跨国公司管理案例分析Nora Sakari

The challenges facing by Nora and Sakari
The challenges of Nora:
1.Our Malay managers , however, were often influenced by their western counterparts, who tend to stress knowledge and mental capability and often forget the effectiveness of softer side of management which emphasizes relationships, sincerity and consistency. 2.Nora is lack of relative technology. And because of its higher prices than Formula so that the contact is given to Formula. Then Nora lose large profit in Malaysia.
4. SK33,a digital switching system that was based on an open architecture, which enabled the use of standard components, standard software development tools, and standard software languages (The advantage of SK33 which Nora need )
Test the strategic logic
1. ① In our opinion a partner is indeed for Nora like Sakari, the Sakari provide technology for Nora, eg SK33 is really needed for Nora. As Sakari we can see it wants to access to the Malaysian and Southeast Asian market by Nora’s help. Because Nora was a leading supplier of telecom equipment in Malaysia. As for how long do they cooperate with each other, is depend on distribution of profit. Whether managements run the JV on a better way.
Partership and fit
• Nora and Sakari Shared a common goal, in order to obtain greater interests, expand the overseas market, enhance the competitiveness of the enterprise itself. Malaysia is the bridgehead to exploit the southeast Asia market for Sakari. Nora needs Sakari to help to finish the contact of TMB. Interest is their common goal
• The technology and experience of Sakari is needed to Nora and Nora’s market and brand are useful for Sakari. From the case we can see that Sakari worry that their core technology is stolen by Nora, for an enterprise, the core technology is impossible to tell their partners .Nora is not likely to let Sakari possess their excessive market so as to form the competitive pressure to themself
Shape and design
• As confidence between the firms grows, the scope of the business activities can broaden, if Nora acquires Sakari’s capabilities, the JV becomes unstable. In the case Sakari just offer Nora only the basic structure of the switch, the core of Sakari’s switching technology would still be well-protected. This distrust lead a small scope of the activities and a few profit. • How much freedom will the venture be given to do as it wishes with respect to choosing supplier, a product line, and customers. For Sakari which provide technology and products, the respect of choosing supplier and product line from Nora is really important, For Nora which provide market, the respect of choosing customers from Sakari is also important.
Nora-Sakari: A Proposed JV in Malaysia
Member：刘胤辰 但 佳 马洪基
秦叶钦
The motivations of setting up JV？
The reason of Nora： • 1.Nora would benefit from the JV in terms of technology transfer，the venture would pave the way for Sakari to acquire knowledge and gain access to the markets of Southeast Asia. 2.It would be an invaluable opportunity for Nora to learn from the Finnish experience and emulate their success for Malaysia.
How big is the payoff for both parties? How likely is success?
Our opinion is the payoff for Nora, it will get the profitable contact from TMB by cooperating with Sakari and consolidate its leader status in telecom equipment in Malaysia. On the other hand, Sakari will access to the Southeast Asian market if they have a cooperation with Nora and will be accepted by industry observers. The key of success is how they equity ownership with each other, if it’s unfair the two companies can not cooperate well with each other and the profit will be run off.
• The JV be a win-win situation. This means that the payoff to each parent if the venture is successful should be a big one, because this will keep both parents working for success of the venture when times are tough. If the strategic analysis suggests that the return to either parent over time will be marginal, the venture should be restructured or abandoned. • Generally a complete trust between two companies will create more profit and a win-win situation.
3. Nora was interested in securing a share of the RM2 billion contract from TMB and more importantly, in acquiring the knowledge in switching technology from its partnership with a telecom MNC.
• The venture will be easier to manage if one parent plays a dominant role and has a lot of influence over both the strategic and the day-to-day operations of the venture, or if one partner plays a lead role in the day-to-day operation of the joint venture. In the case, the JV will be established in Malaysia to extend the southeast market, so the major leader should be selected from Nora, they are better than Sakari in local culture and local market.