1.1 MedDevice, Inc.
They want to make Joint Venture company in the Southeast Asian. Ralph Thompson, CEO of MedDevice, he want to arrange 5 issues.
1) Decisionmaking / Control : We want to make a Board of Directors as consisting of five members.
(Organizing 3 Members by MedDevice and 2 Members by Lee Medical)
2) Staffing : We want 3 position(A General Manager, A Sales Representative, A Office Assistant)
3) Profit Distribution : We will invest in 5 years
4) Conflict Resolution Mechanism : The California Court System or Interational arbitration
5) Timing : ASAP
2. What is done to improve negotiation?
During Negotiation, It was so difficult to get an agreement with the other side. There were many problems.
Culture, Policy, Purpose, Vision, Desideratum, etc…
We tried to get an agreement. But it was not easy. They wanted all of it we don’t want .
One of intense arguments were decision making / Control and Staffing. They wanted both.
They wanted 50% decision control. Also they wanted Position of General Manager.
we tried to make negotiation. So, We give up position of General Manager and we just wanted only 2/3 decision control. But they didn’t agree the conditions. They wanted both.
So, We failed negotiation on time.
If we have chance again, what is done to improve negotiation?
2.1 Understanding culture
Before the negotiation, we read email from CEO of Med Device. He want to set up an international joint venture with Lee Medical. But, It is so difficult to get an agreement with Lee Medical side. because of cultural differences(nepotism).
⎫1) Lee Medical Supply is family-run and owned business in Thailand.
⎫2) Ever since The company was started in 1960 by An Lee, who remains owner and President.
actually we couldn’t believe their ability. Because they just manage their company by personal connections.
However, sometimes personal connections is effective such as...