This paper concentrates on the primary theme of IN 2004, AM BEV AND INTERBREW NEGOTIATED A MAJOR PARTNERSHIP TO CREATE THE LARGEST BEER COMPANY.. in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
In 2004, Am Bev and Interbrew negotiated a major partnership to create the largest beer company in the world.16 The new alliance, called In Bev, now produces 15 percent of the beer sold worldwide. The new partnership between the two former rivals received considerable attention in the global business community not just because of its size but also because of its two partners. One is Brazilian; the other is Belgian. Some market analysts questioned whether the new venture could succeed in view of the wide disparity in the cultures of the two partners. Brazil’s Am Bev corporate culture is characterized by an informal approach to management, an emphasis on spontaneity and innovation, and a constant focus on—some would say an obsession with—the bottom line. In contrast, Belgium’s Interbrew is a very traditional firm originally founded in the fourteenth century and still run by a board of directors that includes barons, dukes, and marquises. Its corporate culture is formal, conservative, and some would say aristocratic. Long-term financial stability and security outweigh short-term profit considerations. How did these two very different companies from two very different cultures come together to form a partnership? With lots of help. Negotiations to create the partnership dragged on for five months and required more than fifty negotiation sessions to close the deal. The efforts of several international banks and legal experts from both countries, as well as from the United States, were also required to consummate the deal. As a result of these lengthy negotiations, the two partners came to understand more about each other’s culture, business objectives, and management style. Mistrust evolved into friendship and friendship evolved into partnership. The negotiations were difficult and time-consuming, but in the end they were successful. Today, In Bev has become a major player in the worldwide beer industry.
1. How would you characterize the negotiation environment of a typical Brazilian firm?
2. Why did it take so many bankers and lawyers so long to negotiate the In Bev partnership?
3. If you were facilitating the early negotiations for a possible partnership between Am Bev and Interbrew, what would you do to get the two sides working together? Specifically, what would you do to facilitate intercultural communication? What would you do to help build trust between the two parties? 4. Now that the In Bev partnership is established, what should each of the partners do to ensure its long-term success?