RMIT BUSM4415: Industry Investigation Project on Renault-IDRO JV

This industry investigation project examines the communication and stakeholder management within the Renault-IDRO joint venture, focusing on the challenges faced during the executing phase of a new car model launch. The project identifies issues such as weak communication processes due to employee diversity, biased management, and time differences between the parent companies. It proposes solutions based on effective communication management, including leveraging communication synergy to enhance productivity and reduce operational costs. The project also explores stakeholder management issues, such as supply chain disruptions, employee changes, and policy adjustments, suggesting solutions like supplier selection, employee restructuring, training, and transparent communication with stakeholders to build productive business relationships. The findings highlight the impact of these issues on the company's productivity and profit-earnings ratio, emphasizing the need for improved management practices.

Running head: INDUSTRY INVESTIGATION PROJECT
Industry Investigation Project
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Table of Contents
Introduction................................................................................................................................2
Issues in Communication Management.....................................................................................2
Solutions to Communication Management................................................................................3
Issues in Stakeholder Management............................................................................................4
Solutions to Stakeholder Management.......................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
As stated by Bason (2018), communication management in a joint venture company is
considered to be a critical part which helps in building the business relationship between the
connected stakeholders of two or more companies involved in the joint venture. The synergy
of joint venture helps in the expansion of the business, the development of the new products
and services, or even moving to a new business market (specifically overseas) (Deresky
2017). Thus, the communication process in the joint venture business needs to be effectively
and efficiently handled. In this connection, the given report is focused on determining the
communication management in the joint venture companies of Renault and IDRO.
Issues in Communication Management
Concerned with the studies researched earlier, it was examined that the joint venture
of Renault and IDRO is facing several problems with the management of their
communication process after the merger of the company. The maintenance of the significant
number of employees and the diversified nature of work had become difficult for the
company all of a sudden (Charles Jr, Schmidheiny and Watts 2017). In light of this, it can be
stated that the communication process of the company had turned weak and fragile and this
issue faced in the communication process turned down the profit earnings ratio of the
automobile company under discussion here in the paper. It was also undermined that the
dissimilarity of the thought process of the employees brought problem in the smooth
functioning of the communication process as well as the merge of the senior level
management created a biased nature in the working environment, therefore, creating chaos in
the communication management of the concerned joint venture automobile industry.
Moreover, the difference in the working time of the two nations of Iran and France connected
to the two different companies that have merged together to work for the project of Renault’s

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new model Logan had also created a problem in the communication time of the firm
(Scaringella and Burtschell 2017). In this connection, the given report is focused on
proposing strategical solutions that would help the firm to mitigate the risks caused due to the
lack of the effectiveness of the communication process.
Solutions to Communication Management
Based on the theory of Effective Communication Management, it can be stated that
the joint venture companies concerned in the given report are increasingly dependent on the
communication medium processes to maintain the significance of its day-to-day business
transactions and manufacturing of cars (Quirke 2017). The theory of effective communication
management states the joint venture organisation of Renault and IDRO will be able to
combine the level of expertise they have in their organisation as well as the resources needed
to furnish the final product with the help of the communication process (Ferretti and
Parmentola 2015). In this connection, the given report tends to state the manner the
concerned joint venture automobile company would be able to use the synergy of
communication management and gain a better paradigm of competitive advantage in the
business market.
 Taking the practical communication management theory into consideration, the
concerned automobile joint venture can help itself create a win-win situation in
meeting the aspect of demand and supply by fostering effective business
communication (Gölgeci, Murphy and Johnston 2018). This can be done by
encouraging effective communication between the employees to understand the
activities in a recognisable manner and then fulfil the same on the stipulated time
which ensures that the demands of the customers concerning the productivity are
achieved.

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 Moreover, adopting the synergy of communication management in the concerned
automobile firm will also help in ensuring that the employees working at all the levels
of the organisation are accountable towards the fulfilment of their duty (Cohen 2017).
This synergy would take place because the employees would know that they have to
communicate the amount of work completed and generated at the end of each day to
measure the productivity results of the firm.
 In addition to this, as opined by Bakotic and Krnic 2017, communication is a process
that ensures that the business transactions are carried in a smooth way. In this
connection, the same can be related to the joint venture company of Renault and
IDRO by the statement that it will help this company to reduce the cost of operations
as a different set of employees would work together to put their different innovative
ideas to be used in the manufacturing units of the firm. This will provide the firm with
several options to choose from and thus get the cheapest and the best idea to work
with and reduce the cost of operations.
 In the concern of the managing the communication time that is differed between two
nations under merge, the companies can send emails and notification messages prior
to the work timing of each of the nation so that the employees get the information
about their activities with priority at the very start of the day and can work
accordingly (Brown and Duguid 2017).
Issues in Stakeholder Management
Based on the findings researched on the aspect of issues in the stakeholder
management, it was analysed that the issues which are prevailing in the merged project of the
two automobile industry of Renault and IDRO are spoiling the entire undertaking of the
project. In this connection, the issues faced by the joint venture automobile industry in the
concern of the stakeholder management are described below.

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 The suppliers of the firm are changed, and therefore, the initial supply of the raw
materials needed are affected (Stevens and Johnson 2016). Moreover, the business
relationship with the suppliers is also affected.
 The employees and their designation are affected. On the one hand, where some
employees are promoted, many employees, on the other hand, are even demoted from
their work designation. This affects the lifestyle of the employees and their livelihood
as well. Moreover, some of the employees have even been down-sized from the firm,
which brought them to a situation of unemployment (Goffee and Jones 2015).
 Last, but not the least, as stated by Bell, Bryman and Harley (2018), the merge of two
companies into one project changes the entire policies and procedures of the firm. In
this connection, all the connected stakeholders of the organisation and the working
process of the firm are affected. The changes implemented are not investigated to be
acceptable by all the stakeholders, thus, affecting the business relationship.
Solutions to Stakeholder Management
Based on the Stakeholder Theory of Organisational Management, it can be stated that
the managers and the stakeholders of an organisation should work together hand-in-hand to
work with the merger of two companies (Trevino and Nelson 2016). In light of this, the given
report tends to suggest the solutions that would help the joint venture of Renault and IDRO to
maintain its stakeholder management. The same is specified under.
 Choosing an active supplier out of the two companies which would provide the joint
venture with raw materials at better rate and time.
 Re-structuring the employee into the new joint venture, into the same or a better
designation as per requirement, and not demoting or deploying the employees from
their job condition and employment (Vishmidt 2018).

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 Training and developing all the employees about the changed policies and procedures
in the concern that the employees would understand the need of the same and remain
acceptable towards the changes, informing the financers as well as the suppliers about
the joint venture before-hand and the changes that are to be implemented in the
policies of the firm (Elwyn 2018). This would help in creating transparency between
the entire organisation and its stakeholders and help build a productive business
relationship.
Conclusion
Given the findings based on the industry investigation of the joint venture of Renault
and IDRO, concerning the communication as well as the stakeholder management, it can be
seen that the venture is facing diversified issues relating to the management of both the
variables. The outcomes show that the entire working transactions of the organisation have
turned out to be affected due to the failure in the management of the communication and the
stakeholders. The ineffectiveness in the communication process has reduced the productivity
level of the company. Moreover, the mismanagement of the stakeholders has affected the
profit-earnings ratio of the company.

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References
Bakotic, D. and Krnic, A., 2017. Exploring the relationship between business process
improvement and employees’ behaviour. Journal of Organizational Change
Management, 30(7), pp.1044-1062.
Bason, C., 2018. Leading public sector innovation: Co-creating for a better society. Policy
Press.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university
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Brown, J.S. and Duguid, P., 2017. The social life of information: Updated, with a new
preface. Harvard Business Review Press.
Charles Jr, O.H., Schmidheiny, S. and Watts, P., 2017. Walking the talk: The business case
for sustainable development. Routledge.
Cohen, E., 2017. CSR for HR: A necessary partnership for advancing responsible business
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Deresky, H., 2017. International management: Managing across borders and cultures.
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Elwyn, G., 2018. Integrated teams in primary care. CRC Press.
Ferretti, M. and Parmentola, A., 2015. The creation of local innovation systems in emerging
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Goffee, R. and Jones, G., 2015. Why Should Anyone Be Led by You? With a New Preface
by the Authors: What It Takes to Be an Authentic Leader. Harvard Business Review Press.

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Gölgeci, I., Murphy, W.H. and Johnston, D.A., 2018. Power-based behaviours in supply
chains and their effects on relational satisfaction: A fresh perspective and directions for
research. European Management Journal, 36(2), pp.278-287.
Quirke, B., 2017. Making the connections: using internal communication to turn strategy into
action. Routledge.
Scaringella, L. and Burtschell, F., 2017. The challenges of radical innovation in Iran:
Knowledge transfer and absorptive capacity highlights—Evidence from a joint venture in the
construction sector. Technological Forecasting and Social Change, 122, pp.151-169.
Stevens, G.C. and Johnson, M., 2016. Integrating the supply chain… 25 years
on. International Journal of Physical Distribution & Logistics Management, 46(1), pp.19-42.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to
do it right. John Wiley & Sons.
Vishmidt, M., 2018. Speculation: the Subjectivity of Re-structuring and Re-structuring
Subjectivity. In Speculation as a Mode of Production (pp. 28-77). BRILL.s