In This Paper, We Will Be Looking At The Microsoft And

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In this paper, we will be looking at the Microsoft and Nokia negotiation that had taken place in in 2013. The United States company Microsoft, announced that it had finally reached a deal with Finnish company Nokia, where Microsoft would acquire Nokia’s handset business and their patent license for $7.2 billion dollars (Alden, 2013). This move by Microsoft was done in order to try and increase their market share in the handheld device market, which Microsoft had missed out on during the initial phases of the market 's development. This would also benefit Nokia as they did struggle for many years in the smartphone industry and Microsoft would be able to help them during this problem if they were to reach a consensus in their negotiations.…show more content…
Therefore, in order for the negotiation to succeed the companies had to focus more on their interests and not on their positions. This is largely due to the fact that “interest help define the problem. The basic problem in a negotiation lies not in conflicting positions, but in the conflict between each side’s needs, desires, concerns, and fears” (Fisher, Ury, & Patton, 2011, p. 42). This is quite important when it comes to communication of each sides interests. Each side has their own concern and their own value, which is can be greatly impacted and emphasized by differences in culture and this can put a new dynamic to the negotiation. In terms of power for each company we should note that both companies have different resource powers that can be used. Microsoft has the money portion of power covered in order to purchase the supplies and resources needed to produce the phones. On the other hand, Nokia has power in regard to human capital who has extensive knowledge on their hardware as well as the critical services, which includes maintenance, repair and technical support. Barriers One of the major barriers that the companies need to consider are cultural barriers and merging very distinct business cultures together as any merger/acquisition will be quite complex to properly implement. The process can be confusing for not only management but employees as well because they will have to learn all of their roles as each company and country as their
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