Alpha Gearing Systems Shanghai Co., Ltd‪.‬

Alpha Gearing Systems Shanghai Co., Ltd. (Alpha Shanghai), a joint-venture between Alpha Gearing Systems of Illinois, USA (a large producer of gearing products), and Kai Li Machine Systems (one of China's largest manufacturers of gearing systems for mopeds and motorcycles), had invested several millions of dollars in tooling in the hope of winning a major contract. The general manager of Alpha Shanghai had made the decision that the next round of negotiations would either significantly advance, or sever, the relationship between Alpha Shanghai and San Yu Mopeds, a large Chinese moped producer, and a customer which Alpha Shanghai had hoped would become one of its largest. The case decision revolves around Alpha Shanghai's senior management perspectives, strategy and assumptions which affected the negotiating process, and specifically how their communication patterns were affected by their experience and culture.