OUR CHANGING WORLD: JOINT VENTURES, MERGERS, AND PART$-$OWNERSHIP $15$

Much has been written about the fierce competition between European, Japanese, and U$.$S$.$ companies, cspecially in the auto industry. Though the competition between companies gets most of the panies. Joint ventures, mergers, and acquisitions beIween auto companies are notably prevalent; the lims involved include Toyota and $($jeneral Motors, Chrysler and Daimler Benz, Mitsubishi and DaimlerChrysler, Nissan and Renault, $($ Seneral Motors and Opal, Isuzu and General Motors, and Mazda and Ford.

TRUST AND COOPERATION

Many ventures and mergers have not been successful. Lack of trust, misunderstandings, and not enough mutual benefit are some of the more signifieant problems. Mazda and Ford have developed a successful joint venture, but they have been working at their relationship since $1979,$ when ford took its first equity position in Mazda. The two companies cooperate on new vehicles and exchange valuable information. The companies bring to the table different, but complementary, expertise. Mazda shares its enginecring, manufacturing, and productdevelopment abilities. Ford offers international marketing, finance, and computer$-$controlled measuring equipment. Ford has also included Mazda in its quality improvement program.

BASIC BUSINESS PRINCIPLES

Building a mutually beneficial relationship between two companies is something that does not happen automatically. Some aspects of the relationship cannot be drawn up in legal documents. Ford and Mazda work hard at making their agreement work. Decisions about what to work on jointly are made on a project$-$by$-$project basis. Through the years, Mazda and Ford have developed a set of basic business principles:

Top management must provide support; otherwise middle management will resist ceding partial control of a project.

general news coverage, business publications also carry news about cooperative efforts between companies, many on a worldwide basis. I carning and sharing arc occurting in all directions between com$-$

People at all levels meel oflen. Socialization beIween Ford and Mazda is important for building trust.

Disputes are resolved using a third party.

Neither company loses its identity. They maintain independence and sharpen expertise.

Liach project must be viable for each partner.

A monitor is appointed to take primary responsibility.

Anticipate cultural differences.

Open, honest communication is a key component in the success of the Mazda$-$Ford relationship. The president of Mazta says, "The most important point is for people to meet face$-$to$-$face and talk frecly:"

THE JOHARI WINDOW

If you think of corporations as entities, you can describe corporate behavior in Johari Window terms. Corporations, as they interact with one another, form windows with cells of different sizes.

For example, when Mazda and Ford work out a joint project, cach company presents a "public area" to the other. According to the basic business principles, the two companies work on enlarging the public area. They have also agreed up firont to maintain certain areas as closed. For example, Ford has refused to manufacture certain Mazda models, and Mazda has refused to share some of its models with Ford.

QUESTIONS

Do you agree that corporations can have personalities?

If so$,$ can they develop a Johari Window?

What do you think of the basic business principles? could you please answer the questions