As a Rubber Tire manufacturing corporation, we wish to expand to other regions and countries. We have decided to launch manufacturing and distribution in Thailand. To fully evaluate the feasibility study of the project in Thailand, the corporation has undertaken to conduct a market research and government and international policies that would directly impact the project. Below are the findings of feasibility study.
Thailand’s Competitive Advantage
Thailand enjoys a high literacy level having a student-centered methodology education system. The 2011 national IQ test revealed to be 98.59, with other regions registering up to 108.91. A large number of the youth is computer literate with increasing knowledge of the English language. Being the 20th most populous country, there is a large pool of human resources that can be harnessed in the corporation. Based on this background, it would be easy to source competent personnel for the corporation (Lewis, 56)
The country has institutionalized a culture of research, science, and technology. Through the National Science and Technology Development Agency, Thai government encourages a closer collaboration between private and public sector, a move that is critical in the sustainability of foreign investments in the country. In addition, Thailand is experiencing a vibrant economy qualifying it as a newly industrialized nation with a GDP of US$ 627 billion. Additionally, the country enjoys cordial bilateral relations with America, a further impetus for expanding to Thailand (Lewis, 120)
Surrounded by strong economies of India, Malaysia, and Indonesia, Thailand’s strategic position allows for distribution into the other Asian regions with ease. India, for instance, is engaged in motor manufacturing which forms a complementary product for the rubber tires to be produced by our corporation.
While the above discussed points present the viability of expanding our industrial business to Thailand, we must be cognizant of the current policies prevailing foreign trade that bear direct impact to the project. Key policies among them include:
The principle policy of counter trade; this policy holds that any imports into Thailand from any foreign state must have a counter trade transaction from Thailand to the partner trading country. The policy has five pronged objectives that include enhancing Thai’s overseas trade, eliminating imbalance trade, mitigating potential fall in prices to increase Thai’s bargaining negotiations power and to diversify export types besides creating new export markets. Additionally, there is an elaborate procedure of how to execute this policy.
According to the US Census Bureau on Foreign Trade, American trade with Thailand in January 2012 alone amounts to billions of dollars. This foregrounds a feasible future for the corporation expanding into Thailand. Further incentives include the cordial relations the two countries continue to enjoy.
The process of establishing a manufacturing corporation in a new country cannot be completed without the element of international negotiation. We plan to go through the five primary faces of negotiation preparing adequately for each phase. The negotiations will address controversies arising from social, political, economic, and logistical dimensions of the project. In particular, we will address the following stages of a negotiation process:
Effective preparation: This entails obtaining factual, updated and relevant information in all the affected areas of negotiation. To present a formidable argument, we plan to put together a top notch team of international experts on social, economic, political, and legal issues sidetracking our planned expansion into Thailand. Our preparedness will ensure a comprehensive coverage of the issues enabling the company to make informed choices at the end of the negotiation. The team will also evaluate the position of the company and how much it can sacrifice at the negotiation table. This includes an evaluation and analysis of the opponent’s bottom lines in the negotiation situation. Eventually, the company will have collated objective factors at play and the nature of navigation into the negotiation (Brett, 88)
Once the preparations are complete, the next stage would be to formalize the identities of the negotiators for the two sides. This will be followed by interactive session to better understand the temperaments of the participants in the negotiation; an ice breaker opportunity will also be used to know each other better. This is critical as it will create and cement a friendly atmosphere essential for healthy discussions. Knowledge of others eliminates attacking persons in a negotiation and, instead, elevates issue-oriented engagements. This knowledge includes the understanding other’s cultural practices including greetings, eye contact, taboos, and a sense of time (Thomson, 44)
With a team that understands its members, the third phase of negotiation, the actual exchange of information will be effected. Our team will strive to get much information from the other team as much as possible. This will be achieved through asking relevant questions and allowing ample time for the other party to talk, hence disclosing as much information as possible. At this stage, it is important to decipher the desires of a competing party, the far they are willing to go to seal the deal. Based on the ensuing factors, both parties will evaluate what is acceptable, what can be sacrificed, and what essentially remains. Ironed out issues will be separated from the contentious ones which are then discussed in the next phase of the discussion.
The next stage, commonly known as the distributive stage involves both parties tabling what they are willing to sacrifice. The teams will propose desirable changes in the negotiation options that can potentially lead to a settlement. The element of promise, in which the parties propose what they are willing to give out if the opponent softens on its demand, is employed until the parties reach a mutually beneficial agreement. The final desirable terms are then moved to the final stage of the negotiation (Brett, 105)
All negotiations must be brought to a close. Once an agreement is in the offering, it is time to fast track the loopholes, sealing off any openings in the agreement and signing the agreement. Proper consideration and comprehensive execution of these stages of negotiation is sure to profit the corporation
In any negotiation exercise, conflict is likely to arise. Conflict can be caused by personality differences, communication breakdown or disagreement over values, desires or ideological diversity. To manage such conflicts, it is important to begin the negotiations in a conflict free spirit always striving to avoid the conflict triggers.
When, however, conflict eventually occurs in a negotiation engagement, it is important to understand the impetus. A good way of managing conflict is starting with a premise of how soon you can jointly agree on a common ground. When personality differences are at play, the negotiation should focus on the issues and not persons. This can be achieved by genuinely being concerned about the wellbeing of the other party without necessarily liking it. Through assertive communication, negotiators can debate taking care of the rights and feelings of the involved parties (Thomson, 77)