Professional Documents
Culture Documents
JV - What?
A contractual agreement joining together two or more parties for the purpose of
executing a particular business undertaking. All parties agree to share in
the profits and losses of the enterprise.
Page 3
Advantages
of a JV
Disadvantages
of a JV
Entering into Joint Venture agreements may pose certain threats or disadvantages to
the participating organizations:
1. It is time consuming and difficult to set up a Joint Venture and poses many
challenges.
2. The objectives of the JV may not be clear and understood by all if the partnering
organizations do not state and communicate them clearly.
3. Differences in the cultures and management styles of the organizations may lead to
a lack of cooperation and coordination.
4. Lack of thorough research and feasibility studies in the beginning of the JV may lead
to failure of the JV.
5. The individual partners may not treat the JV as an integral part of their business and
may lead to lack of attention being given to the JV
6. There can be an imbalance in levels of expertise, investment or assets brought into
the venture by the partners
Page 5
Planning
Partner
Search
Feasibility
Study
Incorpor
-ation
Page 6
Planning
a JV
Page 7
Partner
Search
Feasibility
Study
Incorporat
ion
Page 10
Page 11
Page 12
Page 13
If you get the launch right, the rest will take care of itself
Page 14
Sources
http://www.investorwords.com/2671/joint_venture.html
http://www.businesslink.gov.uk
http://sbinfocanada.about.com/od/management/a/jointventure.htm
http://en.wikipedia.org/wiki/Joint_venture
http://www.bharatentrepreneurs.com/2008/09/26/successful-joint-venture
s-in-india-in-2008
Page 15
Thank You
Page 16