Nora-Sakari ( A proposed JV in Malaysia) Since the proposal negotiation started in 2001, it has been continuing almost two and half years, around 20 meetings held, but no decision made yet. The main live was agreed both sides that establish JV club in Malaysia, but rest of the productions still not compromised. For Nora, establishing JV ships company is important depicted object to obtain of sharing five-year project outgo RM 2 billion with another(prenominal)(prenominal) 4 companies. Secondly in getting the knowledge of Sakaris digital switching agreement pass on bring high technology to Nora, also Nora would pull in chance to go further to bigger South-east Asia grocery store with high technology system and experienced management team. heart and soul Nora will able to develop and improve own digital system ground on western technology further. On the other hand, for Sakari, there are many advantages including entering Malaysian grocery store that has 4 .5 times more population then Finland( In telephone business population is major issue) , and establishing JV is a way to enter high growth Asia Pacific market with local knowledge and experience with Asiatic business culture. Regarding to figure, the great potential for telecom facilities was also evidenced in the broken telephone penetration rates for most of the South-east Asian countries.
For example- 20 phone lines per 100 people in Malaysia read to developed country such as Germany 55 lines per 100. Secondly, aim this investment considered long-term agreement, Sakari was very careful about meridian powerful competitor in the future that developed base on Sakaris technolo gy. But they have possibility to take in c! harge this mutter by adding some regulation or issue an agreement such as no technology adopting to another Malaysian company or In conclusion, formation of the JV is the best option instead of the considering licensee or FDI for both Nora and Sakari, so following suggestion should be given to two sides. Nora- it seems they holdt have time to start over again...If you insufficiency to get a full essay, order it on our website: OrderEssay.net
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