International Joint Venture Framework and Performance Analysis

This presentation analyzes international joint ventures, focusing on frameworks for managing them and the measurement of performance from a partner's perspective. The assignment includes a case study and a proposed international joint venture framework. The presentation covers the reasons behind joint ventures, the opportunities they provide, and the importance of strategic business reviews. It details key aspects of a joint venture agreement, including structure, objectives, financial contributions, asset transactions, intellectual property, management, profit/loss sharing, and dispute resolution. It emphasizes the selection of efficient managers. The presentation also includes a literature review with relevant academic sources and addresses knowledge transfer protocols within the context of joint ventures.

JOINT VENTURE
INTEGRATED FRAMEWORK

 The main cause behind the formation of
joint venture business are as follows:
 Business Expansion
 Development of new products
 Moving into new markets
 Set foot in a new country
 Diversification of business
WHY JOINT VENTURE HAPPENS?

 Opportunities that joint venture can provide
are as follows:
 More resources
 Greater capacity
 Increased technical expertise
 Access to established markets and
distribution channels
WHAT JOINT VENTURE CAN PROVIDE?

 Review of the business strategy is one of
the most important step that all entity
aspiring to enter in a joint venture should
consider.
 The entity should be clear about the
expectations that they want to achieve from
the joint venture.
IMPORTANCE OF ASSESSMENT OF JOINT VENTURE

 Small enterprise want to access a larger
partner's resources, such as distribution
network, specialist employees and financial
resources.
 Large business can also get benefitted from
the small enterprise’s innovation or
production of new products.
PLANNING OF JOINT VENTURE

 Joint Venture agreement should include the following:
 The joint venture structure
 objectives of the joint venture
 Financial contributions by each entity
 The transactions of assets like fixed assets and human
resource.
 The ownership differentiation of intellectual
property that created by the joint venture
 Management and control
 Sharing of profits and losses
 The process to resolve any disputes
 An exit strategy
HOW TO CREATE A JOINT VENTURE?

JOINT VENTURE-MARKETING
FRAMEWORK
Internal Support
Strategic PlanStrategic Fit
Partner
Agreement
DEAL
Political
Consideration
Analytical
Consideration
Initial Phase Intensive Phase

 Managers need to be efficient to identify
and realize synergies of the new venture.
 The members of human resource
department should be competent enough to
identify the talent of the job seekers and
also manage the human resource of the
organization.
 Selecting efficient top executives who can
maintain values of both companies.
SELECTION OF MANAGERS

 Leitner-Hanetseder, S. and Stockinger, M., 2014,
March. How does the elimination of the proportionate
consolidation method for joint venture investments
influence European companies. In ACRN Proceedings
in Finance and Risk Series 2013: Proceedings of the
13th FRAP Conference in Cambridge (Vol. 2).
 (
https://books.google.co.in/books?hl=en&lr=&id=4e4KAwAAQBAJ&oi=fnd&pg=PA401&dq=Leitner-Hanetseder,+S.+and+Stockinger,+M.,+2014,+March.+How+does+the+eliminati
on+of+the+proportionate+consolidation+method+for+joint+venture+investments+influence+European+companies.+In%C2%A0ACRN+Proceedings+in+Finance+and+Risk+Seri
es+2013:+Proceedings+of+the+&
ots=qWpbLvIt5l&sig=u-3prkGvSBiciaNR0VCgKTPr2Tc&redir_esc=y#v=onepage&q&f=false )
 Parameswar, N., Dhir, S. and Ongsakul, V., 2018.
Purpose of international joint venture and interaction
post termination. Journal for Global Business
Advancement, 11(6), pp.687-705.
 (https://
www.researchgate.net/profile/Sanjay_Dhir2/publication/330899778_Purpose_of_international_joint_venture_and_interaction_post_termination/links/5c5a5eeb92
851c48a9bd75ef/Purpose-of-international-joint-venture-and-interaction-post-termination.pdf
)
BIBLIOGRAPHY