Chinese Tiger Barrels in the California Wine Industry
Chinese Tiger Barrels in the California Wine Industry
1. How to demonstrate Chinese “giving face” in the Tiger case?
Chinese intend to build personal relationship and try to make sure their counter partners are trustful enough to do business before they begin to assign the relevant contract. They practice the important notion of giving face by traditionally serving gracious hosts, making the welcoming ritual long lasting and abundant. That way that Chinese treat their counter partners is to increase their partners’ feelings of self-esteem by frequent praise and close attention to all levels of etiquette and formality required in China. For instance, in the Tiger case, Upon Lynn’s arrival in Beijing, he was helped by a chauffeur around Beijing the first day; Lynn was introduced to the lush agricultural region in which the Forestry Bureau headquarters was located; he was interviewed on local television and given tours of the town; the busy days were highlighted by lavish banquets lasting several hours each every day at both noon and in the early evening. Large amounts of spirits and rich foods were consumed. During the highly ceremonious meals, the Chinese officials toasted often, underlining the importance of the new union of friendship and trust between the two companies and the prosperity that would soon follow. Those created feelings of warmth, appreciation, and gratitude on the part of Westerners. So in the end, Lynn conceded and sign the contract even though he didn’t agree to some points that Wang pointed out.
2. How to interpretate the situational contingencies in the Tiger barrels case?
Location – the Chinese prefer to have major negotiating sessions take place in China, not just to minimize their own expenses, but also to keep the upper hand. And the schedule time is on the Chinese side, in the case, such as the demanding schedule of entertainment, sightseeing, and dining.
Participants - Numerous meetings were held with many managers and officials of the state to discuss points of the business deal. And in the end, a very forceful, aggressive stance was displayed during discussion in Wang’s office with the ever present hordes of staff members and managers. Chinese negotiating teams tend to greatly outnumber those of their foreigner counterparts. This physical presence of more people communicates greater power and importance - an essential nonverbal message. And the higher position of the persons who attend the meeting, the more attention they pay to the deal and the more respect they show to their counter partners. So at one evening banquet soon before Lynn’s departure, Lynn was informed that this was the first time all the three important Directors were at the same meeting and that he should feel highly honored.
3. How do you understand Chinese “Guanxi” from the Tiger case?
In this Tiger barrels case, Lynn did not know who the endless stream of managers and officials were but was told that one director was in charge of the Foreign Relation Department. [next page]