Case: Fiat’s Strategic Alliance with Tata. IB-Sec A &C.
Please use the following questions as guideline to prepare the case: (Follow instructions in outline except those mentioned below.. 1. Given that, Fiat existed and operated in India for long why did it decide to form a strategic alliance with Tata? * Frequent bottlenecks with earlier smaller JV partner(premier) * felt the need for bigger player- with financial and management compatibility * Long term approach * Respected name and trust on “TATA” brand * Strong foothold of TATA in promotion, distribution and dealership across India. * Seriously challenged with the problems unique to India. Did not have a clue how to solve them on their own e.g
…show more content…
Important aspects to focus on: i. Partner selection 1. Earlier partner – premier – small player ,did not match up to fiats requirements for capital commitments 2. Tatas had – brand ,long term commitment, excellent domestic and international reputation 3. Both parties had elaborate meetings to communicate strategic priorities and interests in working together c. Alliance structure ii. GM- Fiat alliance did not completely guard against the risk of opportunism by the partner. In this case fiat got the better out of GM. iii. Exit clauses were dealt thoroughly: 4. Right of both companies in case one company exited 5. Continuity of other contracts if JV is terminated iv. During negotiation “business issues” took the centre stage and legal issues were to be addressed later. It shows mutual trust and focus on goals. d. Management of the alliance v. Cultural differences at different layers needs sensitisation 6. Country cultures – Italian and indian 7. Corporate cultures – Fiat (autonomy of decisions) tata(centralisation) e. Nature of resources available f. Degree of market uncertainty g. Level of competition in the market h. Types of synergies vi. Modular vii. Sequential viii. reciprocal
5. Which aspects of the JV negotiation, according to the group, are
At the same time, I also realized that the negotiation partners are not always having the conflict interests during the negotiation. In this case, for some of the issues, we actually have the same goals. So baring this in mind, in the future negotiation case, I would first seek the common goals for both of us first to create a win-win situation.
1. Review text pages 137–139 in Chapter 4. These pages cover step 9 in the planning process, assessing the social context of negotiation.
b. Bring Miczek and Andrews together to resolve conflicts and sensitize them on the urgency of the situation and motivate them to work together to get all
1. How did you plan for the negotiation? Explain how you decided on a strategy?
v. This is applicable to our case because the negotiation and contract signing payments can be considered arrangement considerations because the payments are fixed and therefore, should be allocated over the three
For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.
some of the leaders met to discuss their demands. The leaders came up with four demands:
A. Identify the issues that you thought were the most important issues to be negotiated, and briefly explain why you thought they were the most important.
a. Do you think the strategic analysis, as described in the case, achieved its objective? Explain.
1. Assess Interco’s financial performance. Why is the company a target of a hostile takeover attempt?
Both our approaches were directed towards addressing the issues with a collaborative spirit for the greatest benefit to both sides. We agreed that both sides wanted to establish a long term a relationship with each other and were willing to give genuine consideration to each other’s particular needs and interests. This experience has enabled me to reflect on my personal approach towards negotiation, as well as analyze my strengths and potential areas for improvement as a negotiator.
Elaborate on the ways in which the acquisition of Torrington facilitates the creation of synergy for Timken Company?
2. What benefit does fiat hope to gain from its arrangement with Chrysler what potential
What were the key challenges facing Tata Motors in the process of moving to produce passenger cars from successfully producing commercial vehicles?
Tata Motors marks the biggest turnarounds in the history of Indian automobile manufacturing industry which happened in 2001. This success story of Tata Motors can be entirely attributed to the timely change adopted by the Tatas and the then MD Ravi Kant who led the change.