Premium Essay

Jv, Wos, Location

In: Business and Management

Submitted By jinjoeshan
Words 639
Pages 3
Joint venture

An international joint venture means establish a firm that is jointly owned by two or more independent firms, the most joint venture is 50/50 venture,and each of parts holds a 50% ownership stake and contributes a team of managers to share operating control. It is quick and easy way to new market by using local partner’s knowledge, local network.
Joint venture has a number of advantages.
Firstly, IJVs enable companies to access complementary assets and resources. Secondly, it requires less investment compared to complete ownership. It can help reducing operating and political risks, this means the risks and costs will be shared. Thirdly, it can help companies overcome host-government regulations. Eg Tata group enter into China by joint venture with Chery Car Company in order to address regulations.
The disadvantages of JV include: firstly, firms have risk of potential leakage of intellectual property.
Secondly, The JVs does not give a firm the tight control over subsidiaries.
Thirdly, different goals and culture will lead to conflicts between firms.

Partner selection

In selecting the IJV partners, companies must evaluate the potential partner’s resources, motivation and compatibility. Such as physical assets (buildings, plant, equipment); intangible assets (brands, contacts, quality of customer relationships); organizational capabilities (managerial competence, employee loyalty); moreover, current markets, product ranges and production locations; complementarities.
In the case, JV with western partners require a relatively highly-skilled work-force because they are technologically more advanced and likely to invest in technology intensive industries. MNCs JV with Chinese firms because they tend to use local resources such as cheap labour forces
And the negotiation is a two-way process, therefore the choice should be satisfied with...

Similar Documents

Premium Essay

Business

...MSc International Business and Management The Dynamics of Market Entry and Expansion Strategy in Emerging Markets: The Case of Wal-Mart in Latin America Dino Ovcina Author: Dino Ovcina Supervisor: Dr. Jeremy A Head Institution: Sheffield Business School at Sheffield Hallam University Program: MSc International Business and Management Module: Dissertation Date of Submission: 21 April, 2010 Abstract This research investigates the internationalization process and potential issues related to market entry and expansion strategies. It focuses on Wal-Mart's entry and expansion strategies into the Emerging Markets of Latin America, and discusses the different entry and expansion decisions being made by the company. Furthermore, the research critically evaluates the dynamic challenges facing developed country firms in their market entry and expansion strategies in emerging markets. Its contribution to the existing literature is its focus on the dynamics of entry modes in emerging markets. The research, based on an inductive approach, has been conducted as a case study by the use of secondary data. Wal-Mart began its internationalization by entering the two geographically nearest markets, namely Mexico and Canada. The entry into Mexico, which occurred 1991, was the first strategic move aiming at reaching the company’s overall goal of becoming the leading player in Latin America. Mexico together with Brazil are the two main emerging markets of Latin America......

Words: 7645 - Pages: 31

Premium Essay

Bgtrg

...MSc International Business and Management The Dynamics of Market Entry and Expansion Strategy in Emerging Markets: The Case of Wal-Mart in Latin America Dino Ovcina Author: Dino Ovcina Supervisor: Dr. Jeremy A Head Institution: Sheffield Business School at Sheffield Hallam University Program: MSc International Business and Management Module: Dissertation Date of Submission: 21 April, 2010 Abstract This research investigates the internationalization process and potential issues related to market entry and expansion strategies. It focuses on Wal-Mart's entry and expansion strategies into the Emerging Markets of Latin America, and discusses the different entry and expansion decisions being made by the company. Furthermore, the research critically evaluates the dynamic challenges facing developed country firms in their market entry and expansion strategies in emerging markets. Its contribution to the existing literature is its focus on the dynamics of entry modes in emerging markets. The research, based on an inductive approach, has been conducted as a case study by the use of secondary data. Wal-Mart began its internationalization by entering the two geographically nearest markets, namely Mexico and Canada. The entry into Mexico, which occurred 1991, was the first strategic move aiming at reaching the company’s overall goal of becoming the leading player in Latin America. Mexico together with Brazil are the two main emerging markets of Latin America......

Words: 7645 - Pages: 31

Premium Essay

International Market Entry

...International Marketing Marketing Wine in the Chinese Market Executive Summary China’s demand for Western wine has rapidly increased. This has created a market opportunity for high end, quality wine companies from Australia to export their products to China. The product that will be focused on is Glandore Wine from the Hunter Valley. The report will focus on exporting this product into the Chinese market. There should be a strong focus on building brand reputation and maintaining long-term business relationships. There are multiple entry types into foreign markets yet Chinese regulations limit the mode of entry. The recommended mode of entry for Glandore wines is a Joint Venture. The decision between product standardisation and customisation is an important aspect of strategic decision-making. It is recommended that Glandore does not customise their core product of wine, however it is recommended that other product attributes are customised to appeal to the Chinese market. When promoting Glandore wine in the Chinese market there should be use of advertising, public relations, sales promotion and personal selling. Table of Contents Executive Summary ……………………………..…. 2 1. Introduction ………………………………………………... 4 2. 2.1 Market Entry………………………………………………4 2.2 Recommendations ………………………………………5 3. 3.1 Product Standardisation and Customisation ……..…..7 3.2 Recommendations…………………………………….….7 4. Promotion in China 4.1 Push......

Words: 3549 - Pages: 15

Free Essay

Disney Case

...Norges Handelshøyskole Bergen, Spring 2011 Master Thesis within the main profile of International Business Thesis Advisor: Professor Svein Ulset Title: International Modes of Entry Subtitle: The Case of Disney By, Carlos Gonzalez Hernandez This thesis was written as a part of the master program at NHH. Neither the institution, the supervisor, nor the censors are -through the approval of this thesis- responsible for neither the theories and methods used, nor results and conclusions drawn in this work. International Modes of Entry: The Case of Disney 1 Abstract The case of Disney’s theme parks represents an opportunity to test major internationalisation theories in a setting of large investments with little chance for reversal of commitments. The purpose of the research is to study the benefit of different entry modes dependent on Disney’s Theme Parks value-generating resources and capabilities while conditioned to certain local industrial and institutional conditions in foreign markets. Five major theories and frameworks were used to analyze all four Disney’s ventures abroad. This resulted in 20 individual hypotheses analyzed. Results indicate that Disney followed a predictable internationalisation process in the cases of Tokyo, Hong Kong and Shanghai, but that it went off-path in the Paris one. In successful cases Disney followed a cautious approach, involving local partners to transfer and adapt the “Disney Experience”. In the case of Paris the company decided to......

Words: 19107 - Pages: 77

Free Essay

Expansion of Student Population by Globalising Education Services.

...student population in their current school, it will find it difficult to compete with other renowned schools competitively in the future. As observed by Dirk Willem teVelde in 2005, “The education sector itself is subject to globalisation (Sauvé, 2002).” Although for many years, education has been very much considered a public good, it is now debated that “GATs (General Agreement on Trade in Services) is becoming more flexible in governments being able to decide whether or not they wish to open up to education provision from foreign providers, whilst there are others who suggest that education is about more than just a (traded) commodity.” Therefore, as a result, many educational institutions are branching out away from their original locations and creating replicas or slightly adapted versions of themselves in other countries, namely in the Asia-Pacific region. In order for Eton to maintain its competitiveness, it too must expand its portfolio and either diverse or enlarge its capacity in its Windsor campus. There are problems which could be encountered when attempting to globalise education, or at least one’s style of education. Teaching is a pure service and is consumed as it is produced, it is also...

Words: 1937 - Pages: 8

Premium Essay

Student

...Evaluation of Strategy Tripod In this perspective paper, Peng, Wang & Jiang (2008) state that the success of a MNE is based, especially in emerging markets, on a strategic tripod, whose three legs are the industry-based view, the resource-based view and the institution-based view. According the paper, the institution-based view complement the other two more traditional views and represent a critical element in the definition of the firms’ international business strategy. Basically, MNE’s strategic choices are not only driven by industry conditions and firm capabilities, but are also a reflection of the formal and informal constraints of a particular institutional framework that managers confront (Peng, Wang & Jiang, 2008). The institutional-based view focuses on nation’s political, regulatory and social aspects and their impact on the business environment MNEs interact with. These aspects significantly shape the strategy and performance of the firms – both domestic and foreign – in developing countries, where typically the rules of the game are changing or not completely known (Peng, Wang & Jiang, 2008) To support the strategy tripod framework, the authors outline four different cases, grounded in the context of emerging economies: antidumping as entry barriers, competing in and out of India, growing the firm in China, and governing the corporation in emerging economies. Regarding antidumping as entry barriers, the example discussed is related to a steel producer who......

Words: 1094 - Pages: 5

Free Essay

Business Management Analysis

...CHAPTER I INTRODUCTION Haier Group is the world’s 4th largest white goods manufacturer. It was founded in 1984 with the headquarter in Qingdao, Shandong Province, PRC. Under the leadership of Chairman and Chief Executive Officer (CEO) - Mr. Zhang Ruimin, Haier manufacturers home appliances in over 15100 varieties of different specifications under 96 categories. There have over 100 countries that selling Haier products around the globe. According to the Haier Group official website, Haier now has over 240 subsidiaries companies, over 110 design centers, plants and trading companies and over 50,000 employees throughout the world. Besides doing home appliances business, Haier’s also focused on technology research, manufacturing, trade and financial services. Eventually, the global revenue of Haier for 2005 was RMB 103.4 billion. 1.1 Ownership of The Company According to Financial times, as far as transforming moments in a CEO’s Career, Mr. Zhang Ruimin is the chairman of the Board of Directors and CEO of Haier Group. Mr. Zhang’s current goal is to further enhance Haier’s leadership in Chinese and global markets and strengthen the reputation of Haier’s brand worldwide. In 1984, Zhang Ruimin was appointed as the director of the Qingdao Refrigerator Factory, a small, ailing collectively-owned factory in the Shandong province of China. Under his leadership and unique management philosophy, the company has since grown to become the Haier Group as now to be the China...

Words: 8738 - Pages: 35

Premium Essay

Ongc

...A SUMMER TRAINING REPORT ON “STUDY OF CORPORATE BUDGET AND PROJECT APPRAISAL” SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF POST GRADUATE DIPLOMA IN MANAGEMENT (FINANCE) By Abhay Goyal 13DM006 Under the guidance of Dr. Girish Jain Mr. Anil Kumar Professor DGM (F&A) Accounting and Finance ONGC BIMTECH New Delhi 2013-15 TABLE OF CONTENTS CONTENTS CERTIFICATE FROM MENTOR v CERTIFICATRE FROM HR vi SUMMER PROJECT CERTIFICATE vii ACKNOWLEDGEMENT viii LETTER OF TRANSMITTAL ix LETTER OF AUTHORIZATION x EXECUTIVE SUMMARY 1 1. INTRODUCTION TO THE COMPANY 3 1.1 Background 3 1.2 Overview of the Company 3 1.3 ONGC Group of Companies 4 1.4 Basic Information 5 1.5 Organization Structure (CRC) 5 1.6 Vision and Mission Statement 6 1.6.1 World Class 6 1.6.2 Integrated In Energy Business 6 1.6.3 Dominant Indian Leadership 6 1.7 Strategic Vision 6 1.8 Salient Features about ONGC 6 1.8.1 ONGC in Global Rankings 6 1.8.2 ONGC- Achievements in ensuring Energy Security of India 7 1.9 Corporate Social Responsibility 7 1.10 Future Outlook 8 1.11 ONGC Offices All Over India 8 1.12 Organization Structure of the Finance Function of ONGC 9 2. FINANCIAL STATEMENT ANALYSIS 11 2.1 Financial Performance of ONGC (2012-13) 11 2.1.1 Sales of ONGC 11 2.1.2 Net Profit of ONGC from the Year 2007-13 11 2.1.3 Debt-To-Equity Ratio 12 2.1.4 Dividend of ONGC from 2007-13 12 2.1.5 Earning......

Words: 12141 - Pages: 49

Premium Essay

Rbi Circular

...RBI/2014-15/3 Master Circular No. 12/ 2014-15 July 01, 2014 (Updated up to January 23, 2015) To All Authorised Dealer Category – I banks and Authorised banks Madam / Sir Master Circular on External Commercial Borrowings and Trade Credits External Commercial Borrowings and Trade Credits availed of by residents are governed by clause (d) of sub-section 3 of section 6 of the Foreign Exchange Management Act, 1999 read with Notification No. FEMA 3/ 2000-RB viz. Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, dated May 3, 2000, as amended from time to time. 2. This Master Circular consolidates the existing instructions on the subject of "External Commercial Borrowings and Trade Credits" at one place. The list of underlying circulars / notifications, consolidated in this Master Circular, is furnished in the Appendix. This Master Circular may be referred to for general guidance. The Authorised Persons and the Authorised Dealer Category – I banks may refer to respective circulars/ notifications for detailed information, if so needed. 3. This Master Circular is being updated from time to time as and when the fresh instructions are issued. The date up to which the Master Circular has been updated is suitably indicated. Yours faithfully (B P Kanungo) Principal Chief General Manager 1 Index PART I EXTERNAL COMMERCIAL BORROWINGS (ECB) I.(A) AUTOMATIC ROUTE i) Eligible Borrowers ii) Recognised Lenders iii)......

Words: 16256 - Pages: 66

Premium Essay

The Marketing Strategy of Starbucks Coffee

...1987 and 2007, Starbucks opened on average two new stores every day. Starbucks had been profitable as a local company in Seattle in early 1980's but lost money on its late 1989's expansion into the Midwest and British Columbia. Its fortune did not reverse until the fiscal year of 1989-1990, when it registered a small profit of $812, 000. By the time it expanded into California in 1991 it had become it trendy. The first store outside the United States or Canada opened in Tokyo in 1996, and overseas stores now constitute almost one third of Starbucks' stores. The company planned to open a net of 900 new stores outside of the United States in 2009, but has announced 300 store closures in the United States since 2008. In different Starbucks location across the world they all serve hot and cold beverages, whole-bean coffee, micro ground instant coffee, espresso, cafe latte, full-leaf teas, pastries, and snacks. Most...

Words: 9092 - Pages: 37

Premium Essay

Mergers

...Mergers & Acquisitions in India With specific reference to Competition Law This research paper is a copyright of Nishith Desai Associates. No reader should act on the basis of any statement contained herein without seeking professional advice. The authors and the firm expressly disclaim all and any liability to any person who has read this research paper, or otherwise, in respect of anything, consequences by any such and of of anything in February 1, 2010 done, or omitted to be done person reliance upon the contents of this research paper. Nishith Desai Associates www.nishithdesai.com TABLE OF CONTENTS I. II. Introduction .................................................................................................................................................... 3 Mergers and Amalgamations: Key Corporate and Securities Laws Considerations. ...................................... 7 III. Acquisitions: Key Corporate and Securities Laws Considerations................................................................. 10 IV. Competition Law ............................................................................................................................................ 21 V. Exchange Control............................................................................................................................................ 24 VI. Taxes and Duties ...................................................................................................

Words: 28091 - Pages: 113

Premium Essay

Cooperate

...Cooperative Strategy ‘The authors have provided an ambitious overview of the cooperative strategy literature. The book will be welcomed by serious students and scholars focussed on this important phenomenon.’ Paul W. Beamish, Canada Research Chair in International Business, Ivey Business School, University of Western Ontario ‘This book provides a comprehensive, well-organized and richly illustrated analysis of inter-firm cooperation. While relevant for managers and business students, it extensively draws on the most up-to-date research, making it also a valuable source for academics studying strategic alliances and the wide array of management issues they raise. Child, Faulkner, and Tallman have done a remarkable job of putting together in a highly consistent way all the knowledge available on what has become an essential facet of business development, namely Cooperative Strategy.’ Pierre Dussauge, Professor of Strategic Management, HEC – School of Management, Paris ‘I highly recommend this book for alliance scholars and practitioners. The breadth of coverage of the practical and theoretical literature on cooperative strategy is one of the book’s primary contributions. The authors demonstrate a comprehensive understanding of the subject matter and the numerous case studies demonstrate a close connection with actual experience.’ Andrew Inkpen, J. Kenneth and Jeanette Seward Chair in Global Strategy, Thunderbird, The Garvin School of International Management ‘Companies need...

Words: 221089 - Pages: 885

Free Essay

Colgate-Palmolive International Business Strategy

...Table of Contents 1. Introduction 3 2. Internationalization Strategy of Colgate-Palmolive 3 2.1 The assesment of the internationalisation of the company 3 2.2 The assessment of geographical characteristics of internationalisation 5 2.3 The outline of the main foreign market entry modes employed by the company 5 2.4 The overview of the enterprise structures and controls used by the company 6 3. Evaluation of academic strategy frameworks for Colgate-Palmolive 8 3.1 Overview of the Bartlett and Ghoshal’s generic strategies framework 8 3.2 Evaluation of the Bartlett and Ghoshal's framework on the company's example 9 4. Conclusion 11 5. List of Figures 12 6. Bibliography 13 1. Introduction What a “Colgate Smile” is a phrase commonly used as a compliment about one’s smile. It has been popularized throughout the whole world, due to Colgate’s good reputation as a successful business. Colgate, today being one of America’s most successful Fortune 500 companies, has a long history of evolution and complex adoption of various business strategies, which led to its current solid powerful position. As representatives of the Colgate-Palmolive Company, we are pleased to tell you more about the success story of our company through this report. In the first part, we will show how CP slowly internationalized and expanded globally by adapting various strategies to become one of the most powerful MNC’s, to then in the second part, give you......

Words: 3699 - Pages: 15

Premium Essay

Al-Mihaniya Company

...The Lancaster MBA Assignment First Page Student ID number(s): Student Name(s): Nabil Kilany – 30675912 Khalil Elias – 30983977 Riyad Kurdi – 31082936 Ramzi Shokeh – 31007941 Laith Adas – 31007784 Nabil Al-Kilany Khalil Elias Riyad Kurdi Ramzi Shokeh Laith Adas Module Name: GMBA 558 - Strategy Module Tutor: Dr. Martin Friesl Essay/Project Title Professional Company for Real-estate Investment and Housing Strategy Project Word Count: (5430 excluding Cover, Contents, reference list & appendices ) Assignment Due Date: 15-Nov-2013 By submitting this coursework for assessment, I/We acknowledge the following: Academic Integrity I/We have read and understood the Lancaster University Postgraduate Regulations (http://www.lancs.ac.uk/celt/celtweb/marp) on cheating and plagiarism and state that the work I submit will be my/our own and will not contain any unacknowledged work from other sources. As the author(s) of submitted work in my/our name I/we am/are prepared to undertake a fair and reasonable oral examination of its contents. Research Ethics and Governance I/We have read and understood the Lancaster University Research Ethics and Governance code of practice. Note: This form is to be used as the first page for all coursework submissions. 1|Page GMBA558 Group Assignment The Lancaster MBA Table of Contents EXECUTIVE SUMMARY ..................................................................................

Words: 18629 - Pages: 75

Free Essay

Sharp Corporation

...S w 9B11M007 SHARP CORPORATION: BEYOND JAPAN1 Derek Lehmberg wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2011, Richard Ivey School of Business Foundation Version: 2012-07-06 Mikio Katayama was the president of Sharp Corporation, a company that in the last 10 years had become recognized as a top-notch competitor in electronics products, leaving behind its image as a second-rate player. Sharp could brag about its leading positions in the Japanese cell phone handset and TV set markets as well as its worldwide reputation as a leader in liquid crystal display (LCD) technology. Despite these successes, however, the outlook for Sharp was far from optimistic. In the spring of 2009, Sharp reported its first loss......

Words: 6280 - Pages: 26