The case analysis focus on a negotiation between a Japanese and French company. Renault and Nissan made a 50/50 joint venture, RNBV was established in 2002 to oversee the strategy of the alliance and the activities of both companies. At the time, Louis Schweitzer was the CEO of Renault and Carlos Ghosn the CEO of Nissan. Renault invested $5.4 billion in Nissan for 36.8% of the company; however, later Renault raised its stake to 44.4% and Nissan acquired only 15% in Renault for 2.2 billion euros. The alliance was formed by 11 cross cultural teams to focus on the engineering, manufacturing, purchasing, logistics, product, product planning and sales marketing. At some point between the negotiations of the two companies, the Renault wanted to …show more content…
Another challenge the alliance faces was additional synergies developing closer ties between engineering departments, in addition to make products superior to their rivals.
describe the types of cultures involve, the strategy they used, make suggestions of how could have they improve the planning and negotiation processes as the results of the negotiation and the join gains obtained
There are two main cultures involved in the negotiation process. The Japanese and French culture. The Japanese is a face culture that emphasis on the interests of the collective, relative, to those of the individual. Face cultures are very hierarchical structures and the fundamental group is the family. Japanese view conflict as violations of duties and obligations. In a face culture once an agreement for its complications for roles and responsibilities has been reached, the relationship is likely to be very stable. When face cultures analyze a problem, they focus on the problem and the context that might have caused the problem, and based on experienced knowledge. On the other hand, the French culture is consider to be an honor culture, this means the culture generally hierarchical social structures, they respond to insult with aggressively and protect their self-worth. The honor culture is to be trustworthy, putting your self-worth in hand of others. In the negotiation, honor culture tend to be more analytic thinking and are influenced by
The Chinese negotiation style is based on building relationships with people in the negotiation rather then to hammer out details of an agreement. They feel the beginning stages of the negotiation is the time establish a human relationship and to create the bonding of friendship with the goal to become “old friends” by the
“Successful negotiation is not about getting to ‘yes’; it’s about mastering ‘no’ and understanding the path to an agreement is” (Christopher Voss). During the negotiation process, there are a lot of moving parts and personalities. In addition, hurt feelings can all too often get in the way. The bottom line of any negotiation is to reach a settlement that will mutually benefit both parties. It’s a challenging situation by which compromise or agreement is reached while attempting to avoid arguments and disputes.
Negotiation is one important part of both the professional and personal life in our everyday situations. It is critical for people to resolve disputes, distribute limited resources, and/or create something new that neither party could achieve on his or her own. Negotiations can range from coordinating project timelines with clients to asking for a raise to discussing holiday plans with family members.
1. How did you plan for the negotiation? Explain how you decided on a strategy?
Players in the NFL must hate America, or at least that’s what some would say when talking about the issue of what players do during the national anthem. Early last year in 2016 a NFL player for the San Francisco 49ers, Colin Kapernick, decided to take a stand by sitting on the bench during the national anthem. His reason was to bring awareness to police brutality, specifically with African Americans, in the United States. As you know, most people stand during the national anthem to show respect for the flag, our country, and the people who fight for it. In realization of what it meant to sit during the national anthem, Colin Kapernick decided to make a compromise by kneeling instead of sitting. His point on awareness to police brutality was clear by kneeling, but it also shows more respect to the women and men in the military, than sitting. Many players, not just African American players, have followed this movement. NFL players have the right to peacefully protest in this form and should not be penalized. This movement is a peaceful protest to bring awareness to police brutality, a practical way to grab the attention of people, and is a movement spreading further than the NFL.
In this negotiation, we learned that it is important to research your opponent, to understand their culture, not only of their country or backgrounds, but also their company culture. When we are able to understand our opponent’s way of thinking about business and doing business we can then understand how to approach a negotiation situation with them. In this exercise, we learned that it is difficult for us to adjust when it involves breaking or acting in a way opposite of what we are accustomed to. We also learned that although my classmates live in the same country as we do, their upbringings may have similarities to their origin country and will therefore help them to communicate and adjust to that country’s norms and standards. We were surprised how we were able to stay in character although it was hard and it was surprising how people responded when they were unaware of your intentions and strategies. If we had to do this exercise again, what we can do is do more research on our opponents so that we would have an idea of what to expect in the negotiation table.
The term “face-negotiation theory” was first introduced by Stella Ting-Toomey, a Professor of Human Communication Studies at California State University, in 1988 based on amazing works of Goffman in 1955 and Levinson and Brown in 1987 (Oetzel & Ting-Toomey 2003). According to Griffin (2005), the main idea of this theory is to clarify people coming from dissimilar cultures will have different ways in managing conflicts as well as communication.
iv. During negotiation “business issues” took the centre stage and legal issues were to be addressed later. It shows mutual trust and focus on goals.
“Stella Ting-Toomey’s face negotiation theory helps explain cultural differences in responses to conflict (Griffin, 2009). People do not respond to conflict in the same manner. Reponses vary according to culture, goals, desires, and self-image. According to Fullerton, “a communication professor at California State University, Ting-Toomey assumes that people of every culture are always negotiating face. Face is “the projected image of one’s self in a relational situation, the way that we want others to see us and treat us” (Griffin, 2009). Simply, the Golden Rule, “do unto others as you would have others do unto you.”
Negotiation is a fundamental form of dispute resolution involving two or more parties (Michelle, M.2003). Negotiations can also take place in order to avoid any future disputes. It can be either an interpersonal or inter-group process. Negotiations can occur at international or corporate level and also at a personal level. Negotiations often involve give and take acknowledging that there is interdependence between the disputants to some extent to achieve the goal. This means that negotiations only arise when the goals cannot be achieved independently (Lewicki and Saunders et al., 1997). Interdependence means the both parties can influence the outcome for the other party and vice versa. The negotiations can be win-lose or win-win in nature.
Along with other Japanese manufacturers, Nissan was successfully competing on quality, reliability and fuel efficiency. By 1991, Nissan was operating very profitably, producing four of the top ten cars in the world.Nissan management throughout the 1990s, however, had displayed a tendency to emphasize short term market share growth, rather than profitability or long-term strategic success. Nissan was very well known for its advanced engineering and technology, plant productivity, and quality management. During the previous decade, Nissan’s designs had not reflected customer opinion because they assumed that most customers preferred to buy good quality cars rather than stylish, innovative cars. Instead of reinvesting in new product designs as other competitors did, Nissan managers seemed content to continue to harvest the success of proven designs. They tended to put retained earnings into equity of other companies, often suppliers, and into real-estate investments, as part of the Japanese business custom of keiretsu investing. Through these equity stakes in other companies, Ghosn’s predecessors (and Japanese business leaders in general) believed that loyalty and cooperation were fostered between members of the value chain within their keiretsu.
Communication styles in negotiation are probably one of the most important skills or characteristics one will develop over a lifetime. From the point a human being begins to develop cognitive skills, the process of learning and understanding situations become more apparent. One will learn from a very young age the dynamics and characteristics of communication and its role in negotiation. To better understand the communication process, one must be able to recognize how they communicate, whether it is on an assertive, aggressive, passive, or passive-aggressive level of communication. The manner in which one conveys his/her message is critical, and the many methods in which they do it is
Another element of the American culture is the egalitarianism. The high regard of equality can be seen in the pursuit of equal opportunities, in the refusal of authority and paternalism, the requirement of participation as well as in the preference of informal behavior. (Stahl/Langeloh/Kühlmann, 1999: 57)
In 1999, Renault purchased a controlling enthusiasm for Nissan at 44% of the shares. This merger brought up a few issues about the two organizations from diverse nations and their routines for assembling and business hones by they way they could exist together and benefit from each other. Presently, the merger has turned out to be the "best association in the worldwide auto industry" (Nissan News, 2005).there have been a few troubles along the method for production line shutting and disposal of redundancies however in general, Nissan and Renault have enhanced their remaining in the commercial center and have
For many years, Renault has been maintaining the reputation of being one of Europe’s most successful vehicle manufacturers, as well as supporting, encouraging and sponsoring several projects. It has a pioneering role in setting the corner stones of fine cars. As a matter of fact, having such a distinguished reputation is not a matter of day, but rather a big deal. Renault is vitally and spiritually represented in miscellaneous scopes and fields likewise its vision and unique methods. Its noteworthy that in comparison between Renault and any other companies you can find a gap concerning the previously mentioned thing. Renault opens new horizons for leadership throughout the business and labour market.