Discussion Board # 4
Johan Rivera
Liberty University
KEY TERM and WHY YOU ARE INTERESTED IN IT This academic paper will be exploring the key term, joint ventures. This concept is of interest because in today’s business environment due to the economy downfall, many organizations recourse to this strategy in order to easily infiltrate in a foreign market. Companies are seeking more opportunities to expand their market share and a joint venture is an attractive option to do so. Getting involved with a foreign market come with several obstacles and challenges. It is for the same reason that organizations engage in a joint venture whit a partner that knows and understand the culture and preferences of that specific nation.
EXPLANATION OF THE KEY TERM “Join ventures usually involve an alliance where two or more companies contribute assets, which results in the formation of a new legal entity” (Satterlee, 2014, p. 228). Whit this strategy companies can do business in international markets but have a partner that will ease the process by helping with the start-up and management of the new corporation. Organizations will be able to compete in a foreign market in a cost-effective and successful way. This strategy can increase the profit of an organization, however, if effective planning is not incorporated, it can be a major failure that will result in profit loss.
MAJOR ARTICLE SUMMARY In the article, “Understanding Performance of Joint Ventures: Modeling the Interactional
The author of this paper’s intention is to present and examine a multi-national corporation. Dissect the how’s and what’s about it, and simply discuss its processes. The author will be giving a brief background on the company to easily elaborate how it is that the company is successful compared to its past. Its products and services will be conversed and the company’s industry will be discussed as well as its competitors and its market. Basically everything that has to do with the company will be
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
In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.
The call of May16 began from a high school website known as “idunno.org,” a page that primarily updates the school board and calendar of Dunno High School, where students were informed that there will be no late start on Wednesday, May 16. Every Wednesday, there is a late start which pushes the schools starting bell from 7:50 a.m. to 8:58 a.m., allowing students to sleep well and have more time for themselves in the morning. After hearing the news, the students of Dunno High School created the facebook page “Students of Wednesday” to protest against the school’s dismissal for late start.
A foreign investor may enter into a joint venture by combining with a national of a host country to create a new entity or by acquiring a portion of an existing local entity.
It’s the end of the beginning but also the beginning of the middle. No longer a child, but not exactly an adult - Thirteen is somewhere in the middle. Life is a bit more chaotic; more dramatic, more stressful, and more pressuring.
Strategic alliance “combine key resources, cost, risk, technology and people” (Williams, 2010). One of the common denominators of strategic alliance is having a joint venture. This is “when two existing companies collaborate to form a third company. The two founding companies remain intact and unchanged except that together they now own the newly created joint venture” (Williams, 2010). Having a joint venture there are many benefits and risk with global marketing. “For a global model to work, global teams need to develop an understanding of local markets and establish a close relationship with local marketing teams” (Griffith, 2012). There are recommendations that should be followed in order to complete strategic planning and commit to the company perspective and
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.
Market entry strategy involves the essential requirement for a company to get into international level. The need of involving other companies whereby two companies join together is referred to as joint venture entry. They get into a similar market and make the same production with the aim of sharing risk and at the same time they share the profit according to their terms of agreement (Kretzberg, 2007). Therefore, Lincoln Electric Company has a chance to join with other company to venture in the Indian market.
We propose a joint venture, in the emerging markets of Exotica with local companies of Paradiso
Top glove could use the opportunity to minimize the internal weakness which is using the joint venture and the diversification component. First, though the joint venture with others firm. The resources, technology, management and culture is share in between the organization to achieve the same goals. For example, Top Glove management could learn and adapt the Japanese business culture since Top Glove and Fimatec had joint venture. Both company management able to exchange the culture and practice that improve both management performance. So the weakness of management problem could be minimize since the management is improving through the venture. Besides that, opportunity for joint venture in between the international company could to gain the business model and image of company. These action could be attracting for those professional who seeking the job applicants. Lastly is the problem of heavily invest in R&D. The cost for Top Glove spend in R&D function is very high in each year. So, Top Glove need to conduct diversification in different market to gain profit. R&D function could help to invent new product or service, but still Top Glove need to fit in different market to increase the profit. So the diversify in different market could help Top Glove to increase profit to cover the heavy cost in R&D
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.
The primary goal of this study is to examine the strategic goals of the Asian-Latin-American firm and it sentry into the European manufacturing sector and its goals in Research and Development and product development focused on becoming one of the top technological leaders in the industry. This firm hopes to use the technological knowledge gained from the investments in Europe to develop products and product processes in their home base and to use this to expand their exports to Europe and the U.S. This telecommunications device-manufacturing firm has an international joint venture with the leading German MNC in this industry. The German MNC is unhappy with the joint venture's performance due to what it holds as theft of intellectual property by it Asian/Latin American partner. Report on International Business Strategy. The industry in which the firm is situated must be identified and all of the primary industry-specific factors that may affect the selection of the Europe country. Institution and cultural factors affecting the selected industry and the industry-specific factors on organizational structure and control strategies must be identified.
Joint ventures have further benefits. Joint ventures are based on sharing individual ability and resources for the purpose of achieving a mutually beneficial objective. Sony gains access to Ericsson’s market share and their network of infrastructure and handset technology. Ericsson can acquire Sony's experience on consumer electronics, fashionable designs and production processes. Hence, the joint venture overcomes Sony's low market share and strengthens Ericsson's ability of research and product development. Thus joint ventures resolve the opportunism issue with OEM, licensing and franchising.