Cross cultural management : negotiations for the joint venture

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Cross cultural management : negotiations for the joint venture

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Abstract

The global economic situation shows that companies haven't any evolution prospects as the market has reached its saturation level. To grapple with this grave impact, companies are obliged to adopt international strategies in order to remain competitive in their respective market zones. Many companies have to go out to their home markets for developing their activities. Further, by applying the international phenomenon, a huge number of companies are in a position to maintain themselves without any additional assistance. If companies are able to extend themselves by creating foreign subsidiaries, it is concluded that they very often tend to build associations and links with other companies or adopt strategies such as mergers and acquisitions. However, this international phenomenon isn't easy to manage. Many intercultural factors must be taken into account for prospering. In order to further comprehend this phenomenon, we will study the case of a tripartite negotiation with a view of adopting mergers and acquisitions between American, Venezuelan and Indian Companies in the future. This study will permit us to find a solution for these three companies so as to enable them to settle on an agreement.

Negociation without a cross cultural strategy
1. Description of different management in each country
2. Negotiation without a cross cultural strategy
Negociation with a cross cultural strategy
1. Improvements to set up for the intercultural negotiation
2. Elaboration of the negotiations' strategy
3. What kind of strategically negotiation could we use to make in place the joint venture?
Analysis of the terms in connection with the strategy
1. Teambuilding
2. Alternative problem
3. Solving Method

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[...] Negotiation with a cross cultural strategy 13 Improvements to set up for the intercultural negotiation It's important to learn intercultural communication and choose the best comportment to lead to a well negotiation. First of all, you must avoid to have stereotypes or basing on false ideas. In the case of an intercultural negotiation, you have to search more things which bring together and not divided people. It's important and necessary for each sales representative of the country to become aware of different values, comportments and procedures of other sales representatives to deal without mistakes. [...]

[...] LOW UNCERTAINTY The country has less AVOIDANCE concern about ambiguity and has more tolerance for a variety of opinions Rules, Structure POLYCHRONIC People tend to do many Understanding when things things simultaneously don't go as planned or All could change scheduled everytime There is an acceptance of Western organizational ideas There is forgiveness for the inevitable delays The planning can change at the last minute they can be slow 11 Negotiation without a cross cultural strategy Obviously, the first difficulty for that negotiation is cultural aspect. [...]

[...] In fact, this strategy permits to have a cooperative image, indispensable for the establishment of a joint venture. All of the parts will be satisfy and find a satisfaction. If all parts know very well the other culture of each part, they could succeed in the joint venture. It seems the best way to not doing mistakes. For example, the is forbidden in India, so American and Venezuelan have to pay attention of this word. III. Analysis of the terms in connection with the strategy Teambuilding Definition of Teambuilding: The term teambuilding generally refers to the selection, development, and collective motivation of result-oriented teams. [...]

[...] You have to make the necessary for not being late. Organization is very important. Meeting must be organized before. Surprise visit are not a good idea in a Venezuelan company. Clothes are compulsory. If you come with casual clothes, you won't be considerate as a professional. Polychronism Many things, many subjects at the same time. It will be difficult for the Austrian to be concentrate They speak to many people at the same time Not important to keep the agenda The planning can change at the last minute They can be slow about a subject and fast for other one. [...]

[...] Negotiation without a cross cultural strategy 2 Description of different management in each country 2 USA Geert Hofstede Cultural Dimensions for the United States of America The Geert Hofstede analysis for the United States is very similar to other World Countries that have their heritage founded in Europe with strong ties to the British Isles (like Great Britain, Canada, Australia, and New Zealand). Individualism ranks highest and is a significant factor in the life of U.S. Americans. The low ranking of Long-term Orientation reflects a freedom in the culture from long-term traditional commitments, which allows greater flexibility and the freedom to react quickly to new opportunities. [...]

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