Professional Documents
Culture Documents
Mohit Yadav (096) Jayeeta (101) Pallavi Chopra(103) Monika Kataria(112) Prerna Joshi (130)
Introduction
A joint venture(JV) is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and then they share in the revenues, expenses, and control of the enterprise.
It also provides an opportunity for both the partners to leverage their core strengths and increase the profits.
It also provides a learning opportunity for both the partners.
Other Reasons..
Sharing Capabilities, Expertise and Liabilities Parties to a JV may have complementary skills or resources to contribute to the JV; or parties may have experience in different industries which it is hoped will produce synergistic benefits. The basic tenet of a JV is the sharing of capabilities, expertise and liabilities of both the partners on mutually agreed terms. Such sharing grants a competitive advantage to the JV partners over other players in the market. Technology.
STRATEGIC GOALS
Internal Reasons
1) Building on company's strength. 2) Spreading costs and risks. 3) Improving access to financial resources.
Competitive Goals
1) Influencing structural evolution of the industry. 2) Pre-empting competition. 3) Defensive response to blurring industry boundaries. 4) Creation of stronger competitive units. 5) Speed to market. 6) Improved agility.
Strategic Goals
1) Synergies. 2) Transfer of technology/skills. 3) Diversification.
Take measures to be sure that the partner has a compatible work culture. Be sure about the organizational behavior of the partner to ensure synergies.
Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India's largest passenger car company, accounting for over 50 per cent of the domestic car market. MUL Maruti Udyog Limited was established in February 1981, although the actual production started in 1983 with the Maruti 800 and the first car was rolled out on 14 December. Maruti Udyog Limited (MUL) had a joint venture signed with Suzuki Motor Corporation (SMC) on October 2nd 1982. The company offers full range of cars from entry level Maruti 800 & Alto to stylish hatchback Ritz, A-star, Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara and MUV Ertiga. The company exports more than 50,000 cars annually and has an extremely large domestic market in India selling over 730,000 cars annually.
Bharati Walmart
Contd
Wal-Mart Stores, Inc. operates Wal-Mart discount stores, Super centers, Neighborhood Markets and Sams Club locations in the United States, while Bharti Enterprises is one of Indias leading business groups with interests in telecom, agribusiness, insurance and retail. The two have now joined hands to establish a joint-venture for a cash and carry and wholesale retail chain in India. Both retail groups will hold a 50-50 stake in their joint-venture, which will be called Bharti Wal-Mart Private Ltd
The combined operations of the two retail giants will make available for small retailers and business owners a wide range of quality products at competitive wholesale prices, which will further enhance their businesses and profitability. Those that will be served by this joint-venture include kirana stores, fruit and vegetable resellers, restaurants and other business owners.
Tata Starbucks
Contd.
About Starbucks Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest-quality arabicacoffee in the world. Today, with more than 17,000 stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. About Tata Global Beverages and Tata Coffee Tata Global Beverages is a part of the global Tata Group. Tata Global Beverages is a global beverage business and the worlds second largest tea company. The groups annual turnover is US $1.5 bn and it employs around 3000 people worldwide.
Contd.
Tata Coffee is a subsidiary of Tata Global Beverages. Tata Global Beverages Limited and Starbucks Coffee Company announced a joint venture between the iconic international coffee brand and the 2nd largest branded tea company in the world. The 50/50 joint venture, named TATA Starbucks Limited, will own and operate Starbucks cafs which will be branded as Starbucks Coffee A Tata Alliance.
This agreement paves the way for consumers in India to enjoy the premium Starbucks Experience, while further discovering the unique taste of high-quality Indian arabica coffee worldwide. TATA Starbucks Limited brings together two companies with a rich heritage in and passion for coffee, tea and innovative beverages. Together, the JV will enable an expanded range of beverage offerings for Indian consumers.
Contd.
Eicher will transfer its entire truck and bus operations and their business and engineering services to the joint venture. Its motorcycle-making division will not be part of the venture, which will employ 2,300 and focus production at Eicher's current plant in Pithampur, in the central Indian state of Madhya Pradesh.
Kinetic Honda
Kinetic Honda
Kinetic Honda was a joint venture between Kinetic Engineering Limited, India and Honda Motor Company, Japan. The JV operated during 1984 - 1998, manufacturing 2-stroke scooters in India. In 1998, the joint venture was terminated after which Kinetic Engineering continued to sell the models under the brand name Kinetic until 2008 when the interests were sold to Mahindra. While sales grew slowly, compared to its competitors, its operating margin was the lowest in the industry because of the high import content of raw materials.
Hero BMW
Hero BMW
Hero India based two wheeler manufacturer and BMW German automobile manufacturer joined hands and come in joint venture in 1995 for Hero BMW F650 but the deal fail in 1996 because of poor consumer response.