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Nokia Mototrola

Nokia Mototrola

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Nokia Motorola Deal in Turkey

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Q1: Research indicates that Motorola had not conducted any business prior the business deal in Turkey. The interest of Motorola was very clear and their target was a vast popluation which the company projected to increase its market share and strategic enter other markets. Motorola made several negotiations,which were vital for its growth and market entry. But it is seems the company was in hurry to establish its presence in Turkey and therefore, a lot of gaps were Motorola would have conducted detailled research to understand economic flactuation, culture and other business practices in Turkey. And thereore, the investment mistake made by motorola was investing way too much in the Turkey market. It would have been a better strategy for Motorola to enter into a joint venture or strategic alliance as the best strategic investment in the Middle East. This would have helped Motorola to limit exposure to risk and therefore, it would have avoided the mistake and protected its investment.

Q2: The TMSF took over the management of all the companies owned by Uzan family because of they fraud – related issues. Motorola company is one of the companies which were fraud by the family and according to the article, Motorola went to court and the court ordered the Uzam family to pay back the money obtained from Motorola and other damages but Uzam family refused comply. Therefore, Motorola and Nokia made a seious lost in the deal with Telsim. The Turkeys government therefore, agreed to share the funds generated from the sales of Uzam family properties so that Nokia and Motorola could recover the loses, which they made from the deal with Telsim company. Again, it was evident that Uzam family entered into business with Motorola and Nokia knowing that its company is not doing well and therefore, the payment from the proceeds was a compensation to recover the loses they made while doing business in Turkey.

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