Nora Sakari

Satisfactory Essays
Nora-Sakari: A proposed JV in Malaysia

• Sakari was perceived the least capable of supplying the necessary lines to meet TMB’s requirement, as it was alleged to be a small company with little international exposure.

• The negotiator for Nora used a wrong type of approach to this negotiation. He used an approach that works for the American, and United Kingdom based companies.

• The equity ownership numbers for the split in the Joint Venture where too far off for both parties. Sakari proposed a 49/51 for Nora, but Nora proposed a 30/70 in their favor. An agreement was not settled for this situation.

• Sakari proposed a royalty payment of five percent of the JV gross sales while Nora Proposed a payment of two percent of net sales.

• The expected salaries where also far off of what each expected. There was a huge gap which also was unsettled.

• In order to fulfill the contract that has been given to Nora, i would restructure the agreements for the final attempt of negotiations. I would create an equity split of 40/60; this will allow relative control from both parties. A different venue would be assigned for meetings, a meeting place in between both countries. Nora shall not get into a “take it or leave it” stance because it needs a partner at all cost in order to provide the services for the contract. In this JV, Sakari will not lose; in fact, it has a lot to gain from

You May Also Find These Documents Helpful

  • Good Essays

    Nora Sakari

    • 1861 Words
    • 8 Pages

    Nora Sakari case analysis 1. Why have the negotiations so far failed to result in an agreement? Is the formation of the JV between Nora and Sakari the best option for both companies to achieve their respective objectives? Ans. Part 1: Negotiations to date between Nora and Sakari have failed mainly due to a mutual ignorance of one another's 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 sacrifice…

    • 1861 Words
    • 8 Pages
    Good Essays
  • Better Essays

    Nora-Sakari Case

    • 868 Words
    • 4 Pages

    Tatevik Ghapantsyan AMERICAN UNIVERSITY OF ARMENIA 5/24/2012 BUSINESS STRATEGY Nora-Sakari: A proposed JV in Malaysia Nora-Sakari: A proposed JV in Malaysia 1. Why have the negotiations so far failed to result in an agreement? Is the formation of the JV between Nora and Sakari the best option for both companies to achieve their respective objectives? The JV between Nora and Sakari was offered by Nora, Malaysian company which had already got the government order for providing 800,000…

    • 868 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    Nora-Sakari Memo

    • 792 Words
    • 4 Pages

    Nora Holdings Sdn Bhd Memo To: Zainal Hashim, Vice Chairman of Nora Holdings Sdn Bhd From: Caterina Barraco, Consultant Date: July 13, 1992 Re: Joint Venture Recommendation To ensure compliance with the terms of the TMB contract, joint venture negotiations with Sakari must be successfully concluded. Negotiations to date have failed mainly due to a mutual ignorance of one another's cultural norms, not as a reflection of the potential success of a Nora-Sakari joint venture. The following…

    • 792 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    failed to result in an agreement? Is the formation of the JV between Nora and Sakari the best option for both companies to achieve their respective objectives? 2.As Zainal, what would you do to ensure that Nora fulfills the TMB contract? This case details the negotiations for a joint venture between Nora Holdings Sdn Bhd in Malaysia and Sakari Oy based in Finland. Nora is known in Malaysia as the leading telecom company and Sakari is known in Finland as a leading manufacturer of switching systems…

    • 922 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Nora-Sakari Case Analysis

    • 2531 Words
    • 11 Pages

    Nora-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 national…

    • 2531 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Nora Sakari Case Analysis

    • 1023 Words
    • 5 Pages

    and 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 customized…

    • 1023 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Nora Sakari Case Analysis

    • 1152 Words
    • 5 Pages

    Nora - Sakari Introduction This case is about Nora, one of the leading suppliers of telecom solutions in Malaysia. The case involves a possible joint venture with Sakari, the leading manufacturer in Finland of mobile phones and telecom systems. There is a large potential in the future development of telecom facilities in Malaysia and the to enterprises have discussed a joint venture About Nora Nora is a leading supplier of telecommunication services in Malaysia. They are looking for a Joint…

    • 1152 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Nora-Sakari Case Analysis

    • 2301 Words
    • 10 Pages

    Nora-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 the…

    • 2301 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    and 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 shouldn't Nora contact Kuusisto in Helsinki? 9 Conclusion…

    • 5079 Words
    • 18 Pages
    Powerful Essays
  • Better Essays

    Veena 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 commissioning…

    • 2238 Words
    • 9 Pages
    Better Essays