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Case Study

Ericsson Hewlett-Packard Telecommunications (A&B): Joint venture management (Cartoon case)

By Bettina Büchel, Rhoda Davidson and Kimberly Ferro

18 pages

September 2003

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Reference: 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, HP and Ericsson. Case (A) consists of four different subcases 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 finalize the deal, which would involve the development of a new telecom management platform targeted at telecom operators. Once the deal is finalized, 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.

Keywords

Conflict, Corporate Culture

Settings

Europe
Consumer Goods, Computers
1993-1999

Type

Field Research

Available Languages

English

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