Earley, 1997).

Lobbying

Another effective measure used by Ericsson in the negotiation is lobbying in the eyes of government authorities. The firm had to make a convincing statement to the government of China and the authority that they have superior cutting edge technology suitable for the priorities of the Chinese government (Earley, 1997). The lobbing activities edged the corporation towards a demonstration of their commitment towards sustainability of their intended business ventures. For the Chinese people adore business relations with big corporation presenting high potential for growth. The lobbing activities deployed by the managers of Ericsson embrace formal and informal settings. Advertisements and technical seminars in the region of interest help to increase the awareness in the region and raise the interest of the Chinese authorities.

Presentations and demonstrations

The mangers made sure that the presentations made to the authorities and the market in China was reliable. This made sure that all doubts about the technology on offer are cast away as well as giving a perception that the price is reasonable. This presentation also as is desirable to the Chinese cautious culture facilitated admiration of the advanced technology inciting curiosity to embrace it. This worked to elevate Erickson's position in the negotiations and also make interest groups well aware of the technology on the table. In the presentation the management team ensured that they have presentation materials in both English and Chinese languages. The managers also ensured that they could answer all the queries arising from the presentation by walking with a team of interpreters. This ensured that the Chinese delegation did not get half-baked information and go unsatisfied from with presentations made (Blackman, 1997).

Trust Building

The need to build trust in the Chinese culture cannot be understated. This is seen in the measures that Chinese would seldom invite their foreign counterparts to their homes. This increased the potential to learn the different aspect of the individuals they are relating with. The Chinese culture is different form the western culture and it was a challenge for Ericsson mangers to come to term with. The mangers were challenged to offer informal entertainment to the Chinese delegations that visited Ericsson home country on a fact finding mission (Blackman, 1997).

Alternatively the mangers invited the Chinese delegation on fact finding mission to the plant, organization facilities and technology. They also took the delegation to social corporate activities -- such has house parties and organization trips. The delegation was also entertained with sight-seeing exploratory ventures (Earley, 1997). This though not sufficient facilitated personalized relations and one on one informal interaction. They also open an avenue to build friendship and trust between authorized decision makers.