International Business Report: Taj and Crown Hotels Joint Venture

This report analyzes the potential international joint venture between the Taj Group and Crown Hotels, focusing on the strategic considerations for entering the Indian market. The report examines the formation of the joint venture, including the capabilities and compatibility of both companies, the sharing of control, and the establishment of a new organizational structure. It also assesses the various risks associated with such a venture, including competitive, economic, political, and technological risks, particularly within the Indian context. The report further explores human resource management aspects, emphasizing the importance of developing a new organizational culture, communication strategies, and employee motivation. The conclusion highlights the need for a well-articulated business strategy, alignment of objectives, and collaborative exploration of the market to ensure the success of the joint venture. References from various sources support the analysis and recommendations provided in the report.

Prepared by:
International Human Resource
Management

International
HR
Management
Table of content
Introduction
Forming international joint venture 4
Risk control and headquarter
Human resource management
Conclusion
References

International
HR
Management
Introduction
 Joint Venture is one of the most generic and extensively
used structures of international expansion
 Joint venture between Maldivian Company and an Indian
company (Stewart & Maughn, 2011).
 Forming, developing, implementing and advancement
 Involve low risk and investment (Dugleby, 2019)
 The Crown hotel company was established by the pioneers
of the Maldives Tourism Industry (Roche, 2016).
 The directors are planning to enter in India by
collaborating with Taj Group of hotels
(crowncompany.com, 2019).

International
HR
Management
Forming international joint venture
 Capabilities and compatibility of the business to
form joint venture
 Able to access the latest technology in the respective
countries with distribution channels and supply chain of the
company (Quelc & Bloom, 2018).
 Interest, size, resources and time scale
 Both companies are compatible and capable enough to
form a joint venture

International
HR
Management
Forming international joint venture
 Control will be shared (% of the control of each
company)
 The Taj and Crown group will share the equal control
50/50% in terms of conducting business operations.
 New organizational structure
 The positions and management reporting will be clearly
defined and measured.
 Should be clear communication plan between the
companies. When, where, whom, and how the reporting
should be done, will be clarified as a part of the
organizational structure (greer, 2018).

International
HR
Management
 Competitive risk (Ahiaga-Dagbui, fure, & Mccarter, 2011)
 Economic risk (Freeman & Freer, 2018).
 Political risk (mea.gov.in, 2013), (n.a, 2019).
 Environmental and technology risk (Kaura, 2018) (Perkins,
Morck, & Yeung)
 What control or mechanism for controlling the
business
 Controlling is an issue when it comes to invest in India
(maldivesembassy.in, 2019)
 Since both company wants equal amount of control over
their subsidiary, but it is difficult to have it in India (Giji &
Dimitrijevi, 2015).
 local company has a strong brand image and distribution
Forming international joint venture

International
HR
Management
HRM
 It is advised to develop a new culture within the
organization and new line of communication amongst the
team members.
 Strategic HRM says that people are key elements to any
organizational success and they stand as a competitive
advantage for the organization.
 The skills and knowledge of people helps the organizations
o accomplish their objectives and generate revenue.
 A new blended culture should be created with a new line of
communication (Schuler R. , 2002)
 Taj Hotels has an ethical and ethnic culture and Crown
employees need to blend with the same while the Joint
venture happens between the both (Iles & Yolles).

International
HR
Management
HRM
 A combined vision needs to be developed and frequent
formal and informal connects should happen between the
employees of both the entities.
 Local employees would help the parent organization the
blend well in a different country as the local employees
would be well aware about the demographics.
 Crown group can look for employees in India while
collaborating with Taj Hotels.
 Employees should constantly be motivated and paid as per
their knowledge and skills.
 Performance Appraisals are very important for a joint
venture

International
HR
Management
Conclusion
 Hence with all analysis we can conclude that a sound and
well articulated business strategy must be present to start
joint venture business.
 The aim of international joint venture must be clarified and
the engagement of the parent companies should clarify
their pre-requisites in terms of capital investment
technology help.
 A joint venture can be successful only when both the
parties are in agreement to each other to explore the
market collaboratively.
 Taj group and Crown group can collaborate efficiently to
grasp the opportunities in the India market with
personalized and customized services.

International
HR
Management
References
 Ahiaga-Dagbui, fure, F. D., & Mccarter, W. (2011). potelstisl risk with international venture. innovation and sustainable developement , 191-196.
 Associates, D. S. (2018, August 21). Establishing a Joint Venture in India. Retrieved May 3, 2019, from https://www.google.com/search?
q=internatio+joint+venture+risks+in+relation+with+india&oq=internatio+joint+venture+risks+in+relation+with+india&aqs=chrome..69i57.11108j0j4&sour
ceid=chrome&ie=UTF-8: John A. Quelch and Helen Bloom
 crowncompany.com. (2019, May). Crown company. Retrieved May 3, 2019, from www.crowncompany.com: http://www.crowncompany.com/about-us/
 Dugleby, C. (2019). INTRODUCTION. Retrieved May 4, 2019, from /jointventurerisk.com: https://jointventurerisk.com/
 Elo, M. (2010). International expansion through joint venture:. Fachhochschule der Wirtschaft (pp. 1-9). 25th IMP Conference, Marseille : University of Vaasa. .
 Freeman, S., & Freer, C. (2018). The control dimensions in international joint ventures:. Retrieved May 4, 2019, from https://www.impgroup.org:
https://www.google.com/search?
q=internatio+joint+venture+risks+in+relation+with+india&oq=internatio+joint+venture+risks+in+relation+with+india&aqs=chrome..69i57.11108j0j4&sour
ceid=chrome&ie=UTF-8
 Giji, N., & Dimitrijevi, O. (2015). CHARACTERISTICS OF JOINT INVESTMENT IN GLOBAL BUSINESS. ЕКОНОМИКА , 61 (1), 185-196.
 greer, C. (2018). joint venture ( Organizational Chart). Retrieved April 4, 2019, from /creately.com: https://creately.com/diagram/example/i9d5xo8a/joint
 Iles, P., & Yolles, M. International joint ventures, HRM andviable knowledge migration. Human Resource Management , 13 (4), 624–641.
 Kaura, V. (2018, December 18). A New Chapter in India-Maldives Relations. Retrieved May 2, 2019, from hediplomat.com/2:
https://thediplomat.com/2018/12/a-new-chapter-in-india-maldives-relations/
 maldivesembassy.in. (2019). TRADE WITH INDIA. Retrieved May 3, 2019, from https://www.maldivesembassy.in/trade/: https://www.maldivesembassy.in/trade/
 mea.gov.in. (2013). India-Maldives Relations. Retrieved May 7, 2019, from https://mea.gov.in/: https://mea.gov.in/Portal/ForeignRelation/India-
Maldives_Relations.pdf
 n.a. (2019). Joint venture and business partnership. Retrieved May 4, 2019, from /www.nibusinessinfo.co.uk/: https://www.nibusinessinfo.co.uk/content/joint-
venture-benefits-and-risks
 Perkins, S., Morck, R., & Yeung, B. Y. (n.d.). Managing Risk in International Joint Ventures. Retrieved May 7, 2019, from www.strategy-business.com:
https://www.strategy-business.com/article/re00022
 Quelc, J. A., & Bloom, H. (2018). Ten Steps to a Global Human Resources Strategy. Retrieved May 3, 2019, from www.strategy-business.com/:
https://www.strategy-business.com/article/9967?gko=c9dff
 Roche, E. (2016, November 23). Indian firms eye investment protection pact with Maldives. Retrieved May 2, 2019, from https://www.livemint.com:
https://www.livemint.com/Politics/wwUdiXjyahjs4ius25X9SO/Indian-firms-eye-investment-protection-pact-with-Maldives.html
 Schuler, R. (2002). Continuous evaluation and adjustment of all HR policies. Retrieved May 4, 2019, from smlr.rutgers.edu:
https://smlr.rutgers.edu/sites/default/files/documents/faculty_staff_docs/randall_schuler_hr_issues_and_activities_in_international_jv.pdf
 Schuler, R., & Tarique, I. (n.d.). International Joint Venture System Complexity and Human Resource. Retrieved May 4, 2019, from mlr.rutgers.ed:
https://smlr.rutgers.edu/sites/default/files/documents/faculty_staff_docs/IJVComplexity_%20SchulerTarique%20-Ingmar.pdf
 Stewart, M. R., & Maughn, R. D. (2011). INTERNATIONAL JOINT VENTURES, A PRACTICAL APPROACH. Davis Wright Tremaine LLP .
 tajhotels.com. (2019). About us. Retrieved May 4, 2019, from /www.tajhotels.com/: https://www.tajhotels.com/en-in/

THANK YOU
Any Question???