Managing in a Global Economy

Managing in a Global Economy Fall 2021

Lesson 10

Next Assignment

Advantages and Disadvantages of Joint Ventures

Joint Ventures – Yes or No ?

• We have looked at business alliances • We have looked at the different forms they

take

• We have looked at short term cooperation agreements

• We have looked at longer term merging of: • Production • Sales

What we need to do !

• We need to look at the longer term agreements:

• Production • Sales • We need to review the positive aspects • We need to review the negative aspects

We need to take into account !

• What are the reasons for the venture: • Join financing capacity of partners • Economies of scale • Acquire production capacity in a new market • Divest a unit no longer considered core • Acquire technological know how

Structure of paper

• Introduction – what are joint ventures ? Discussion - present advantages of joint

ventures

• Discussion - present disadvantages of joint

ventures

• Conclusion - Principal advantages 2 • Conclusion - Principal disadvantages 2