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Tutorial activity 1: Stage one: Preparation The staffs of Business Ville Hotel first must familiarize themselves with the entire context and background of Swiss National Shooting team. Furthermore, they also need to consider and justify several negotiation problems, for examples differences in culture, language, and environment. This can be done through outlining thought profiles of the Swiss people in general. The Swiss profile: 1. Facts Switzerland is a very diverse country having 63.7% Germans, 20.4% French and 6.5% Italians as its inhabitants. Swiss people are usually very experienced in interacting with other cultures 2. Etiquette Respect for privacy and discretion are key values in social interaction. Kindness and politeness in social interaction is expected. Cultural differences between the linguistic regions include more frequent use of titles and professional functions in the German-speaking region, and the use of a kiss rather than a handshake in the French-speaking region. 3. Social Stratification The cultural norm is for wealth to remain discreet. Too manifest a demonstration of wealth is negatively valued, but poverty is perceived as shameful, and many people hide their economic situation. 4. Communication Style
Being on time for business meetings. it may be easy for your replacement to take things over from where you let them. Writ en contracts are serious matters in Switzerland and tend to be lengthy. This does not mean that the Swiss do not care about who they are dealing with. Most Swiss people expect their partners to make a long-term commitment to the engagement. If your company replaces you with someone else over the course of a negotiation. careful and conscientious. Only a ﬁnal contract signed by both parties constitutes a binding agreement. etc is expected. The Swiss tend to be private people and asking personal questions in not that common in their culture. Likewise. The Swiss view it as very important to keep business and private life separate.Communication style depends greatly on personality but the Swiss are generally direct in their communication. Signing the contract is important not only from a legal perspective. that person may quickly be accepted as a valid business partner. Stage two: Relationship building Building lasting and trusting relationships is important to most people in this country. punctuality is highly valued throughout the country. They often spell out detailed terms and conditions for the core agreements as well as for many eventualities. if you introduce someone else from your company into an existing business relationship. Although interim agreements are usually kept. but also as a strong conﬁrmation of your Swiss . Personal integrity and dependability are important if you want to win their trust. do not consider them ﬁnal. being late is considered rude. the Swiss are orderly. therefore. It is an eﬀective way to verify understanding and commitments. Time In general. However. Legal aspects may be reviewed repeatedly. It takes a long time to build rapport and establish personal relationships. they are usually not a necessary precondition for initial business interactions. service appointments. Furthermore. 5. At empts to accelerate this process may only raise suspicion Stage three: Exchange of task-related information Capturing and exchanging meeting summaries is standard practice in Switzerland.
and do not cancel one on short notice since that can be viewed as rude. It is Vital that teams be well aligned. both parties try to persuade the other to accept more of their position and to give up some of their own. Stage four: Persuasion Typically. Conservative at ire is important when doing business here. Requests to change contract details atfer signature may be considered as bad faith and could meet with strong resistance. positions. The Swiss are good at exploiting disagreements between members of the other team to their advantage. Business may be discussed over meals. This process of bargaining and making concessions is fraught with difficulties because of the different uses and interpretations of verbal and nonverbal behaviors. Gift giving in business settings is rare. and so forth) is sometimes used in negotiation process. Negotiations can be conducted by individuals or teams of negotiators. and responsibilities of attendees ahead of time. It is best not to bring a gift to an initial meeting in order to avoid raising suspicions about your motives. Stage five: Concessions and agreement The manager of Business Ville Hotel must be well-prepared and aware of various concession strategies and have decided ahead of time what their own concession strategy will be.partners’ commitment. That agenda is usually strictly followed. The majority of the persuasion takes place over one or more negotiating sessions. First impressions can have a significant impact on how people view you. schedule meetings at least one to two weeks in advance. threats. and the agreed terms are viewed as binding. The process of reaching an agreement involves careful timing of the disclosure information and of concessions. The Swiss may want to know whom they will be meeting. so provide details on titles. Business lunches and dinners are common. male business visitors should wear dark suits with neckties on most occasions. The use of various tactics (promises. If possible. with roles clearly assigned to each member. . The rank of visitors does not matter as long as they are knowledgeable and have sufficient decision authority. While colored shirts are ok. Agreeing on an agenda upfront is common practice. Contracts are almost always dependable.
1. it is strongly advisable to be very punctual. 2006. they focus on convincing you that their product or service is worth what they are asking.7 billion merger of the telecommunications equipment makers Alcatel and Lucent on September 7.At any meeting. The Swiss are not fond of bargaining and strongly dislike haggling. offering greater longterm stability.000 jobs. Businesspeople in this country do not make concessions easily. whether business or social.8 billion) in cost savings over the next three years. in part by cutting 9.’ Tutorial activity 2: Negotiation Role Play Tutorial activity 3: What conditions and negotiation factors pushed forth the merger in 2006 that were not present in 2001? In 2001. about 10 percent of the combined workforce. Alcatel-Lucent’s revenue would be spread almost equally across Europe. prices rarely move by more than 10 to 15 percent between initial offers and final agreement.4 billion euros ($1. the United States and Asia.” rather than a takeover by Alcatel. 2. What has happened in the industry since the merger. They are very good at making you believe that ‘you get what you pay for. Lucent wanted the deal as a ‘merger of equals. the merger negotiation is failed due to disagreement between the Alcatel and Lucent on how much control the French company would have. Research the status of the merged company at the time of your reading of this case. They do not appreciate aggressive sales techniques. The combined company would realize 1. renewed negotiations took place. they are able to create the world’s biggest telephone equipment maker. 3. Evaluate the comment that the merger is “a giant transatlantic experiment in multicultural diversity. Although the bargaining stage of a negotiation can be extensive. resulting in the transatlantic relationship being consummated. however. and how is the company faring? Since the merger of these 2 companies. Besides. Shareholders in France approved the $10. In 2006.” What evidence . When selling.
5. The success of organizations like Coca-Cola. So I would place immense significance to leadership in this case. This indicates that the company is already operated as an international company with a wide mix of nationalities. and all too often the quality of its leaders. However. Some problems may seem to be solvable without a facilitator. embrace and further a leader's vision. the participating organizations usually . How much decline do you attribute to the leadership problem as apposed to the industry factors? Lack of visionary leadership is one of the most evident factors that created problems for the company in the case discussed. speaking to an empty room? It is the people that work for an organization. I would suggest that leadership is the soul of the company and everything else comes into place if the leadership is strong. General Electric and IBM is not considered a product of the thousands of people they employ. A succession plan . Yet the most common measure of an organization is seldom the quality of its staff. that ultimately determine results.or failure to implement one . but of the individual leadership qualities of Goizueta. What impact can any CEO have. 4. and their willingness to accept. such as making decisions on various business operating changes for a combined organization. Facilitator When meetings occur between the cooperatives trying toreach agreement on a plan for combination. a facilitator helps improve communications and the process of developing altemative solutions to many of the problems that arise.is regarded as a bellwether of subsequent corporate performance.is there that the company has run into cross-cultural problems since the merger took place in 2006? Alcatel-Lucent is creating the first truly global communications solution provider. Appointments of CEOs have massive influences on stock prices . Welch and Gerstner. What if any factors should have been negotiated differently? The merger negotiations could have been carried out in the following way 1. Corporate performance is often described as a product of one individual's leadership. And yet leadership in a vacuum isn't leadership at all.up and down.
each cooperative brings “value” to a potential combination. A facilitator initiates team-building discussions aimed at finding alternative ways around these deadlocks. 3. 2. Management’s role is to advise on feasibility and to carry out the agreement 4. it should develop a strategic plan that sets out major objectives. But. Efficiency-related objectives specified in a strategic plan help the committee give adequate weight to choices that will “increase the economic pie” and prevent contentious “pie sharing” issues from derailing the process. A strategic plan provides criteria for making hard decisions. unified cooperative. Usually. increased economic efficiency of the cooperative is usually a major objective of mergers and consolidations. It is important to avoid arguing about who is offering or contributing the most. each participating organization has an equal number of representatives on a joint merger committee. The distinct roles of directors and management are particularly clear in strategic planning. Follow a strategic plan Before a merger committee convenes. . They must avoid employing protective “card playing” traits and getting caught up in a game of who is coming to the table 9with the most to offer. the board should not permit managers to exercise excessive influence over the progress and direction of talks. While cooperative directors must protect the assets and operations with which they are entrusted by members. Use the word “WE” Directors must focus on using the word “we” during discussions. Frequently.have different preferences and priorities. Committee members will usually seek the opinions and judgement of managers of their cooperatives on important decisions. For example. Directors are responsible for developing a strategic plan and defining the vision for a neworganization. Managers serve as advisors and provide information as experts in operations and the industry. two cooperatives are involved in negotiating a combination. which sets the stage for group decisions to become deadlocked. A joint merger committee should formally consist of directors. they must also keep an open mind while creating a new. the committee will face numerous difficult decisions and tradeoffs. Develop producer-to-producer contract Experience shows that durable progress in consolidation or merger talks requires directors to be the leaders in the discussion and planning sessions. Customarily. As negotiating progresses. The joint merger committee is charged with developing a consensus plan.
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