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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
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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