Crosscultural negotiation

Seminar paper from the year 2001 in the subject Communications - Intercultural Communication, grade: 1,7 (A-), Nürtingen University (Economics), course: Hauptseminar, 14 entries in the bibliography, language: English, abstract: 'Mitsubishi is certainly an interesting partner concerning busses and trucks, but he is already married,' said Rolf Eckrodt of DaimlerChrysler AG about the discussion on buying shares of Mitsubishi Motors Corp. (MMC) . In 1999 the Swedish utility truck manufacturer Volvo entered into an alliance with MMC by acquiring 3.3 percent of the shares. DaimlerChrysler AG - seeking for a Japanese partner in the field of busses and trucks - considers buying Volvo's outstanding 3.3 percent stake in MMC. The problem at this point is that Volvo has already established a long-term relationship with MMC which is the basis on that future success rests. In the following, I will explain the problems which might arise in the negotiating process between the German-American company DaimlerChrysler AG and the Japanese corporation Mitsubishi. There are various differences between the Western and the Japanese society which have great influence on the negotiating process. The Germans have to pay attention to these differences, for instance, the strong hierarchical system, the group consensus in decision-making and the deference to seniors in Japan. Offending against certain rules of the Japanese society might harm the relationship between the counterparts in a negotiation.