What Is Joint Ventures

Company has evolved to handle joint ventures, but not all of them turn into successes.

Joint Stock Companies- A Joint Stock Company is a company that has stocks that are available to be shared by different shareholders. Joint Stock Companies were formed around the 1600s by the English parliament after the amount of money spent in the battle against the Spanish for North America. This made it possible to gather money to colonize.

* The company cash flow is unreliable especially in the early stages of a new product development

Joint-Stock Company: A business with transferable shares and shareholders having little to no liability for their debts. a business that sought to separate that of legal existence and the sharing of ownership between the shareholders.

The foreign partner can also become a competitor by selling its production in places where the parental company is already in.

An example of joint enterprise is a burglary, there are four people all doing a specific role, one actually opens the door and takes all the things, the other takes the men to the house and the other two as lookout. Each is guilty and is charged for burglary.

Joint-stock company: Joint-stock companies are companies made up of shareholders, who all invest in this company and receives some of the profits and debts. Joint-stock companies opposed the strict, traditional European economic standards which revolved around just prices, where profiting was looked down upon, and reciprocity, in which trade was for mutual benefit. However, this created problems, where investors were more and more determined to acquire more shares, creating more tension between social classes, as the rich became richer and the poor became poorer.

Chase, R.B., Jacobs, F. R., & Aquilano, N.J. (2006) Operations management for competitive advantage (11th ed). New York: McGraw Hill/Irwin

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.

of the joint venture would benefit both companies if the terms of the agreement were favorable for both parties. It is also noted in the case that Sakari had

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.

• There is an imbalance in levels of expertise, investment or assets brought into the venture by the different partners.

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.

The vast majority of Dongfeng’s car sales are derived from its joint venture form automobile enterprises and the four major partners are Nissan, Honda, Kia Motors and PSA Peugeot-Citroen. The form of joint venture has a superiority of extending the product line and the joint venture enterprises have further completed the models, technologies and accessories factories. It helps the company