Nora Sakari Essay

456 Words2 Pages
Marco Sanchez Questions 5,6 5) If Zainal decides to renegotiate [and assuming Kuusisto agreed], how should we restructure the terms of the deal? Nora and Sakari both are very successful in their respective field of business. Nora is one of the leading suppliers of the telecommunication equipment in Malaysia. Sakari can gain a lot from the Nora’s strengths and knowledge about the culture and market. On the other hand, Sakari is one of the successful niche market players for supplying digital switches technology. Therefore, both the companies have their own strengths and advantages over another and both the partners can learn and gain a lot from each other. Therefore, in my opinion, both the company should compromise in something in order to materialize the contract. While talking about the restructuring the negotiations, following are the key areas where I would restructure the negotiations. Ownership: The first key issue that should be restructured is about equity ownership and power control. In my opinion, Nora should posse’s greater portion of JV equity (60 percent for Nora and 40 percent for Sakari) for two reasons. First is that JV will operate in Malaysia and not in Finland and they understand their culture better than that of Sakari. And the second reason is that Nora has the competitive and suitable managerial forces to manage the JV. Therefore, it would be better if Nora holds larger percentage of share than that of Sakari. Technology: Second key area is technology transfer in which it would be better if Nora accepts the Sakari’s proposal. Every company wants to control the technology transfer in the highest degree. Therefore, Nora should let the Sakari to keep the technology development in house and accept the Sakari’s proposed assembly and installations plan. Royalty: In my opinion, Royalties should be compromised as Nora because the

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