...This case details the negotiations for a joint venture between Nora Holdings Sdn Bhd in Malaysia and Sakari Oy based in Finland. Nora is known in Malaysia as the leading telecom company and Sakari is known in Finland as a leading manufacturer of switching systems and cell phone sets. The venture would allow the new company to manufacture and commission digital switching exchanges in order to meet the needs of the telecom companies in Malaysia and other countries around it. Telekom Malaysia Bhd (TMB) wanted the countries aging telecom system to be upgraded and needed it to migrate from a primarily analogue system to a digital system. Since they lacked the resources to do it by themselves they extended a substantial contract to other telekom companies to bid on the project. This is how Nora started to negotiate with Sakari so they could together build a venture that would be able to take on this task. Joint ventures are set up in many countries to facilitate business and have an edge on competition. Nora did not have the resources to go into the project on its own and needed the expertise and technology of other companies in order to compete in the marketplace. For this reason, as with most joint ventures, Nora started its negotiations with Sakari, because they had the technology needed for the project. This would be beneficial to both companies, because Sakari would be able to enter a foreign market that would be, in part, run by a local company that understands the underlying...
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...Chapter 1 expanding abroad: motivations, means, and mentalities Case 1-1 Cameron Auto Parts * Alex Cameron got the family biz when graduated in 2001, when the American economy fell into a recession * History * Auto Pact, big three ship car parts between Canada & US, with tariff free * Cameron focus on small engine parts and auto accessories * Car Sales dropped in 2000, because declining North America and entry of Japanese * High pressure for modernization and cost reduction * Operational survival: cut workforce, overtime, part-time, subcontracting * Recovery and diversification * The short-term future seemed positive, but the popularity of Japanese car forced it to diversify * Working as an OEM Cameron did little to be innovative * Alex brought in a team of designers, concentrating on developing products with a wider ‘non-automotive’ market appeal * The first year no progress, Alex lured away a key engineer from the Canadian firm, and mid-2003, developed its own line of flexible couplings * Marketing the new product * Hired eight field sales representatives, stress product quality, service and speed of delivery, but not price. * Financing plant capacity * Increasing sales of flexible couplings required a new separate plant, but the financial position is not strong enough to support it * Foreign markets * Took a European Patent * A licensing opportunity ...
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...2012 Doing business in a more transparent world C O M PA R I N G R E G U L AT I O N F O R D O M E S T I C F I R M S I N 1 8 3 E C O N O M I E S © 2012 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington, DC 20433 Telephone 202-473-1000 Internet www.worldbank.org All rights reserved. 1 2 3 4 08 07 06 05 A copublication of The World Bank and the International Finance Corporation. This volume is a product of the staff of the World Bank Group. The findings, interpretations and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818...
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