1) List any five joint ventures by highlighting the implications on the companies involved.

I.

HERO HONDA:

Company Started out as a joint venture between Hero group, The world largest bicycle and Honda motor company of Japan and became worlds single largest two wheeler company, came into existing on 1984, the Hero Honda product range commanded a market share of 48%. Hero is the brand name used by the Munjal brothers for their flagship company and Honda is motor company based in Japan. Hero is India based company so Heros dealer network is strong and Honda is technically strong so Honda could have given technical support, The company provides good after sales service through its well established dealer network but for Hero they had technical collaboration with Honda and they had been dependant on Honda for technology. The Hero Motocorp is leading the market and by a big margin. Honda Motorcycle & Scooter India expanded its network by opening 500 dealers and sub-dealers in tier-II and tier-III cities . Under the joint venture Hero Group could not export to international markets and the termination would mean that Hero Group can now export.

II)

Bharti Wal-Mart:

Wal-Mart- an American public MNC and Bharti- an Indian telecommunication company. Wal-Mart has done the same thing it has analyzed the growth prospects inIndian Retail Sector and entered the Indian Market through Bharti Airtel because the direct entry in retail sector for a foreign company is not allowed and therefore Wal-Mart have used the strategy of starting business via franchisees.Wal-Mart joined hands with Bharti Enterprises on 50:50basis to open their stores across India. Bharti is a Indian brand and has very good public relations in India which was going to help a Wal-mart for supply chain management and wal-mart was goin to get benefit the joint venture because the customer will trust wal-mart by relating with bharti. Wal-mart has a the best HR management system and it provides time training development services to the staff so it was good for bharti also to develop their brand and for diversification. Because of this joint venture Indian retail market has changed and the market share of both the companies has grown

III)

TATA-SIA airline joint venture:

Singapore airlines will join hands with Tata on 49%, Singapore airline has started business through Tata sons. Tata is a Indian brand and customer blindly believe on Tata brand so that benefit will get to SIA. Tata knows the Indian market and they have a good relation with Indian consumers, so Tata can capture airline sector with the help of SIA, SIA is a Satisfied Customer Base and Desired Airline of Passengers. It has Over 60 destinations in nearly 35 countries across the 6 regions (including two longest non-stop commercial flights). So that will be good for Tata sons and because of that Tata will also be success in airline sector because Tata is a new for aviation sector so SIA will be boon for Tata sons

IV)

Mahindra Renault :

It decided to set up a plant that would make half a million cars a year in India within the next five years to make Logan. It was a 51:49 joint venture. Mahindra has a extensive and well established network throughout India and this was good for Renault to enter in India in an automobile sector, Mahindra is already well known brand in India, Mahindra has a extensive experience of Indian Automobile Sector and they have a ability to keep procurement and Manufacturing cost low so, for Renault it was very easy to start up a business in India with the help of Mahindra .Renault is also Expertise in engineering, manufacturing and adaptation to meet customer requirements so Mahindra got help to fulfill customers needs, Renault makes Innovative, safe and environmentally-friendly vehicles worldwide so with help of this joint venture Mahindra became more innovative and because of Renault , Mahindra became a global brand.

V)

Maruti Suzuki:

A project started by Sanjeev Gandhi, after round of negotiation Suzuki was selected with 30:70 ratio and the success of joint venture led Suzuki to increase its equity from 26 to 45 %. Suzuki is technical superior so maruti was going to get the benefit of this, Suzuki is a global leader in mini and compact cars so because of this joint venture maruti was going to come up with new car range in India. Suzuki was going to get benefit like it was a monopolistic in the Indian automobile market and Indian market is large