A Joint Venture Between Nora And Sakari - 853 Words

The negotiations for a joint venture between Nora and Sakari have been taking place for over two years and 20 meetings. Meeting locations have varied, but have been held in both of the firm’s respective countries of Helsinki and KL. So far, the meetings sunk costs in promoting the JV between the two companies are estimated at RM3 million. There are mutual benefits for a cooperative effort. The main benefit for Sakari would be to meet its strategy of expanding RD centres in to South-east Asia which is a market of unexploited potential. They would be to meet this strategy if they gained access through Malaysia. Nora’s main benefit would be able to fulfill its TMB contract since its bid was reliant on providing â€Å"Sakari’s 4G LTE technology† (XX). Despite the benefits that would occur due to the agreement the negotiation efforts failed to reach a JV agreement between the two entities. Some of the major reasons for negotiation failure were due to difference in goals, negotiation and interaction styles, cultural differences and behaviors, and lack of trust. GOALS, NEGOTIATION AND INTERACTION STYLES Their approaches to negotiation and objectives were very different for each party. Nora went in with an integrative negotiation strategy since they had already won their bid based on using Sakari’s 4G technology and having a successful agreement would be important in fulfilling the contract with TGMXX. The were interested in creating a win-win situation. On the other-hand Sakari’sShow MoreRelatedNora Sakari Case Analysis Essay1029 Words   |  5 Pagesand drawbacks of reconciling with Sakari? There are both benefits and drawbacks of reconciling with Sakari for Nora. The benefits are was follows. First, Nora was motivated by Sakari’s advanced technology and the possibility of acquiring it and replicating it in the future. Nora was interested in securing a share of the contract from TMB, as well as the technology to switch from telecom. Second, Compared to other larger size multinational companies, Sakari was prepared to work out customizedRead MoreNora-Sakar i Case Analysis2540 Words   |  11 PagesNora-Sakari Case Analysis Introduction The Nora-Sakari: A proposed JV in Malaysia set in 2003, focuses on the possible joint venture between Nora Holdings Sdn Bhd, a leading supplier of telecommunications equipment which is based in Malaysia, and Sakari Oy, a Finnish conglomerate, which was a leader in the manufacturing of cellular phones and switching systems from Finland. Nora as well as Sakari was part of a group of seven companies that submitted a five year bid outlined by Malaysia’s nationalRead MoreNora Sakari1861 Words   |  8 PagesNora Sakari case analysis 1.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Why have the negotiations so far failed to result in an agreement?  Ã‚  Is the formation of the JV between Nora and Sakari the best option for both companies to achieve their respective objectives? Ans. Part 1:  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Negotiations to date between Nora and Sakari have failed mainly due to a mutual ignorance of one anothers cultural norms.  One of the key reasons for failed to result in an agreement is that there is huge gap between what Nora and Sakari can sacrificeRead MoreNora Sakari2153 Words   |  9 Pages1. Nora- Sakari: A Proposed JV in Malaysia (Revised) This case presents the perspective of a Malaysian company, Nora Bhd, which was in the process of trying to establish a telecommunications joint venture with a Finnish firm, Sakari Oy. Telecom Malaysia Bhd (TMB), the national telecom company, was given authority by the Malaysian government to develop the country’s telecom infrastructure. In October 2002, TBM called for tenders to bid on a five-year project worth RM2 billion for installing digitalRead MoreNora-Sakari: A Proposed Joint Venture In Malaysia5063 Words   |  21 Pagesand Management in SEA Case Analysis: Nora-Sakari: A Proposed Joint Venture In Malaysia Submission date: 03.03.2004 Nanyang Technological University CONTENTS: ___________________________________________________________________________ Introduction 1 Cultural differences 2 Relationship-Focus vs. Deal Focus 2 Formal vs. Informal 4 Time and Scheduling- Monochromic vs. Polychronic 5 Why Nora should contact Kuusisto in Helsinki. 6 Why shouldnt Nora contact Kuusisto in Helsinki? 9 ConclusionRead MoreGroupcase Nora-Sakari: a Proposed Joint Venture in Malaysia2416 Words   |  10 Pagesalmost always has more than one solution, the question of whether or not a joint venture between Sakari and Nora would be the best option for either of the companies is difficult to assess. However, there are certain benefits, which are mentioned in the case, that clearly outline the initial motivation for forming the join venture. From the Sakari side, the motivation came in the form of a new market in Southeast Asia, while Nora was motivated by Sakari’s telecom technology and the possibility of acquiringRead MoreNora-Sakari Case Analysis2313 Words   |  10 PagesNora-Sakari Case Study Introduction: Nora and Sakari are considering a joint venture to build digital switching exchanges for the telecom industry in Malaysia, Indonesia, and Thailand. Nora is a Malaysian telecom company that is looking to become a technology leader in South-east Asia. Sakari on the other hand is a Finish company that is considering expanding its operations in south-east Asian market and is looking for partners for this reason. They are a high Technology company and theRead MoreNora Sakari Case Study for International Management Course2238 Words   |  9 PagesVeena Meer November 13, 2012 International Management Case Analysis: Nora-Sakari: A Proposed JV in Malaysia Companies’ Overview Two leading telecommunications companies are negotiating forming a joint venture (JV) called Nora-Sakari. Sakari Oy (Sakari) was a Finnish conglomerate a leader in manufacturing cell phone sets and switching systems and Nora was a leading supplier of telecom equipment in Malaysia. The proposed JV in Malaysia has the purpose of manufacturing and commissioningRead MoreInternational Joint Ventures (IJVs) Essay example2455 Words   |  10 Pagesworld, multinational corporations (MNCs) need to find new markets to stay competitive. A way in which they can do this is through IJVs. Hyder and Ghauri (2000) estimate the growth of IJVs to be 25% annually. As defined by Geringer (1988), a joint venture (JV) is when two or more distinct companies come together and form a new entity. Geringer and Hebert (1991) extend this definition to include IJVs and stated that if the headquarters of one of the partners is outside the country where the JV is