Question

11The Russian wireless market became saturated in 2005. A battle ensued between shareholders Telenor and Alfa Group over expansion into Ukraine. Telenor already had a JV with one of the major existing operators in Ukraine and opposed VimpelCom entering the Ukraine market to compete with it. Alfa insisted that VimpelCom should pursue the Ukraine market. What would be the best way for the CEO to handle this conflict?

Answer 1

This conflict according to me should be handled by the CEO via voting rights been excercised. As both groups Telenor and Alfa have there voting rights that they could exercise in order to take decision. So the majority of votes if come for the Vimplecom not entering the company then that should be the decision of the company and if vice versa then Vimplecom should enter the company. Hence both the group will agree to the decision taken after the voting as there will be no partiality done by the Ceo and hence Ceo could easily resolve the conflict.

But in case that there is 50% votes given to each decision then the vote of Ceo will be given at most important. Hence whatever decision of the Ceo will be the final decision and also in this case no party will have any conflict.

Also another way could be Ceo in case of 50% vote could make decisions based on how much percentage of shares of the company are most held by which party of the shareholders and let that decision evolve because as it is the highest percentage of shares held by someone make hime the ruling authority or owner for specific percentage of the company.

Thank you ! It might be possible that there any other way you could think which might be much better than mine point of view.

So keep thinking and all the best.