Gaming in Shanghai Essay

OverviewHyperHawk, star of the worlds major providers of global supply perplexity software and run, helps companies reduce costs through economical product and services sourcing. It has handled more than $50 billion worth of products and services in the oil and gas, other natural resources, retail, transport, finance, and industrial sectors for customers including General Motors, Nestl, Shell, Japan Energy, Mitsubishi, and Cadbury Schweppes. Shanghai-based JJM, one of the biggest gaming and hospitality companies in Asia, is owned by Chinese businessman Tan Wu Bo. This case study revolves around the period when JJM has been a HyperHawk client for vi months, and the companies confirm signed an agreement to conducttwo projects. The first, completed in March 2005 and tremendously successful, saved JJM some $1 million, and the second one is set to start.Impressed with the results, JJM wishes to explore the possible action of other joint endeavours with HyperHawk.To this end, a meet ing is arranged between JJMs Senior Vice-President of Finance Iris Ma and HyperHawks RegionalManaging DirectorDrake Dubois, and att terminate by JJMs Vice-President for Procurement Henry chow and HyperHawk Sales Group Director Layton Pang. Ma is keen to explore more projects with HyperHawk and has tasked Chow to follow up with HyperHawk as in short as possible. The managing director of HyperHawk suggests that a session be arranged with key stakeholders from both companies to discuss and assess possible opportunities for other JJM projects.The SceneMa and Chow agreed to the suggestion and asked that a proposal be submitted to JJM after the opportunity assessment meeting that was at disco biscuitded by Chow, his assistant Mary Xie, who is also the purchasing manager, and two members from HyperHawk. Both parties identified ten possible projects. Xie asked for a proposal to be submitted to JJM through her, and HyperHawk provided a competitive price package that included services over a twelve-month period. As is to be expected from a Chinese company like JJM, Xie asked for a reduction in the licensing fee, tag onitional program management age (at no extra cost), and an extension of the software term from twelve months totwenty-four months. In reply, HyperHawk put in writing its discussions to date with JJM 1.JJM had agreed that HyperHawk could add value to the projects identified. 2.JJM would sign for a ten-project package to get a competitive price.3.If HyperHawk could meet JJMs demands, the latter would sign the contract by May-end 2005. Xie agreed to microscope stage one above, only was non blesstal on points two and three. After much discussion, HyperHawk agreed to lower its fee and provide JJM additional program management days at no additional cost. However, HyperHawk said it could not agree to extend the twelve month term for use of the software without charging extra. Then, to complicate matters further, Xie suggested that JJM could not commit to an agreement even if all the issues were resolved. The most recent negotiations were conducted quite hastily, since HyperHawk knew that Xie was not the decision maker and approval had to come from her top management.Negotiations to DateHyperHawksprimary concern was how credibly JJM would be to enter into an agreement even if the issues were resolved, and within what time frame. JJM argued that the proposed price was beyond what it could afford, although it recognized the need for help from HyperHawk to down the projects, and that it needed twenty-four months to implement the ten projects payable to its lack of manpower. HyperHawk took the position that, while it was prepared to look into the fee structure and program management term as part of the marrow package, the request for twenty-four months was not reasonable. Although it reasoned that other organizations were able to implement ten projects in twelve months, to satisfy JJM, HyperHawk negotiated a mid-way solution a level be st of eighteen months.When one week passed and there was no response from JJM, HyperHawk asked if it would be prepared to sign if HyperHawk acceded to its three requests.Xie replied that she would submit the proposal for approval to her superiors, Tan and Ma, but added that there was no guarantee the agreement would be signed by the end of May. From HyperHawks perspective, all the issues presented by JJM had been resolvedyet there was simmer down no deal. When asked about the status of the project, JJM cited staff turnover, but then mentioned another possible IT project where there was a clear need for HyperHawk. The discussion ended with JJM requesting that HyperHawk prepare the preliminary work and submit yet another proposal.Based on the updated information, it appeared that the IT project might get underway earlier than the antecedently proposed ten projects. Moreover, given that this project had an entirely different scope, there was a strong argument to negotiate a separate d eal for it. Whichever proposal JJM wished to undertake first, HyperHawk was restore to negotiate and finalize an agreement, but it could not yet tell whether the latest development was a genuine project or a further carrell tactic.Observations1.Both parties acted rationally in the way the negotiations were conducted, and it helped that the relationship between them was excellent from the start. 2.HyperHawk gave in to JJMs demands in the hope of concluding the agreement quickly and starting the projects. But JJM go along to indulge in last minute wavering and only introduced a new project, which took the parties away from the initial negotiations. 3.The way HyperHawk responded to JJMs delaying tactics, showed its patience and its aim to get the deal done. 4.Meanwhile, JJM believed it was negotiating from a position of strength, having even gone so far as to assert that it had in-house a system similar to that of HyperHawk that could probably effectuate its needs, even though wit hout the sophistication of the HyperHawk product.5.Going forward, it was critical that HyperHawk engage with Ma, the senior vice-president and decision maker, since the groundwork had been laid with her staff. But they were finding it difficult to do so due to the complicated hierarchy of the Chinese companies. 6.HyperHawk reflected that maybe it should have asked for the agreement to be signed within a fixed time when it met JJMs initial demands, although JJM had previously delayed decision qualification on other projects.ConclusionsThis case is typical of what vendors face in a competitive, hi-tech environment, and illustrates the opportunity they have to reduce their price. Handled appropriately, a win-win outcome is not difficult to achieve. From this case study, at least two scenarios for short-term success can be derived. First, assuming the vendor, is taking a toughened stance, you can take a long-term perspective and conclude the first sale with a friendly, competitive att itude, countering the buyers demands with suitable offers, while never losing sight of your determination to bag the order. But,besides showing friendliness, flexibility, and determination, you must show the potential buyer that you will be there for them over the long haul. For this you admit people with leadership qualities in your team. Should one lack high-quality leaders in your team, you have the option of a second scenario. In this case, you would show, right from the beginning,that your team comprises weighty workers who will do whatever the buyer needs.By adopting Chinese-style service orientation and dedication and making your team indispensable to the potential buyer, being available daily, and making yourself virtually a part of your opposite numbers staffyou could clinch a deal. HyperHawk failed to show the requisite service orientation and commitment. From the perspective of longer-term success, an initial achievement provides the opportunity for friendship to be cul tivated with the client companys key people, perhaps even with the CEO, the final decision maker. Should one ultimately become accepted as family, the client will telephone you for what they want and no longer require competitive quotations. But to reach that point, you will have had to develop a genuine friendship and service orientation with those at the top of the client company.