Cross cultural management : negotiations for the joint venture

Résumé du document

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.

Extraits

[...] Cross cultural management : negotiations for the joint venture Summary INTRODUCTION I. NEGOCIATION WITHOUT A CROSS CULTURAL STRATEGY a. Description of different management in each country 01. USA 02. VENEZUELA 03. INDIA b. Negotiation without a cross cultural strategy II. NEGOCIATION WITH A CROSS CULTURAL STRATEGY a. Improvements to set up for the intercultural negotiation b. Elaboration of the negotiations' strategy c. What kind of strategically negotiation could we use to make in place the joint venture? III. ANALYSIS OF THE TERMS IN CONNECTION WITH THE STRATEGY a. [...]

[...] Indians only deal favorably with those they know and trust even at the expense of lucrative deals. It is vital that a good working relationship is founded with any prospective partner. Meetings should be arranged well in advance. This should be done in writing and confirmed by phone. Punctuality is expected, although being 10 minutes late will not have disastrous consequences. Flexibility is paramount. Family responsibilities take precedence over business so last minute cancellations are possible when doing business. When entering a meeting room you must always approach and greet the most senior figure first. [...]

[...] It is common to attempt to reach an oral agreement at the first meeting. Business Etiquette American businesspeople are generally less formal than in many other countries. There are few hard and fast rules. The way in which we can deal with American business colleagues will depend on the individual. Business Dress ( In general, people in the East dress more formally, while people in the West are known for being informal. Executives usually dress formally regardless of which part of the country they are in. [...]

[...] Do not thank your hosts at the end of a meal. “Thank is considered a form of payment and therefore insulting. Titles are very important. Always use professional titles. When addressing an Indian whom you know personally, always use the appropriate formal title, whether Professor, Doctor, Mr., Mrs. or if you do not know their names then Sir or Madam will suffice. When doing business in India, business cards should be exchanged at the first meeting. It is a good idea to have it translated on one side into Hindi, more as a sign of respect as opposed to linguistic necessity. [...]

[...] If your business dealings in India involve negotiations, always bear in mind that they can be slow. If trust has not yet been established then concentrate efforts on building a rapport. Decisions are always made at the highest level. If the owner or Director of the company is not present, the chances are these are early stage negotiations. Indians do not base their business decisions solely on statistics, empirical data and exciting PowerPoint presentations. They use intuition, feeling and faith to guide them. [...]