Under the term joint venture [] (German joint undertakings) one understands co-operation about societies, at which it comes to the establishment of a new, legally independent department, in which both establishment companies with their capital is involved. Beside the capital the establishment companies bring in usually a substantial resources portion of technology, patent rights, technical and/or marketing know-how and/or equipment. A joint venture is characterized, i.e. by two aspects co-operation and autonomy.

Motives for establishment

With the motives for the establishment of Joint venture between internal, competition-referred and strategic objectives one differentiates.

Motives from internal view

These are:

• the dispersion of the risks and costs
• the safety device of existing resources,
• the use of scale yields,
• the entrance to new technologies and markets and
• the promotion of coworkers by the assumption of responsibility in a joint venture (other one responsibility is extracted)

.und the promotion of other smaller companies

Motives from competition-referred view

From competition-referred view Joint venture is above all important, because one can industry developments steer and above all speed advantages opposite competitors obtain can. In addition can be reacted to the increasing globalization faster.

Strategic goals

As strategic goals the creation and use of synergies, the transfer of technology and the extended possibility of the diversification are seen. A further motive a joint venture to base, can be the legal situation in a country. Some countries like the People's Republic of China do not permit the establishment of pure (100%igen) subsidiaries of foreign companies in certain industries at all, in others only under the edition of official permission. Here Joint ventures with native companies are often to be seized the only possibility for foreign companies on the respective market foot.

Strengths of Joint venture

Co-operation and autonomy are also the substantial strengths of Joint venture. Co-operation results from the fact that two or several enterprises a joint venture base and lead, while this unit acts legally and organizational clearly detached of the respective partner enterprises and to be treated is speak are autonomous. An example is the co-operation of Fujitsu and Siemens AG, which its computer sections folded up.

Danger potential of Joint venture

The establishment of Joint venture holds naturally also dangers. One can recognize this easily, if one regards Joint more exactly the venture system: With respect to the Joint venture system one differentiates levels. On the first level the partners are and on the second level are the unit. Conflicts can result on the partner level if one for example the objective not clearly defined or the joint venture unit has a different position and importance in the creation of value chain of the individual partners. In addition, in the relationship the Joint venture unit with the establishment companies it can come to problems, because from the autonomy the Joint venture unit arises a high requirement at control and integration mechanisms. A substantial danger of Joint venture lies in the fact that Firmeninterna are appropriate for the Joint venture partner openly, which is on other markets or in the future a potential competitor indirectly over the common daughter also.

Joint venture Joint venture system

In order to avoid and Joint venture to understand be able mistakes it to light up is usually necessary to direct the view not only toward the again created society but also the behind it-standing relations network. Therefore one differentiates joint venture ", which designates the new unit between the terms ", and which term "Joint venture system ", which means the entire surrounding field of the Joint venture unit and the establishment enterprises.

Literature

• Foam castle, Harald: International Joint venture: Management, taxation, contract design, 1999
• Harrigan, Kathryn Rudie: Managing for joint venture Success, 1986 ISBN 0-669-11617-3
• G.J.B. rehearses CC Joint venture and Joint venture management, 2001

Articles in category "Joint venture"

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Related Websites

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