Tuesday, September 24, 2019
The significance of cross-cultural negotiation skills for the success Essay
The significance of cross-cultural negotiation skills for the success of international mergers and alliances - Essay Example This is where the term Ã¢â¬â¢cross-culturalÃ¢â¬â¢ acquires significance in discussing negotiating skills essential for the success of international mergers and more specifically for success in acquisitions and alliances. More often than not, mergers and acquisitions are types of corporate businesses which amalgamate to form one single legal entity. The word alliance may cover activities like joint ventures, technology sharing agreements, and (seemingly in danger of violating anti-trust laws by price fixing) cartels, but not necessarily forming a single legal entity. Mergers and acquisitions among business firms have occurred within state boundaries before they became an international phenomenon. It perhaps speaks volumes for the lack of negotiating skills by one party or the other, when it is reported that 60 - 70 percent of M&As failed to deliver on what had been expected financially, as the outcome of the liaison. Less than a fifth of international M&As are said to create added value to the resulting organization. At the least, domestic mergers and acquisitions can expect shared traditions, regulatory laws, and custom and practice, which presumably make it easier for two or more parties to agree on common business aims and work towards achieving them.