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Explore the overarching international strategies of Nora and Sakari, their goals, and the necessary components for a successful joint venture to facilitate regional expansion and growth. Delve into negotiation issues concerning entry modes, equity ownership, technology transfer, and more.
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Big-Picture Issues • What is Sakari’s overall international strategy? • What does it want? • What is Nora’s overall international strategy? • What does it want? • What role should the joint venture play in facilitating each company’s intended strategy?
Nora Sales: $100 million Employees: 3,081 Deal % of sales: 123% Big Picture: Needs technology Local knowledge Government ties Deal in hand Seeks regional expansion Sakari Sales: $4 billion Employees: 29,000 Deal % of sales: 3% Big Picture: Has Technology Seeks regional presence Lacks local knowledge Has other options Tale of the Tape
Negotiation Issues • How is each related to: • Entry mode decision • International strategy implementation • Capabilities • Equity ownership • Technology transfer • Royalty payments • Expat salaries • Arbitration • Creative alternatives?? • e.g., Two JV’s • Long-run & short-run • Mfg. & mkt./distrib.
Nora’s Technology Acquisition Strategy 20% of Malaysian Telecom Market Nora Sakari Export Markets Indonesia Technology Transfer Thailand Vietnam
Sakari’s International Strategy Sakari HQ E.U. North America Finland S.E. Asia Expand to New Region Malaysia