A Study On Joint Venture

Yadong Luo (1998): Joint Venture Success in China: How Should We Select a Good Partner?

Joint venture is an agreement between two or more parties to gather or pool resources together so as to accomplish a specified goal. The main objective is to implement a new business idea or project. The venture is a separate entity from the participants and their businesses. However proceeds, losses and costs incurred from the activities of the venture, the participants are responsible.

Joint ventures (JV) are a popular method of foreign market entry because they theoretically provide a way to join complementary skills and know-how, as well as a way for the foreign firm to gain an insider’s perspective on the foreign market. Since China began its market opening in 1978, joint ventures have been the most commonly used form of foreign direct investment (FDI), with about 70% of FDI in China in the 1980s and 1990s taking the form of joint ventures (Qui, 2005, p. 47). The Chinese company, as well as the foreign investor, has since 1978 been drawn to the joint venture form. Walsh, Wang & Xin (1999) note that from the Chinese

Country’s situation includes three points. One of these three points is that at the beginning of 1990s, China enforced a practical policy which is called—change market for technology. Secondly, according to more than 20–year-long experience of joint venture with other countries, we can know that it is unwise for domestic enterprises to continue to take this way to develop themselves. The last point is our country complement another policy—independently innovates.

The company has been undertaking partnerships with others in a way to advance new technologies

When the companies joining create a separate organization to create their product, the enterprise is called a joint venture.

There are many risks that can occur during any project, this is why it is important for the project manager to be on top of the tasks at hand. In the Wilmont’s and Dronetech project combining two companies to make a brand new product can already be complicated enough. When the company sets more guidelines in the project like the budget, timeframe, and customer expectations can make it even more difficult to get the job down. This is why having a project manager and a worthy team behind them to get the job done within all the requirements.

A joint venture (JV) means; “An enterprise, co-operation or partnership, formed by two or more companies, individuals, or organizations, at least one of whom is an operating entity that wishes to broaden its activities for the purpose of conducting a new, profit motivated business of permanent duration. Some researchers such as Adnan and Morledge (2003) define joint ventures as the procedure used to respond to specific business phenomena such as access to new markets, specific government policy, business capacity, technology transfer or economies of scale. In general the ownership is shared by the participants with more or less equal equity distribution and without absolute dominance by one party.” This entity is subject to the joint control of its parent firms, each of which is economically and legally independent of the other (Shenkar, Zeira, 1987).

Lennar Corporation was named one of the nation’s largest providers of financial services and homebuilders in 2009 (Pearce and Robinson, 2016). They had started as a single-family homebuilder in Florida and makes attached and detached homes in communities that were directed to move-up, first-time, and adult homebuyers that are active. Aside from building homes, they also had a financial services business that provided closing services, mortgage financing, title insurance, and other ancillary services for buyers and sellers (Pearce and Robinson, 2016).

The community of learners approach is strongly based on the socio-cultural theories of learning (as discussed above) where the educators extend on the children’s learning in partnership with families. In the beginning, educators need to take the initiative in communicating rather than wait for the families to initiate the interaction. This could be through removing the barriers that can delay the ongoing exchange of information. One of these barriers is the educators’ attitudes towards families which are pivotal factor in building a successful relationship (Arthur, et al., 2015). Woodhead (2006) emphasises the essential role that respect play in maintaining active communication

“A joint venture is a legal organization that takes the form of a short term partnership in which the persons jointly undertake a transaction for mutual profit. Generally each person contributes assets and share risks. Joint ventures are also widely used by companies to gain entrance into foreign markets.” (Cornell University Law School) In way to engage ones customers with new stuff, joint venture has become paramount in satisfying customers with variety and also infuse modernization and advance technology. An example is the introduction of the popular video streaming website “HULU” created by a joint venture in the year 2008 by NBC Universal Television Group, Fox Broadcasting Company and the Disney –ABC Television Group. This venture

In technical product development, the team could benefit from partnership with a trusted academic institution. An article (“Entrepreneurship meets innovation,” 2012) reported on a successful technology transfer collaboration between a research institution of

However, there are several drawback of joint venture which is potential risk. Danone, as a global multinational cooperation, may concerned about the risk of technology transfer and intellectual property management to the local Chinese ambitious company. The merging different management style due to the culture diversity and the priority to the outcome. Indeed, the conflict with each partner of their interest ratio.

It is because through the joint venture, the company is more familiar with the situation of the company there. The negative outcome is that the management system different between the company. So it is hard to make a decision making. It is because there is different opinion of each person.

A technology partnership was not a standard contract format but a philosophy, an attitude toward a relationship, and a system that could be structured into a wide range of formats. The philosophy was to create collaboration between Petronas Carigali and vendor service companies to work in integrated teams applying technology to a Carigali project. Instead of direct purchase of any purveyor’s technology, Petronas proposed applying the technology to the project, during which time Petronas Carigali would pay for the cost of contractor’s staff participation plus the cost of acquiring the technology, but only at the successful completion of the project. The process would allow Petronas staff who participated in the project to gradually learn the technology, which resulted in effective technology transfer. The oil industry plan was integrated into the Malaysian National Business Plan in what is known