Course Title: Global & Transitional Management
Professor: Daniel Mays
Edward L Lenzy
Date: March 30, 2013
Nora-Sakari a proposed JV in Malaysia set in 2003 is a possible joint venture between Nora Holdings Sdn Bhd on of the leading suppliers of telecommunications equipment based in Malaysia and Sakari Oy a Finnish conglomerate which was a leader in the manufacturing of cellular phones and switching systems form Finland. Nora and Sakari was part of a group of seven companies that submitted a five year bid outlined by Malaysia's national telecommunication company, Telekom Malaysia Bhd (TMB) to develop the country's infrastructure to align with the governments 2020 program. They are looking for this joint venture to manufacture and commission digital switching exchanges to meet the needs of the telecommunication industry in Malaysia. They are also trying to secure a share of RM 2 Billion contract from TMB with the help of this joint venture. Nora needed the JV with Sakari to ensure it could meet the obligations for the TMB contract. This would also give them the ability to utilize the knowledge gained from working with Sakari to implement their model in the Malaysia market. Sakari's current strategy was to emphasize global operations in the production and resource and development. It planned to set up R&D centers in leading markets including South-East Asia but it did not have a wide marketing operation and relied on the joint venture for that reason. The problem that comes forth is that the negotiations between Nora and Sakari are not moving forward in a positive direction. Several issues had risen that have caused negotiations about the joint venture to stall. Issues such as, cultural differences, differences in organizational behavior, and other disagreements by both parties on equity...