About the Industry Sincethere had been a decline in auto sales worldwide due to the economic crisis.
What was the rationale for the partnership between Volkswagen and Suzuki? Stephen McGill In the business world the way in which Companies negotiate with each other is truly how they are culturally. For example, if Company A attempts to subvert information from Company B during negotiates than Company A could potentially dirty the water for future negotiations with Companies outside of their local circle.
If a business is in a robust but limited saturation competitive market they cannot afford to jettison their image for a slight advantage during negotiations.
In ideal partnerships both sides receive a valued item within the agreement. Why was the Indian market so attractive to them? If negotiations would have gone well with Suzuki the Indian market could have been shared and the total cost of the alliance would have paid for itself via the total number of cars sold within a given period of time.
Given that both Companies represented success within their own niche market it would only make sense that the Companies would desire a partnership. Some partnerships lead to inflated costs due to corporate buyout rates and basic overhead costs but in the example of Volkswagen and Suzuki the shared agreement would have allowed both Companies to prosper by only given a small portion of themselves up.
Analyze the reasons for the break-up of the Volkswagen and Suzuki partnership Partnership agreements can have breakdown points at any time during negotiation.
In the case of Volkswagen and Suzuki the communication within the oral agreement and the basic language of the written agreement created tension between the two companies. With one Company deciding to forgo the percentage of buyout.
Communicating with your business partner can be an extremely difficult process if the businesses have fundamental communication differences. In the case of Suzuki and Volkswagen many discussions and plans were put together but an overall lack of empathy on either part was found.
Although the communication piece is very important in the case of Suzuki and Volkswagen it was a complete lack of transparency within each company that dissuaded the other. Why for example, would Volkswagen share its larger vehicle technology to Suzuki before Suzuki granted them access to the Indian market?
Both companies had ahold of markets and technology that they held precious. If either side decided to share with third parties that information that they had gained it could have led to a complete meltdown of the technology or location of business.
Even their individual company goals were full of secretive language and across the pond thinking. In the end the real reason that they could not get on the same page can be categorized by the power play between the two companies.
Culture played a rather large role in the negotiation process as Japanese owners versus German owners have completely opposing cultural backgrounds. Great importance is placed on loyalty, politeness, personal responsibility and on everyone working together for the good of the larger group.
Education, ambition, hard work, patience and determination are held in the highest regard.THE UNIVERSITY OF MELBOURNE VWoA – A Case Study VWoA – A Case Study Introduction Alignment of an enterprise’s goals with its IT1 and IS1 systems has been a challenge ever since IT became a business enabler.
The Volkswagen-Suzuki alliance started with high hopes in but now awaits likely dissolution by an international arbitration court.
Internal Suzuki documents show how trust between the. In December , Volkswagen AG (VW) of Germany purchased a % stake in the Japanese manufacturer Suzuki Motor Corporation. They both agreed to share their technologies and distribution network with each other. THE UNIVERSITY OF MELBOURNE VWoA – A Case Study VWoA – A Case Study Introduction Alignment of an enterprise’s goals with its IT1 and IS1 systems has been a challenge ever since IT became a business enabler.
Case Study for Fiat Auto and General Motors Alliance Words | 10 Pages.
Case Study: Fiat Auto and General Motors Alliance Case Study: Fiat Auto and General Motors Introduction The economic crisis and other factors, affect different companies in the global market and automotive industries are not exempted. Read this essay on Case Memo – Case 3: After the Breakup: the Troubled Alliance Between Volkswagen and Suzuki..
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