Nora-Sakari Case Analysis
Nora-Sakari Case Study
Introduction:
Nora and Sakari are considering a joint venture to build digital switching exchanges for the telecom industry in Malaysia, Indonesia, and Thailand. Nora is a Malaysian telecom company that is looking to become a technology leader in South-east Asia. Sakari on the other hand is a Finish company that is considering expanding its operations in south-east Asian market and is looking for partners for this reason. They are a high Technology company and the Joint venture between these two companies seems like a perfect fit. The problem which arises is that these two very different cultures go about negotiation in very different ways. These cultural differences have the potential to make a joint venture between these two companies impossible which would be a shame as they both have a lot to gain from working together for a common goal.
Analysis:
Negotiations between businesses in different cultures need to be done with a mind to the fact that these cultures have different ways of doing business. In this section I will compare Eastern (Finish) values and business practices vs. Eastern (Malaysian) values and business practices. It is also important to note that the Malaysian culture is also dominated by the Islamic religion which also has aspects that need to be understood in order to successfully do business.
Difference in thinking pattern:
Every person carries within himself or herself patterns of thinking, feeling and potential acting which were learned throughout their lifetime. Much of it has been acquired in early childhood, because at that time a person is most susceptible to learning and assimilating. As soon as certain patterns of thinking, feeling and acting have established themselves within a person’s mind, (s)he must unlearn these before being able to learn something different, and unlearning is more difficult than learning for the first time (Hofstede, 2010).
A persons culture is an example of
Introduction:
Nora and Sakari are considering a joint venture to build digital switching exchanges for the telecom industry in Malaysia, Indonesia, and Thailand. Nora is a Malaysian telecom company that is looking to become a technology leader in South-east Asia. Sakari on the other hand is a Finish company that is considering expanding its operations in south-east Asian market and is looking for partners for this reason. They are a high Technology company and the Joint venture between these two companies seems like a perfect fit. The problem which arises is that these two very different cultures go about negotiation in very different ways. These cultural differences have the potential to make a joint venture between these two companies impossible which would be a shame as they both have a lot to gain from working together for a common goal.
Analysis:
Negotiations between businesses in different cultures need to be done with a mind to the fact that these cultures have different ways of doing business. In this section I will compare Eastern (Finish) values and business practices vs. Eastern (Malaysian) values and business practices. It is also important to note that the Malaysian culture is also dominated by the Islamic religion which also has aspects that need to be understood in order to successfully do business.
Difference in thinking pattern:
Every person carries within himself or herself patterns of thinking, feeling and potential acting which were learned throughout their lifetime. Much of it has been acquired in early childhood, because at that time a person is most susceptible to learning and assimilating. As soon as certain patterns of thinking, feeling and acting have established themselves within a person’s mind, (s)he must unlearn these before being able to learn something different, and unlearning is more difficult than learning for the first time (Hofstede, 2010).
A persons culture is an example of