Joint Venture Business in China: Cultural and Political Challenges and Market Entry Strategy

Global business environment 0
System04092

Global business environment 1
Executive Summary
The joint venture is the agreement between the two parties to expand their business and gives
the opportunity to invest and develop the business in other countries. With the business
opportunity, it also describes the cultural and political challenges faced by the European
multinational company in doing joint venture business with China. The assignments depict
the market entry strategy that the company must apply prior to entering the Chinese market.

Global business environment 2
Content
s
Introduction................................................................................................................................4
Political risk in entering china....................................................................................................8
Cultural Challenges in china....................................................................................................10
Adoption of a market entry strategy.........................................................................................14
Conclusion................................................................................................................................16
References................................................................................................................................18

Global business environment 3
Introduction
A joint venture is a business planning in which two or more parties agree to pool their
resources towards the achievement of a specific task. The parties in the joint venture are
responsible for the profits and losses of the company. The joint venture helps the organization
to pool their resources collectively and expand their business. It provides the business
opportunity to the companies to increase their market share and target more and more
customers. By doing the joint venture business, it will allow the companies to expand their
business in other countries and build strong relations with the other countries (Wise Step,
2016).
There are various benefits of doing joint venture business because it increases the capacity of
the organization and develops more distribution channels. Especially doing business in China
will provide the opportunity to gather more resources and expand its business. The European
multinational company will able to use improvise technology and however enhancement of
overall. It will provide the vast business opportunity to the European multinational company
to make investments and diversify its business in China. Business opportunity refers to the
opportunity to make investments and further grow and develop the business. In doing
business in China the European company will get the business opportunity to develop its
business in China market and able to retain more and more customers for the firm (Wise
Step, 2016).
With the business, opportunities in China there are also the internal and the external factors
that influence the working environment of the organization. In the internal environment, it
consists of the values, mission and the structure of the organization, which influences the
working of the European organization. In China, the focus is to collectively attain the goals of