Analysis to a negotiation with soft systems methodology

Abstract

In this paper Checkland's soft systems methodology (SSM) is applied to evaluate and analyze the negotiation process of a joint venture project of an enterprise in China. According to the logical steps of SSM, we first perceive the problem situation of the negotiation. Then, on the basis of cooperative games theory, we build up conceptual model for the negotiation and design a simple method to seek the approximate Pareto solution and Nash bargaining solution of it. Finally in the comparison stage of SSM, the real negotiation results and actual negotiation strategy of the enterprise are evaluated with the Nash bargaining solution, the designed solving method and bounded rationality theory. This paper offers not only this enterprise but also other enterprises a reference of theoretical analysis for later similar negotiations.