Harvard Case - Google and the Government of China: A Case Study in Cross-Cultural Negotiations
"Google and the Government of China: A Case Study in Cross-Cultural Negotiations" Harvard business case study is written by Christopher Grogan, Jeanne Brett. It deals with the challenges in the field of Negotiation. The case study is 15 page(s) long and it was first published on : Jan 1, 2006
In 2018, Google announced that it was in talks with the Chinese government about re-entering the market. The company said that it was committed to complying with Chinese law, but it also said that it would not compromise its core values, such as freedom of expression. The Chinese government has said that it is willing to welcome Google back to the market, but it has also said that the company must abide by Chinese law.
3. Analysis of the Case Study
The case study of Google and the Chinese government is a complex one that involves a number of different factors, including cultural differences, political sensitivities, and economic interests.Cultural differences
One of the key challenges that Google faces in negotiating with the Chinese government is the cultural difference between the two countries. China is a collectivist society, while the United States is an individualistic society. This difference in values can lead to misunderstandings and conflict. For example, Chinese negotiators may be more likely to focus on the interests of the group, while American negotiators may be more likely to focus on their own individual interests.
Political sensitivities
The Chinese government is very sensitive to issues of national sovereignty and security. This sensitivity can make it difficult for Google to negotiate with the government on issues that could be seen as threatening to China's interests. For example, Google's insistence on freedom of expression could be seen as a threat to the Chinese government's control over the media.
Economic interests
Both Google and the Chinese government have significant economic interests at stake in the negotiations. Google is eager to re-enter the Chinese market, which is one of the largest and fastest-growing internet markets in the world. The Chinese government is eager to attract foreign investment, but it is also concerned about the potential impact of Google's products and services on Chinese society.
4. Recommendaations
In light of the challenges that Google faces, we recommend that the company adopt the following principles when negotiating with the Chinese government:
- Be patient. Negotiations with the Chinese government can be lengthy and complex. It is important to be patient and to avoid making hasty decisions.
- Be respectful. Chinese culture places a high value on respect. It is important to be respectful of the Chinese government and its officials.
- Be flexible. Be prepared to compromise on some issues in order to reach an agreement.
- Be prepared to walk away. If Google cannot reach an agreement that is in its best interests, it should be prepared to walk away from the negotiations.
5. Basis of Recommendaations
Our recommendations are based on the following considerations:
- Core competencies and consistency with mission: Google's core competencies are in technology and innovation. The company's mission is to 'organize the world's information and make it universally accessible and useful.' Negotiating with the Chinese government is consistent with this mission, as it would allow Google to reach a large and growing market.
- External customers and internal clients: Google's external customers are the users of its products and services. Google's internal clients are its employees and shareholders. Negotiating with the Chinese government could benefit both of these groups by allowing Google to re-enter a large and growing market.
- Competitors: Google's main competitors are other technology companies, such as Microsoft, Apple, and Amazon. Negotiating with the Chinese government could give Google a competitive advantage by allowing it to access a large and growing market.
- Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even,payback)' The Chinese market is one of the largest and fastest-growing internet markets in the world. Re-entering this market could be very lucrative for Google.
- Are all assumptions explicitly stated (e.g., needs, technology trends)' We have made the following assumptions in our analysis:
- The Chinese government is willing to allow Google to re-enter the market.
- Google is willing to comply with Chinese law.
- Google is able to develop products and services that are acceptable to the Chinese government.
6. Conclusion
In conclusion, we recommend that Google adopt a principled negotiation strategy when dealing with the Chinese government. This strategy involves focusing on the interests of both parties and seeking a mutually beneficial outcome. Google should also be prepared to walk away from the negotiations if it cannot reach an agreement that is in its best interests.7. Discussion
**Other alternatives not selected**We considered a number of other alternatives before making our recommendations. These alternatives included:
- Withdrawing from the Chinese market
- Accepting the Chinese government's censorship demands
- Negotiating a limited agreement with the Chinese government
We rejected these alternatives for the following reasons:
- Withdrawing from the Chinese market would be a major setback for Google. The Chinese market is one of the largest and fastest-growing internet markets in the world. Withdrawing from this market would give Google's competitors a significant advantage.
- Accepting the Chinese government's censorship demands would be a violation of Google's core values. Google is committed to freedom of expression, and it would be impossible for the company to operate in China if it had to censor its search results.
- Negotiating a limited agreement with the Chinese government would be a compromise that would not satisfy either party. Google would not be able to fully operate in China, and the Chinese government would not be able to fully control Google's content.
Risks and key assumptions
There are a number of risks associated with our recommendations. These risks include:
- The Chinese government could change its mind and decide not to allow Google to re-enter the market.
- Google could be unable to comply with Chinese law.
- Google could develop products and services that are not acceptable to the Chinese government.
We have made a number of assumptions in our analysis. These assumptions include:
- The Chinese government is willing to allow Google to re-enter the market.
- Google is willing to comply with Chinese law.
- Google is able to develop products and services that are acceptable to the Chinese government.
If any of these assumptions are not met, our recommendations could be invalid.
8. Next Steps
If Google decides to adopt our recommendations, the company should take the following steps:- Appoint a high-level executive to lead the negotiations with the Chinese government.
- Develop a detailed negotiating strategy.
- Build a strong relationship with the Chinese government.
- Be patient and persistent.
The negotiations with the Chinese government are likely to be lengthy and complex. However, if Google is patient and persistent, it is possible to reach an agreement that is in the best interests of both parties.
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Case Description
Based on the negotiation between Google and the Chinese government to allow access by Chinese citizens to a high-speed Chinese version of the Google search engine. In order to reach agreement with the Chinese government, Google had to agree to allow the government to censor access to some sites turned up by Google's search engine. In agreeing, Google compromised its open-access policy. There were inquiries into the agreement by the U.S. Congress and some outcry from U.S. citizens.
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