Establish a Joint Venture

Question 1

What is a joint venture?

Answer 1

-established between companies at diff stages in supply chain

Question 2

Where are JVs common?

Answer 2

-particularly price sensitive markets, eg UK
-companies increasingly looking to save costs

Question 3

What is the advantage of JVs?

Answer 3

-gives parties greater control over diff stages in supply chain
-greater profitability= costs shared and no intermediary costs

Question 4

What does a JV need to be successful?

Answer 4

-companies similar size or more of a takeover
-contracted agreements need to be carefully agreed and documented to ensure each party knows their responsibilities and obligations

Question 5

Give an example of a joint venture

Answer 5

-Metzendorff distributer, and Champagne Bollinger and the Fladgate Partnership (port)
-2 businesses not direct competitors, and other companies represented by Metzendorff carefully chosen so don’t overlap

Question 6

What is another type of joint venture?

Answer 6

-producers joining force with distributers/retailers to make new wine brands
-eg 2007- Buckingham Schnek and wms Herve and Diane Joyaux Fabre created Argentinian wine brans- Vinalba