Lawn Bowling at the Komodo Dragon Resort: Negotiating a Deal in Indonesia

Jerry Michaels, a retired entrepreneur from Australia, found an opportunity to develop a lawn bowling facility in Bali. The Komodo Dragon Resort (KDR) had two unused and neglected tennis courts that offered a space that would be ideal for a lawn bowling facility. The resort had suffered with poor occupancy during the pandemic, but by 2023, predictions were favourable for increasing occupancy. Thus, Michaels thought he might negotiate a favourable arrangement with the Indonesian owners of the resort, who surely would be interested in rejuvenating the neglected space.<br><br>Michaels soon realized, though, that he was not in Australia anymore and business arrangements in Indonesia were not quite as tidy and neat as he was accustomed to. Was there a path for Michaels through the shifting conversations and personal interests that were characterizing these negotiations or did the nature of doing business in Bali pose too much of a risk for Michaels’s investment?

Negotiating with business operators in developing economies requires sensitivity to local customs and awareness of potential traps for both international and domestic businesspeople. One needs a network of trustworthy relationships to compensate for the sometimes complex rule of law in these environments that may offer little indemnity to foreigners or even the well-connected. This case provides a typical scenario of the complexities one may have to navigate to generate prosperity and success in business in this type of environment.<br><br>Students will need to think laterally and innovate to develop a successful plan for Michaels and his project. Students engaging with this case will be required to undertake the following:<ul><li>Identify, analyze, and understand the importance of relationships in negotiating and conducting successful business in developing countries.</li><li>Identify methods of interpreting and responding to statements and behaviours that may be organic and lacking in transparency.</li><li>Propose successful methods of conducting negotiations and resolving difficulties.</li><li>Propose strategies and methodologies to avoid questionable and unethical practices, establish a solid business format, and achieve success.</li></ul>

• negotiation business international