Case Study: Negotiation Process of Hi+Oui and Hessen Bank

This assignment is a case study analyzing the negotiation process between Hi+Oui and Hessen Savings Bank, focusing on their merger. The study examines the preparation and planning stages, including the location and timing of meetings. It delves into the reasons behind the merger, such as the fin...Read More

Running Head: NEGOTIATION PROCESS
Negotiation process
Name of the Student
Name of the University
Author’s note

1NEGOTIATION PROCESS
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Preparation and planning.............................................................................................................2
Name of the combined organisation............................................................................................3
Clarification.................................................................................................................................3
Bargaining and negotiating..........................................................................................................3
Negotiation strategy.....................................................................................................................4
Coordination of two teams...........................................................................................................4
Advice on effectiveness of approach...........................................................................................4
References........................................................................................................................................5

2NEGOTIATION PROCESS
Introduction
Negotiation is a process through which two different parties settle their differences. This
process helps the parties reach a stage of agreement or compromise by avoiding disputes and
arguments (Zhu, Zhao and Chua, 2016). The assignment is based on the case study. The
objective of the assignment is to find the negotiation strategy used by the two bank namely
Hi+Oui and Hessen Savings Bank for merging. The assignment also includes the outcomes of
the negotiation process on the four key issues. Further in the assignment, the cross cultural issues
that arises during negotiation process is discussed.
Discussion
Preparation and planning
The meeting will held in Blue Ocean hotel in Luxembourg, on 2nd May 20 at 2 pm.
Hessen Savings Bank was founded in the State of Hesse in 1951 during drastic economic
development in Germany. The bank was showing progress and established its presence
nationally. In spite of this, the bank was facing challenges from several factors in the market.
The bank wanted to merge with the Hi+Oui bank in France because it was facing downfall due to
four reasons like: the conservative and restrained approach, closing of the smaller branch for cost
cutting, failure of the internet banking and low rate of return on equity and cost to asset ratio.
The Hi+Oui is a start up in the banking industry but has gained a name in the market. The
Hi+Oui bank is a digitally focused bank, therefore, the two team decided to merge. This will
result in improving the failure internet banking structure of the Hessen Savings bank. The
Hi+Oui bank has 500,000 customers and dreams of extending its brand portfolio and plans to

3NEGOTIATION PROCESS
double its customer base in upcoming years , so by collaborating with the Hessen Savings bank,
which has currently 1.5 million customer base will help in fulfilling the target of the Hi+Oui
bank. The Hessen Savings Bank has a very low return on equity and cost to asset ratio as
compared to the Hi+Oui bank.
Name of the combined organisation
Hessen+Oui Bank
Ground rules of the process: All the members are informed to be present in the procedure. And
all the decisions will be under jurisdiction of Germany.
Clarification
Due to the issues faced by both the entities, both the organisations decided to merge and
provide support to each other for survival.
The headquarter of the merging unit will be located in Germany and the CEO of the new
branch will be Jean Schneider, who is the current CEO of Hi+Oui bank.
Bargaining and negotiating
The banks during negotiation decided to merge, so that the Hesses Bank can take advantage of
the EBIT, return on equity as well as the highest operating expense ratio of the Hi+Oui bank to
make itself stable in the market. After offering the helping hand to the Hessen Bank, the Hi+Oui
bank decided to implement its work culture in the Hessen savings bank because the work culture
followed at the Hessen bank was very conservative. The Hi+Oui bank also has gender diversity
in the workplace with around fifty six percent of women employees. Therefore, the Hi+Oui bank

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negotiated with the Hessen savings bank to practise the same in their organization for utilizing
the services of the Hi+Oui bank in their organization.
Negotiation strategy
The negotiation strategy used by both the banks is win-win because both the teams
because both the banks are benefiting from each other scenario. The win-win strategy also helps
in resolution of disputes in which both the teams will be accommodated.
Coordination of two teams
Both the team coordinated well during the negotiation process and abide by all the terms
and conditions of each other and did not faced in cross-cultural issues during the negotiation
process. Therefore, the teams should collaborate well with each other so that the merger will be a
success for both the entities.
Advice on effectiveness of approach
Both the teams should abide with the terms and conditions of the agreement made
between them. The members of the new branch should adopt the strength of both the parent
entity in order to be leader in financial business.

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References
Massenot, B. and Straub, S., 2016. Informal sector and economic development: The credit
supply channel. Economic Inquiry, 54(2), pp.1046-1067.
Polak, J.J. and Boughton, J.M., 2016. The World Bank and the International Monetary Fund: A
Changing Relationship. In Economic Theory and Financial Policy (pp. 92-146). Routledge.
Worms, M.J. and Radermacher, F.J. eds., 2018. Klimaneutralität-Hessen 5 Jahre weiter.
Springer-Verlag.
Zhu, L., Zhao, X. and Chua, D.K.H., 2016. Agent-based debt terms’ bargaining model to
improve negotiation inefficiency in PPP projects. Journal of Computing in Civil
Engineering, 30(6), p.04016014.