airbus

Appendix B
(below) details a table of comparison between the three differing cultures
versus Hofstede generalised cultural characteristics and dimensions. Stark
variances are evident. American culture possess low power distance, uncertainty
avoidance and long-term orientation, however score very high in masculinity and
individualism. Reardon and Spekman (1994, p72) suggest ‘American negotiators
often operate as if today is the last of their days’. This is reiterated in
Michaels (2003, p5) Bright
argues ‘if that’s your number let’s give this up’ ‘if Iberia were unwilling to
budge, there is little reason to come’. In the final stages of negotiations,
‘Mr Bright made the price cut without concessions’ (Michael, 2003). America
scoring extremely low in long-term orientation may have detrimental effects on
negotiation strategies with Spanish counterparts as negotiators require
patience throughout international negotiations due to the prolonged time
required to build trust and commitment to relationship building. (Phatak and
Habib, 1996). 

Operating as part of a
French company, Leahy accompaniments high levels of uncertainty avoidance,
power distance and long-term orientation. Phatak and Habib (1996, p33) suggests
‘an American executive in French company must be aware of all foreign policies’.
As highlighted in Michaels (2003, p4) ‘Leahy was also feeling pressures because
a past sales tactic was coming back to haunt him’. To discourage uncertainty,
Leahy provided buy back guarantees to increase sales, a decision made in haste
of the situational context at the time. Similarly with the French, the Spanish
secure the same score of uncertainty avoidance. French culture in business
requires all integral information before negotiations begin (Hofstede, 2017),
Dupuy provided this commencing and did not alter his expectations throughout
the entire process of task related interactions. Ultimately, Dupuy’s dedication
to uncertainty avoidance and long-term orientation prevailed when ‘Airbus
agreed to Mr Dupuy’s terms’ (Michaels, 2003). Not only ensuring his price
targets were met without the slightest margin, he ensured buy back guarantees
for future resale prices, facilitated a standardised fleet to help lower
training, maintenance and breakdown costs across all operations.