Negotiation and corporate communications PDF

Running head: NEEGOTIATION AND CORPORATE COMMUNICATIONS 1
Negotiation and Corporate Communications
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NEEGOTIATION AND CORPORATE COMMUNICATIONS 2
Negotiation and Corporate Communications
Question 1
Building successful mergers and negotiations
Introduction
Claiming and creating value in mergers and negotiations are essential aspects which exist
together. Organizations create value in mergers through interest-based bargaining or the
cooperative course of integrative consultations. Through claiming value, companies try to show
that some concepts are less or more desirable when compared to others. Claiming of benefits,
therefore, involves an attempt to demonstrate that some beliefs, conditions or actions are wrong
or right, wrong or good. When making mergers, negotiators have to decide on whether to adopt a
cooperative strategy or a competitive strategy. Scholars argue that claiming and creating value
are essential aspects in building a successful negotiation which is free from tensions (Gomes,
Angwin, Weber, and Tarba, 2013). A merger is a situation where two or more companies come
together, and this usually requires adequate consultation.
Claiming and creating value
All negotiations are faced with the dilemma of whether to adopt a cooperative or
competitive strategy or even apply both. It is because the outcomes of one party do not reflect on
the consequences of the other party. In negotiations, parties create value through a supportive
process of interest-based or integrative bargaining. It indicates that the parties concerned have
found ways of increasing the beneficial products which the parties divide between themselves.
These products include the things that both sides want or improve their situation (Cameron and
Quinn, 2011). It can also be referred to as the joint gains or universal value suggesting that future

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advancements are considered as improvements by all the parties. Creating value in mergers
requires the negotiator to focus on the primary interests of these disputing parties (Calipha,
Tarba, Brock, 2010). The main question in mergers is why the parties want to come together.
Through the sharing of information and enhancing communication between parties, the
disputing parties improve their relations so that they can create a typical value and work towards
finding a shared interest. Claiming and creating value helps both parties to gain what they need
during the negotiation. The outcomes of such a talk create a win-win situation because it is
mutually beneficial. The negotiation process is a competitive process which involves claiming of
value to divide the value available among the disputing companies. In negotiations, each
company tries to acquire more value just like the other disputing company. If one side gets more
value out of the merger, then it means that the other party will get less value. Both parties try to
use aggressive tactics so that they can convince their partners that they need more than them.
In these negotiations, companies use tactics like concealing information, conceding
value, arguing forcefully to acquire favorable sentiments and minimizing the value other’s
concessions. According to researchers, the act of claiming value helps to improve the results for
all the parties. But negotiators must divide the outcomes of because a new value is created when
the parties come together. But these cooperative strategies required to build competitive value
strategies which are used in claiming value and the vice versa is correct (Weber, 2013). Parties
willing to come together should, therefore, cooperate so that they can claim and create value. If
cooperation exists in a negotiation, it will help in generating positive results. On the other hand,
if one party competes while the other cooperates, the competitor usually performs better than the
party which unites (Johnston and Marshall, 2016). The worst results can, however, be generated
if the two parties decide to compete (Sparrow and Makram, 2015). Parties should, therefore,

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develop good communication networks and cooperative relationships for better performance.
The negotiation process
The merger of Renault-Nissan-Mitsubishi
After two decades Nissan Motor Company and Renault SA decided to form a full merger
under a multifaceted cross-shareholding alliance. Globetrotting auto-industry superstar chose to
develop one corporation out of these two companies due to their continuous cooperation
(Chemendy, 2018). The aim is this merger was to bulk up and trim expenses so that they can be
able to survive in the industry transition to greener and cleaner vehicles. Ghosn added Mitsubishi
to this merger in 2016. The only thing that is confusing to investors is the fact that Nissan holds a
15% share of Renault has forty-four percent stake of Nissan. Mitsubishi complicated the merger
because it was caught giving false estimates of mileage in different instances. Ghosn manages all
these companies and plans to combine all these companies, and he is driving plans and
negotiations to run these entities as one. Different studies have shown that running this merger
will help the partners to defeat their rivals.
These partners can have a better pool of resources, and this will allow them to compete
with Toyota Motor Corporation and Volkswagen AG. Many people have argued that the talks
between these companies may not be fruitful. But the alliance can help to improve the sales in
the market meaning that It will be good for all the partners. According to the upcoming reports,
Nissan Motor Company have denied claims that it is going to ally with Renault. But Ghosn
argues that the alliance will improve their performance than when the companies act
independently. But the three companies can carry out negotiations when forming their
partnership. Through negotiations, the different industries will be able to claim and create value

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out of the coalition. As discussed earlier, parties involved in a dispute should develop good
communication networks and cooperative relationships so that they can improve their
performance.
Forming a merger can be sometimes tricky because different companies have different
interests. France owns a share of Renault and finds it difficult to give up this stake so that it can
be part of the merger. For this merger to work, Japanese and French governments will have
approved this deal and decide on where the company will be located. These companies have held
talks for a long time, but they have not yet come with a conclusion. Some reports indicated that
Nissan had a plan to buy some part of Renault in France. But for the partnership to work, the
companies will have to form an organization which benefits everyone in the alliance (Daidj,
2011). In this partnership, Nissan is less valuable and smaller partner than Renault meaning that
it has no voting rights. Such things in the organization indicate that Nissan will not gain more out
of the partnership because it is a lesser partner. For the organization to be successful, the
negotiation process should be done well and show all the partners how they will get value from
their alliance.
The partnership can gain a lot of benefits in the market if it works, but all the companies
would like to create and claim value out of the relationship. The three companies will have to
come up with ways in which they can form a successful alliance so that they can be able to
compete with their top rival which is Toyota (Rocha, Sad, Perobelli, and Vasconcelos, 2016).
The merger must satisfy the interests of every partner, and they can all improve a common
strategy and also appreciate the outcomes. There are many things which require to be looked at
for a partnership to work and this is what Ghosn should look at for the organization to become
successful.

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Question 2
Effects of cultural, administrative, geographic, and economic distance on negotiations
Alliances are significant because they help in the growth of companies and also the
country’s economy. Companies which form alliances increase their incomes because after
forming a union they receive combined cash flows. Successful partnerships are therefore crucial
to the companies and also other stakeholders such as investors. In this case, the coalition between
Mitsubishi, Renault, and Nissan can help in increasing the number of sales and even their
competitive advantage (Ronen and Shenkar, 2013). But some factors which include economic,
geographic, administrative and cultural distance can affect the decision making process and
negotiations when making alliances (Harrison and Wicks, 2013). For instance, a person who
wants to invest in the pig industries in Muslim countries can be rejected because Muslims do not
take pork (Nell and Ambos, 2013). These cultural differences sometimes appear subtle, and they
influence how businesses interact.
Different companies can have different altitudes and interests, and this is a significant
challenge when creating alliances. Separate geographical locations also affect how companies
make decisions (Schmitt and Biesebroeck, 2013). Different countries also have different beliefs
and legal requirements, and this also makes it challenging for companies from different countries
to come into an agreement. According to various scholars, international negotiations are
complicated, and most of them are unfruitful due to the differences in beliefs. In the case of
Renault-Nissan-Mitsubishi merger, there is the involvement of both Japan and France which can
be a reason for the difficulties in making decisions (Lew, Sinkovics, Yamin, and Khan, 2016). In
alliances, all the parties have to understand the role of one another so that it can be mutually