INTERNATIONAL BUSINESS NEGOTIATIONS
KYAT AND SYSECA
BERTET Simon DUBLER Sara LICHON Chloé
I. Presentation of the case 3
A. Summary of the case 3
B. Analysis of the case 3
C. Why this acquisition was a success 3
II. General cultural profile of the French and the Spanish4
A. The French cultural profile 4
B. The Spanish cultural profile 5
III. The Impact of culture on the two negotiation styles 7
A. The cultural influence on the French negotiation style 7
B. The cultural influence on the Spanish negotiation style 8
IV. What is the profile of the French and Spanish negotiator? 8
A. The profile of the French negotiator 8
B. The profile of theSpanish negotiator 9
V. Comment on this quote « negotiation styles, strategies and
tactics are shaped by culture. This affects how agreements
are reached, the way trust is built and tolerance to conflict.” 10
VI. How important is it for a negotiating team in
Joint Ventures/Alliances to be made of “culturally aware”
managers who are trained to work in multicultural teams 13VII. Team analysis 15
A. Presentation Performance 15
B. Team analysis 15
C. Individual analysis 16
VIII. Bibliography 19
I. Presentation of the case
A. Summary of the case
Syseca (subsidiary of Thomson CSF, a French company) specializes in information systems and services which generates $220 million a year with 2300 employees. In 1990, they targetedKyat (Spanish company) for possible acquisition opportunities. Kyat contains 250 employees and generates roughly $11 million in annual sales. Kyat even though originally based in the Basque country also runs operations throughout various other Spanish cities.
Robert Fillias was selected by Syseca, as he was seen as the ideal fit. However, he realized that he needed more than just a financial andlegal perspective in order to negotiate and explained that it was more important to create a solid friendship as a basis between the two companies before any contract was signed. Both sides had to share fundamental values of trust and honesty. Robert Fillias did not expect it would take as long as it did, and was not aware that the discussions would be more subjective, general and relational asopposed to concrete, objective and strategic. In the end a contract was signed.
B. Analysis of the case
Robert Fillias had to accept the cultural differences and learn how to deal with them in order to create a relationship between the two companies. Had Mr. Fillias opted to negotiate the way he usually would have, he may not have come across as trustworthy or honest in the eyes of the Spanish.However, he saw that for the Spanish it was important to create a firm friendship and that values were extremely important, therefore, he acted appropriately and took as long as was needed, not rushing the Spanish into anything which eventually led to the acquisition.
C. Why was this acquisition a success?
This acquisition was a success because despite Mr. Fillias entering the negotiationwithout having really studied the Spanish culture, he was able to adapt quickly and learn from his mistakes. Both cultures were able to discuss what their needs were and what was important to them. They then focused their objectives around what both companies were looking for, avoiding conflict. Mr. Fillias and the Spanish both modified their methods of negotiation in order to achieve this as theprocess took longer than Mr. Fillias had ever expected. Becoming frustrated may have hindered this acquisition and may not have result in the signing of this contract.
II. General cultural profile of the French and the Spanish
A. The French cultural profile
First, let's look at Hofstede's French cultural dimensions.
• Power Distance
A hierarchy is in place and it is normally...
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