The
Definition Of

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:

More from this Section

  • Diagonal communication
    Diagonal communication is a communication that cuts across work areas and organizational levels. When a credit analyst communicates
  • Theory X
    Theory X is a negative view of people which assumes that employees dislike work, are lazy, avoid responsibility, and must be coerced to
  • Plans
    Plans are documents that outline how goals are going to be met. They usually include resource allocations, schedules, and other necessary .
  • Market Development
    Market development refers to identifying and developing new markets for its current products.
  • Effectiveness
    Effectiveness is often described as “doing the right things” – that is, doing those work activities that will help the organization reach its goals. For instance, at the HON factory
  • Threats
    A threats is a major unfavorable situation in a firms environment. Threats are key impediments to the firms current or desired position.
  • Divisional organizational structure
    Structure in which set of relatively autonomous units, or divisions, are governed by a central corporate office but where each operating divisions has its own functional specialists who provide products or services different from those of other divisions.