Bonazzi Indo Joint Venture: Culture Clash or Pure Economics? (Spanish version)

Description

Owing to the rapidly growing automotive market, international joint venture activity in the auto-components sector has been increasing in India, both in terms of frequency and strategic importance.Bonazzi Indo Fasteners Limited, a joint venture between the Turin-based Bonazzi Group and the Mumbai-based Indo Group, was set up to manufacture automotive fasteners, primarily for global original equipment manufacturers. There is a confrontational relationship between the two joint venture partners, and the chief executive officer has been unable to broker peace between them.

Learning Objective

Students will learn the problems that can arise during interactions between people from different cultures. They will learn to uncover the reasons behind cross-cultural friction and will learn how professionals can prepare themselves to effectively deal with such friction. Students will be able to appreciate the application of Hofstede’s theory and Gesteland’s model. Students will understand the challenges involved in running a cross-cultural joint venture. Students will learn the differences between using an ownership-based method of structuring joint ventures and using a trust-based approach.

Keywords

Cross-cultural negotiation India Joint ventures