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A Joint Venture Between Nora And Sakari

Decent Essays
The negotiations for a joint venture between Nora and Sakari have been taking place for over two years and 20 meetings. Meeting locations have varied, but have been held in both of the firm’s respective countries of Helsinki and KL. So far, the meetings sunk costs in promoting the JV between the two companies are estimated at RM3 million.

There are mutual benefits for a cooperative effort. The main benefit for Sakari would be to meet its strategy of expanding R&D centres in to South-east Asia which is a market of unexploited potential. They would be to meet this strategy if they gained access through Malaysia. Nora’s main benefit would be able to fulfill its TMB contract since its bid was reliant on providing “Sakari’s 4G LTE technology” (XX). Despite the benefits that would occur due to the agreement the negotiation efforts failed to reach a JV agreement between the two entities. Some of the major reasons for negotiation failure were due to difference in goals, negotiation and interaction styles, cultural differences and behaviors, and lack of trust.

GOALS, NEGOTIATION AND INTERACTION STYLES
Their approaches to negotiation and objectives were very different for each party. Nora went in with an integrative negotiation strategy since they had already won their bid based on using Sakari’s 4G technology and having a successful agreement would be important in fulfilling the contract with TGMXX. The were interested in creating a win-win situation. On the other-hand Sakari’s
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