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Cell Phone Negotiations

In: Business and Management

Submitted By shannon11
Words 1382
Pages 6
Cell Phone Negotiations

Shannon Moe

MGT557/Negotiation, Power, and Politics

March 21, 2016
Augusta Inniss

Cell Phone Negotiations

Cell phones have become a necessity in the lives of people of all ages around the globe. Because of this, the mobile phone industry is a billion dollar industry. As in any business, cell phone distributors look for the lowest possible purchase price from manufacturers to make the highest profit. This strategy is standard for companies in a global economy and negotiations must occur to get the lowest possible price. The difficulty is in negotiating with suppliers around the globe with different cultural backgrounds. Consideration of such things as gender, personalities, culture and perception are a must for each negotiation. Not doing so could result in loss of profitability and growth. Typically most distributors look overseas for manufacturers because of the cheaper labor rates abroad. This paper will evaluate negotiation styles of Chinese and American teams' negotiation for the lowest possible cell phone manufacturing price using Hofstede's cultural dimensions theories. Hofstede's theories use four dimensions to describe differences in cultures and negotiation styles including individualism-collectivism, power distance, career success vs. quality of life and uncertainty avoidance. The cultural differences of each team are described and then a scenario of how the negotiation would go is developed (Lewicki, Barry, & Saunders, 2010, "Chapter 16").
This essay will begin with a review of the two teams involved in the negotiation. The first team is an all-male team from the United States (University of Phoenix, 2014). This team is seeking a cell phone price of $6 per unit (University of Phoenix, 2014). The all-male American team are individualistic, have a low-power distance, possess a low-term...

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