Management and Joint Ventures

There are many opportunities available for companies willing to venture into new, international markets. Reaching more customers and therefore, turning a larger profit are two fairly obvious reasons for companies to consider global expansion. However, the potential benefits do no end there. Expanding to international markets can hold less obvious, yet extremely beneficial appeals such as access to new and different talent pools, grander output requires great advances in efficiency, and international expansion can, in some cases, aid in “future proofing” the company.

An application into the case of Lincoln Electric shows that this company is correct in doing international expansions. Such actions are suitable for the market development strategy when the company wants to increase sales outside the domestic market. In addition, because of diversified markets during the global expansions, this company has customized products to fit for or developed new ones. Thus, it is changing towards diversification strategy. The both success and failures of Lincoln during the international expansions are helpful for other industries. Importantly, a thorough understanding of the local is a key for international expansions (E. Porter,

"oday managers in many industries are working hard to match the competitive advantages of their new global rivals. They are moving manufacturing offshore in search of lower labor costs, rationalizing product lines to capture global scale economies, instituting quality circles and justin-time production, and adopting Japanese human resource practices. When competitiveness still seems out of reach, they form strategic alliances-often with the very companies that upset the competitive halance in the first place. Important as these initiatives are, few of them go beyond

Ghosn’s plan to combine, centralize, and globalize Nissan and Renault’s parts procurement would cut costs by 20 percent! Before this change, Ghosn estimated Nissan’s parts procurement costs were around 10 percent higher than Renault’s. To accomplish his goal, Ghosn had to prove that the precious keiretsu system of Japan was promoting

Sharp Corporation needs a major overhaul of its business model. Sharp’s previous model of “make in Japan, sell overseas” has been successful until recently. Currently, with the increased mobility in engineering talent and technology transfer, companies from new emerging markets such as South Korea and Taiwan are

In selecting a partner, Caterpillar was looking for a Japanese company that shared its cultural values, its conservative approach to business, and its management style. MHI, under the leadership of Mr. Makita, demonstrated such shared valued. MHI had expertise in metal work, development of large scale machinery, and had access to plant capacity. This overlap in technology and capabilities increased the absorption capacity between the two partners. Further, the similarities in organizational size, operations, and culture made MHI a good fit for Caterpillar. Since MHI had no previous experience in development of construction machinery, it would be dependent on Caterpillar’s

In this text, I identify the various advantages and disadvantages of a partnership as a form of ownership. Further, I highlight the main funding options for a small business and determine how management accounting can be of use to business executives especially in the areas of budgeting, incremental analysis and product costing. Lastly, in addition to identifying the basic components of the marketing process, I also discuss the role technology and social responsibility play in the marketing function.

The effects of globalization are prevalent in almost all industries world-wide; the pharmaceutical industry is no exception. Through the globalization of markets and production, there has been a dramatic shift in the last several years. Eli Lilly is a leading company in the US and throughout the world, and they’ve had to adapt to the trends that come as a result of globalization including moving operations overseas and capitalizing on advantages present in other markets. The company has done well in this department, as their products are available in over 130 countries. One of their large successes stories was creating a joint-venture with the leading Indian pharmaceutical provider Ranbaxy.

How would you feel if you owned part of a company, but could not help make any decisions on the future of the company? Those who own majority of the company decide to hire mangers to make important decisions on your company. This is a general example on how shareholders run their company. Now wouldn 't you rather help make decision, or be able to factor in ideas from the employees and community that has helped the business grow? If so, you might want to consider the stakeholders theory.

Marketing strategy is an important aspect of any business's sales and long-term success. As outlined by Ataman et al. (2010), it is the entire marketing mix that has an impact on the performance of mature brands in the long term. One of the factors in the marketing mix is the place. For mature businesses, it is extremely important to explore new locations and opportunities for resources and expansion. Oviatt and McDougall (1994) elaborate that while there are organizations that operate on the International level since inception; there are others for which it is really important to explore new ventures. The authors present a framework for this purpose in which they identify four elements that are important for multinational enterprises. These characteristics include internalizing some transactions, relying on alternative governance for accessing resources, establishing advantages through foreign locations and gaining control over unique resources. Emerging markets are proving to be the center for new ventures because of the opportunities, unique resources and facilities they have to offer. Other than the physical resources and legal facilities, as outlined by Catorelli and Goldberg (2009), there has also been immense globalization of banking because of which local as well as foreign owned banks are increasing their exposure for cross-border funding to increase opportunities for capital, rather than just concentrating on

At the beginning of XXI century leading Japanese electronics manufacturer Sony Corporation faced operational and financial stagnation. Reported losses were huge even for such a big conglomerate as Sony, net income in 1999 fell to 121.83$ billion from 179$ billion in 1998 and following decrease continued till record 16.75$ billion in 2001. Shareholders worried as the stock price was falling down even though top management made some structural changes: assets were sold, work force was reduced by 17,000. Sony had the only choice to do some reformations in structure, strategy and innovative products because it was losing the war to its competitors in the market. Therefore, “Transformation 60” was launched as a restructuring

For the analysis, the focus is on two companies, Tesco and Yoplait who have chosen two different business strategies for their global business expansion. Tesco, one of the world’s largest retailer, UK based supermarket chain expanded its global operations in Asia. It joined hands with Samsung, a well established Korean retailer, and started its Korean operations under the well known Homeplus brand. In 1999 it went ahead with its foreign direct investment and opened business centers in Korea. They were able to sustain and grow in the Korean market (Klimes, 2014). On the other hand, Yoplait is a France based Yoghurt. It franchised its operation in US and later throughout Europe with US based consortium, General Mills. It is jointly owned by General Mills and Sodiaal, a French cooperative diary unit (Bloomberg Businessweek, 2014). Both Tesco and Yoplait have shown diversification in their

In multi-domestic strategy each country is served by a fairly autonomous national subsidiary that manages a full range of functional activities. The chief advantage of this strategy is the flexibility it affords with respect to local conditions. For example, it allows differentiation on the basis of local preferences, while avoiding the administrative complexities associated with centralised control from a remotely located head office. Multi-domestic strategy seeks to maximize worldwide performance by maximizing local competitive advantage, revenues or profits. A global strategy seeks to maximize worldwide performance through sharing and integration. Companies that use global strategy levers can achieve one or more of these benefits: cost reduction, improved quality of products and programs, enhanced customer preference and increased competitive leverage.

partner and one limited partner. A person, including a limited partner, who holds himself out as

The cost driver is also one of Yips (1992) key categories of consideration of international expansion. A cash rich Tesco capitalized on cash strapped retailers in Asia acquiring major stakes in lotus in Thailand and Homeplus in South Korea. Initially Tesco’s share of partnerships was 73% in Thailand and 81% in South Korea. Subsequent cash injections reduced CPs group share to zero and Samsung’s share from 11% to 1% while Tesco retained the Samsung name affording Tesco knowledge of local business and regulatory conditions.