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

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

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 • Sales: $100 million • Employees: 3,081 • Deal % of sales: 123% • Big Picture: – Needs technology – Local knowledge – Government ties – Deal in hand – Seeks regional expansion Sakari • 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 How is each related to: • Entry mode decision • International strategy implementation • Capabilities • Creative alternatives??

e.g., Two JV’s • Long-run & short-run • Mfg. & mkt./distrib.

Nora’s Technology Acquisition Strategy 20% of Malaysian Telecom Market Nora Sakari Export Markets Indonesia

Technology Transfer

Thailand Vietnam

Sakari’s International Strategy

Sakari HQ E.U.

North America Finland S.E. Asia Malaysia