Joint venture

Meaning; Joint venture is an agreement between two or more businesses to work

together on a project. The foreign business will work with a domestic business in
the same industry.
Liability : Limited liability
Risk involved : joint ventures can lead to conflict between partners
Advantages: limited liability, access to new market and distribution networks,
increased capacity, sharing of risks and costs (ie liability) with a partner, access
to new knowledge and expertise, including specialized staff, access to greater
resources, eg technology and finance
Disadvantages: objectives are unclear, conflicts between partners, work and
resources arent distributed equally, the different cultures and management styles
pose barriers
Real life: TATA and Starbucks, Mercedes and maybach
Why is your form of business better than other forms:
 Joint venture consists of two successful businesses