James R Chesney No More Than 5 Case

1. Narrate the major issues in this case in NOT MORE THAN 5 sentences.

James R. Chesney, a veteran engineer underemployment at NASA, was able to create a blueprint for a “functional components architecture” but this forced him to pursue his project in the private sector but it required financial funding. Chesney and his colleague were in their midst of constant negotiations with Malaysian Venture Capitalist Group to have the opportunity to venture into TelSys International, Inc. If Chesney is able to receive funding, he plans to produce and market high-quality satellite ground station communications equipment based on his patented designs. TelSys’s stocks were allowed to be publicly traded as they desired liquidity in their investment.

2. For the major negotiating issues below, please determine the ideal outcome and the minimally acceptable outcome for both the TelSys team and VCG:
• Determine the equity (ownership) split between Chesney’s team and VCG:
Ideal: 55 Chesney, 45 VCG Acceptable: 51 Chesney 49 VCG
• Who should become president of the ITC holding company in Canada?
Ideal: Bruce G. Montgomery Acceptable: Gary Baker
• Who should become president of TelSys International in the US?
Ideal: James R. Chesney Acceptable: James R. Chesney
• Who should be Chairman of the Board of ITC?
Ideal: Gary Baker Acceptable: James R. Chesney

3. Based upon your comparison of Telsys’ and VCG’s desired outcomes on the major negotiating issues, is there a basis for a mutually satisfactory agreement? Explain.
There is a basis for mutual satisfactory agreement, if VCG is willing to form a long term compromise with the values of TelSys. Chesney is fearful of VCG’s true intentions, short-term gains, because the results of TelSys’ vision require an idealistically long term venture. However, VCG looks to be promising because they do carry the sense of relationship building that will ignite Chesney’s future aspirations for the company.

4. Cultural differences between American and Malaysian negotiating styles must be understood and anticipated if negotiation is to be successful. List the significant differences, as you see them?
The Malysian Culture indicates that the person who is willing to compromise is the most respected and usually recives more than anticipated in negotiations, as well as that, the American should be treated with great respect. Any negotiations with the Malaysian culture should bring foreign cultures onto the project rather than feeling as they are an opposition. With that said, attempt to build solid relationships at a formal level, never embarrass or back the representative into a corner and meet appropriately.

5. Are the two sides better off negotiating as competitors or as collaborators? Explain.
The two sides are able to work better as collaborators because they are able to share a vision for the goal of TelSys. With the agreement of shared values, the companies are able to serve an emerging market’s demands. Asian’s need for a local presence for an engineering support and maintenance contract will allow Malaysian engineers to engage in an internship in the United States and lead to a transfer back to Malaysia. This can allow for different perspectives and cultural opportunities that advance the company into new heights of telemetry and satellite communications.

6. In Chesney’s role, what information would you want that is currently lacking in the case material?

If I was in Chesney’s position, I would desire more information on future projections of both companies. Due to the considerations of VCG’s other financial obligations and goals, this can influence VCG to use TelSys as only a short monetary gain. With that said, we can understand VCG’s intentions as a company and how they want to proceed along with the potential capital they are allowed to utilize.