Nora Sakari
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
• 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