Case Study

Fiat and Peugeot's Sevelnord venture (B2): Fiat's guideline for the U60 negotiations

16 pages
May 1996
Reference: IMD-3-0646

The second part of this series (cases B1 and B2) describe the perspectives of Peugeot and Fiat respectively as they prepare to enter in a major negotiation regarding SEVELNORD’s manufacturing capacity and production plan. The two cases follow the same outline and differ primarily on a few critical data that generate the difference of perspective between the two parties. Participants only read the “B” case of the company they will represent in the negotiation. The participants are also provided with a financial model (an Excel spreadsheet) to help them assess the profit implications of their decisions and compromises. The goal of this exercise is to make participants aware of the tradeoffs in alliances and the necessity to help the partner achieve a satisfactory performance in order to ensure the long term stability of the venture. Broader lessons can be drawn regarding negotiation techniques and tactics. Note: It is also possible to use only the A and C cases, skipping the negotiation exercise.

Keywords
European Strategy, Car
Settings
Europe
1991
Type
Field Research
Copyright
© 1996
Available Languages
English
Related material
Teaching note
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Discover our latest research
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics