Case Study of Nora-Sakari Essay

2345 Words Sep 12th, 2013 10 Pages
The Malaysian government in 2002 gave Telekom Malaysia Bhd (TMB) the mandate to develop the country’s telecom infrastructure. At the time TMB did not have the knowledge and technology to complete this project. The company therefore requested for tenders to help in completing the project successfully. The project involved the installation of digital switching exchanges in parts of Malaysia. The aim of the project was created in accordance the Malaysian government vision 2020. Nora Holdings is one of the leading companies in the telecom business in Malaysia. It was established in 1975. Since it was created it has a lot technical know-how in cable-laying projects, installing payphones and manufacturing telecom handsets. This is through vast …show more content…
Nora did choose Sakari because it was an internationally accredited company. Sakari had expertise, skills and experience that Nora needed in its venture. Nora was looking forward to do what Sakari had done in Finland and imitate it in Malaysia. Sakari also had its reasons to choosing Nora Holdings. It would gain access to expertise and new technology. Nora had the capability of working with Japanese and different cultural negotiations. Nora also had vast experience in distributing and supplying. Nora Holdings had the capability of penetrating South-Asia markets which would mean expanded market. To guarantee that Nora discharges the conditions of the TMB contract, a Sakari joint venture should first be negotiated. The negotiation has not yet come to an consensus due to some issues concerning the agreement. The major cause why an agreement has not been reached is because both companies have different objectives, cultural issues and conflicting ambitions. The disagreements are in the areas technology transfer, equity ownership expatriate issues and royalty payments. The contradicting goals of the two companies are both related to future developments of the companies. The benefits that initially motivated the two companies to form a joint venture are: in Sukari perception the motivations come from the need to enter the Southeast Asia market. In Nora perception motivations come from obtaining Sakari’s technology and

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