Assignment

Renault-Nissan

SM0376 Doing Business in Europe, Asia and the Americas. Module Tutor: Bill Houston Student Name: Guillaume CHETAIL Student ID: 08021534 26 may 2009

Renault - Nissan Alliance SM0376

Doing Business in Europe, Asia and the Americas

Guillaume CHETAIL 08021534

Northumbria University

Northumbria University

Table of Contents

1 - Question 1
1.1 Definition of Alliance. 1.2 Renault - Nissan decision.

1 1 2 4 4 6 8 8 9 10 10 11 12 18

2 - Question 2
2.1 The impact of the differing negotiating styles on the initial agreement. 2. How the disparate corporate cultures of the two firms worked together during the initial period of the alliance.

3 - Question 3
3.1 Defining transactional, translational and economic risks and theoretical solutions. 3.2 The case of Renault Nissan

4 - Question 4
4.1 The Renault-Nissan alliance 4.2 The supply chain partners

5 - References 6 - Bibliography

Renault - Nissan Alliance SM0376

Doing Business in Europe, Asia and the Americas

Guillaume CHETAIL 08021534

Northumbria University

1 - Question 1
With reference to academic literature justify the decision of Renault and Nissan to form an alliance in 1999. 1.1 Definition of Alliance.

To answer this question and understand the reasons behind Renault and Nissan’s decision, it is essential to define and the term alliance. An Alliance is sharing capabilities, such as R&D, marketing or manufacturing, between two or more firms with goal to enhance their profitability, their competitive advantages and creating a new business without losing their own strategic autonomy. An alliance becomes strategic when it is designed to enhance the partners’ strengths and when it allows to follow the objectives defined at a corporate level (Ring.2000). A strategic alliance is sometimes defined as “a governance structure involving a incomplete contract between two separate firms and in which each partner has a limited control”