"THE AUTOMOTIVE INDUSTRY OF CHINA, INDIA, MALAYSIA, AND THAILAND: COMPETITIVE AND TECHNOLOGY MANAGEMENT ISSUES".
This project is designed to increase the students' awareness to the complex issues surrounding international technology management and competition - based on the business dealings in the automobile industry.
The simulation also aims to increase the students' know-how in conducting
successful international negotiations, and the skills in using computers
and the information highway (INTERNET) in the learning process.
To accomplish these, the following scenario and schedule are proposed:
TEAMS GET ACQUAINTED; BACKGROUND DISCUSSIONS; ISSUE REQUESTS FOR PROPOSALS (RFP's) BY OCTOBER 28,1996 AS FOLLOWS:
The Chinese Government Delegation and NEWCHIN, an auto parts manufacturer: issue an international RFP for the production of a small passenger car (compact), starting in 1998. The invitation to bid should outline at least the following:
NEWCHIN, the Chinese auto parts manufacturing company, recently
privatized, will represent the local partner. It should be actively involved
in drafting the RFP. Newchin's representatives should research the actual
Chinese companies in this field and be familiar with their size, capabilities,
policies, etc. They should also be familiar with the current Chinese government
The TATA GROUP, one of the biggest private corporations in India,
seeking a joint-venture partner, should also issue an international RFP.
Similar elements with those discussed in the Chinese case above, should
be outlined. The type of car sought should be a medium size sedan.
In developing the invitation to bid, the Tata team should be thoroughly
familiar with their company's capabilities and the current industrial policies
of the Indian government. Those policy aspects that would give the joint-venture
best chances for approval (i.e: technology transfer, workers' training,
alternative fuels, pollution control, reinvestment in India, barter options,
export quotas, etc.) should be emphasized.
UNOMALY, a government-owned company, issue an international RFP
for a medium-sized sport-utility vehicle. The pattern should be similar
with those followed by China and India in their invitations to bid. Same
The same goes for AUTOTHAI, a private corporation, seeking a joint-venture partner to manufacture minivans in Thailand.
NOTE: RFP ISSUANCE DEADLINE: OCTOBER 28, 1996, 10.00 p.m. E.S.T.
INTERNATIONAL AUTO COMPANIES TEAMS ANSWER JOINT VENTURE RFP's (ISSUE PROJECT PROPOSALS):
The various car manufacturers from the United States, Japan, Europe, Korea, etc. should submit detailed proposals in one or several countries, as they wish.
PROPOSALS' SUBMITTAL DEADLINE: NOVEMBER 11, 1996, 10.00 p.m. E.S.T.
In order to ensure best chances to be selected as partners, the proposals should consider and address the specific developmental needs of the project country, outline company strengths and particular qualifications for the project, make a strong case for why they should be awarded the contract.
Some of the main items to be covered in the proposals, for a period of five years after production start-up:
Alliances between international car manufacturers could be formed in order to answer one or several RFP's (i.e: Ford - Mazda type).
Discussions will continue between the car manufacturers and country representatives, in order to clarify and improve the proposals as much as possible.
NEGOTIATION SIMULATION CONFERENCE:
This is the only on-line negotiation, essential in determining which car manufacturers will be chosen for each project. Both the various country representatives and international car manufacturers should be well prepared to persuasively present their main interests and successfully negotiate in order to finalize the best possible contracts.
The contracts will be awarded by the country companies and the actual negotiation process will end.
The feedback process is a very important, integral part of the simulation. Students and faculty will complete the post simulation questionnaires. The data will be collected and the debriefing process will take place. The participants could find out why certain companies were awarded the contracts, what were the high and low points of their team's negotiation strategy, what teams were considered the best prepared, etc.
THE GLOBETECH SIMULATION WILL END ON DECEMBER 09, 1995.
1) During the simulation, the Simulation Control Team (SCT) will issue various press releases. The teams should carefully consider how these press releases will influence their negotiating strategy and tactics and adjust them accordingly.
2) The feedback process is a vital component in the success of this international negotiation simulation and future ones, an important continuous improvement tool. It will represent a rewarding learning experience for all participants; everybody's full participation is essential.
3) For further details on the simulation, background material, etc., you can reach our Internet WWW site at:
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1996, Roxanne Jacoby Designed and
Maintained by Zan Kuang.