Monday, February 28, 2011

KHAYAT Nadine, FALCAO Horacio
Polygon Hotel in Dubai: Challenges of Cross-Cultural Negotiations
© 2011 INSEAD Case Study

This case discusses the sale of a hotel in Dubai by an international western company to a local Arab group. Polygon Hotel Group hopes to sell the newly constructed building and then manage it as one of the properties in its chain, but it has little time, almost no cash in a market downturn, and only one bidder - Al-Shari. After many moves by Al-Shari to squeeze a better deal (which could be interpreted as cultural misunderstandings), a new company, Al-Badeel, trumps the Al-Shari offer. Now, Polygon has a BATNA and Al-Shari may lose a great deal, but there is more than power and culture at issue.

Pedagogical Objectives: The fact that it is culture does not make it right - or wrong! The Polygon case aims to understand the negotiation dynamics as well as the influence of culture. The case sheds light on negotiation tactics as a lens to better understand cultural aspects, which aspects help or hurt win-win negotiations and to help participants understand how to negotiate culture.