ipl-logo

Chrysler Negotiation Paper

2022 Words9 Pages

Introduction This paper will analyse the negotiation that preceded the acquisition of Chrysler by the Italian car manufacturer Fiat in 2009. The aim of this analysis is to apply some theoretical elements to the negotiation process in order to facilitate the understanding of the reasons that brought to a specific agreement. In particular, the objective is to underline some behaviours and factors that affected the evolvement of the situation and fully perceive their impact on the negotiation. The intent is to link all the occurred actions to the resulted decision and to understand these connections. Since the beginning of the twentieth century, the Italian-based company Fiat focused remarkably on an international strategy. In 1908 Giovanni Agnelli …show more content…

The interest of the parties involved in the Fiat-Chrysler negotiation are very complex; in fact, the negotiation actors are organizations that represent the interest of thousands of people, if not more. In this context is very hard to analyse all the interests and preferences of this negotiation and moreover it is useless for the purpose of this paper. It is though important to bear in mind that each player has as main interest the sake of the people it represents. Generally it can be stated that the government is probably interested in the general economy, the unemployment rate, the investors and the satisfactory of the constituents. Chrysler and Fiat are interested in the future success and financial stability of the two companies. The unions are interested in protecting the employees from being exploited by receiving minimal wages or being …show more content…

Though, some external factors increased the complexity of the process, forcing other parties and issues to be added to the negotiation table. The negotiation evolved therefore in a repeated negotiation where other parties became actors, thus increasing even more the complexity of finding an agreement. The first negotiation was played in the ZOPA of the two companies, Chrysler and Fiat. In these kinds on negotiations the final agreement is usually more beneficial for one player or the other; in fact, we can assume that the surplus of Fiat was bigger than the one of Chrysler, given the fact that Fiat entered the negotiation with a stronger position, considering its financial stability. Yet, after the first negotiation, the situation changed thanks to the entry of the new negotiators. The two original actors change role, becoming two allies and the achievement of a good deal was beneficial for both of

Show More
Related
794 Words | 4 Pages

They have set rules and regulations for workers so that they can be safe while doing their jobs and are forcing employers to raise wages. The early unions obtained the eight hour work day and the foundation for the Workers Compensation Acts, but the unions today have built on that foundation and raised the standards, so that the working men and women can give their families a roof over their heads and food on the table. Labor unions fight for the rights of workers. Today, they are trying to keep jobs in America and get the companies to let union workers to do the jobs needed instead of hired contractors. Many people today would agree with Mother Jones when she said “As I long to see the day when Labor will have the destiny of the nation in her own hands and she will stand as a united force and show the world what the workers can do.”

Read More
1846 Words | 8 Pages

Unions are concerned with affordable healthcare acts affects their ability to increase union membership, and the ability to maintain union dues. Additional costs associated with affordable healthcare act cannot be passed to members, directly or indirectly. Negotiating the increased costs may offset wage negotiations in the future. Unions are not happy with the outcome of the affordable healthcare act (iam141, 2010, pp. 1-3). Union members and union leaders were generally in support of the Affordable Healthcare act during its development.

Read More
1727 Words | 7 Pages

This was a distributive negotiation whereby Hormel’s primary interest throughout the negotiation with P9 was to reduce wage bills. Hormel’s management were aware that they had the upper hand in negotiations owing to the existing business situation in America that favored corporate rights to labor. In the process of creating a new contract, there existed little legal recourse against the company if they chose to terminate/not hire current workers, reduce wages, or replaced existing workforce with cheap labour. To add on, Hormel had all of the power in this negotiation due to their market position, control of financial resources, and ability to shift production facilities to another location. Local P9 had exactly contradicting interests as Hormel.

Read More
282 Words | 2 Pages

The National Labor Relations Act allows employees to form a union or join a preexisting union. The same act prevents employers from standing in the way of workers attempting to unionize. Many organizations frown on unionization, but regardless of their opinion, they cannot interfere with employment rights. Employers are violating the law if they threaten employee 's jobs, question union activities, or eliminate benefits for employees by unionization. They also cannot offer benefits or perks to employees for refusing to unionize, as this could be seen as illegal persuasion (Employer/Union Rights, n.d.).

Read More
2272 Words | 10 Pages

Question 1 Several factors have been proposed as providing a rationale for mergers. Among the more prominent ones are (I) tax considerations, (2) diversification, (3) control, (4) purchase of assets below replacement cost, and (5) synergy. From the standpoint of society, which of these reasons are justifiable? Which are not?

Read More
351 Words | 2 Pages

It wasn’t a union, but a federation, whose goals were to bargain with employees’, resolve grievances and organize strikes. Unlike The Knight of Labor, in order to achieve efficiency, it believed in the capitalist system and the importance of employers’ making a profit, but also seeks to win labor’s fair share of the profits through collective bargaining. Equity was achieved by way of making sure that employees received their fair share of the profits though collective bargaining. Therefore, to ensure that workers received their fair share of the profits, the union had no problem using the threat of strikes.

Read More
1120 Words | 5 Pages

They realized that in a time of need they could work together to accomplish their goals and defeat. Just as the war began to unite the two countries, it quickly

Read More
1464 Words | 6 Pages

Despite the cons of unions overall they help not only the employees but also the

Read More
1814 Words | 8 Pages

The notion describes a situation whereby a party in a contract intends to be rational during the signing of the contract, but acts limitedly so afterwards. The said party uses the contract as a means of achieving self-interests and is very opportunistic, seeking a contract that will be of more benefit to it than it will be to the partner. The self-interest-seeking attribute is described in transactional economics as opportunism, moral hazard and agency. In the acquisition of Fisher Body by General Motors, the initial opportunism is seen as the action of Fisher Body, which seeing that the market for closed metal bodies was increasing, sought to enter to a contact with GM, making it long-term. This allowed Fisher Body to invest in expansion of the business as the market becomes less of an uncertainty in the ten years, and the expansion became of more benefit to Fisher Body than it was for GM (Klein, 2008).

Read More
1660 Words | 7 Pages

The case “Alpha – Beta” is a very interesting case, which could be considered as one of my most favorable cases so far. What interested me was the fact that we had to act totally different from our conventional style. In fact, we were asked to behave collectively, formally, indirectly, patiently, unemotionally and passively. Although we could not make the deal, we all found this outcome understandable and predictable. What we learned from the exercise was to be aware of the existence of cross-cultural differences as well as how these differences affect our negotiation outcomes, then find out what should we do in the similar negotiation in our future.

Read More
2869 Words | 12 Pages

Investment Banking Report “Mergers and Acquisitions” Student Names and Numbers Despo Michaelidou - Ioanna Panayiotou - Mikaella Savva - 20140213 Katerina…. Svetlana…. Introduction Back in 2006, a merger & acquisition agreement between two well-known companies set the basis for the continuation of the evolution in the animation industry. Being partners for more than a decade, Disney and Pixar eventually merged, after a number of unsuccessful attempts.

Read More
1888 Words | 8 Pages

On day two, we are assigned the “The Biopharm- Seltek Negotiation” role play. After the “Salary Negotiation” on the first day with a desirable outcome, we thought that we would perform better because we seemed to be more familiar with the negotiation process. The feeling of confidence then came into my mind, which made me believe that we would achieve a very favorable deal today. However, compared to other groups’ outcomes, we realized that it was not. Let us recall what had happened today and then analyse to find out why the outcome was not as good as we had expected and how to improve our shortcomings.

Read More
1646 Words | 7 Pages

• Care must be given to the fact the Renault, the mother company is a prestigious symbol of French automotive prowess. The push to new frontiers should not come at the cost of Renault losing ground in its own playfield, France. The automotive industry in most of the advanced economies are struggling with shortage of skilled workforce and Renault is no different from this. Dacia, with its strong presence in several developing economies can help Renault by supplying additional workforce from its labour pool in developing economies. • The threat from the competitors is persistent and unavoidable.

Read More
1250 Words | 5 Pages

INTRODUCTION In June 2008, TATA Motors announced the acquisition of brands Jaguar and Land Rover from the car producing giant Ford Motors. The deal was valued at US$ 2.3 billion and is considered an overall success even from intercultural perspective. On the contrary, the deal was speculated to be a huge failure as the world was entering into recession in 2008 and Jaguar Land Rover (JLR) was incurring huge losses. The deal was an all cash deal with 100% acquisition of Jaguar Land Rover’s businesses.

Read More
2531 Words | 11 Pages

Brief History of Company Maruti Suzuki India Limited is one of the leading 4-wheeler automobile manufacturing company in India. It is a subsidy of Japanese manufacturer Suzuki. The company was founded in the year 1981, and the first manufacturing plant was set up in Gurgaon, Haryana. The company was previously known as Maruti Udyog Limited. It entered into a Joint Venture Agreement with Japanese Automobile giant Suzuki.

Read More

More about Chrysler Negotiation Paper

Related Topics

Open Document