Establish a Joint Venture Flashcards

1
Q

What is a joint venture?

A

-established between companies at diff stages in supply chain

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2
Q

Where are JVs common?

A

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

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3
Q

What is the advantage of JVs?

A

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

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4
Q

What does a JV need to be successful?

A

-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

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5
Q

Give an example of a joint venture

A

-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

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6
Q

What is another type of joint venture?

A

-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

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