Joint Venture

2556 WordsAug 6, 201311 Pages
Key Issues____________________________________________________________________ Due to a variety of uncertainties ranging from the instability of Mexico’s economy, to a limited knowledge of the possible company to do business with, Charles River Laboratories have to assure to their stakeholders that a joint venture with ALPES is beneficial to the growth of the company. Internal Analysis_______________________________________________________________ The internal analysis will partially determine how capable CRL is with their business resources moving forward within their industry. With a VRINE analysis, descriptions of what this company may endure internally will be discussed. Value There is a clear value for CRL in their…show more content…
To properly assess the external forces a PESTEL analysis will be conducted. PESTEL Analysis: Political The North American Free Trade Agreement (NAFTA) facilitates the free flow of goods and services between Canada, The United States and Mexico. This allows ALPES to move into untapped markets in three countries rather than just its base country of Mexico. This would also increase profits substantially due to an increasing market demand. Economic ALPES is currently a major supplier of SPF (specific pathogen-free) eggs to Mexico’s two largest animal vaccine producers. Both vaccine producers invest large sums of money towards the SPF eggs, with InterVet (one of the aforementioned companies) projecting a demand of 4 million units of SPF eggs in the following year. This helps determine that there is an increasing market demand for these specific vaccines. Sociocultural Contaminated poultry is a big concern to society as it poses a serious risk for human health. An estimated 4 million illnesses and 3,000 deaths per year (based on information provided by the United States Department of Agriculture) due to contaminated poultry. This scare has caused all poultry to be vaccinated to prevent harmful pathogens to reach and infect humans. Technological The knowledge and understanding of technology is very high in this industry as technological innovation is necessary for the success of the firm in an

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