Joint Venture - 2514 Words

Joint Venture The globalization strategy our team is going to explore for Moonglow is Joint venture. We are going to discuss the pros and cons to a joint venture along with some environmental factors that Moonglow needs to consider before deciding on a location. We are also going to explore different organization structures and give a recommendation on how to restructure Moonglow to succeed in the global market. Lastly, we will describe ways Moonglow can expand internationally while maintaining its eco-friendly practices and continue producing organic products. According to Jones (2011) a joint ventures is a â€Å"strategic alliance among two or more organizations that agree to establish and share the ownership jointly of a†¦show more content†¦Moonglow’s joint venture alleviates this limited knowledge. Our host nation partner is already accustomed to doing business in their country and already has the knowledge of the regulatory laws. Along with regulatory laws there are legal restrictions that prohibit certain resources to foreign businesses. Joint ventures make it easy to bypass these restrictions and allow us access to raw materials we may not normally have (Hall, 1984). Along with the benefits of knowledge and resources, local governments favor collaborating with businesses in their country. Many foreign governments offer special incentives to outside countries if they enter into joint ventures. They see this as a way to bring employment, new technology and skills to their local people (Hall, 1984). This is a win win for everyone. Just as there are pros to joint ventures, there are also cons. The cons to entering into a joint venture are flexibility, technology transferred, employees, and loyalty to the U.S. partners (Hall, 1984). Moonglow may have limited flexibility when operating on foreign soil. Depending on the breakdown of ownership, depends on the flexibility Moonglow will have. That is why it is important to have everyone’s roles spelled out. Many foreign countries do not have the paten controls that we do in the U.S. Any technology that Moonglow brings into the joint venture has theShow MoreRelatedJoint Venture2556 Words   |  11 Pages_______________ 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 movingRead MoreJoint Venture Failures2321 Words   |  10 PagesA joint venture is a contractual agreement joining together two or more parties for the purpose of executing a particular business undertaking (InvestorWords, 2008). Some of the most significant benefits gained from joint venturing include, a reduced risk of both companies resulting from capital and resource sharing, the opportunity to increase sales, and enhance technological capabilities through research and development underwritten by one party (INC, 2009). Joint ventures also provide a modeRead MoreWhat Is Joint Ventures630 Words   |  3 PagesWhat is a Joint Venture? Joint ventures can take on many looks, but the basic gist is that two or more companies come together to pool their talents, resources and customer lists for the benefit of all. The joint venture allows you to share advertising dollars for a more effective campaign and gives you the opportunity to ride the coattails of a bigger, more established company in order to boost your reputation and build your customer base. Most joint ventures take place between related companiesRead MoreA Joint Venture Company4118 Words   |  17 Pageshave huge impact on the JVC. Therefore solutions and suggestions will be given in order to minimise the impact they have on the long-term survival of the JVC. 2 Employee performance challenges 2.1 Culture differences The creation of a joint venture company (JVC) is to combine forces from two or more organizations in order to generate more profit or to achieve other mutual business goals (note). In this sense the management of the JVC is likely to face a certain degree of challenges and issuesRead MoreChangan-Ford Joint Venture606 Words   |  3 PagesChina and Ford Motor Co. of USa in forming the Changan ford joint venture. 2) Using section 10.4 describe the type of strategic alliance, the motives for alliance, and highlight the issues with their probable causes. 3) Make recommendations to the CEO and senior managers of Changan-Ford on how they can address the cross-cultural issues identified. The Changan Ford Joint Venture: Same Bed but still different dreams? 1. This joint venture has provided both companies many advantages. From an economicRead MoreReasons for Failure of Joint Venture---Case of Tcl Alcatel Joint Venture2389 Words   |  10 Pageslike to use joint venture as their favorite entry mode due to its unique advantages, such as: directly access to the local partner’s knowledge, sharing development costs and risks. Meanwhile, it is important to figure out the factors that will cause failure of joint venture. Generally, 3 major factors: culture difference, poor leadership and insufficient planning which are all fatal to the operation of joint venture. Cultural differences have direct influences on international joint venture performanceRead MoreA Study On Joint Venture1393 Words   |  6 PagesJoint venture is the agreement in between the business organizations that tends to do work together by mutual contract. This is termed as the business agreement that is concerned with the development of mutual consent for the limit ed rime period. Considering the bigger picture Xtech is the leading Extrusion technology incorporation and the CEO of this incorporation has visited China for the development of XTech. It is termed as the leading global manufacturer that is based on the wide range of mechanicalRead MoreLessons for Joint Ventures in China4656 Words   |  19 PagesLessons for Joint Ventures in China. Danone and Wahaha Case Study. 1 Lessons for Joint Ventures in China Danone and Wahaha Case Study 8/17/2012 MSc International Management programme Management across Cultures Prague College Lessons for Joint Ventures in China. Danone and Wahaha Case Study. 2 Contents 1. 2. 3. Objectives and scope. ........................................................................................................................... 3 Joint Venture: definitionRead MoreA Joint Venture With Pernod Ricard2192 Words   |  9 PagesUS and attempting to enter Polish markets, we will enter a joint venture with Pernod Ricard, a very successful alcohol and spirits company with operations here in America and abroad in Poland. Through an in-depth look at Poland’s spirits market we will provide support for why we are choosing to enter Poland through a joint venture and how we plan to control our abroad operations. A strategic plan detailing how we will use our joint venture and then market, position, price, and promote our productsRead MoreJoint Venture Case Study3008 Words   |  13 PagesA joint venture is a contractual agreement joining together two or more businesses in which each agrees to share profit, loss, and control in a specific enterprise. While a jo int venture might seem similar to a partnership, there is one key difference that sets them apart. Members of a partnership have joined together to run a â€Å"business in common,† while members of a joint venture have joined together for a particular purpose or project (Ward 1). The joint venture in our case is between Hangzhou