Fara Management Organization (FMO): The Fara System Decision
(9 pages of text)
The founder and CEO of a management company needs to address the future of its joint venture in Iran with a U.S. developer of enterprise resource planning (ERP) systems. The joint venture partners need to decide whether to pursue a potential client’s request for a custom version of the ERP system that the joint venture sells. The two partners disagree regarding the strategic direction forward, but must make a decision.
This case is designed for use in undergraduate and graduate courses in corporate strategy or international joint ventures/alliances. In a corporate strategy course, the instructor can focus on the value created as a result of the synergies created in the focal company’s subsidiaries. In an international joint ventures/alliances course, the instructor can emphasize the process of market entry by the U.S firm, the development of the joint venture, contextual differences between the U.S. and Iranian business environments, and the challenges resulting from each partner holding different objectives.
Information, Media & Telecommunications
Iran, Medium, 2007
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