GBE#7

Joint ventures
Advantages: Both parties share risk and cost, Its temporary,  can be flexible by limiting commitment and exposure  
Disadvantages: Clash of cultures, restriction of outside projects while working on a venture project, A lot of research and planning is necessary
Wholly Owned Subsidiaries
Advantages: Simplified financial reporting, Parent company retains operational control, Speedy strategic decision making
Disadvantages: Paying too much for assets, establishing relationships with vendors takes time, cultural differences
Exporting
Advantages:  expanding of markets, larger economies of scale, can change existing products to suit new markets
Disadvantages:  can lose focus on your home market, managing more remote relationships, Administration costs may rise
Licensing
Advantages: Don’t need to spend on commercializing product, can get innovation to market faster, break into new markets
Disadvantages:  Loss of control of the process, risk of poor strategy execution, Poor quality management and damaging the product image
Turnkey Projects
Advantages: Less management work, Reduced project timelines, reduced cost overruns
Disadvantages: Limited client involvement, Budgets may be higher than necessary ( unpredictability in budget requirements

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