Contracting And Negotiating 4



Contract and Negotiations (Microsoft-Nokia deal)

Edwin Villa Rivera

MKTG 410

American Military University

22 March 2021

Contract and Negotiations (Microsoft-Nokia deal)


The Microsoft-Nokia deal is one of the deals that raised much concerns and problems in the mobile industry. The fact that Nokia was declining in its sales especially with the growing of other brands such as Apple, LG, Samsung, HTC did have a major impact to the way that they did perform. The companies were shifting their focus onto the developing android features and it being the foreseeable crack of the new technology market. The increasing competition on the market did sideline Nokia that was giant and thus it did need to find solutions since it was losing capital fast which was a major problem. Microsoft approached Nokia because of a potential deal since it realized that Nokia was struggling financially and with their Microsoft OS, they did have a unique approach on the market that would challenge the entire mobile market. The negotiations started with an approach between the two parties and Nokia was considering the sale but were adamant about the pricing and also how to retain their “Here” app that they wanted it to remain within the organization and yet Microsoft was interested in purchasing the entire franchise with no interest in having to also further purchase a navigation app for their phones from another company. The negotiations did stall for a long time because neither party was willing to budge on their interests in the deal since Nokia wanted to sell the navigation app as a separate entity and it did cause problems between the two deals.

Negotiation’s techniques

The evident negotiation techniques in the deal did include the concept of open communication between the two parties. Nokia and Microsoft both had an open communication throughout the negotiations with both parties airing out their needs and desired outcomes from the research that made it easier to come to an agreement throughout the research. It is important to make the decision because it was important to make such decisions which is vital for the way that they do interact and this helped make sure that there was a conclusive negotiation. The technique of patience was also evident throughout the negotiation especially because Microsoft was so patient since it was willing to see the deal become a success (Staff, 2020). Most negotiations tend to fail because one party is rushing through the negotiation while the other feels the pressure of the research and thus, they might end up walking away. For instance, some other companies would have walked away especially when Nokia was taking its time to come up to a decision which would have made another party of the negotiations impatient and would leave the deal. The negotiation technique whereby they did place all the business deals out in the clear was evident in the negotiations that did change their interactions which did help improve the success of the deal. The decision-making techniques did have a major impact on the negotiations that did change the narrative of the business which did benefit from the organization’s interactions.

Emotional intelligence in negotiation

The investment of the two parties into the negotiation was a major advantage because it helps change the entire narrative and direction of the negotiation. the two parties were intelligent and thus it was easy for both of them to achieve their goals and interests in the negotiation. The two parties invested in the negotiation with ease and this helped make it easier to change the interactions that did shape up the negotiations. The start of the negotiation was bumpy and this did challenge the success of the process because the parties were holding back into the negotiation and it was not appropriate. The sit down between the two leaders from different companies made it easier to come to some agreement that then did ease the entire flow of the discussions. It is important to make sure that there is a sense of direction for the negotiations which almost led to the stalling of the interaction process which did not value their ways of making progress and this was not appropriate. The two organizations did invest in a team that would evaluate the entire process and make sure that there was a sense of direction for the company that made it easier to improve their performance on the ground. The concept is an identity of emotional intelligence because it did lead to the opening up of the entire negotiations that did change the narrative of interactions creating a baseline of interactions. The other evidence of emotional intelligence was when the negotiation was almost collapsing over the “Here” navigation application that Nokia was not ready to include in the deal and Microsoft was also interested in making sure that the deal would include the application since it would make the entire negotiations a success (Lopez, 2013). The realization of the licensing aspect did help hold together the deal and improve on the negotiations because it helped Microsoft accept the deal and also Nokia to hold on to the other chunk of their deal which was beneficial to the way that they did interact and pursue the next deal. It is important to make sure that the emotional intelligence involved in a negotiation should be effective and help in promoting the interests of both the parties within the negotiation to improve the way that they do solve their problems.

Leveraging emotions for negotiations

The leveraging of the emotions is a result of the introduction of the emotional intelligence aspect that helps improve the way that they do connect. It is important to take advantage of the emotions and thus make sure that they do introduce the best alternative as the solution which is beneficial to the way that they do connect. The negotiation process especially between Microsoft and Nokia was a high-profile deal that was supposed to be a game changer thus emotions were running high. Nokia were not willing to let down their lead and control of the organization which did make a major problem and thus they had to make sure that they do come up with the proper interactions. The success of the negotiations was a result of a positive energy and making sure that there was a sense of progress each meeting that took place so that it helps improve their interactions. The fact that there was need for the emotions in the negotiations did change the tracking of the organization which is beneficial to the way that they do position towards the success of the organization. There was need for patience on the side of Microsoft because they had to wait for Nokia to make up their mind of selling then again conduct valuations to make sure that it is a conclusive deal which was a major advantage towards the success of the organization. It is evident that in the early stages of negotiations, Nokia was not interested and invested in the deal as much as Microsoft and this was a major issue because it was a result of emotional deficiencies regarding the deal. The deal was good but because it was going to affect the entire company and its employees the emotions and feelings were a major hindrance to how they did influence the entire organizations decisions. The investment in the emotional intelligence during a negotiation makes sure that they take advantage of the emotions invested in a negotiation which is vital for the success of the entire deal.


Lopez, M. (2013). Winners and Losers in the Microsoft Nokia Deal. Forbes. Retrieved from

Staff, P. (2020). For Business Negotiators, Patience Can be a Virtue: The story of Microsoft’s Nokia acquisition makes a case for business negotiators staying at the table. Harvard Law School. Retrieved from