Nora-Sakari Case Analysis

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Nora-Sakari Case Study


Nora and Sakari are considering a joint venture to build digital switching exchanges for the telecom industry in Malaysia, Indonesia, and Thailand. Nora is a Malaysian telecom company that is looking to become a technology leader in South-east Asia. Sakari on the other hand is a Finish company that is considering expanding its operations in south-east Asian market and is looking for partners for this reason. They are a high Technology company and the Joint venture between these two companies seems like a perfect fit. The problem which arises is that these two very different cultures go about negotiation in very different ways. These cultural differences have the potential to make a joint
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Most Asian nations that traditionally place a higher value on interpersonal relations see time and its significance opposed.
In the US, UK and much of northern Europe, strong, direct eye contact conveys confidence and sincerity. However, in some cultures such as the Japanese, prolonged eye contact is considered rude and is generally avoided. (Kwintessential, 2011)
In Europe and North America, business people will usually leave a certain amount of distance between themselves when interacting. Touching only takes place between friends. In the Middle East, business people are tactile and like to get up close. In Japan or China, it is not uncommon for people to leave a gap of four feet when conversing. Touching only takes place between close friends and family members.

In much of Europe and North America, business is contractual in nature. Personal relationships are seen as unhealthy as they can cloud objectivity and lead to complications. In much of Asia, business is personal. Partnerships will only be made with those they know, trust and feel comfortable with. It is therefore necessary to invest in relationship building before conducting business. (Kwintessential, 2011)

It is very important to note that there are also differences in cultures with Western and Eastern

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