There are several factors that are important to examine in the Microsoft-Nokia negotiation. The first factor is that this was a cross-cultural negotiation because Microsoft is an American company, while Nokia is a Finnish company. Both countries have very different values, so it was extremely important for representatives from both companies to understand each other’s cultures before the negotiations began. Another reason that I feel this negotiation could be successfully completed was due to the fact that Microsoft and Nokia’s priorities aligned well at the time. Both companies saw the other’s products and capabilities as being complementary to what they already offered, which gave executives from both companies further incentive to …show more content…
However, beneath the iceberg, we have value, beliefs, norms and assumptions. These are all important factors of the negotiator that a negotiator who is unfamiliar with the culture would not be aware of if they simply showed up to the negotiation without first conducting research (Thompson, 2014). An example of how the iceberg has come into play with the Microsoft - Nokia negotiation is that a key challenge of the deal was that Nokia was a huge source of Finnish pride and selling the brand’s best known division would hugely diminish that pride (Moen, 2011). This presented a challenge for Microsoft to overcome because Microsoft is an American company and America is a country that places less value on patriotism than Finland (Thompson, 2014). If Microsoft had undervalued Nokia’s Finnish routes and the importance of Finland to Nokia, then the Nokia board may not have agreed to sell the company to Microsoft. This is one of the reasons why Microsoft agreed to make Finland a research hub for the company and keep a significant portion of Microsoft’s mobile development work in that country. Having a company like Microsoft invest in Finland provided to be a large boon for the country and was one of the considerations of the deal. This deep sense of Finnish pride was also one of the reasons that Microsoft committed to keep using Nokia name even after the merger (Telegraph Reporters, 2016). If Nokia was an American company, the concern of
Microsoft’s tactics in establishing dominance in the IT industry is often a matter of concern for governments. Both the U.S. and E.U. governments have high profile and long running anti-trust suits against Microsoft. In both cases Microsoft was accused of abusing its monopoly power in its handling of
Both sides had strong incentives to join forces. Nokia had lost significant ground in recent years to smartphone manufacturers, most notably Samsung and Apple, by failing to keep up with innovations such as touch screens.
32. The effective negotiator needs to understand how people will adjust and readjust, and how the negotiations might twist and turn, based on
However that in 2007 the market of Nokia Company started to decrease and the reasons for that is the new competitions like IPhone from Apple that introduced smartphones, along with Android by Google, and Samsung. Even though Nokia Company results for 2012 were pre much good by having 101982 workers across 120 countries along with sales in more than 150 countries, and the reports for revenue were around 30€ billion. Nokia was announced to be the second largest world for mobiles phone makers in terms of unit sales after Samsung, with having world wide market share 18.0%. However that Nokia Company for current days has 3.2% in smartphones and they lost 40% of their revenue in mobile phone in Q2 for 2013. Nokia was listed in fortune global 500 to be world’s 274 largest companies for 2013 from revenue sides. So Nokia Company has good products, services, and reputations. Knowing that their products are good and have nice services, yet comparing to others like Samsung and Apple they are weak because those provide an outstanding products and services which consist of smartphones. So Nokia want instead of providing a good services and products to become like their competition and provide an outstanding products and
Globalization: Microsoft and Cisco also faced similar problems like Nokia when it also went for globalization.
“The Rise and Fall of Nokia” case study gives a brief idea about how Nokia Company stated their journey. From the case I come to know how they operates their business, when they entered into telecommunication sector. They are now in decline stage. Once they were the market leader. They served so many people. Create their own brand value to its customers. The case gives me idea about different CEO’s Nokia, how they served their company, what are initiatives they have taken to bring the company ahead. For gain competitive advantages and create value for customers they started partnerships with different companies, joint ventures with different company to get best research and development sectors. They entered into smartphone market later they
negotiation, it is useful to have a mental model of negotiation. What is it that people mean when they say they negotiate? What is involved in negotiating? What is a good outcome in negotiation? What does it take to get a good outcome? What goes wrong in a negotiation that has a poor outcome? However, if culture has an effect on negotiation, the mental models of negotiators from one culture may not map on to the mental models of negotiators from another culture, making the speci® cation of a single mental model problematic. There are two ways to approach this problem of specifying a mental
How does culture affect behaviour during negotiation in general and the different stages involved? Critically evaluate this link and assess its importance for international managers. Throughout your answer, refer to at least two contrasting cultures of your choice, and cite relevant theories and examples from international contexts.
Nokia’s Chief Executive Officer (CEO) and other leaders recognized the need to redefine Nokia’s culture and its foundational values to promote global collaboration and speed during the company’s business change (Willigan, 2009). Nokia was of the belief that “values align people’s hearts and emotional energy and define how Nokia employees (‘Nokians’) do business with each other and the rest of the world” (Willigan, 2009, p. 2). In order to achieve its goal of culture and values aligned with new strategy, Nokia successfully engaged its worldwide employees in a social change process which resulted in a new set of corporate values and a more cohesive corporate culture.
The research presented in the paper was pulled from various websites and articles. Background information was pulled from Microsoft’s own website as well as a biography listed on the Forbes website. Various articles found throughout the web provided me with information on my three main topics. Those topics include: the innovation and technology Microsoft currently develops and maintains, the different laws and regulations within the United States as well as other countries that Microsoft is currently feeling pressure from, and the types of products and services they are introducing to stay competitive and relevant in today’s technological marketplace.
- Plans for a broad strategic partnership with Microsoft to build a new global mobile ecosystem; Windows Phone would serve as Nokia’s primary smartphone platform. - A renewed approach to capture volume and value growth to connect ”the next billion” to the Internet in developing growth markets - Focused investments in next-generation disruptive technologies - A new leadership team and organizational structure
2- SWOT Analysis------------------------------------------------------- 3,4 3- Segmentation, target & position(STP)-------------------------- 5,6 4- Market Strategies of Nokia---------------------------------------- 6 5- Global Market Share (pie charts)------------------------------- 7,8,9 6- Nokia Objectives---------------------------------------------------- 9
An effective negotiator is a strategic negotiator, who is able to switch back and forth between different phases of a negotiation without losing the goal in mind. An effective negotiator takes time to process what is happening during the negotiation and ensures that the right problem is being resolved while taking into consideration other party’s intrests to finding a common ground. Concequently those type of actions facilitate in the process of a negotiation by creating a cooperative environment and enhance the furture relationship between the parties (Fells 2012; Sebenius 2001). An effective negotiator aknowledges that no party is the same and as every negotiation, every negotiator is different from one another. These variations explain the DNA of negotiation that requires an effective negotiator to take into considerations the strands of the DNA, such as “reciprocity, trust, power, information exchange, ethics, and outcome” that vary from person to person (Fells 2012, pg 8).
Microsoft is the most established software giant and Nokia is the company that is the icon for electronic and communication equipments. Microsoft had a partnership with the computer manufacturer IBM that made the software of Microsoft from DOS to modern Windows 8 famous and most used. The same underlying principle of symbiosis has been used inn this alliance. There are many reasons why Microsoft had to enter the cell phone industry. Arch Rival Apple came out with the iPhone and revolutionized the mobile world. Though the gadget was not a direct competitor, Microsoft was out of a huge potential market, namely the mobile segment.
Open mind: a negotiator should be an open mind to accept and understand the cultural and personality differences.