Big-Picture Issues

What is Sakaris overall international strategy?

What does it want?

What is Noras overall international strategy?

What does it want?

What role should the joint venture play in

facilitating each companys intended strategy?

Tale of the Tape

Nora

Sakari

Sales: $100 million

Employees: 3,081
Deal % of sales: 123%
Big Picture:
Needs technology
Local knowledge
Government ties
Deal in hand
Seeks regional
expansion

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??

How is each related to:

Entry mode decision
International strategy
implementation
Capabilities

e.g., Two JVs

Long-run & short-run
Mfg. & mkt./distrib.

Noras Technology Acquisition Strategy

20% of Malaysian
Telecom Market
Export Markets
Indonesia
Thailand
Vietnam

Nora

Sakari
Technology
Transfer

Sakaris International Strategy

Sakari HQ
North
America

Malaysia

Ex
pa
nd
to
Ne
w
Re
g io
n

S.E. Asia

Finland

E.U.