Big-Picture Issues • What is Sakari’s overall international strategy? – What does it want? • What is Nora’s overall international strategy? – What does.

Report
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
Sakari
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•
•
•
•
•
•
•
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
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•
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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 JV’s
• Long-run & short-run
• Mfg. & mkt./distrib.
Nora’s Technology Acquisition Strategy
20% of Malaysian
Telecom Market
Export Markets
Indonesia
Thailand
Vietnam
Nora
Sakari
Technology
Transfer
Sakari’s International Strategy
Sakari HQ
North
America
S.E. Asia
Malaysia
Finland
E.U.

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