Definition

Joint ventures

Joint ventures refer to commercial companies created and operated for the benefit of the co-owners; usually two or more separate companies that from the venture.

A joint venture is an entity created when two or more firms pool a portion of their resources to create a separate, jointly owned organization. An example is Beverage Partners Worldwide, which is a joint venture between Coca-Cola and Nestle that was created in 2001. The joint venture markets ready-to drink chilled teas based on green tea and black tea in more than 40 countries worldwide.

A common reason to form a joint venture is to gain access to a foreign market. In this cases, the joint venture typically consists of the firm trying to reach a foreign market and one or more local partners.

Share it:  Cite

More from this Section

  • Consortia
    ...
  • Modular organization
    An organization structured via outsourcing where the organization’s final product or ...
  • Retrenchment
    Cutting back on products, markets, operations because the firm’s overall competitive ...
  • High-high leader
    Research found that a leader who was high in both initiating structure and consideration ...
  • Decision criteria
    Criteria that define what’s important or relevant in resolving a problem, is called ...