Essay about Nora Sakari

1846 Words Sep 24th, 2012 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 to successfully negotiate the contract with each other. Following are some example proving how far they are from the real contract.

Sakari proposed an equity split in the Joint Venture (JV) Company of 49 percent for Sakari and 51
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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.
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. For example, in 1999 there were only 20 phone lines per 100 people in Indonesia, Malaysia, and the Philippines. Whereas, there were 55 telephone lines per 100 people in United States, Canada, Germany, Finland, and Sweden.
Finally, Sakari would be benefited from the Nora’s advantage of local knowledge of Malaysia and Asian Market. Not only this but also Nora has strong government ties and they already has a contract in hand. Beside this, Nora has experience working with companies based in developed countries.

2. As Zainal, what would you do to ensure that Nora fulfills the TMB contract?
As Zainal, to fulfill the TBM contract I would restructure the contract with that of Sakari and request them for final attempt for negotiations. The reason I would like to do this is that Sakari’s network are easily adjustable and can cater to large exchanges in urban areas, and small ones in rural areas. Beside this, Sakari is willing to deliver a customized system to meet the needs of the customers which the larger

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