caseism

Privatization Of Antolia National Telekom Case Solution & Answer

Cohen, O’Connell, Rivera and Associates (CORA)

Background

The state owned enterprises have not performed profitably over the decades and the state is trying to reinforce the privatization scheme to hand over the enterprises to more profitable private organizations. It is focusing on attracting various private organizations to become shareholders in the company. This would ensure that since more private organizations will be involved in each state owned company, they will be able to come up with more profitable solutions than the no profit state organizational structure.

In case of Anatolia National Telekom (ANT) the shareholding of up to 49% is to be distributed among various groups including employees and worldwide investors while rest of the shareholding is to be given to one and maximum two key shareholders.

Problem Statement

After a year of conducting various activities and trying to attract various shareholders Cohen, O’Connell, Rivera and Associates (CORA)have been unsuccessful in managing to form a contract between the Privatization Authority and any prospective shareholders. As an intermediary party the work done on trying to form a contract between two parties has been conducted for the past year resulting in only expenditure rise for the firm without any revenue. Involvement of worldwide experts is further increasing those expenses.

On the other hand, the privatization authority is of the opinion that the cost is more than the benefits from privatization. So the intermediary should focus on reducing the cost associated with privatization.

Goal Setting

CORA should focus on implementing the extreme negotiation strategies because of the fact that the conversations between the relevant parties have been going on for more than a year and have yielded no result. Furthermore, given that CORA’s stake in the negotiation process is result based and no results have been achieved, there would be loss for CORA if agreement between parties does not takes place soon. For this purpose, CORA should now focus on the following goals:

  • Making a time period within which agreement have to be reached. With involvement of various shareholders there is room carrying out time-barred negotiation.
  • Establishing the maximum cost which can be incurred for the purpose of this negotiation.
  • Given the number of prospective buyers CORA should focus on one or two buyers with most prospects, instead of involving all six parties mentioned in the case.

Goal Achievement

For achieving the goals CORA will have to move quickly now after dragging negotiations for a year. The main motive should be profit for the firm now as they have incurred expenses up till now throughout the whole negotiation process. The goals can be achieved by:

  • By selecting two or three of the most feasible prospective buyers and concentrate on them instead of tagging all the six parties in the process.
  • Try to gain an understating of the other party’s point of view. Instead of offering, CORA should focus on what the other parties are offering. This would help in gaining the point of view of other parties and help in responding accordingly.
  • Put time limitations on the process to speed up the negotiations……………………..
  • This is just a sample partial work. Please place the order on the website to get your own originally done case solution
Share This

LOOK FOR A FREE CASE STUDY SOLUTION

JUST REGISTER NOW AND GET 50% OFF ON EACH CASE STUDY