Joint Ventures Flashcards
1
Q
Benefit of joint Venture 1
A
Legal requirement, 50% ownership
Reduces total profits that can be earned in that market
2
Q
Benefit of joint venture 2
A
Local knowledge
Skills experience, distribution
Adapt closer to local tastes
Increase prices and increase market share
3
Q
Benefit of joint venture 3
A
Access to materials and suppliers
Reduced unit cost
4
Q
Benefit of joint venture 4
A
Spreading costs spreads risk
Leader to EOS
5
Q
Drawbacks of joint ventures 1
A
Share profits
6
Q
Drawbacks of joint ventures 2
A
Unreliable partners and clash of cultures
DEOS
7
Q
Define joint ventures
A
Two companies make a third with separate identity
