Huang Chow Enterprises. Management course term paper

Huang Chow Enterprises
Student’s Name
Institutional Affiliation

Huang Chow Enterprises
Case Synopsis
In the digital era, technology is highly dynamic and rapidly advancing. That is the reason why Huang Chow Enterprises (HCE) has developed a prototype of a silicon chip called “Dix Chip” that operates 20 times faster than other chips already available in the market. However, “Dix Chip” requires thorough testing before it is put in use in advanced computer systems. Mr. Richard Chow, HCE’s president, and Dr. Lisa Chung, the director of research and development at HCE, decided that they required to establish appropriate strategic partnerships with appropriate technology firms in G-8 countries to make their dream come true. They decided to find appropriate partnerships in Canada due to its recent technology application and developments. The chosen partners were Rocky Mountains University, headed by Dr. Michael Smith, and Chip Tech Technologies, which was led by Warren Gifford. Nevertheless, the technology owners are at a stalemate with their potential partners due to disagreements on the terms of the contract.
Primary Problem
The primary problem emanated from the two requirements by Chow and Chung. First, these individuals wanted HCE and the government of PRC to retain intellectual property rights. They further indicated that these stakeholders were ready to offer all the necessary capital required to carry out research to actualize their project. Second, Chung and Chow wanted the price of “Dix Chip” in the United States of America (USA) and Canada to be determined and regulated by the PRC and HCE. As a payback, Rocky Mountains University will receive a $5,000,000 research grant to aid in the development of Quattro Chips. Additionally, Chip Tech Technologies was to get a 5% commission on all sales of “Dix Chip” for the first three years.
Analysis
In the scenario at hand, the primary source of disagreement between Chow and Chung and Smith and Gifford is on the ownership of intellectual property rights. In reality, Rocky Mountains University and Chip Tech Technologies would be disadvantaged to help in the development, testing, and marketing of “Dix Chip” without being recognized as contributors to this cutting-edge technology. Any company cannot lose a chance like this by helping others to develop new technologies without proper recognitio...