Advantages And Disadvantages Of Starting A Joint Venture

| The partners are jointly and severally liable for business debts and obligations. The partners are held personally responsible for the business and may be sued personally for liability. Partners’ personal assets are subject to lawsuit(s) made against the business. Lack of continuity; death of a partner may end the partnership/business if a buy/sell agreement is not in place. Disagreements may be difficult to resolve.

An increasing problem in modern society is that many teenagers are being condemned in the last few years for simply witnessing an attack. Joint enterprise is a doctrine of common law which condemns people for participating or witnessing an attack. Joint enterprise was introduced up to 300 hundred years ago and now people think that it should be banned due to many teenagers getting convicted for being present at an attack. Joint enterprise is a legal doctrine that assigns criminal obligation to the participant .We have seen that more than 1853 people have been charged with homicide under the provocative, legal standard of joint enterprise in the past eight years. Joint enterprise can apply to all crimes, but in recent times, it has been mainly used as a way of prosecuting homicide, especially in cases involving gangs of young men.

It also requires more of an investment and commitment by the international company which creates a higher risk. There is also the down side of having difficulty managing local resources.

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

From the perspective of each of the partners, there are potential pitfalls to joining this joint venture. Each company is grouped with two other partners, which is risky because there are greater liabilities. If one of the partner’s reputations suffers, as a result, all of the partner’s reputations under Slimline will as well suffer. They need to work as a team and continue to do what they are doing in order to continue growing. They all have things that benefit each one, so yes there are pitfalls because without all of the initial members of this joint venture, Slimline could face some serious issues and could have some

If we entered in a joint venture as a company, both our risk and potential return would be reduced. We would reduce our risk because by sharing profits with our newly found partner, we would have less money that is dependent on the exchange rate of the Mexican peso. Additionally, the partnership that we would form would alleviate costs because our partner would provide a classroom to our company. This would decrease our risk because we would not need to pay for rent, eliminating an expense. Since

International joint ventures is an overseas business owned and controlled by two or more partners; starting such a venture is often as an entry strategy (Deresky, H. 2014.p.377), while joint ventures refers to an independent entity jointly created and owned by two or more parent company.

The lesson learned from this is that sometimes it is easier and faster reach a new market via joint venture, even though the profit will be less, but the company can save a lot of money in studying the new market trying to understand the new culture and how they purchase and also it can minimize the risk because there is a national brand supporting the new international brand, which gives confidence and security to the customers.

Because every problem almost always has more than one solution, the question of whether or not a joint venture between Sakari and Nora would be the best option for either of the companies is difficult to assess. However, there are certain benefits, which are mentioned in the case, that clearly outline the initial motivation for forming the join venture. From the Sakari side, the motivation came in the form of a new market in Southeast Asia, while Nora was motivated by Sakari’s telecom technology and the possibility of acquiring it and/or replicating it in the future. The forming

One major disadvantage of the partnership is taxation, partners will pay the tax same way as a sole trader. Therefore they will pay the corporation tax in addition to this they will have to pay income tax. Another disadvantage is liability partners are still subject to unlimited liability same with a sole trader if the business can’t pay its

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.

Some of the alternatives both airlines can use is understanding each airlines’ knowledge and skill base. They can also balance collaboration and competition with the alliance, and maintain loyalty among their airlines. Trust is essential to their relationships. There has to be a clear understanding of how funds will be disbursed and how each company can go about individual pursuits and how it affects the other. The idea of joint ventures are to gain a competitive advantage over others. Each company benefits in joint ventures because they get to expand their market by gaining new routes, and they share revenues and costs. According to Appendix 3: Air France/KLM Income Statement, from 2006-2011 revenues increased from 21,452 million Euros in 2006 to 23,622 million Euros in 2011, with a decrease from 2008-2010. Appendix 4 shows Air France/KLM Key Ratios. There is a pattern of deceases from 2008-2010 which is evident through its profitability ratios. According to Appendix 6: Delta Air Lines Income Statements, there was significant growth from 2006-2011 with an operating income of 17,532 million USD in 2006 and 31,755 million USD in 2011, with a significant decrease from 2006-2007. It’s also true that their customers enjoy benefits such as a more varied choice of destinations with more frequencies and adapted schedules, frequent flyer programs and competitive fares. The

From the above discussion as well as the list of advantages and disadvantages associated with joint ventures it can be seen that Hyundai should

Partners may provide the strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The alliance is cooperation or collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts. The alliance often involves technology transfer (access to knowledge and expertise), economic specialization, shared expenses and shared risk.

Simple strategic alliance is an agreement between those companies to pursue a set of agreed objectives while remaining independent. They provide such ressources like: products, project funding etc but don´t own eachothers shares. Posco owned 1% from NSL AND NSL 3% from Posco