The Philosophy of Business Politics
I am expanding the scope of my philosophies with this entry. This is about the politics of business, about how strategy is impacted by the play between significant players.
Take the case of Hutchison's telecom ops in India, Hutch. Its very formation was based on strategy games played by a large number of players which included several players with smaller operations. Once it got consolidated as a pan-India player, the ops ran smoothly as long as there was a smooth ongoing relationship between the 2 large players. They did try to compete to acquire other minorities but that only caused a minor hiccup or two.
Things changed the moment Hutch tried to bring in a significant 3rd player, Orascom, as minority partner in their holding co. Now, 3-player games are inherently unstable, like your love triangles, these games do lead to a long-term solution different from the current state. From that point on, the relationship seemed doomed and now, Hutch wants out, with significant value no doubt.
The new players that are now trying to get in to this game have also hit a roadblock, one player Hutch wants to sell to them but the 3rd player in the picture, the Indian partner, doesnt. A roadblock in the game but its still unstable.
Now, they have changed the game. Hutch cant sell its stake in the Indian ops without the partner's consent but it definitely can sell the holding company stake, the way it did to Orascom. So a 3-player game will become a 2-player one and Hutch & the new player will negotiate an easy solution. Post that, the Indian ops will become a 2-player game as well leading to a final stable solution. Until some more time has elapsed, when its time to repeat history.
Take the case of Hutchison's telecom ops in India, Hutch. Its very formation was based on strategy games played by a large number of players which included several players with smaller operations. Once it got consolidated as a pan-India player, the ops ran smoothly as long as there was a smooth ongoing relationship between the 2 large players. They did try to compete to acquire other minorities but that only caused a minor hiccup or two.
Things changed the moment Hutch tried to bring in a significant 3rd player, Orascom, as minority partner in their holding co. Now, 3-player games are inherently unstable, like your love triangles, these games do lead to a long-term solution different from the current state. From that point on, the relationship seemed doomed and now, Hutch wants out, with significant value no doubt.
The new players that are now trying to get in to this game have also hit a roadblock, one player Hutch wants to sell to them but the 3rd player in the picture, the Indian partner, doesnt. A roadblock in the game but its still unstable.
Now, they have changed the game. Hutch cant sell its stake in the Indian ops without the partner's consent but it definitely can sell the holding company stake, the way it did to Orascom. So a 3-player game will become a 2-player one and Hutch & the new player will negotiate an easy solution. Post that, the Indian ops will become a 2-player game as well leading to a final stable solution. Until some more time has elapsed, when its time to repeat history.
posted by Amit at 1:42 PM
1 Comments:
A triangle being of unstable geometry is an idea of a romantic with a belief of such a relationship being unsuccesful.
On the other hand, the inverted triangle representing the indian population control scheme hasnt been a picture of success either.
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