Nora Sakari Report

Introduction

Nora is one of the leading telecommunication companies and the supplier of telecommunication equipment in Malaysia and consisted of 30 subsidiaries including two public listed companies: Multiphone Bhd. and Nora Telecommunications Bhd. To improve and establish Nora’s experience in the switching technology Nora holding submitted its bid for Telecom Malaysia Bhd. (TMB) RM 2 billion contract to supply digital switching exchanges supporting four million telephone lines with the assumption that the Nora-Sakari Joint Venture would materialize by the time they would begin the project. Nora placed the bid to capture and acquire the knowledge of the digital switching technology by starting a joint venture with the Sakari, a Multi National Company (MNC) based on Finland who deals with the high technology products like digital switching systems & cellular phones. The Sakari’s technology was very high when compared to Nora’s technology.

Source Problem

The main problem which led to the failure of the joint venture negotiation was the cross culture of the both countries and there working style which based on the culture. Another problem which broken the negotiation was that the Management who participated in the negation came with different objectives, opinions and goals. But at the end all these problems occurred due to the cultural difference existed and practiced between both the management & country. To state this Zainals Hashim vice chairman of Nora’s wording will be useful “The Sakari negotiators tend to be very serious, reserved and cold. They are also relatively less verbal and do not convey much through their facial expressions. So it was difficult for us to determine whether they are really interested in the deal or not”. Another problem was that the Sakari’s management was more decentralized where the Nora’s was centralized by Zainal.

Secondary Problems

Short Term:

• Technology Transfer: By offering Nora the basic structure of the...