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Module 04: Joint Ventures

 

At the end of this module you will be able to:

  • Have an understanding of what is a joint venture
  • Understand the different aspect of a joint venture
  • Understand how to select the right joint venture partner
  • Relate some practical examples of SME joint venture collaborations
  • Joint-ventures are an example of close collaboration of business partners. As the market continues to become more and more global and the firms become more international, joint ventures, particularly the cross-border ones, increasingly provide firms with opportunities:

  • to rapidly expand geographical market participation,
  • to create economies of scale and critical mass,
  • to reduce risks,
  • to learn new skills and technologies,
  • and to facilitate effective resource sharing.
  • One view of international joint ventures (IJVs) is that they represent a continuous negotiation of interests between parent organisations. Success or failure therefore depends largely, upon the collaborative attitudes held by those involved with the ongoing operation of the IJV.

    Reasons to make a joint venture:

  • Internal reasons
  • Build on company’s strengths
  • Spreading costs and risks
  • Improving access to financial resources
  • Economies of scale and advantages of size
  • Access to new technologies and customers
  • Access to innovative managerial practices
  • Competitive goals
  • Influencing structural evolution of the industry
  • Pre-empting competition
  • Defensive response to blurring industry boundaries
  • Reaction to stronger competitive units
  • Speed to market
  • Improved agility
  • Strategic goals
  • Synergies
  • Transfer of technology/skills
  • Diversification
  • Sub Pages

    Testimonials

    This is a great program, i would recommend this program to one and all.

    Ian Sayers
    Giant