In September 2012, the vice-president of Internal Audit at Prashanti Technologies, a multinational corporation headquartered in Mumbai, India, was reviewing an external audit team’s report before a meeting of the company’s ethics committee. The committee had only one item on the agenda: a sensitive case involving a company vice-president, the head of its financial services division, who had been accused by an anonymous whistleblower of conducting a workplace affair with a subordinate. Further, it was alleged that he had unfairly promoted her by giving her additional undeserved responsibilities and that she had taken undue advantage of her workplace romance by giving orders to the rest of the team. The ethics committee was required to decide what action, if any, should be taken against the vice-president and the junior manager.
In September 2012, the vice-president of Internal Audit at Prashanti Technologies, a multinational corporation headquartered in Mumbai, India, was reviewing an external audit team's report before a meeting of the company's ethics committee. The committee had only one item on the agenda: a sensitive case involving a company vice-president, the head of its financial services division, who had been accused by an anonymous whistleblower of conducting a workplace affair with a subordinate. Further, it was alleged that he had unfairly promoted her by giving her additional undeserved responsibilities and that she had taken undue advantage of her workplace romance by giving orders to the rest of the team. The ethics committee was required to decide what action, if any, should be taken against the vice-president and the junior manager.
In 2004, Tata Communications (TCL) was trying to act on its strategic intent to become a globally connected network provider. It had two alternatives: build or buy. The build option would provide TCL with a chance to develop its own network under its own terms. The possible acquisition of the Tyco Global Network (TGN), however, provided a unique opportunity for TCL to establish this global position quickly. As one of the largest global networks at the time of the case, the TGN was a limited asset. The acquisition of the TGN would catapult TCL into being a top player in global Internet connectivity. Even though the acquisition price was low, the associated liabilities and risks could make this a substantially expensive acquisition for TCL. Should TCL negotiate with Tyco? If yes, what would be an acceptable position to proceed with the deal? How should TCL plan for the mitigation of risks and uncertainties? If not, what would be the consequences of losing the TGN opportunity, particularly if a competitor acquired it?
This case describes the second home market strategy of Tata Communications Limited (TCL) and its evaluation of Russia as a new market opportunity. Ahead of a July 2012 board meeting, TCL's Chief Strategy Officer had to decide whether to pursue an acquisition opportunity in Russia. The case traces TCL's transformation from an Indian public sector monopoly to a global challenger in the telecommunications market, its previous acquisition history and its foray into South Africa as a second home market. The latest opportunity - to create a third home market in Russia - was the possible acquisition of a Russian Internet Service Provider (ISP) which had a business-to-business (B2B) focus and product mix similar to TCL.
In 2004, Tata Communications (TCL) was trying to act on its strategic intent to become a globally connected network provider. It had two alternatives: build or buy. The build option would provide TCL with a chance to develop its own network under its own terms. The possible acquisition of the Tyco Global Network (TGN), however, provided a unique opportunity for TCL to establish this global position quickly. As one of the largest global networks at the time of the case, the TGN was a limited asset. The acquisition of the TGN would catapult TCL into being a top player in global Internet connectivity. Even though the acquisition price was low, the associated liabilities and risks could make this a substantially expensive acquisition for TCL. Should TCL negotiate with Tyco? If yes, what would be an acceptable position to proceed with the deal? How should TCL plan for the mitigation of risks and uncertainties? If not, what would be the consequences of losing the TGN opportunity, particularly if a competitor acquired it?<br><br>See also supplement 9B14M138.