MGCR 382 Lecture Notes - Lecture 7: Joint Venture, Strategic Alliance, Contract Manufacturer
Document Summary
Increasing levels of control as you go down the list. Wholly owned subsidiaries (fdi: acquisitions vs greenfield (starting from scratch; build new plant) Franchising, joint ventures, equity alliance, wholly owned subsidiary. 2 or more joint partners that own companies in different countries. May not realize experience curve or location economies suppliers. Shared ownership and divergent goals can lead to conflict. Utilize some of its existing production facilities. Gain insight in new technology and new industry. Take advantage of its brand name, design, marketing skills. Melia"s 49 leased hotels in partnership with tryp by. International licensing right to use ip for a specified duration: technology, brands, work methods, etc. Shanghai: host country partner may find fees higher than in franchising. Turnkey operations partner builds project and transfer operation ready entity to owner: used for construction of, potential disagreement infrastructure or new plant, refinery in host country over achievement of operational goals, potential host dissatisfaction if success.
