International Business: Joint Venture and Global Expansion

International Business

Executive Summary
Joint venture is that kind of venture that is been conducted between two or more than two
organization. In Joint venture all the burden is over both the parties regarding any kind of
emergency arise during the time of business. Also this venture helps an organization gain global
sustainability within market. The organization that has been taken within the file is M&S that is
an international retailer that sells all products for daily use of persons and individual. It is a
British organization that has its headquarters in UK, London. It is known for its products and
services that is been provided by them to its customers. In the following report characteristic of
joint venture is been explained that acts as its important towards an organization like M&S to
establish itself at global level. This purpose its is required to identify the market for which
factors like economy of place, geography and trends arising in it is been presented which helps in
selecting right market for establish globally. Then steps is been mentioned that helps in selecting
of right organization to perform venture. Also decision making and factors affecting it has been
explained. In the end advantage and disadvantages of joint venture has been explained.

Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Literature Review...................................................................................................................4
Demonstrate an understanding of the motivations behind the formation of International joint
ventures in the globalisation process......................................................................................4
Discuss the criteria that is utilised by firms in foreign market selection process...................6
Analyse the decision-making criteria that determine the suitability of the use of international
joint ventures..........................................................................................................................7
An evaluation of foreign market entry strategy options.........................................................8
Demonstrate an understanding of the suitability of international strategic alliances in global
expansion................................................................................................................................9
A critical assessment of the benefits and challenges of the use of international joint ventures
in foreign market entry.........................................................................................................10
Analysis and discussion........................................................................................................11
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................13

INTRODUCTION
Globalization is the process by which interaction and integration within organization,
people, companies and government takes place all over world. This process helps a business in
making sure that it is able to attain name at global level. According to this expansion of growth
with interdependency in business with world's economies culture and population is possible. It
cross-border trade in goods and services, technology and flows of investment, people, and
information. Globalization has helped in making an organization attain its position within global
level market. Globalization has brought many changes in doing trade and business over globally.
This has made evolution of market possible. Scope of globalization is more wider as it helps in
making expansion of business at global level possible. Nature is dynamic as it consisits of unique
features that makes business to be established in market. Organization taken in the report is M&S
is an British retailer that has been established in the year 1884. It has its headquarters in London.
Things to be covered in this file is based over motivation over formation of joint venture, criteria
to make selection of foreign market. In the end theoretical is to be given upon expansion.
MAIN BODY
Literature Review
Demonstrate an understanding of the motivations behind the formation of International joint
ventures in the globalisation process
Joint venture: This is an business arrangement that is formed between two or more
parties agreed to pool resources in order to make a task with specification to be achieved. The
task can be a new project or any business activity. As per this each of participants holds
responsibility over any kind of profit and loss with cost that is to be bear by organizations. In
such kind of business venture with entity and separate formation of participants and other
business interest should exists. Joint venture is that kind of business which takes place when
there is common motive of both the parties this can be earning of profit and expansion of
business within a market. Motivation is the process by which business like joint venture can run
smoothly with cooperation and coordination. It is required to generate positive view point of
both the companies coming together to perform a business. M&S gets motivation form the joint
venture in a way that: