And finally both Nora and Sakari disagreed on the location for the dispute resolution. Moreover, Sakari is a Finland-based company, which is famous for the deployment and manufacturing of the broadband network infrastructures. It is also important to note that one of the main reasons that the Nora sakari case was accepted was because of the joint venture Nora was negotiating with Sakari.
These cultural differences have the potential to make a joint venture between these two companies impossible which would be a shame as they both have a lot to gain from working together for a common goal.
Here, the 'Collaborative' style of negotiation would be in the best interest of both the parties. Whereas, Nora proposed a 30 percent Sakari and 70 percent Nora Split. B Is the formation of the joint venture between Nora and Sakari the best option for both companies to achieve their respective objectives?
The disadvantage of agreeing to terms with Sakari is that not all conditions of the deal will be favorable for Nora. The first key issue that should be restructured is about equity ownership and power control.
The other evidence that the Joint Venture JV will be beneficial for Sakari is that the large potential for telecom facilities was also evidenced in the low telephone penetration rates for most South-east Asian countries.
Therefore, both the companies have their own strengths and advantages over another and both the partners can learn and gain a lot from each other. Negotiations to date between Nora and Sakari have failed mainly due to a mutual ignorance of one another's cultural norms.
In conclusion, if above mentioned facts are reconsidered then Nora and Sakari Joint Venture agreement will possibly be materialized. Each of us is qualified to a high level in our area of expertise, and we can write you a fully researched, fully referenced complete original answer to your essay question.
On the other hand, Nora proposed that the basic structure of the switch be developed at the JV Company in order to access the root of the switching technology. Sakari was one of the leading telecom companies in Europe.
Furthermore, in Malaysia and Thailand, fixed network project were approaching contract stage therefore, for Sakari, it is imperative that Sakari established its presence in this region to capture the share in the fixed network market.
Beside this, 40 to 60 percent of equity ownership will be proposed to ensure the relative control of the both parties in JV Company. Sakari proposed a 49 percent split between itself and Nora to control the JV, however Nora countered with a split between itself and Sakari based on the historical foreign equity regulation set by the Malaysian government.
This would be more than Sakari wanted and the additional profits would be a sign of good faith that they would not expect based on the initial negotiations. He had used a similar approach, which he generally uses with his counterparts from the U.
A persons culture is an example of this and something not easily set aside. The disadvantages would be mainly will this joint venture give Sakari the full access to the Southeast Asian market? It is evident that each company should have done their due diligence by heavily researching crosscultural communications to learn how to find a happy medium in negotiations between one another.
Arbitration problems also arose as Nora, being the majority stakeholder, was adamant on holding arbitration in KL, whereas Sakari insisted on Helsinki, which was the company norm.
The following are examples of tests done along with the results based on culture. Lastly, Nora has already landed the contract with TMB so this could be reassurance to Sakari management that profits are attainable. Is the formation of the JV between Nora and Sakari the best option for both companies to achieve their respective objectives?a) Dissecting the facts of the case, joint venture (JV) is apparently the best option for Nora and Sakari as it brings with it numerous benefits to both players.
Sakari should offer a 40% share of the equity ownership percentage while Nora retains an equity ownership of 60% in the joint venture. Nora should allow Sakari to keep production of the switches in house and accept Sakari’s assembly and installation arrangement.
In particular this case study involved three parties: Nora Holdings SDN Bhd, Sakari Oy Company, and Telekom Malaysia Bhd, though the latter had little involvement except for providing the capital for the initial bid and deciding on the winning bids.
Apr 11, · 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. 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. Nora-Sakari: A Proposed JV in Malaysia Case Solution,Nora-Sakari: A Proposed JV in Malaysia Case Analysis, Nora-Sakari: A Proposed JV in Malaysia Case Study Solution, Nora-Sakari: A Proposed JV in Malaysia Case Solution Alternatives As Zainal, what would you do to ensure that Nora fulfills the TMB contract?
TMB is the na.Download