Nora sakari a proposed jv in malaysia revised

The Nora Sakari Case study 1. A Why have the negotiations so far failed to result in an agreement?

Nora sakari a proposed jv in malaysia revised

As he lookedout the window at the city spreading below, he thought about the Friday eveningreception which he had hosted at his home in Kuala Lumpur KLMalaysia, for ateam of negotiators from Sakari Oy2 Sakari of Finland. Nora was a leadingsupplier of telecommunications telecom equipment in Malaysia while Sakari, aFinnish conglomerate, was a leader in the manufacture of cellular phone sets andswitching systems.

The seven-member team from Sakari was in KL to negotiatewith Nora the formation of a joint-venture JV between the two telecomcompanies. This was the final negotiation which would determine whether a JV agreementwould materialize.

The negotiation had ended late Friday afternoon, having lastedfor five consecutive days. The JV Company, if established, would be set up inMalaysia to manufacture and commission digital switching exchanges to meet theneeds of the telecom industry in Malaysia and in neighbouring countries,particularly Indonesia and Thailand.

While Nora would benefit from the JV interms of technology transfer, the venture would pave the way for Sakari to acquireknowledge and gain access to the markets of South-east Asia.

Azimah Ainuddin prepared this case under the supervision of Professor Paul Beamish solely to provide material for class discussion.

The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.

Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. This material is not covered under authorization from CanCopy or any reproduction rights organization. CopyrightIvey Management Services Version: As he looked out the window at the city spreading below, he thought about the Friday evening reception which he had hosted at his home in Nora sakari a proposed jv in malaysia revised Lumpur KLMalaysia, for a team of negotiators from Sakari Oy2 Sakari of Finland.

Nora was a leading supplier of telecommunications telecom equipment in Malaysia while Sakari, a Finnish conglomerate, was a leader in the manufacture of cellular phone sets and switching systems.

The seven-member team from Sakari was in KL to negotiate with Nora the formation of a joint-venture JV between the two telecom companies.

Nora sakari a proposed jv in malaysia revised

This was the final negotiation which would determine whether a JV agreement would materialize. The negotiation had ended late Friday afternoon, having lasted for five consecutive days.

Nora-Sakari: A Proposed JV in Malaysia by Lane Walla on Prezi

The JV Company, if established, would be set up in Malaysia to manufacture and commission digital switching exchanges to meet the needs of the telecom industry in Malaysia and in neighbouring countries, particularly Indonesia and Thailand. While Nora would benefit from the JV in terms of technology transfer, the venture would pave the way for Sakari to acquire knowledge and gain access to the markets of South-east Asia.

Oy is an abbreviation for Osakeyhtiot, which means private limited company in Finland. Most successful Finnish companies were in the high-tech industries.

Case Solutions and Analysis

For example, Kone was one of the worlds three largest manufacturers of lifts, Vaisala was the worlds major supplier of meteorological equipment, and Sakari was one of the leading telecom companies in Europe. It would be an invaluable opportunity for Nora to learn from the Finnish experience and emulate their success for Malaysia.

The opportunity emerged two and half years earlier when Peter Mattsson, president of Sakaris Asian regional office in Singapore, approached Zainal3 to explore the possibility of forming a cooperative venture between Nora and Sakari.

While growth in the mobile telecommunications network is expected to be about 40 per cent a year in Asia in the next five years, growth in fixed networks would not be as fast, but the projects are much larger.

A typical mobile network project amounts to a maximum of 50 million, but fixed network projects can be estimated in hundreds of millions. In Malaysia and Thailand, such latter projects are currently approaching contract stage. Thus it is imperative that Sakari establish its presence in this region to capture a share in the fixed network market.

The large potential for telecom facilities was also evidenced in the low telephone penetration rates for most South-east Asian countries. For example, intelephone penetration rates measured by the number of telephone lines per people for Indonesia, Thailand, Malaysia and the Philippines ranged from three to 20 lines per people compared to the rates in developed countries such as Canada, Finland, Germany, United States and Sweden where the rates exceeded 55 telephone lines per people.

With a paid-up capital of RM2. The first name is used because the Malay name does not carry a family name. TMB would also facilitate the installation of more cellular telephone networks in view of the increased demand for the use of mobile phones among the business community in KL and in major towns.

As the nations largest telecom company, TMBs operations were regulated through a year licence issued by the Ministry of Energy, Telecommunications and Posts.

In line with the governments Vision program which targeted Malaysia to become a developed nation by the yearthere was a strong need for the upgrading of the telecom infrastructure in the rural areas. TMB estimated that it would spend more than RM1 billion each year on the installation of fixed networks, of which 25 per cent would be allocated for the expansion of rural telecom.This case presents the perspective of a Malaysian company, Nora Bhd, which was in the process of trying to establish a telecommunications joint venture .

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Nora-Sakari: A Proposed JV in Malaysia (Revised) [10 Steps] Case Study Analysis & Solution

S NORA-SAKARI: A PROPOSED JV IN MALAYSIA (Revised) w M06 R. Azimah Ainuddin prepared this case under the supervision of Professor Paul Beamish solely to provide material for class discussion.

The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. 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.

Nora Sakari: A Proposed Joint Venture. Print Reference this Our team decided on the case study titled “Nora-Sakari: A Proposed JV in Malaysia” by the Richard Ivey School of Business (The University of Western Ontario) because of its interesting content and as a team we feel that this particular case is very informative because it.

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