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Case study
Publication date: 20 January 2017

Jeanne Brett, Lauren Pilcher and Lara-Christina Sell

The first across-the-table negotiation between Google and China concluded successfully in 2006, when Google received a license to establish a local domain (google.cn) targeted at…

Abstract

The first across-the-table negotiation between Google and China concluded successfully in 2006, when Google received a license to establish a local domain (google.cn) targeted at Chinese Internet users and not subject to the “Great Firewall.” During these negotiations both Google and the Chinese government struggled to reach an outcome that would be acceptable to their constituents. Google was caught between pleasing its shareholders and preserving its reputation for free access to information, while China was balancing the desire for cutting-edge search technology and the concern that liberal access to information would undermine its political-economic model. In the end, the negotiation resulted in Google operating two domains in China: Google.com and Google.cn. In early 2010, Google announced that its corporate infrastructure had been the target of a series of China-based cyber attacks and accused the Chinese government of attempting to further limit free speech on the web. These incidents led to a public conflict and private negotiations between Google and the Chinese government, which culminated in July 2010 when the Chinese government renewed the google.cn license knowing that Google was redirecting all Chinese customers search to its google.hk.com site This case concerns the changes in Google and the Chinese government's environment that led to Google withdrawing services from google.cn and the Chinese government saving face by renewing the google.cn license. The case is based on the publicly reported events surrounding two series of negotiations between the U.S. technology giant Google and the Chinese Government regarding Google's license in China.

Case study
Publication date: 20 January 2017

Christopher Grogan and Jeanne Brett

Based on the negotiation between Google and the Chinese government to allow access by Chinese citizens to a high-speed Chinese version of the Google search engine. In order to…

Abstract

Based on the negotiation between Google and the Chinese government to allow access by Chinese citizens to a high-speed Chinese version of the Google search engine. In order to reach agreement with the Chinese government, Google had to agree to allow the government to censor access to some sites turned up by Google's search engine. In agreeing, Google compromised its open-access policy. There were inquiries into the agreement by the U.S. Congress and some outcry from U.S. citizens.

To learn how to analyze a negotiation from the perspective of each party when one is a government and the other a private-sector organization; a subpoint here is the difference between short-term and longer-term interests. To address the difficulties of balancing business ethics and financial objectives; an important point here is to address what it means to be ethical in a for-profit business environment. To understand the long-term effects of short-term actions.

Case study
Publication date: 20 January 2017

Jeanne Brett, Katherine Nelson and Nicole Tilzer

One Acre Fund (OAF) was founded by Andrew Youn in 2005 for the purpose of helping to solve the chronic hunger problem in Africa. The idea is to provide the resources (seed…

Abstract

One Acre Fund (OAF) was founded by Andrew Youn in 2005 for the purpose of helping to solve the chronic hunger problem in Africa. The idea is to provide the resources (seed, fertilizer, and education) necessary for African farm families to feed themselves when their land holdings are one acre or less. The business model of OAF is that of a cooperative: OAF buys resources like seeds and fertilizer in bulk at reduced prices and distributes them to small farmers who otherwise could not afford them. This case concerns the negotiation that OAF's manager of external relations and research, Moises Postigo, conducted to buy fertilizer in the last quarter of 2007. The case provides an opportunity for students to analyze a real-world deal-making negotiation in a developing economy. A number of aspects of the context of the negotiation and the negotiation process itself make for good class discussion. Postigo did a good job preparing for the negotiation, making the case one that emphasizes proper use of negotiation planning and sensitive understanding of the negotiation environment. Some of the elements that make for good discussion include the following: OAF was a new organization, unknown to the five major providers of fertilizer in Kenya. The negotiations were entirely conducted by cell phone. Negotiations went through stages of request for a bid, discussion with multiple bidders, selection of a provider, and negotiation. There were multiple issues, including price delivery and form of payment. Postigo was negotiating in the shadow of the possibility that the Kenyan government would start selling subsidized fertilizer to small farmers.

Analyze the fundamentals of a real-world negotiation; Consider cultural implications for negotiation strategy; Consider negotiation strategy decisions particular to the context: commodity purchase, developing country, etc. Understand how the economic and political context affects negotiations; Understand the importance of relationships in negotiations.

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

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Case study
Publication date: 19 March 2015

Gerry Yemen, Kristin J. Behfar and Allison Elias

Most talented executives can recognize when an acquisition has strategic or financial benefits, and in this case, the decision to be acquired was an appropriate exit strategy for…

Abstract

Most talented executives can recognize when an acquisition has strategic or financial benefits, and in this case, the decision to be acquired was an appropriate exit strategy for a successful start-up. Peter Street’s start-up had been growing quickly and was building a reputation for reliability in a booming industry when a Japanese firm offered to pay a premium for the U.S. firm. Having done business in Japan (and extensively with the acquiring company) before the sale of his company, Street entered the acquisition with enthusiasm. As part of the deal, Street’s former company would continue to operate in the United States as a division of its parent company and Street would remain as CEO. A few months into the transition, however, Street discovered a huge difference between working with and working for the Japanese firm. Cultural norms for confronting seemingly small problems quickly became bigger operational issues, and Street experienced a growing dichotomy between corporate (in Japan) and his division (in the United States). This case focuses on the challenges of implementing a cross-border acquisition.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Case study
Publication date: 5 June 2018

John L. Ward

As founders of First Interstate BancSystem, which held $8.6 billion in assets and had recently become a public company, and Padlock Ranch, which had over 11,000 head of cattle…

Abstract

As founders of First Interstate BancSystem, which held $8.6 billion in assets and had recently become a public company, and Padlock Ranch, which had over 11,000 head of cattle, the Scott family had to think carefully about business and family governance. Now entering its fifth generation, the family had over 80 shareholders across the US. In early 2016, the nine-member Scott Family Council (FC) and other family and business leaders considered the effectiveness of the Family Governance Leadership Development Initiative launched two years earlier. The initiative's aim was to ensure a pipeline of capable family leaders for the business boards, two foundation boards, and FC.

Seven family members had self-nominated for governance roles in mid-2015. As part of the development initiative, each was undergoing a leadership development process that included rigorous assessment and creation of a comprehensive development plan. As the nominees made their way through the process and other family members considered nominating themselves for future development, questions remained around several interrelated areas, including how to foster family engagement with governance roles while guarding against damaging competition among members; how to manage possible conflicts of interest around dual employee and governance roles; and how to extend the development process to governance for the foundations and FC. The FC considered how best to answer these and other questions, and whether the answers indicated the need to modify the fledgling initiative.

This case illustrates the challenges multigenerational family-owned enterprises face in developing governance leaders within the family. It serves as a good example of governance for a large group of cousins within a multienterprise portfolio. Students can learn and apply insights from this valuable illustration of family values, vision, and mission statement.

Case study
Publication date: 23 June 2014

Kristin J. Behfar and Gerry Yemen

The Global Networks Company (GNC), headquartered in Boston, Massachusetts, made its global footprint in India in 1994 by establishing a presence in Bangalore. Although mainly a…

Abstract

The Global Networks Company (GNC), headquartered in Boston, Massachusetts, made its global footprint in India in 1994 by establishing a presence in Bangalore. Although mainly a sales support office, GNC grew name recognition from its contracts with India’s government to help build nationwide networks. Not quite 20 years later, GNC decided to further invest in India and tapped a manager from the Boston office, Jim Notrika, to establish and then manage GNC’s first global software center in Mumbai. Split between Mumbai and Boston, the project team successfully completed several minor projects, but only months into its first major project, the team was struggling to meet deadlines. Blame was being passed in both directions, and when three talented engineers in Mumbai quit, Notrika makes an emergency trip to Mumbai to better understand the problem.

This case describes three common cross-cultural communication obstacles in teams: a preference for direct versus indirect confrontation of problems; a clash of collectivist versus individualistic cultural values related to reporting bad news or giving negative feedback; and different expectations of team leaders based on power-distance values.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Case study
Publication date: 20 January 2017

James B. Shein, Matt Bell and Scott T. Whitaker

Jonathan Miller appeared in September 2009 on “Shark Tank,” the ABC television reality show featuring entrepreneurs versus angel investors in a discussion of the business value…

Abstract

Jonathan Miller appeared in September 2009 on “Shark Tank,” the ABC television reality show featuring entrepreneurs versus angel investors in a discussion of the business value proposition and to win a negotiation for an investment from one of the 4 Sharks. The company he founded, Element Bars, a maker of custom energy bars, needed investment capital. Prior to appearing on the show, Miller had considered several financing options available to entrepreneurs: loans and other debt capital and equity capital, each of which are evaluated in the case. Miller had a good feel for the different types of capital to use for this new venture, having started several ventures in the past and winning the Kellogg School of Management business plan competition, the Kellogg Cup, in 2008. The case includes Miller's decision to forego the investment offer he won on television, instead he pursued lower cost of capital equity.

Students several aspects of raising capital, including raising equity and debt capital. Students need to learn to know as much or more about fundraising as the professionals who provide the capital-in fact, entrepreneurs have to understand the interaction among combinations of capital within their enterprise-whether debt and/or equity in different combinations. Often, teaching about equity relates to teaching how venture capital investment professionals look at deploying funds. Receiving equity into the entrepreneurial firm has much different attributes and issues. Teaching about debt often occurs at much higher volumes in typical MBA courses; this entrepreneurial debt must occur at a much smaller dollar value. This protagonist, Jonathan Miller, has exceptional preparation habits, which teaches students the value of the skills to prepare themselves and their businesses for investment.

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

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