Nora Sakari

2153 Words9 Pages
1. Nora- Sakari: A Proposed JV in Malaysia (Revised)
This case presents the perspective of a Malaysian company, Nora Bhd, which was in the process of trying to establish a telecommunications joint venture with a Finnish firm, Sakari Oy.
Telecom Malaysia Bhd (TMB), the national telecom company, was given authority by the Malaysian government to develop the country’s telecom infrastructure.
In October 2002, TBM called for tenders to bid on a five-year project worth RM2 billion for installing digital switching exchanges in various parts of the country. The project also involves replacing analog circuit switches with digital switches.
Nora Bhd was the one of the leading companies in the telecom industry in Malaysia. Then Nora was
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Throughout the case, as a reader, we felt as if the Sakari negotiators did not trust Nora and did not believe strongly in the success of the proposed joint venture, which further contributed to the adherence to their proposed high uncertainty avoidance. Another major issue discussed was related to arbitration. The both parties agreed to an arbitration process in event of future disputes, they disagreed on the location for dispute resolution.
Consultants knowledgeable in the culture and business practices of the foreign environment and who have credibility and contacts in the area of the proposed venture can sometimes be of enormous benefit in both better understanding the potential deal and in facilitating it. Unfortunately on the day of negotiation Sakari’s senior accountant Solail Pekkarinen was perceived extremely arrogant and insensitive to the local culture, which tended to value modesty and diplomacy, the Nora team requested that Sakari ask him to leave the negotiation. It really seems to put the Finnish negotiators in a ridiculous position. The failed negotiations between Nora and Sakari are that it seemed that Sakari’s negotiators were not as experienced and not as prepared as those representing Nora. Furthermore the issue of individualism could not be ignored in this case. It is clear that while Nora was working to
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