Ghauri and Fang (2001)

Management > Comparative Management > Lectures > Independent Research > Ghauri and Fang > The 4 Ps

The four Ps

There are managerial implications which can be drawn from the negotiating strategies. These are the 4Ps - Priority, Patience, Price and People

Priority

Remember that the Chinese government is the "biggest boss" - new technologies are important, but respect the government's wishes and the principles of China's economic development, including energy, transportation and telecommunications

Patience

Patience is indeed a virtue. Do not try to rush any business deals. If you are patient then you are a "Confucian gentleman" and it also means you can take the time to see through the Chinese stratagems (from the Art of War) which can be used to deceive in negotiations

Price

As "face" is very important, rejecting Chinese requests for a price discount can insult them, and cause both of you to lose face. Try to give them "face" whenever possible. It has been found that doing business in the other country where the Chinese can understand how others do business is a good way to reduce the bargaining tension.

People

Chinese believe in people more than contracts, due to their Confucian culture. Spend time developing a rapport with Chinese counterparts in order for them to like you as people