Telsys Study Case

Daniel Lara        

IBM 436

4/15/15

TelSys Study Case

1.        For the major negotiating issues below, please determine the ideal outcome and the minimally acceptable outcome for both the TelSys team and VCG:

•        Determine the equity (ownership) split between Chesney’s team and VCG

James Chesney considered the merger as his pride and joy. Only issue is that Malaysia is a low PDI country in which they feel they can question higher ranked employees.

•        Who should become president of the ITC holding company in Canada?

        I believe Bruce Montgomery a high ranking board of director from TelSys.

•        Who should be Chairman of the Board of ITC?

I think it falls between two, Chesney or Dr. Nik. Dr. Nik is a communication guru from VCG who controls majority of ITC. He has a higher possibility of being elected since majority if the investment capital is backed by his company.

2.        Based upon your comparison of Telsys’ and VCG’s desired outcomes on the major negotiating issues, is there a basis for a mutually satisfactory agreement? Explain.

I feel there could be but with many problems. The US has one type of business planning, direct. They want to make movements without having restrictions but majority of the company is owned by VCG who wants to manage those movements as well.

3.        Cultural differences between American and Malaysian negotiating styles must be understood and anticipated if negotiation is to be successful. What are the significant differences, as you see them?

The difference between the two countries was huge. The biggest differences were the way they ran business. TelSys was more of a direct, impatient, cold calling type of business making while VCG was a more relationship company. They were patient and indirect with explanations before proposals like TelSys.

4.        Are the two sides better off negotiating as competitors or as collaborators?  Explain.

        I think collaboration is pivotal in this situation. However, the imbalance of ownership puts a dent in negotiating. TelSys wants to run the company since they are the most technologically sound but VCG is they hold the most equity in the company. I believe a balance of board members and decision making is needed even though this will slow any kind of process.