Monochromic and Reserved Polychronic and Reserved Low maleness Medium maleness Low individuality High individuality It should been clear to Nora before the dialogue starts. In this instance Nora is the marketer.
However, there are certain benefits, which are mentioned in the case, that clearly outline the initial motivation for forming the join venture.
The forming of the joint venture would benefit both companies if the terms of the agreement were favorable for both parties.
While Sakari had a second strategy to pursue, Nora already placed a competitive bid for the TMB project and was in dire need of a partner to fulfill its contract.
Refer to the diagram: In the power distance dimension, Malaysia scores three times higher than Finland, showing that in general the Malaysian culture promotes a very hierarchical society with a large degree of separation between upper management and regular line workers.
The next dimension that the companies differed on was the uncertainty avoidance. While in this dimension the two sides differed least, Nora was more inclined to take risks involved with the creation of the joint venture.
They were responsible for the establishment of the factory manufacturing as well as operational managerial offices, while negotiating contracts with TMB and keeping the company in the good graces of the government.
Throughout the case, as a reader, I 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.
While the masculinity dimension did not play a large role in the negotiations, the issues of female leadership could have risen in the future if the joint venture has worked out. An example of such issue could be that a female executive from Sakari could be assigned to oversee certain expatriate operations in Malaysia, thus causing problems with the predominately masculine management at Nora.
Furthermore the issue of individualism could not be ignored in this case. What are the motivations of Nora for the JV? What are the motivations of Sakari for the JV? Nora was looking to secure a share of the contract from TMB, as well as the technology to switch from telecom. Recently, Nora lost a 32 million contracted was anxious to recover and move toward high end feature phone market.
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 to do the same thing in Malaysia if given a piece of the contract. Malaysia had adopted the British system and Sakari, unlike other larger corporations could make the components customized.
Sakari has a switching system called the SK33, which is based on open architecture, uses components that are available in the open market, and was modular and could be interfaced easily with new equipment.
The SK33, leads to the development of a new switching system. The main reason is that Sakari was also looking to benefit from the access to knowledge and new technologies, but mainly they were anxious to move into the market in southeast Asia and share a portion of the fixed network market.
Sakari had lots of reasons why they should join with Nora, the Malaysian household name. Nora had lots of experience working long term with Japanese companies, and culturally different negotiations.
Not only is Nora already familiar with supplying and distributing, but they were also awarded a liscense from the UK to sell their products in southeast asia as well as 8 other markets. They had already established a niche in the Malaysian market.
Sakari also was motivated to join with Nora because the founder, Osman Jaafar, who was well known in the marketplace to have political connections. Jaafar was close with the Prime Minister of Malaysia and his partner is close with the Finance Minister, which would prove to be helpful in negotiations.
Both companies invested a great deal into this negotiation, over 3 million, which is enough of a motivation for both parties to see negotiations through to the end. What options [at least 3] exist for Zainal?
Zainal does not have the option to end this deal, and consequently, Nora must find a partner to complete the contract. Also, if they could find a company that has similar interests in the fields of salaries and benefits, it would be much easier for Nora to strike a deal.
The losses to Nora would also be substantial. Having a partnership together, the two could focus more on the research and development, and have great results.
Nora could have learned a lot from Sakari about their technology. By ending negotiations with Sakari, Nora would be throwing away a lot of potential. Also, Nora would have to adamantly search for a new partner, which would be difficult, and potentially a lot more work than simply compromising with Sakari.
Since the UK market is similar, and Sakari has local knowledge, they could even set up a wholly-owned subsidiary instead of a JV company. Also, Sakari was worried about the efficiency of Malaysian workers in the JV in manufacturing the product, maintaining product quality, and ensuring prompt deliveries.
By avoiding the partnership with Nora, Sakari would be avoiding those issues as well. The loss to Sakari would be the missed chance of entering the Southeast Asian market, which a partnership with Nora would have accomplished.
Since Southeast Asia is an emerging market, it could have meant huge potential visibility for Sakari.In Telekom Malaysia Bhd (TMB), the national telecom company of Malaysia, was given the authority by the Malaysian government to develop the country’s telecom infrastructure.
Telekom Malaysia Bhd did not possess the technology and expertise to take on a project of this magnitude.
The case illustrates the possibility of a Joint Venture between Nora, a leader in telecom equipments in Malaysia and Sakari, a Finnish Conglomerate that deals in the manufacturing of cellular phone sets and switching systems. B) Is the formation of the joint venture between Nora and Sakari the best option for both companies to achieve their respective objectives?
Nora was a leading supplier of telecommunications equipment in Malaysia, while Sakari, a Finnish conglomerate, was a leading manufacturer of cellular phone sets and a niche player in global switching market. Because every problem almost always has more than one solution, the question of whether or not a joint venture between Sakari and Nora would be the best option for .
Also, Sakari was worried about the efficiency of Malaysian workers in the JV in manufacturing the product, maintaining product quality, and ensuring prompt deliveries.
By avoiding the partnership with Nora, Sakari would be avoiding those issues as well. Because every problem almost always has more than one solution, the question of whether or not a joint venture between Sakari and Nora would be the best option for either of the companies is difficult to assess.