Running head: PROBLEM SOLUTION: USAUTO
Problem Solution: USAuto
Bryan Vallance, Jared Nelson, Michael Trudeau, Richard Meyer
University of Phoenix
Problem Solution: USAuto
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Situation Analysis
Issue and Opportunity Identification
USAuto made many assumptions about AutoMex and what their possible goals may be for a partnership prior to entering into negotiations. USAuto approached the negotiations with AutoMex with a distributive negotiation strategy, having no plans on creating a “win/win” situation for the two organizations. Of course AutoMex would indeed receive a benefit from the partnership; however, this benefit was by no means equal and AutoMex felt exploited. USAuto did not create an alternative plan that could meet both organizations goals and therefore caused the negotiation process to end abruptly with a bad taste being left in the mouth their potential partner. “Integrative negotiations are those…referred to as "win/win"…all sides are looking for a solution that maximizes joint gain...They involve looking at the issues being negotiated from multiple angles, considering multiple issues at once…trying to "expand the pie" rather than divide it” (La Piana Associates, Inc, 2008). USAuto as an opportunity to approach AutoMex with an integrative negotiation strategy that can meet both parties goals. This would ultimately providing AutoMex with the opportunity to increase their workers skills, while at the same time offering USAuto the cheaper labor that it needs.
USAuto entered into negotiations with AutoMex without doing proper research on the Mexican culture and created a very abrasive atmosphere during the negotiation process. This approach caused negations to be futile and almost stopped them before they ever started. Four of the major area’s in which they were not culturally sensitive included the importance relationships, hierarchy, formality,...