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    Nora Sakari

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    Rainhard Saliama
    The document discusses a proposed joint venture between Nora, a Malaysian telecom equipment supplier, and Sakari, a Finnish manufacturer of cellular phones and switching stations. However, the negotiations failed due to disagreements over equity ownership, technology transfer terms, royalty payments, employee compensation, and the location of arbitration for future disputes.

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    Nora Sakari

    Uploaded by

    Rainhard Saliama
    202 views9 pages
    The document discusses a proposed joint venture between Nora, a Malaysian telecom equipment supplier, and Sakari, a Finnish manufacturer of cellular phones and switching stations. However, the negotiations failed due to disagreements over equity ownership, technology transfer terms, royalty payments, employee compensation, and the location of arbitration for future disputes.

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    presentasi NORA

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    The document discusses a proposed joint venture between Nora, a Malaysian telecom equipment supplier, and Sakari, a Finnish manufacturer of cellular phones and switching stations. However, the negotiations failed due to disagreements over equity ownership, technology transfer terms, royalty payments, employee compensation, and the location of arbitration for future disputes.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    202 views9 pages

    Nora Sakari

    Uploaded by

    Rainhard Saliama
    The document discusses a proposed joint venture between Nora, a Malaysian telecom equipment supplier, and Sakari, a Finnish manufacturer of cellular phones and switching stations. However, the negotiations failed due to disagreements over equity ownership, technology transfer terms, royalty payments, employee compensation, and the location of arbitration for future disputes.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 9
    At a glance
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    Nora is a leading telecom supplier in Malaysia while Sakari is a leading manufacturer of cellular phones and switching stations from Finland. Nora was interested in forming a JV with Sakari.

    Nora was established in 1975 in Malaysia and is a leading telecom company. Sakari was established in 1865 in Finland and manufactures cellular phones and switching systems.

    The negotiations failed due to disagreements over equity ownership, technology transfer, royalty payments, employee compensation, arbitration location, differences in culture and management styles and inability of both parties to compromise on key issues.

    NORA -SAKARI

    A PROPOSED JV IN
    MALAYSIA
    ( Revised )

    Company profile
    Nora , a Malaysian Company, is
    leading supplier of telecom equipment
    Sakari, Finland Company, is leading
    Manufacturer of cellular phone sets
    and switching stations
    Nora was interested in forming a joint
    venture with a conglomerate Sakari Oy
    (Sakari) of Finland

    Nora Company

    Establishing in 1975
    Paid In Capital = RM 2 million
    Holding : 30 Companies
    Employees : 2.081 person
    Leading telecom company in Malaysia who saw
    success from the cable, telephone, payphones, and
    other ventures like distribution
    Islamic values in the workforce, which focuses on
    relationships, sincerity, and consistency.
    The founder and chairmen : Osman Jaafar ; Deputy
    Managing Director = Zainal Hashim
    Type of business : Cable ; Telephone ; Payphone and
    others

    Sakari
    1.
    2.
    3.
    4.
    5.
    6.
    1.
    2.
    3.
    7.

    8.

    Established 1865 in Finland


    Product : rubber , cable and expand to telecom
    Niche player in the global switching market
    Major market : Finland digital tools
    R & D , 17 % from annual sales revenue
    Business :
    telecom system and mobile phones
    electronic
    cable and related technology
    Sakari began as a pulp and paper mill before expanding into
    rubber and cable. Aatos Olkkola, Sakaris president, led the
    company into computers, consumer electronics, and cellular
    telephones by a series of acquisitions mergers, and alliances.
    The Finnish economy was booming based on the large growth in
    the telecommunications equipment manufacturing and global
    telecommunications market.

    Nora and Sakari


    1. Sakari manufacture of cellular phone set and
    swithcing systems
    and Nora supplier of
    Telecom are vertical chain in industry.
    2. Technology transfer
    3. To meet the needs of the telecom industry in
    Malaysia and other countries.
    4. To
    meet
    expanding
    the
    new
    market
    ( globalization )
    5. To meet
    capital gains from business
    combination
    6. The large potential for telekom facilities ( from
    20 to 55 telephone per 100 people )
    7. Continuous improvement well growth

    The key points of negotiation : equity ownership, technology


    transfer, royalty payments, expatriates' salaries and perks, and
    arbitration.
    Below is a list of the reasons as to why the negotiations had failed into a joint
    venture:
    1.Each company agreed to form the JV with a paid up capital of RM5 million, but
    there was a disagreement of equity ownership for each side ( 70 : 30 )
    2.Difference in cultures;
    3.Difference in management styles ( large different in GDP , Different scale of
    scope );
    4.Communication problem in negotiation meeting ;
    5.Inability of both parties to compromise on key issues;
    6.Sakari s unwilingness to share their technology with Nora
    7.Royalty for the technology was also an issue. Sakari proposed a royalty
    payment of five percent of the JV gross sales while Nora proposed two percent
    of net sales.
    8.Different views in employee salaries and perks ( employee compensation
    dispute )
    9.Fail to honor the contract and will be in a extraordinarily difficult situation.
    10.Nora would be the majority stakeholder and insisted that arbitration should
    take place in KL. Sakari insisted on following the norm commonly practiced by
    the company, Helsinki. ( future disputes at arbitration process )
    11.Nora began the negotiations and assumed that the Finns were like the
    Americans who tend to be extremely open and state their position early and
    definitively.

    Contingent liability
    Nora and Sakari maynot be renegotiate,
    because the more principal problem will be
    meet in Joint venture .
    Starting from equity ownership, technology
    transfer, royalty payments, expatriates'
    salaries and perks, arbitration, and the
    difference culture. That it will takes time for
    several years, so long time period, for
    meet the balance. This is not effective and
    efficiently for sustainable business growth

    Nora should consider other companies


    to partner with, such as :
    Telecom Malaysia Bhhd
    Lucent , US Company
    May be japanese Companies, also an
    option.

    Thank you

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