Motors for Munchao: Euroland Motors, MMI & Govt. Interests - Essay Sample

Introduction

The main stakeholders in the Motors for Munchao case study are Euroland Motors represented by Mr. Hartmut Holgebretsen, Munchao Motors Import (MMI) represented by Mr. Wu Chang and Munchao government and the joint venture company. The interests of euroland motors are to provide the joint venture between them and Munchao Motors Import with gas engines and diesel engines. The company is known for its state-of-the-art equipment, turnkey deliveries, and complete process packages. The interests of Munchao Motors Import are to import high-quality motor engines in the joint venture.

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The Munchao government is a stakeholder as it owns the Munchao Motors Import and is interested in its wellbeing. It has also put into law the requirement that foreign companies partner with local Munchaoan companies to operate in the country. The joint venture company will be owned by both Euroland company and Munchao Motors Import on a 50% basis. Its interests will be to import and resell 40,000 engines to end customers in Munchao. It will assemble the dual-fuel engines, which will be delivered by euroland company in the form of prefabricated and pretested modules. It will also be responsible for selling the assembled motors to customers in Munchao. The profits obtained will then be shared by all the stakeholders.

Negotiation Strategies and Negotiation Planning for Euroland

In business, negotiations are involved in almost everything, which is why Euroland should have some negotiation strategies in place to find the best solutions that will benefit both parties. The first strategy is to prepare adequately for the negotiations. The greatest mistake that one can make is going into a negotiation without proper preparation. Euroland should be clearly aware of what it wants before joining the joint venture business with Munchao Motor Imports.

It is also essential that they study MMI sufficiently to understand their strengths and weaknesses. The second negotiation strategy that Euroland can use is paying attention to timing, which is crucial in any negotiation. Euroland should know what to ask for but, more importantly, when to ask for it. It should know when to push for something and when to wait. However, it should be conscious of pushing too hard, which may ruin long term relationships with MMI.

Another strategy is to have excellent listening skills. Euroland should listen to what MMI has to offer without interrupting and encourage them to talk first. It will give euroland a chance to assess what MMI is thinking. The other negotiation strategy is asking for what they want. Euroland should define its price and ask for what it wants in the joint venture. However, it should not provide ultimatums in the negotiations as they might ruin everything. It is also essential to compromise during negotiations even when one gets a deal that they did not expect as they may get more if they say no in the first offer.

Commitment to delivery should also be a negotiation strategy that will show MMI how dedicated euroland is to the joint venture. Another strategy is for Euroland to stick to its principles and avoid getting absorbed into MMI problems. If negotiations cross the principles, then it would be better for Euroland to forego the joint venture. Lastly, Euroland must close the meeting with confirmation, even when no final agreement has been obtained. Avoid leaving loose ends after every meeting by recapping the points covered and areas of agreement.

For the negotiations to be effective and for Euroland to obtain a deal that will be suitable for both parties, they must plan their negotiations adequately. The first step in planning the negotiation is to determine what euroland wants. Euroland Motors should think about what they want in the negotiations and how they can achieve it. They should determine the number of engine units they want to sell and their prices. They should then rank their objectives to determine what is most important, which will help structure the negotiation.

The second step in planning for the negotiations is to determine what Euroland is prepared to give up. For example, they can give up on importing finished goods as it may be too expensive and consider assembly and installation in Munchao. Knowing what they want to sacrifice will make the negotiations easier as it gives an idea of what is expected. The next step in the negotiations is to clarify authority limits. Euroland should be aware of the lines they are not allowed to cross during the negotiations.

The other step is gathering information about MMI. Although this might be difficult, it is worth during the negotiations. Gather information about the value of similar deals using available information. Such information will help euroland identify what is reasonable during the negotiation. It avoids going into negotiations with inappropriate expectations. The last step in planning the negotiations is to decide the technique to use for the negotiations. It will allow euroland motors to determine what is best for them and ways to approach the conversations. Choose the techniques that are appropriate and ethical.

Tactics for Better Establishing Long Term Partnership

For the negotiations to be successful, both Euroland Motors and Munchao Motors Import the tow companies should have a better way of establishing long term partnerships during the negotiations. In this case, the two parties must understand the best ways to overcome the cultural barriers between northwest Europe and East Asia. Misunderstandings may arise during the negotiations due to cultural differences, which may lead to conflict and ruin long term relationship between the two companies. Several tactics can be used to ensure cultural differences are overcome during the negotiations.

First, Euroland Motors should research sufficiently on the culture of East Asia people. Understand their cultural customs, taboos, rituals, among other things. Know whether the negotiators greet one another with a hug, a handshake, or a bow. Is it appropriate to go directly into business, or is a small talk before the business appropriate for building trust? Such preparations are needed to avoid embarrassing moments and overcome cultural differences, which will help build long-term partnerships.

The second strategy is to consider the individual. Although knowing the other person's culture is essential during negotiations, overlying on this information is not advisable. Avoid looking like a cultural stereotype by overusing the other person's cultural information during the negotiations. Making the other person feel multifaceted during the negotiations will help in establishing long term partnerships. Creating stereotypical ideas about the other person's culture will create misunderstandings, which will lead to cultural clashes. Mr, Hartmut, and Mr. Wu Chang should focus on knowing each other as unique individuals and put their cultural differences aside.

The other tactic is to build bridges across the cultures. Instead of looking for ways to overcome the cultural barriers, the two parties should focus on bridging the differences. It implies that MMI and Eurobond Motors representatives should focus on the similarities between their cultures or find other shared things beyond cultures, such as their goals, interests, and experiences. The other tactic is to consider the broader context. By focusing on broader ideas, the parties can increase their chances of getting into an agreement. Another tactic is to take steps to reduce the stress that arises from cultural differences. Emotional stress, deadlines, and accountability may ruin the negotiations, so the negotiations should be well planned to reduce the stress. It will reduce the pressure brought about by cultural differences and avoid cultural stereotypes.

Expected Outcomes, Criteria for Evaluating Success, and Expected Subjective Value

From the negotiations, each party has its expectations that they would want to achieve from the negotiations. First, Eurobond Motors expected outcomes would be to obtain a deal that will allow them to manufacture and sell their oil and diesel engines in Munchao. They expect that they will manage to sell their products to the Asian market through the joint venture company at a lesser cost. Although Eurobond production is mainly in the north European countries, their largest market is in Asia. Also, producing in Munchao will allow them to have access to the fast-growing market, which will increase their revenue. The expected outcomes for Munchao Motors Import is to have the diesel engine and oil engine produced in the country, which will reduce the cost of importation. It will increase its profit margin and enable the company to remain competitive in Munchao.

Different criteria can be used to measure the success of negotiations. First, each company can evaluate its leverage situation. It involves assessing what should have been done if no agreement was made. It involves comparing the terms of the agreement to what one would have done if no agreement was reached. Another way of measuring the negotiations' success is to analyze whether both parties were able to resolve their differences without conflict, and the number of unresolved issues was reduced. Another way is to track the results of the negotiations to the objectives of the company. If the company was able to meet its objectives in the negotiations, then they were successful.

Each company should be aware of what its values during the negotiations. Having a positive feeling after the first negotiation can significantly impact the outcome of the subsequent negotiations. If both parties have a high subjective value after the negotiations regarding perception, social and emotional outcomes, it will create a long-term partnership. Subjective value has a significant impact on the outcome of future negotiations.

The first subjective value in the negotiations is having a positive feeling about the outcomes of the negotiations. Both parties should feel that they have won in the negotiations. The second subjective value is that each party has done the right thing during the negotiations. The third is having a positive feeling about the negotiation process and it involves aspects such as each party listening to the other. The fourth subjective value in the negotiations is the feeling about the partnership. The companies should establish trust, which will help build a strong relationship for the long term.