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

  • Team structure
    An organizational structure in which the entire organization is made up of work groups ...
  • Organizational development
    Organizational development (OD) is the term used to describe change methods that focus ...
  • Vision Statement of a Company
    a company vision statement is sometimes developed to express the aspirations of the executive ...
  • Active listening
    Active listening which is listening for full meaning without making premature judgments ...
  • Strengths
    A resource advantage relative to competitors and needs of the markets a firm serves or ...