Nora-Sakari: A Proposed Joint Venture in Malaysia
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Having looked at both the pros and cons of this possible joint venture between Nora and Sakari, it is now time to sum up and conclude what we mean Zainal should do.
There are many areas pointing in the direction that Nora should try to partner up with Sakari. First of all, both parties have put a lot of money, time and effort in the preparation and negotiation of the possible joint venture. Second, Nora has committed themselves to a contract they soon are expected to fulfil. Third and finally, Sakari has a unique knowledge in switching technology, knowledge Nora would like to acquire.
Although we have identified many current and potential problems, many of these are common joint-venture-related problems, problems Nora might have to deal with no matter which foreign MNC they partner up with. Both the problems concerning differences in national cultural values and organisational culture can be sorted out.
From our point of view the problems identified are in minor when compared to the advantages Nora can explore by a joint venture with Sakari. Our advice is that Zainal should contact Kuusisto in order work out an agreement of a joint venture between Nora and Sakari.
Our advice is based on the facts presented in the case. We cannot say that this would have been the right advice to give when this negotiation actually took place back in 1991. Because the case text doesn't provide enough information about other possible partners.
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