Renault, Carlos Ghosn's Case Between Renault And Renault

Decent Essays
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
Get Access