International Business: A Case Study Case Study by Nicky

An analysis of the BWA company's negotiations with a company in Indonesia.
# 146144 | 1,300 words | 3 sources | APA | 2010 | US
Published on Dec 19, 2010 in Business (Companies) , Business (International)

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The paper describes how BWA was faced with costly delays in a construction project in Indonesia and offers an analysis of the issues involved in this case. The paper addresses BWA's negotiating style, the bargaining position, levels of authority and understanding the opponent's position. The writer of this paper offers recommendations to the management of BWA and then provides general advice to a US firm looking to expand operations into Indonesia.

Advice to a US Company Seeking to Expand to Indonesia

From the Paper:

"There are several key issues with respect to this case. The first is with respect to negotiating style. As with many cultures, Indonesians do not negotiate in the same manner that Western firms do. The approach to business in that culture is very different. In the West, a contract is viewed as a binding agreement. Terms are agreed to and all parties are expected to uphold the terms of the agreement. If one party fails to do so, some form of remedy must be paid. In Indonesia, business relationships are seen as extensions of personal relationships. Contracts provide the framework for the business, but adherence to the specific terms is not considered a requirement. It is understood in Indonesian business culture that the situation may change, and therefore contracts are not considered to be binding. The business relationship between the parties depends on the quality of the personal relationship, in part because the rule of law is weak."

Sample of Sources Used:

  • No author. (2009). Unequal Foreign Negotiation. Retrieved March 1, 2009 from
  • Taylor, Stephen. (2008). Indonesia. Retrieved March 1, 2009 from
  • No author. (2009). Indonesia: Culture. Michigan State University. Retrieved March 1, 2009 from,1

Cite this Case Study:

APA Format

International Business: A Case Study (2010, December 19) Retrieved March 31, 2020, from

MLA Format

"International Business: A Case Study" 19 December 2010. Web. 31 March. 2020. <>