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1. Motorola apparently had conducted no business in Turkey prior to the Telsim deal. Motorola’s interests
were clear: a Turkish market with a population of seventy million and double-digit growth rates for many years to come was certainly a temptation and entering the Turkish market successfully could open future business opportunities in neighboring Georgia, Armenia, Iran, Iraq, and Syria. Yet Ericsson, the Swedish telecommunications manufacturer with the largest market share in the network equipment business worldwide, had a budget of $2 billion for all its vendor financing deals together, and Motorola shelled out this amount for one deal only. Motorola made a fundamental negotiation mistake in addition to several strategic mistakes in this investment. What were these mistakes?
2. Why did the Turkish government in the form of TMSF agree to share the funds generated by the sale of Telsim’s assets with Motorola and Nokia, knowing that these companies had both already written off their losses associated with Telsim?
CRITERION
Write one paragraph (at least 4 sentences in length and have original thoughts/ideas) for each of the questions.
Make sure to number each of the paragraphs so that I know which question you are answering.
Make sure to reference the terms and concepts learned from the book.
Make sure your responses contain original thoughts.
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