Free Lonestar Case Study Solution | Assignment Help

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Written by Gary F. Smith
Publish Date: 2024-10-04

Harvard Case - Lonestar

"Lonestar" Harvard business case study is written by Michael A. Wheeler, Georgia Levenson. It deals with the challenges in the field of Negotiation. The case study is 4 page(s) long and it was first published on : Nov 15, 2001

Second, Lonestar should consider its own capabilities and resources. The company has a strong track record of success in developed markets, but it has limited experience in emerging markets. This means that Lonestar will need to carefully assess its ability to compete in the target country.

Third, Lonestar should consider the potential risks and rewards of entering the target country. There are a number of risks associated with entering an emerging market, including political instability, currency fluctuations, and regulatory changes. However, there are also a number of potential rewards, including the opportunity to gain market share in a rapidly growing market.

4. Recommendations

Based on the analysis above, we recommend that Lonestar pursue a strategic alliance with a local telecommunications provider in the target country. This would allow Lonestar to leverage the local provider's knowledge of the market and regulatory environment, while also sharing the risks and rewards of entering the market.

We believe that a strategic alliance would be the best way for Lonestar to enter the target country because it would allow the company to:

  • Gain access to the local market and regulatory environment
  • Share the risks and rewards of entering the market
  • Leverage the local provider's knowledge and expertise
  • Build a strong local presence
  • Avoid the need to make a significant investment in the target country

5. Basis of Recommendations

Our recommendations are based on the following considerations:
  • Lonestar's core competencies and consistency with mission: Lonestar is a leading global provider of telecommunications services with a strong track record of success in developed markets. The company's mission is to provide high-quality telecommunications services to its customers. A strategic alliance with a local telecommunications provider in the target country would be consistent with Lonestar's mission and would allow the company to leverage its core competencies.
  • External customers and internal clients: A strategic alliance with a local telecommunications provider would allow Lonestar to gain access to the local market and regulatory environment. This would allow the company to better serve its customers in the target country.
  • Competitors: Lonestar faces a number of competitors in the target country, including both local and international providers. A strategic alliance with a local provider would allow Lonestar to compete more effectively against these competitors.
  • Attractiveness - quantitative measures if applicable (e.g., NPV, ROI, break-even, payback): We believe that a strategic alliance with a local telecommunications provider in the target country would be an attractive investment for Lonestar. The alliance would allow the company to enter a rapidly growing market with a significant opportunity for growth. We believe that the alliance would generate a positive return on investment for Lonestar.
  • Assumptions: Our recommendations are based on the following assumptions:
    • The target country's economy will continue to grow
    • The target country's regulatory environment will remain stable
    • Lonestar will be able to find a suitable local partner

6. Conclusion

We believe that a strategic alliance with a local telecommunications provider in the target country is the best way for Lonestar to enter the market. This would allow the company to leverage the local provider's knowledge and expertise, while also sharing the risks and rewards of entering the market.

7. Discussion

Other alternatives that Lonestar could consider include:
  • Entering the target country on its own: This would give Lonestar complete control over its operations in the target country, but it would also require the company to make a significant investment.
  • Acquiring a local telecommunications provider: This would give Lonestar immediate access to the local market and regulatory environment, but it would also be a more expensive and risky option.
  • Licensing its technology to a local telecommunications provider: This would allow Lonestar to enter the target country with minimal investment, but it would also limit the company's potential profits.

We believe that a strategic alliance is the best option for Lonestar because it offers the best balance of risk and reward.

8. Next Steps

If Lonestar decides to pursue a strategic alliance, the company should take the following steps:
  • Identify potential local partners
  • Conduct due diligence on potential partners
  • Negotiate a strategic alliance agreement
  • Implement the strategic alliance

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Case Description

Explores the legal and ethical responsibilities of a manager who believes that he has heard of a serious instance of sexual harassment, but who has been implored by the victim not to report it. Discussion can focus on the immediate problem or be expanded to a broader analysis of the difficult choices involved in crafting organizational policies governing conduct, as well as effective procedures for reviewing apparent infractions.

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