Joint venture essay
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Saidur Rahman Md. Ashiqul Islam Md. Asiful Islam Date of Submission 20th April, P Reg. To study the premiums and fund management. However, it has brought significant changes in all segments of human life and International business is one area in which it contributed heavily Reich,
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Essay On Joint Venture
Joint Venture Essay | Bartleby
Cost-savings result when a business transfers expertise in one business to a new business. If two companies are in the same industry or share a common goal, they sometimes choose to work together by forming a separate company. A joint venture is a separate business created jointly by two or more parties that is separate from their original company. Instead of competing with each other in the same industry, they form a company together to compete with the rest of the market. Joint ventures rely a lot on trust. Both parties share a common goal and work together to complete that goal. These strategies improve a businesses production process.
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The need to venture into international markets pushed Jobek to find an international partner in the United States to help in the distribution of its hammocks. This move should have been very profitable to Jobek because partnering with a global company means a broader market base; leading to more profits for both parties. However, Jobek did not critically analyze this partnership at the start. The two companies have conflicting ideas regarding environmental conservation. Jobek insists on using certified wood, whereas, Hatteras is more focused on profits and makes use of uncertified wood to make cheaper products.
If a business entity is looking for further flexibility and has an ability to adapt to a changing mission or goal with its participants, then the entity should consider forming one of many types of strategic alliances like joint venture. This strategic alliance is a cooperative effort with two or more participants towards an agreed goal. The cooperative effort can take several forms and can be comprised of any or all of the following: technology, licensing arrangements, research and development agreements, manufacturing relationships, sales and distribution agreements and equity investments. A strategic alliance may take on the form of a joint venture by forming a separate distinct entity, but typically strategic alliances are created through contractual arrangements.
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