Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 08.05.2006
Length: 6 pages
Data source: Field research
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Abstract
This is one of a set of 10 cases (IMD-3-1091to IMD-3-1099 and IMD-3-1126) . Case (A) in this three-part series, portrayed in cartoon format, outlines the negotiation of a joint venture deal between representatives of two key players in their respective industries, Hewlett-Packard (HP) and Ericsson. Case (A) consists of four different sub-cases with each case portraying a negotiating manager. In the preparation leading to the agreement, the two managers from HP and the two from Ericsson have to prepare their negotiating position in order to finalise the deal, which would involve the development of a new telecom management platform targeted at telecom operators. Once the deal is finalised, case (B) shows the difficulties with which each of the managers from case (A) is faced shortly after the joint venture agreement has been reached. A lack of goal clarity, clashing cultures and internal conflicts are some of the issues that the joint venture and its management have to deal with. The question is how much involvement is needed by the board and to what degree the joint venture manager and his team should resolve the issues personally. Case (C) describes how the joint venture manager addressed some of these issues and how a changing ownership structure poses an entirely new set of challenges that he has to deal with.
Location:
Size:
USD153 million Sales in 1998
Other setting(s):
1993-1999
About
Abstract
This is one of a set of 10 cases (IMD-3-1091to IMD-3-1099 and IMD-3-1126) . Case (A) in this three-part series, portrayed in cartoon format, outlines the negotiation of a joint venture deal between representatives of two key players in their respective industries, Hewlett-Packard (HP) and Ericsson. Case (A) consists of four different sub-cases with each case portraying a negotiating manager. In the preparation leading to the agreement, the two managers from HP and the two from Ericsson have to prepare their negotiating position in order to finalise the deal, which would involve the development of a new telecom management platform targeted at telecom operators. Once the deal is finalised, case (B) shows the difficulties with which each of the managers from case (A) is faced shortly after the joint venture agreement has been reached. A lack of goal clarity, clashing cultures and internal conflicts are some of the issues that the joint venture and its management have to deal with. The question is how much involvement is needed by the board and to what degree the joint venture manager and his team should resolve the issues personally. Case (C) describes how the joint venture manager addressed some of these issues and how a changing ownership structure poses an entirely new set of challenges that he has to deal with.
Settings
Location:
Size:
USD153 million Sales in 1998
Other setting(s):
1993-1999