Business Strategy
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Details
Textbook:
Pages : 323;
Paperback;
210 X 275 mm approx.
Workbook:
Pages :
321; Paperback;
210 X 275 mm approx
Pricing
Textbook Price: Rs. 750 ;
Workbook Price: Rs. 700;
Available only in INDIA
Detail Table of Contents
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Joint Ventures and Strategic Alliances : Chapter 16
SUMMARY:
A joint venture can be defined as a new corporate entity that is created as an outcome of a cooperative business agreement between two or more firms that want to attain similar objectives and fulfill their mutual needs. In contrast to licensing and franchising arrangements, joint ventures allow companies to own a stake and play a role in the management of the joint operation. The basic motive for starting a joint venture is sharing investment. A company with adequate cash may enter into a collaboration with a smaller company which has technical expertise but lacks funds. The main reasons for international joint ventures are: learning a partner’s skills, and upgrading and improving skills.
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firm to benefit from the local partner's knowledge of the host country's culture, language, and political systems. A major drawback of joint ventures, particularly in countries that limit the participation of foreign companies to 49 percent or less, is the loss of effective managerial control. This can result in reduced profits, increased operating costs, inferior product quality, and exposure to product liability and environmental litigation and fines.
