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?

Tale of the Tape

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

Negotiation Issues

• Equity ownership

• Technology transfer

• Royalty payments

• Expat salaries

• Arbitration

• Creative alternatives??Creative alternatives??

How is each related to:• Entry mode decision• International strategy

implementation• Capabilities

e.g., Two JV’s• Long-run & short-run• Mfg. & mkt./distrib.

Nora’s Technology Acquisition Strategy

20% of MalaysianTelecom Market

Indonesia

Thailand

Vietnam

Export MarketsNora Sakari

Technology Technology TransferTransfer

Sakari’s International Strategy

NorthAmerica

Malaysia

S.E. Asia

Finland

Sakari HQ E.U.

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