The use of Joint Ventures as a strategic tool for multinational companies

Bachelorarbeit , 2008 , 63 Seiten , Note: 1,0

BWL - Unternehmensführung, Management, Organisation

The dissertation covers the field of competitive collaboration by focusing on Joint Ventures. It identifies the strategic usefulness for multinational companies by evaluating critical success factors and pre-conditions. Due to increasing pressure from the business environment the trend of competitive collaboration has accelerated. In this context, Joint Ventures were identified as a potential field of investigation. The apparent contradiction of cooperating with a competitor evoked the discussion of potential risks. It was questionable whether
companies do so loose some of its sovereignty. This question created the incentive to identify essential requirements when forming a Joint Venture. By analysing the available literature, Joint Ventures were identified as a strategic tool for multinational companies to achieve competitive advantage. It was outlined that the risks that come along with competitive collaboration can be minimized if the preconditions of Joint Venture creation are considered adequately. Moreover, the analysis clarified the need for explicit responsibilities for each sub-process when forming a Joint Venture. The analysis of a specific case highlighted the essential learning potential from past cooperations in order to succeed over the long term.
Finally, the analysis showed that well structured and re-arranged measures leverage the benefits of competitive collaboration. It was identified, that a loss of sovereignty only occurs if the alliance is managed poorly. It was recommended that a three stage model, including the sub-processes “alliance
planning”, “partner selection” and “alliance structure and management”, should be implemented to generalise the process of alliance management. Moreover, setting a focus on strategic and cultural compatibility between the partners was evaluated as
being important to maintain the health of the alliance over the long term. The dissertation outlined that especially multinational companies, whose strategy considerably depends on alliance partners, should strive to institutionalise the
alliance management. Finally it was recommended, that gatekeepers should be implemented rather than abolished. A controlled flow of information and the importance of keeping each company’s ompetitive advantage were seen as being essential.

Inhaltsverzeichnis

• Introduction
• Aims
• Limitations
• Literature review of Strategic Alliances and Joint Ventures
• Choosing a partner – The collaboration with a competitor
• Principles for competitive collaboration
• Durability of the cooperation
• Outcome when collaborating with a competitor
• Strategic Alliances
• SAs as a strategy for multinational businesses
• Benefits of Strategic Alliances
• Costs and risks when forming a Strategic Alliance
• The need for a new management style
• Range of Strategic Alliances
• The role of Joint Ventures
• Structuring the Joint Venture for a multinational strategy
• The Joint Venture in a multinational perspective
• A definition of Joint Ventures
• The process of structuring a Joint Ventures
• The Joint Venture checklist
• Principles and reasons for Joint Venture creation
• Risks and costs of Joint Ventures
• Concluding JVS
• Methodology
• Research methods
• Case study: The Joint Venture between DaimlerChrysler and Mitsubishi
• The DaimlerChrysler and Mitsubishi Joint Venture
• The DaimlerChrysler and Mitsubishi Joint Venture – A critical analysis
• The DaimlerChrysler and Mitsubishi Joint Venture – A conclusion
• Conclusion
• Bibliography

Zielsetzung und Themenschwerpunkte

This dissertation explores the strategic use of Joint Ventures as a tool for multinational companies. It aims to identify the critical success factors and pre-conditions for successful Joint Ventures, while also examining the potential risks and challenges associated with this form of competitive collaboration. The dissertation analyzes the literature on Strategic Alliances and Joint Ventures, focusing on the specific context of multinational companies. It examines the benefits and drawbacks of collaborating with competitors, the importance of partner selection, and the need for effective alliance management.

• The strategic benefits of Joint Ventures for multinational companies
• The risks and challenges associated with competitive collaboration
• The critical success factors for successful Joint Venture formation and management
• The importance of partner selection and strategic compatibility
• The need for effective alliance management and institutionalization

Zusammenfassung der Kapitel

The introduction provides an overview of the dissertation's aims and scope. It outlines the research question and the key themes that will be explored. The literature review examines the concept of Strategic Alliances and Joint Ventures, focusing on their strategic relevance for multinational companies. It analyzes the benefits and risks of collaborating with competitors, the importance of partner selection, and the need for effective alliance management. The chapter also discusses the different types of Strategic Alliances and the role of Joint Ventures in a multinational context.

The methodology chapter outlines the research methods used in the dissertation. It explains the rationale for choosing a case study approach and the specific case study that was selected. The case study chapter provides a detailed analysis of the Joint Venture between DaimlerChrysler and Mitsubishi. It examines the historical context of the alliance, the strategic rationale behind its formation, and the key challenges and successes that the partners faced. The chapter also analyzes the impact of the alliance on both companies and draws conclusions about the lessons learned from this case study.

The conclusion summarizes the key findings of the dissertation and discusses the implications for multinational companies seeking to leverage Joint Ventures as a strategic tool. It highlights the importance of careful planning, partner selection, and effective alliance management for achieving success in competitive collaboration. The dissertation concludes by emphasizing the need for a strategic approach to Joint Ventures, recognizing that they can be a valuable tool for achieving competitive advantage but also require careful consideration and management.

Schlüsselwörter

The keywords and focus themes of the text include Joint Ventures, Strategic Alliances, multinational companies, competitive collaboration, partner selection, alliance management, strategic compatibility, and success factors. The dissertation explores the use of Joint Ventures as a strategic tool for multinational companies, examining the benefits, risks, and critical success factors associated with this form of collaboration. It emphasizes the importance of careful planning, partner selection, and effective alliance management for achieving success in competitive collaboration.

• Hochschule: Edinburgh Napier University (Edinburgh Napier University)
• Note: 1,0
• Autor: Volker Küpper (Autor:in)
• Erscheinungsjahr: 2008
• Seiten: 63
• Katalognummer: V127943
• ISBN (eBook): 9783640347643
• ISBN (Buch): 9783640347346
• Sprache: Englisch
• Schlagworte: Eli Lilly, Ranbaxy, Joint Venture, Collaboration, Strategic Alliance, Multinational company, Strategy, Organization