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Harvard Case - Río Curicó: ONE Role Material

"Río Curicó: ONE Role Material" Harvard business case study is written by Julian J. Zlatev, Kathleen L. McGinn, Katherine Chen, Shaaref Shah. It deals with the challenges in the field of Negotiation. The case study is 15 page(s) long and it was first published on : Mar 26, 2020

At Fern Fort University, we recommend that R'o Curic' adopt a principled negotiation strategy with ONE Role Material to achieve a mutually beneficial outcome that aligns with the company's long-term goals and values.

2. Background

R'o Curic', a Chilean forestry company, is seeking to acquire ONE Role Material, a Brazilian paper producer. The acquisition would provide R'o Curic' with access to new markets and technologies, but the negotiations have been challenging due to differences in culture, business practices, and objectives.

3. Analysis of the Case Study

Using a strategic framework, we have identified several key factors that will influence the outcome of the negotiations:

  • Cultural differences: Chilean and Brazilian business cultures differ significantly, which can lead to misunderstandings and communication breakdowns.
  • Business practices: The two companies have different approaches to negotiation, with R'o Curic' favoring a more collaborative style and ONE Role Material preferring a more adversarial approach.
  • Objectives: R'o Curic' is primarily interested in acquiring ONE Role Material's assets, while ONE Role Material is seeking to maintain control of its operations.

4. Recommendaations

Based on our analysis, we recommend that R'o Curic' adopt the following negotiation strategies:

  • Principled negotiation: This approach focuses on finding a solution that meets the interests of both parties. It involves identifying common ground, building trust, and creating value.
  • Active listening: R'o Curic' should actively listen to ONE Role Material's concerns and perspectives to understand their underlying interests.
  • Cross-cultural sensitivity: R'o Curic' should be sensitive to the cultural differences between the two companies and adapt its negotiation style accordingly.
  • Prepare thoroughly: R'o Curic' should prepare thoroughly for the negotiations by researching ONE Role Material, identifying their interests, and developing a range of potential solutions.

5. Basis of Recommendaations

Our recommendations are based on the following considerations:

  • Core competencies and consistency with mission: Principled negotiation aligns with R'o Curic''s values of integrity, respect, and collaboration.
  • External customers and internal clients: A mutually beneficial outcome will benefit both R'o Curic' and ONE Role Material, as well as their customers and employees.
  • Competitors: A successful acquisition will give R'o Curic' a competitive advantage in the global paper industry.
  • Attractiveness: The acquisition is financially attractive and has the potential to create significant value for R'o Curic'.

6. Conclusion

By adopting a principled negotiation strategy and carefully considering the cultural and business differences between the two companies, R'o Curic' can increase its chances of achieving a successful outcome in the negotiations with ONE Role Material.

7. Discussion

Other alternatives that were considered but not selected include:

  • Distributive bargaining: This approach focuses on maximizing one's own gain at the expense of the other party. It is unlikely to lead to a mutually beneficial outcome.
  • Positional bargaining: This approach involves taking a fixed position and refusing to compromise. It can lead to'' and damage the relationship between the parties.

The key risks and assumptions associated with our recommendation include:

  • Cultural misunderstandings: If R'o Curic' does not adequately address the cultural differences between the two companies, it could lead to communication breakdowns and conflict.
  • Unrealistic expectations: If either party enters the negotiations with unrealistic expectations, it could make it difficult to reach an agreement.
  • Hidden agendas: If either party has hidden agendas or undisclosed interests, it could undermine the negotiation process.

8. Next Steps

R'o Curic' should take the following steps to implement our recommendation:

  • Prepare thoroughly: Research ONE Role Material, identify their interests, and develop a range of potential solutions.
  • Build a strong negotiating team: Assemble a team with the necessary skills and experience to negotiate effectively.
  • Establish a positive relationship: Build trust and rapport with the ONE Role Material team by demonstrating respect and understanding.
  • Negotiate in good faith: Focus on finding a solution that meets the interests of both parties.
  • Be flexible and willing to compromise: Be prepared to adjust your position and make concessions in order to reach an agreement.

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