Nora Sakari A Proposed JV in Malaysia Revised Case Solution

1. Why have negotiations so far failed to result in an agreement? Is the formation of the JV between Nora and Sakari the best option for both companies to achieve their respective objectives?

Given that both the United Kingdom and the United States had taken comparable measures, Zainal's involvement was a contributing factor to the failure of the negotiations. As a consequence, even though Finland and Zainal are just 100 miles away, Zainal has developed a chatty, extroverted, and open attitude to communication with the country. Sakari, on the other hand, was calm, quiet, and frigid in her demeanor. Conflicting interests on both sides of the table had a role in the failure of the transaction. When it comes to sharing stock ownership, there is disagreement since Nora does not want to have a disproportionate amount of ownership in their high-tech things. Sakari's telecommunications equipment is more compact than Nora's, therefore a combination would boost Sakari's market share by increasing Sakari's product offerings. Entering into a joint venture has several benefits, including the establishment of long-term commercial relationships and increased access to the market. A more stable marketing position will be obtained as a consequence of increasing market competition. Sakari and Nora will both benefit from the joint venture, while Sakari's market knowledge will be significantly diminished. So far, the pace of conversations between Nora and Sakari has been slowed by a lack of understanding of each other's cultural backgrounds. 

Another important factor contributing to the collapse of the discussions was Nora and Sakari's inability to reach an agreement on the terms of their contract. Nora and Sakari had a lot of disagreements on various issues. A 49/51 equity split in the joint venture between Sakari and Nora, for example, was recommended by Sakari. The alternative proposal, presented by Nora, was 30 percent for Sakari and 70 percent for herself, an offer that Sakari accepted. Positions that are relatively far away from one another. Furthermore, they were ill-prepared and did not understand the contrasts across cultures. The search for a partner who will allow them to comply with the TMB contract is part of Nora's effort to learn from Sakari's success and follow in their footsteps.