Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


IB Nissan Negotiation

No description

Ashley Pollard

on 25 April 2011

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of IB Nissan Negotiation

1 Synopsis 2 Major Determinants 3 4 Nissan Negotiations Yellow Group Presentation 5 6 Reasons why agreement was made
Reasons for agreement conditions Individual Justifications Salient Features & Determinants Views from noncentral actors Strengths & Weaknesses AGENDA Renault SA agreed to
buy a 42% stake in Nissan motors for $5 billion and
assume 42% of the $31 billon debt-approximately $13 billion) Each company retains brand identity
Renault's CEO (Loius Schwietzer) as CEO of alliance DaimlerChrysler purchased 33.4% of Nissan Motor’s 39.8% stake in Nissan Diesel for $250 million Nissan POV:
Negotiations with DaimlerChrysler very quick
Disagreements regarding valuation of Nissan Renault POV:
distributive bargaining with Nissan
4 rules for effective bargaining:
separate people from problems
focus on interests, not people
invent options for mutual gain
insist on using objective criteria DaimlerChrysler POV:
Desired the 40% stake Nissan Motors had in Nissan Diesel (or 10% of Nissan Motors)
High awareness of Nissan's needs and BATNA's DaimlerChrysler POV:
33.4% stake over 40% stake to ensure DaimlerChrysler would not take over Nissan’s debt Renault POV:
Initial 45% offer not acceptable to Nissan
Only way to secure deal was to offer more money
Assumption of debt: ethical obligation
Keeping brand name of both
Organizational structure
Board of Directors structure
Nissan POV:
Focus on 'win-win' for all parties Nissan POV:
Valuate Nissan Motors against the auto industry average (meaning somewhere around $24 billion)
Final offer of $5B from Renault deemed 'fair Renault POV:
Valuation issues: market value of Nissan shares on the Tokyo Stock Exchange was around $12 billion
Inability to rely on success of Nissan's 1-year ($6B) plan for company turn-around DaimlerChrysler POV:
Japanese law protected DC from acquiring Nissan's debt at 33.4% stake
In case of termination, DC can sell only with Diesel's approval and agreement of liquidatoin
DC gets veto power in major decisions
Nissan agreed to share technical know-how and Diesel's distribution channels DaimlerChrysler POV:
Valuation concern/high investment risk of Nissan Motors
Focus switched solely to Nissan Diesel
Press releases helped clarify issues and speed process Renault POV:
Without tie-up with Nissan, Renault would eventually disappear from market
Nissan Motors offered portion of Diesel as part of deal
Nissan Roren's value-added plan
Email from Nissan Motors to Renault's CEO Nissan POV:
Comfort/Trust with Renault initially low
Email from Hanawa to Schweitzer focusing on synergy
Debt absorption Nissan Roren:
Main objective: protect as many jobs as possible
Union not marginalized; collaborative effort
Value-added plan offered
French POV:
Negotiations overall were constructive and mutually respectful
Despite technically being a multi-party negotiation, often felt like 2-party between C-level execs Goldman Sachs & Co:
No group seemed marginalized though roles of Nissan Roren and Goldman Sachs representative were less integral
Frustration at lack of power in proceedings
DC/Nissan deal completed with relative ease; Renault/Nissan deal more heated STRENGTHS Nissan: Tough, hard-ball tactics; procedural organization; ability to form a united front, well-prepared Renault: ‘Upper hand’; alignment on position; well-prepared DaimlerChrysler: Ability to walk away, build rapport, and uncover underlying interests; well-prepared Weaknesses Nissan: Lack of confidence; uncertainty; inability to ‘bluff’ due to everyone having equal information Renault: Lack of confidence; uncertainty; inability to ‘bluff’ due to everyone having equal information DaimlerChrysler: Lack of confidence; uncertainty; inability to ‘bluff’ due to everyone having equal information; missing concrete information (aka #’s) to back up demands; too much trust 1. Synopsis
2. Major Determinants
3. Individual Justifications
4. Salient Features & Determinants
5. Views from noncentral actors
6. Strengths & Weaknesses
Full transcript