Please enable JavaScript.
Coggle requires JavaScript to display documents.
Joint venture (Drawback (creation of a subsidiary (risks), Pre-determined…
Joint venture
Characteristics
Global service
No necessary legal personality
Governed by the specific contract (inominate )
Partnership
Equity position
Sharing of assets and informations
Share of risks
taxation
clauses
confidentiality
non competition
Recommendation
Good internal / external communication
Balancing the contributions of both structures
Clear objectives
Drawback
creation of a subsidiary (risks)
Pre-determined lifespan
dividend distribution
possibility of disagreement
conflict of interest
complex legal assembly
Exemple
Sony-Ericsson
Chery Jaguar Land Rover Automotive Company
Microsoft and GE Joint Venture, Caradigm
Definition
2 parties
Each parties is responsible for losses and profits
To accomplish a specific task
Business arrangement
Dedicated entity separate from participants
Advantages
competitive advantages
foreign market penetration
economic benefits
limit costs and risks
local market experience
tax benefit
operational benefits
pooling
master new technologies
Financial risks
Structure
Contractual
contractual and societary