Why Diamond Was Involved In A Protracted Negotiations

Please read part B in addition to part A and answer the following questions.

PART A

1. Why did Jim Arens, intl VP immediately react negatively about the license in China but positively about the JV
2. Why did diamond allow itself to be “trapped” into protracted negotiating sessions, most of which required them to travel ½ way around the world to an undesirable location?
3. If one or more of diamond’s six specific requirements had not been successfully resolved would diamond have continued with the negotiations?
4. Tom Prebola harbored genuine concerns about accepting the assignment.  If so, why did he accept it?
5. Was it a wise decision for tom to allow himself to be caught up in all the daily operational details that consumed so much of his time & effort?  Would he have been better off focusing on the strategic issues?
6. What should tom do the straighten out the problems with customers and materials
7. Although there was no violence in Jingshan, the Tiananmen square incident re-asserted the militancy of the gov’t and the threat to individual liberties.  Does this affect you strongly enough to stop your return, if you were in Tom’s shoes?

PART B

1. Why was Tom replaced by Charlie?
2. Charlie made a near-spontaneous decision to sanction the watermelon caper.  Was this a risky decision? What might be the outcome if he ignored it? Objected to it?
3. How could Charlie give away the value of the scrap metal w/o consultation with his partners?
4. Why did Charlie feel so strongly about the 10% raise?
5. If the engine lathes are the source of the quality problems why not replace them with turret lathes?
6. During the visit to HQ, charlie’s colleagues suggested 5 possible strategies for action. What might be the benefits and shortcomings of each?