The paper "Strengths and Weaknesses of Nora Company" is a great example of a Management Case Study. Merging of two or more companies is a common process in the business sector. The process of joint ventures increases companies’ opportunities to fit into contracts that they may not perform as a single organization. Failure in fitting into big contracts by the companies may result due to lack of experience and facilities that facilitate processing the given tasks, forcing them to seek help from other competitors through coming together (Beamish, 2008). For instance, in the case study, due to the demand for better communication processes in Malaysia, it forced various organizations like Nora Holdings and Sakari, both in the field of Networking, to negotiate in order to form a joint venture for them to win the proposed contract by the government.
During the negotiation, the two companies failed to agree on various issues such as equity ownership, the structure and process of technology transfer to be applied, and loyalty payment among others, during the contract (Ainuddin & Wright, 2005). Therefore, in order for different companies to form a joint venture, it is important for the organizations to agree on the provision of work and payment among other issues in order to come up with a strong venture that is able to operate positively under tough competition. Strengths and Weaknesses of Nora Company Strengths During joint ventures, many factors need to be considered in order to form a joint organization that is able to operate within the set objectives.
Therefore, the strengths of the companies involved in the merging process are one of the factors that should be considered.
In any business organization, a good managerial system is required for an organization to operate as per its expectations (Ainuddin & Wright, 2005). This can be achieved through hiring potential management team, with the capability of developing good strategies and objectives of the organization. After putting in place the strategies, the management should make sure the activities of the organizations are operated within the plan in order to deliver services as per customers’ expectations. Therefore, one of the strengths of Nora Holdings is good management as triggered by potential and future-oriented leaders like Zainal Hashim, the vice-chairman of Nora Company, giving the organization the chance to form joint ventures with other companies. Through the creation of various joint ventures with local and international companies gave Nora Holding the opportunity to gain skills and experience via their technical team.
For instance, Nora Holdings had a joint venture with Sumitomo and Marubeni Corporation of Japan, which gave the organization the chance of gaining approximately 6 percent of the stake from the local cable-laying firm, known as the Selangor Cables (Beamish, 2008). Through such operation, Nora has a better opportunity of working with other companies because they are capable of producing better results.
Nora Holdings is one of the oldest organizations in the networking field, has attracted many investors due to their good performance because of many joint ventures they have involved, which have yield better results. Therefore, this show strength of the organization as they are tested and proven organization that can do better in any agreement made in joint ventures.
Beamish, P. W. (2008). Joint Venturing. Pittsburgh: IAP.
Ainuddin, R. A., Wright, L. L. (2005). Nora-Sakari: A Proposed JV in Malaysia. London:
Richard Ivey School of Business, University of Western Ontario.