Nora-Sakari: A Proposed Joint Venture In Malaysia

Essay by Steinar1980University, Bachelor's March 2004

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Marketing Research and Management in SEA

Case Analysis:


A Proposed Joint Venture

In Malaysia

Submission date: 03.03.2004

Nanyang Technological University



Introduction 1

Cultural differences 2

Relationship-Focus vs. Deal Focus 2

Formal vs. Informal 4

Time and Scheduling- Monochromic vs. Polychronic 5

Why Nora should contact Kuusisto in Helsinki. 6

Why shouldn't Nora contact Kuusisto in Helsinki? 9

Conclusion 12

How to create a win-win situation? 13

Proposal number one: 14

Proposal number two: 15

The actual results of the negotiations between Nora and Sakari 16


This case is about Nora, one of the leading suppliers of telecom solutions in Malaysia. The case involves a possible joint venture with Sakari, the leading manufacturer in Finland of mobile phones and telecom systems. There is a large potential in the future development of telecom facilities in Malaysia and the to enterprises have discussed a joint venture since May 1990 in order to get their share of the Malaysian market.

Nora's reason for the joint venture is to gain Sakaris advanced telecom solutions and cable related technology, while Sakaris main benefit is to access the Asian and Malaysian market.

In 1991 Nora made a bid on a 2 billion RM contract from the largest telecom company in Malaysia, Telecom Malaysia Berhad (TMB). They based the bid on supplying Sakaris technology and in early May 92' Nora won a 1/5 share of the contract. However observers were critical of TMB's decision to select Sakari, as they were small and unknown compared to the competitors like Alcatel, Fujitsu, NEC and AT&T.

Following the successful bid and ignoring the criticism against Sakari, the two companies held a major meeting in Helsinki on May 21, this to finalize the joint venture. The meeting went on for several days, and the negotiation turned out to...