Topics: Management, Economics, Plan Pages: 4 (1134 words) Published: December 5, 2013
1)Why have the negotiations so far failed to result in an agreement? The meeting went on for several days. The main issue raised at the meeting was Nora’s capability in penetrating the South-east Asian Market. Other issues include Sakari’s concern over the efficiency of Malaysian worker in JV in manufacturing the product, maintaining product quality and ensuring prompt deliveries. There was a communication barrier from how they negotiate which contributed to the failure of an agreement.

2)Is the formation of the JV between Nora and Sakari the best option for both companies to achieve their respective objectives? Sakari wanted a major telecom contract in the United Kingdom. Nora wanted more of a long term type of plan. They wanted to develop its own digital switching exchanges and related high-tech products. One camp held a strong belief that there would be very high growth in the Asia-Pacific region and that the JV Company in Malaysia was seen as a hub to enter these markets.

3)As Zainal, what would you do to ensure that Nora fulfills the TMB contract? What I would do to make sure that zainal follows the contract is to give them some incentives that would interest them in to abiding by the TMB contact at hand. These incentives could range from increase the quality of it product to be more appealing or even lower the prices to make more people be able to get their product.

4)If Zainal decides to renegotiate (and assuming that Kuusisto agreed), how should he restructure the terms of the deal? If Zainal decided to renegotiate assuming that Kuusisto agreed, how he would restructure the terms of the deal would start with drop his egos that his company gives him for being the lead manufacture of cellular phone sets and switching systems and to come together to form a joint venture. They both got vital part to make the joint venture successful.

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