Nora Sakiri Points
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* Why have negotiations failed?
1. Different objectives, Nora wants to possess the technology. Nora wants to improve their homeland by providing citizens with a better communication network. Nora wants to become player in South East Asian market. Sakari wants to move into Asian region, due to huge population, growth opportunities. Going to UK is closer (culturally and physically) and doesnt require a Joint Venture.
2. Technology has attractive technology, which is modular and based on open standards.
3. Lack of preparation
4. Lack of understanding on the differences due to national culture, Sakari sent a Muslim engineer to do the negotiation, but had to send home their chief accountant.
5. Lack of Full Support at Sakari headquarters in Finland.
* Why JV?
1. Acquire Sakaris switching technology, Why not license? Nora wants to learn how to develop technologies in the future, they hope to learn from the Finns.
2. Entry into Malaysian market is restricted to foreigners thus the need to form a JV.
* As Zainal, what would you do to ensure Nora fulfills the TMB contracts?
1. Accept Sakaris terms (which are unsustainable)
2. Forget JV with Sakari and consider other partners
3. Re-negotiate – look for a win-win solution