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
ITC British Group 4% sharesCurrent ITC share holders 20%Venture Capital Group 46% – 35%Telsys president Manager 40% – 30%
Who should become president of the ITC holding company in Canada?
I think for his background in financial and his vast experience and deeply involved in the major capital market of the world. Also, his specialty and investment analysis and strategy, the person to consider in this position will be Dr. Nick president and CEO of Venture Capital Group.
Who should become president of TelSys International in the US?
Mr. Chesney is the most suitable for this position, due to his history and management and telecommunication with a clearly understanding in technology. Also , because he is the currently president and founder of Telsys
Who should be Chairman of the Board of ITC?
Due to Mr Chesney is the president of Telsys, I believe that the Chairman of the Board should be delegated to the vice president of Operation Mr Montgomery, which is the high ranking official of Telsys. However, this would become and important issue in Negotiation.
2. Based upon your comparison of Telsys’ and VCG’s desired outcomes on the major negotiating issues, is there a basis for a mutually satisfactoryagreement?
Even though VCG is looking for liquidity and not to control the Telsys Company, due to Islamic culture issue they are not allowed to lend money to Telsys, so the only way to do business is buying shares out the company. However, the big issue here is that VCG want to have 50% of shares of the company, which will make difficult to make a major decision in regard of the company.
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?
Some of the different I have noticed is that VCG is based in financial people and Telsys is based in Engineering personnel. The fact that American culture is base on individualism, and Malasya culture on collectivism. The most importance difference in regards of this case is the religion matter been VCG (Islamic) and the Telsys (Euro/Christian)
4. Are the two sides better off negotiating as competitors or as collaborators? Explain.
Taking in consideration the risk I think that collaborators the way to go negotiating this matter because both would pursue to achieve the same goal in regards of the company.
5. In Chesney’s role, what information would you want that is currently lacking in the case material?
Maybe more information in the size of the company.