Nora Sakari Case Study for International Management Course

The private investors really had no cohesiveness as a group making it difficult to negotiate a deal as a group. Although the negations potentially could be less formal, satisfying each individual investor could be a strain on the young company.

Having ability to use resources across more effectively (transfer of human capital, utilising group’s plants, facilities and services) that would lead to creating various synergies and benefit from economies of scope.

between Nora Holdings Sdn Bhd, a leading supplier of telecommunications equipment which is based in Malaysia, and Sakari Oy, a Finnish conglomerate, which was a leader in the manufacturing of cellular phones and switching systems from Finland. Nora as well as Sakari was part of a group of seven companies that submitted a five year bid outlined by Malaysia’s national telecommunication company, Telekom Malaysia Bhd (TMB), to develop the country’s telecommunication infrastructure to align with the government’s Vision 2020 program. Nora needed the JV with Sakari to ensure it could meet the obligations for the TMB

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Shania should first think about key business decisions asking questions such as: What kind of business do I want? Who is my ideal customer? How will I set up the legal structure of my business? What taxes do I need to pay? As an entrepreneur and potential new business owner I would advise her to first speak with a business lawyer. She seems to have quite the support from loved ones: one following in her Christian faith, while the other is a non-believer in the Christian faith.

Risks: Due to lack of core competencies in the area of manufacturing, there is a high risk of failure due to mistakes and poor execution particularly working on a first large scale project. There is also a risk that if the trial is unsuccessful, the plant will be

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?

RLK may suffer losses if the partnership with Inova turns sour and the Intellectual property remains with Inova.

Due to the loss of business and net worth, Akamai’s growth was not possible without partnering with other business concerns such as IBM, Microsoft etc. Managers of Akamai having partnered with other companies and exploiting their resources along with their own resources,

Auspiciously, during the marketing of Brightways, it became clear that the ROADM unification solution had themes in common with a larger movement unfolding in networking that of network virtualization. Furthermore, taking a step up to an original equipment manufacturer –OEM of networking is a much bigger opportunity than the lower realm of ODM. The networking universe is composed of many more targets, however there are mega-networking companies satisfying that multibillion-dollar market like Cisco, Juniper, Brocade, and Avaya. Although, successful startups in networking can gain a billion dollar capitalization with the right technology. That is foreseeable factoring in that the cost of information technology rivals NFL stadiums for just a single

There were many motivations as to why Nora chose Sakari specifically to collaborate with to meet their underlying motivations. Sakari was an internationally recognized company, and was familiar with the process of creating joint ventures to enter new markets. Sakari was the leading telecom company in Europe and had experience using high technology to enable a small country to have a fast growing economy. Nora was looking

There is a remarkable increase in the form of strategic alliances, merger, and acquisitions, joint venture, takeover, etc. among national and international commercial marketplace. The primary reason for the adoption of collaborations is so as to fill in the remaining gap for an organization to remain competitive over the competitors in its region. The strategic alliance is such type of collaboration, which is used by companies by working together towards achieving their goals and objectives adequately (Volkmann, 2012). For example, Microsoft and Nokia made a strategic alliance for the purpose of developing a quality based Windows mobile phone for acquiring a significant market share in the mobile industry. Similarly, ‘CISCO Systems’ partnered with China’s largest e-commerce company ‘Alibaba’ to deliver exceptional services to their corporate clients.

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.

In regards to knowledge gaps and developing a coherent vision and response to the emerging trends, “Siemon must focus more on data center and service providers in the future as there is a trend with companies outsourcing to a colocation company or cloud service provider. Siemon must also align itself with complementary partners who manufacture the end devices and active equipment and channel partners who have intelligent building experience and capabilities such as network integration (R. Carlson, personal communications, November 10, 2015).

A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. The concept comes from business management and was first described and popularized by Michael Porter (Porter, 2013)