Reading 6-1: The Design and Management of International Joint Ventures

1. International Joint Venture

1.1. Motives

1.1.1. Table

1.1.1.1. Existing Market New Product

1.1.1.1.1. Introduce foreign product into local market

1.1.1.2. Existing Market Existing Product

1.1.1.2.1. Strengthen current market position

1.1.1.3. New Market New Product

1.1.1.3.1. Diversify into new business

1.1.1.4. New Market Existing Product

1.1.1.4.1. Take existing product to foreign markets

1.1.2. Economies of Scale

1.1.3. Raw Material and Component Supply

1.1.3.1. Research and Development

1.1.3.2. Marketing and Distribution

1.1.3.2.1. Joint Branding

1.1.3.3. Divisional Mergers

1.1.4. Acquire Technology & Know-How

1.1.5. Reduce Financial Risk

1.2. Requirements for International Joint Venture Success

1.2.1. 1. Test the Strategic Logic

1.2.2. 2. Partnership and Fit

1.2.3. 3. Shape and Design

1.2.4. 4. Doing the Deal

1.2.4.1. Shotgun Clause

1.2.5. 5. Making the Venture Work